Friday, September 17, 2021
CapitalPress.com 7
Deal struck on minimum Oregon hazelnut prices
By MATEUSZ PERKOWSKI
Capital Press
Oregon farmers will
receive at least 90 cents per
pound for kernel hazelnut
varieties grown in 2021, the
same guaranteed minimum
price as last year.
In-shell hazelnut variet-
ies, meanwhile, will fetch at
least 80 cents per pound for
this year’s crop — a boost
of 15 cents from last year’s
minimum price.
A deal on those mini-
mum prices was struck last
week between the Hazelnut
Growers Bargaining Associ-
ation and most processors of
the crop.
Large hazelnut yields
and currency fl uctuations in
Turkey, the world’s domi-
nant producer, have unset-
tled the market for kernel
varieties, said Larry George,
president of the George
Packing Co.
It remains to be seen what
the global price for kernels
will be for the 2021 crop, but
even with those risks, the
Oregon industry was confi -
dent in the 90 cent per pound
minimum, he said.
Prices for 2020 kernel
varieties ended up rising to
about 97 cents to $1.17 per
pound, George said. “At this
point, we’re optimistic it’s
going to be similar but that
market hasn’t developed.”
Increased Turkish pro-
duction and devalued Turk-
ish currency would tend to
weaken global prices for
hazelnuts, though Oregon
producers are generally able
to get a premium, he said.
The minimum price for
in-shell varieties went from
Mateusz Perkowski/Capital Press File
Hazelnuts are swept into rows in preparation for har-
vest. Growers will receive at least 90 cents per pound
for kernel varieties grown in 2021, while in-shell vari-
eties will fetch a minimum guaranteed price of 80 cents
per pound.
65 cents last year to 80 cents
this year because of reduced
tariff s on the crop in China,
George said.
The Trump administra-
tion reached a trade deal
with China on agricultural
commodities before leav-
ing offi ce, but many hazel-
nut importers didn’t qualify
for reduced tariff s until this
year, he said.
Because the vast major-
ity of importers will now be
paying 50% tariff s — down
from the previous 70% —
the industry was able to
guarantee a higher minimum
price, George said.
“Those in-shell nuts are
really dependent on the Chi-
nese market,” he said.
For both in-shell and ker-
nel varieties, disruptions
in the shipping industry
are a concern, George said.
Truckers and containers are
in short supply.
“Supply chains are the
big problem,” he said.
Farmers should see the
stability in minimum ker-
nel prices and the increased
in-shell prices as a “sign
of strength” for the state’s
hazelnut industry, said Terry
Ross, executive director of
the Hazelnut Growers Bar-
gaining Association.
“We’ve been quite resil-
ient during COVID times,”
he said.
The industry is expected
to harvest at least 62,000
tons of hazelnuts in Ore-
gon this year, which would
be similar to the 2020 crop,
Ross said.
The hope is that hazelnut
production will continue to
grow each year due to new
plantings, instead of cycling
between larger and smaller
harvests, as has historically
been the case, he said.
“We’re hoping growers
will continue to plant hazel-
nuts and see it as a worth-
while investment,” Ross
said.
As for the shipping trou-
bles facing the industry,
“it’s never easy,” he said.
“There’s always some-
thing lately that gums up the
works.”
Idaho ranchers push back on potential grazing lease rate increase
By SIERRA DAWN McCLAIN
Capital Press
BOISE — Many Idaho
ranchers and farm groups
are worried that the Idaho
Department of Lands may
soon increase its grazing
lease rate.
The proposal, accord-
ing to offi cials, would raise
the lease rate on public
lands in 2022 from $7.07
to $10.73 per animal unit
month, or AUM. That’s a
52% increase.
AUM is the amount of
forage needed by an “ani-
mal unit” — such as a bull
or cow-calf pair — grazing
for one month.
Experts estimate the
proposal would impact
about 800 ranchers and
1,100
grazing
leases.
Advocates say the pro-
posal would promote fair
market value; critics say it
would hurt farmers who are
already struggling through
this year’s drought.
The department pre-
sented a draft proposal to
Gov. Brad Little this sum-
mer. At the next meeting
Sept. 21, the department
will fi nalize its proposal.
Jason Laney, grazing, ag
and conservation leasing
program manager for the
department, said the agency
has been considering a new
grazing rate formula since
2012, with its most recent
push in 2018. If this pro-
posal passes, it would be
the fi rst time the formula
has changed since 1992.
The main reason the
department is developing
a new grazing fee, Laney
said, “is because the 1992
formula is likely not yield-
ing a fair market value for
our grazing leases.”
