THE BAKER COUNTY PRESS — 3
FRIDAY, SEPTEMBER 2, 2016
Business & Ag
City of Sumpter talks pot
Friday, August 26, 2016 — Eastern Oregon
BY MEGHAN ANDERSCH
Prices trended generally steady compared to week
ago prices. Most demand lays with the retail/stable
hay. According to some producers, horse owners
are starting to prefer lower sugar, higher protein
hay. Many hay producers are selling or have
already sold most of their first and second cutting
hay, and are working on later cutting(s) resulting in
higher volumes of hay moving.
Meghan@TheBakerCountyPress.com
Shawn McKay met
with residents of Sumpter
Wednesday evening, Au-
gust 24 at Volunteer Park
to answer questions related
to proposed marijuana
businesses.
McKay describes him-
self as an industry expert
and consultant.
Both parties who have
expressed interest in open-
ing a marijuana business in
Sumpter were also present.
Common themes were
security, parking con-
cerns, and what exactly
the proposed 3% tax to be
collected by the City could
be used for.
McKay stated he asked
the Oregon Department of
Revenue how the 17% tax
currently collected by the
State will be used.
After covering the cost
for administration and
Oregon Liquor Control
Commission (OLCC)
implementation costs, 40%
of the remainder will go
to the Common School
Fund, 20% to an account
for mental health, alcohol,
and drug services, 15% to
State Police, 10% to city
law enforcement agencies,
and 10% to county law
enforcement.
According to the Rec-
reational Marijuana
Frequently Asked Ques-
tions page at oregon.gov,
Oregon Health Authority
will also receive 5% for
alcohol and drug abuse
prevention.
The 3% tax that can
potentially be collected
by cities is designated
for safety operations, but
exactly what that means is
quite vague. John Young
asked if public safety
includes the Fire Depart-
ment.
McKay reported that
several changes are taking
place in the 2017 legisla-
tive session to give cities
more leeway in spending
the funds.
McKay stated he is able
to cite the statistic that
generally when marijuana
businesses come to town,
the crime rate goes down
due to enhanced security.
He said that within the
last 15 days in Huntington,
a bunch of graffiti ap-
peared, including on cars,
landmarks, and his fence.
Cameras at the dispensary
ultimately recorded and led
to the identification of the
individual.
McKay stated that the La
Grande medical dispensary
had one break in within
a few weeks of opening.
Windows were broken
and couple of sodas were
taken.
Again, cameras captured
everything and the perpe-
trators were caught within
about two days. McKay
concluded, “You can’t fix
stupid people and they’re
out there.”
A concern for the local
State Park was mentioned.
McKay said marijuana
business customers won’t
be hanging out unless it’s
to patronize other local
businesses. He stated,
“They’re not just going to
sit and smoke in their cars,
I can assure you.” He said
the State Park near Hun-
tington did have a few is-
sues early on, but the State
police got on it within a
couple of days. McKay
explained the dispensary
also provides literature on
responsible use. Just like
alcohol, marijuana cannot
be consumed on the street.
Regarding law enforce-
— Weekly Hay Report —
Tons Price Range Wtd Avg
Alfalfa — Large Square Premium
1000 100.00-100.00 100.00
USDA Market News Service—AMS.USDA.gov
— Cattle Market Report —
Wednesday, August 24, 2016
Vale, Oregon
Cattle sold through the auction: 316
Meghan Andersch / The Baker County Press
Shawn McKay addresses assembled Sumpter citizens.
ment presence, McKay
stated when marijuana
businesses go in, police
presence increases.
There was some dis-
cussion of Huntington’s
system.
For years, even be-
fore the marijuana store
opened, the City paid a
deputy to spend 20 hours a
week there.
Julie McKinney stated
tax revenue for Huntington
in the first five months of
the marijuana business
would have been $35,000,
had they been collecting
it. There would potentially
be dollars for Sumpter to
pay for additional security
measures, if circumstances
warranted.
McKay stated the secu-
rity required for a marijua-
na business is “pretty over
the top,” including cameras
and panic buttons for the
employees. He stated his
wife works at a bank, and
the security required at the
marijuana businesses is
“about three levels” above
what is required at the
bank. Everything that hap-
pens within 50 feet of the
business will be captured
on camera.
Cameras run 24 hours
a day, 7 days a week and
can record in zero light and
extreme temperature varia-
tions. Camera footage will
go back 30 days.
Everything is recorded
to an outside server and
has backups, so even if
power is cut, everything is
still recorded. A vault is
also required and a limited
amount of product is al-
lowed on the premises.
Several people men-
tioned increased traffic and
limited parking as potential
concerns.
McKay stated a Satur-
day morning in Hunting-
ton sees 50-60 cars, but
Sumpter would not have
the same volume. He esti-
mated a busy Saturday in
Sumpter would see about
25 cars, and not all at the
same time.
He stated before opening
a marijuana business, the
best place would have to
be determined for overflow
parking that would cause
the least disruption to the
town.
Myrna Clarke comment-
ed there will be increased
traffic by virtue of most
small towns in Eastern
Oregon opting out of al-
lowing marijuana. There
was discussion of John
Day starting their own
indoor operation, using
their recycled wastewater.
Hines will also be starting
an indoor operation in the
old lumber mill.
As to questions of op-
erating hours and number
of marijuana businesses
that will be allowed in
town, McKinney explained
work is ongoing on a City
ordinance to set forth the
time, place, and manner of
allowable business.