Advocates’ main argu-
ment is that grazing fees the
state charges are only about
a third of what private land-
owners charge. The grazing
fee rate for cattle on private
Idaho lands, according to
USDA’s latest report, was
$18.50 per AUM in 2020.
The new public grazing
rate will still only be about
60% of what private land-
owners charge.
SURVEY OPPORTUNITY
Idaho Farm Bureau Federation is putting together a survey to
submit to the Idaho Department of Lands showing average
expenses ranchers accrue grazing on public land. To be
considered statistically signifi cant by the department, the
survey will require at least 89 responses from Idaho ranchers
who have grazed on public lands. Farmers can participate
by calling 208-239-4271 or emailing Dexton Lake at dlake@
idahofb.org.
Carol Ryan Dumas/Capital Press File
The Idaho Department of Lands proposes to increase
the grazing lease rate on state land.
A precedent for higher
fees also exists in other
states. According to Laney
of the state Land Depart-
ment, several other West-
ern states have already
made changes to grazing
fees.
Montana, for exam-
ple, instituted a four-year
phase-in rate increase start-
ing in 2012. Montana’s
current rate is $13.41 per
AUM.
Ranchers, however, say
comparing public to pri-
vate lands is like compar-
ing apples to oranges.
“People claim that
because the proposal is
gonna be below the pri-
vate lease rate, that’s still a
great bargain. Well, no, it’s
not,” said Russ Hendricks,
director of governmental
aff airs at the Idaho Farm
Bureau Federation.
According to anecdotal
evidence, Hendricks said,
even before the proposed
increase, “it’s already more
expensive to graze on state
land than on private land.”
Hendricks
compared
leasing private land to rent-
ing a furnished apartment
and leasing public land
to renting an unfurnished
apartment.
On public state lands,
according to Hendricks,
ranchers are responsible
for buying materials, build-
ing fences and corrals, pro-
viding noxious weed con-
trol, hauling animals,
installing water infrastruc-
ture and making repairs. On
private land, in contrast, the
landlord is typically respon-
sible for improvements.
Another hidden cost
to grazing on public land,
Hendricks said, is preda-
tory pressure. Public lands
are more likely to be in far-
fl ung places where live-
stock deaths from predators,
including wolves, are more
common. Coyotes, too, can
harass animals, leaving them
stressed so they don’t put on
as much weight. In Northern
Idaho, ranchers even deal
with grizzly bears.
Idaho Farm Bureau the
next few weeks is collect-
ing survey answers from
farmers to submit to Idaho
Department of Lands in an
eff ort to ensure the depart-
ment has accurate data
while deliberating about the
proposal.
USDA expands feed
hauling assistance
Capital Press
USDA is expanding the
Emergency Assistance for
Livestock, Honey Bees and
Farm-raised Fish Program to
cover the cost of feed trans-
portation for drought-im-
pacted producers.
The action is in response
to the severe drought condi-
tions in the West and Great
Plains.
ELAP already covers the
cost of hauling water during
drought, and this change will
expand the program begin-
ning in 2021 to cover feed
transportation costs where
grazing and hay resources
have been depleted.
This assistance applies to
places where drought inten-
sity is D2 for eight consec-
utive weeks as indicated by
the U.S. Drought Monitor,
drought intensity is D3 or
greater or USDA has deter-
mined a shortage of local or
regional feed availability.
Cost share assistance will
also be made available to
cover eligible costs of treat-
ing hay or feed to prevent
the spread of invasive pests
like fi re ants.
Eligible ranchers will
be reimbursed 60% of feed
transportation costs above
what would have been
incurred in a normal year.
Producers qualifying as
underserved will be reim-
bursed for 90% of the feed
transportation cost above
what would have been
incurred in a normal year.
A national cost formula,
as established by USDA,
will be used to determine
reimbursement costs, which
will not include the fi rst 25
miles and distances exceed-
ing 1,000 transportation
miles.
The calculation will also
exclude the normal cost
to transport hay or feed if
the producer normally pur-
chases some feed. For 2021,
the initial cost formula of
$6.60 per mile will be used
but may be adjusted on a
state or regional basis.
To be eligible for ELAP
assistance, livestock must be
intended for grazing and pro-
ducers must have incurred
feed transportation costs on
or after Jan. 1, 2021.
Although
producers
will self-certify losses and
expenses, they are encour-
aged to maintain good
records and retain receipts
and related documentation
in the event these documents
are requested for review
by the local Farm Service
Agency county committee.
The deadline to fi le an
application for payment for
the 2021 program year is
Jan. 31, 2022.
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