Drafts of the proposed
ordinance were made
available at August’s City
Council meeting.
Mick Allen commented
that it would be nice to
have a source of medical
marijuana that does not en-
tail driving long distances
or enlisting the services of
“black market” dealers.
McKay pointed out
that something Oregon is
doing that is different than
Colorado or Washington is
taking the same approach
with recreational as medi-
cal marijuana.
All recreational mari-
juana sold at a dispensary
will have been tested and
guaranteed to be a good
product.
Having the product test-
ed ensures that someone
who wants to try marijuana
as an alternative medicine
can go into a recreational
dispensary and buy a safe
product.
McKay also outlined
the Seed to Sale process
required by OLCC. Every
plant receives a barcode ID
tag once it reaches 8” in
height.
That barcode follows the
plant through harvest, with
samples from the harvest
batch sent to the lab, and
to the dispensary where it
is sold.
At every step of the way,
OLCC knows where the
product is at, and every bit
of product is accounted for
at all times. The OLCC
does not want untested, un-
regulated product making
it into the market.
Clarke stated everyone
should educate themselves
and suggested checking
marijuana.org or mari-
juana.gov. McKay agreed
education is “your best
friend.”
McKay stated that in
general, the city will see
far more good than bad
with the opening of these
businesses and that mari-
juana users are “generally
not a very crime-oriented
bunch, especially in East-
ern Oregon.”
He said marijuana is
the next industry on track
to replace the logging
industry. It is on track to
surpass wine grapes and
cattle this year. The only
commodity marijuana is
not outdoing is nursery
crops, and McKay stated
it may yet surpass them by
the end of the year.
Second quarter taxes
through the end of June
brought in $39 million in
revenue from marijuana
sales, which is three times
what was expected. $65
million is expected by the
end of the year.
McKay stated a real es-
tate appraiser in Hunting-
ton says property values
are up 10-15% in the last
three months. McKinney
stated there are no rentals
or properties available in
town.
Carey Clarke stated he
spoke with a Councilor
in Huntington who had a
different story. McKay
responded that he had just
met with the individual and
thinks that his response
would be different now.
He asked Clarke to please
talk with him again.
McKay concluded
that the industry is likely
coming to Sumpter and
urged citizens that when
the opportunity comes to
implement the 3% sales tax
as placed on November’s
ballot. “Don’t miss the
opportunity just because
you’re against the indus-
try,” he said.
He said it would be a
much more productive
conversation to decide how
to spend the money than to
be mad about the business
and not get the money.
Steer Calves
300-400# Bulk 147.00 - 158.00 Top 161.00
400-500# Bulk 143.00 - 151.00 Top 156.00
500-600# Bulk 132.00 - 143.00 Top 144.00
Heifer Calves
300-400# Bulk 127.00 - 139.00 Top 146.50
400-500# Bulk N/A Top N/A
500-600# Bulk N/A Top N/A
600-700#
700-800#
800-900#
900-1,000#
Yearling Steers
Bulk 132.00 - 139.00 Top 142.50
Bulk 123.00 - 138.00 Top 138.50
Bulk 121.00 - 129.00 Top 132.00
Bulk 116.00 - 121.00 Top 122.50
Yearling Heifers
600-700# Bulk N/A Top N/A
700-800# Bulk 117.00 - 122.00 Top 123.00
800-900# Bulk 113.00 - 121.00 Top 124.75
900-1,000# Bulk N/A Top N/A
Thin Shelly Cows 52.00 - 62.00
Butcher Cows 65.00 - 74.00
Butcher Bulls 69.00 - 83.00
Pairs Young N/A
Hfretts. N/A
Stock Cows Young - N/A
ProducersLivestock.com
541-473-3136
— Log Price Report —
Price per 1,000 board feet: Northeast Oregon
Currently the local log market is flooded with
fire salvage logs. The log buyer for Malheur
Lumber Co. stated they have all the logs they
need under contract and are not accepting any
new purchases. BCC/LLC of La Grande has
receive so many burned fire salvage logs they
are no longer accepting logs at the La Grande
log yard. Any additional pine logs have to be
delivered to the Elgin Log yard cut in plywood
lengths and to a 8 inch top. For these pine
logs cut in plywood lengths, BCC is offering
$280.00/mbf. They are also paying $420.00/
mbf for Doug Fir & Western Larch. For White
Fir they are offing $325.00/mbf. At the Pilot
Rock Saw Mill BCC is offing $360.00/mbf for a
12 to 15 inch top, for 16 to 19 inch top $400.00/
mbf & offing $425.00/mbf for 20 inch plus top
Courtesy of Arvid Andersen,
Andersen Forestry Consulting
— Precious Metals Report —
Price per ounce, USD
Gold: $1,312.60
Silver: $18.52
Platinum: $1051.95
Palladium: $672.05
Bloomberg.com
— Ag Commodities —
Corn: $315.50/bu/USD
Wheat: $388.25/bu/USD
Soybeans: $943.25/bu/USD
Oats: $176.75 bu/USD
Rough Rice: $9.43/cwt/USD
Canola: $458.20 CAD/mwt
Live Cattle: $106.20/lb./USD
Feeder Cattle: $138.35/lb./USD
Lean Hogs: $62.85/lb./USD
Bloomberg.com