Page 12A
OFF PAGE ONE
East Oregonian
Saturday, March 31, 2018
FARMERS: ‘We’ll figure these trade deals out. It’s a bump in the road’
critical to the folks out
there,” Sorte said. “How
these things play out, you
never can tell.”
Continued from 1A
and the post office was
forced to cut back hours. The
Helix Market & Pub nearly
suffered the same fate until
Wood and four others bought
the place in 2006 just to keep
it open — it was cheaper than
paying their tabs, he quipped.
The
Watering
Hole
Consortium, as they called
themselves, has since passed
the pub along to Anna
Doherty, who has kept it
running.
“The concern we all had
was if that place closes, it
ain’t opening again,” Wood
said.
Helix has historically
depended on agriculture,
yet Wood estimates that half
his neighbors are no longer
farming. The return on
investment is no better than
2 percent, he figures. So,
instead of having 10 guys
farming 2,000 acres, he said
two guys are now farming
10,000 acres.
That
observation
is
backed up by data from
the USDA. A recent report
from the agency’s Economic
Research Service shows that
farm production has been
trending toward consoli-
dation over the last three
decades. By 2012, 36 percent
of all cropland was on farms
with at least 2,000 acres, up
from 15 percent in 1987.
Consolidation
means
fewer people to invest in the
community, Wood said.
“It’s just been a shift in
the economy,” he said.
Eric Orem, a wheat farmer
north of Lexington, sees a
similar story. Orem serves
on the board of directors
for Morrow County Grain
Growers, the local farmers’
cooperative.
Between
drought-stunted yields and
increasing trade uncertainty,
he said the co-op is experi-
encing some lean years in
product and equipment sales.
In turn, the co-op — while
still profitable — has less
money to support commu-
nity-based
organizations
like FFA or Little League
Baseball.
“It’s a ripple effect, for
Staff photos by E.J. Harris
Owner Anna Doherty, right, gives change to customer Chris Gibson on Friday at the Helix Market & Pub.
sure,” Orem said. “It’s defi-
nitely a reflection of what’s
happening on the farms.”
Exports crucial
Exports remain crucial
to wheat growers to turn
a profit. Umatilla and
Morrow counties rank first
and second, respectively, in
statewide production as of
the most recent 2012 Census
of Agriculture. Combined,
they total roughly 395,000
wheat acres.
With the U.S. out of the
latest TPP agreement, state
and national wheat industry
groups sent a letter to Trade
Representative
Robert
Lighthizer, urging President
Donald Trump to reconsider.
“The
President
has
promised to negotiate great
new deals,” the letter reads.
“American agriculture now
counts on that promise and
American wheat farmers —
facing a calamity they would
be hard-pressed to overcome
a close eye on NAFTA
negotiations, and possible
retaliation against U.S. agri-
culture based on new steel
and aluminum import tariffs.
“It’s not a good time,”
Rowe said. “I think folks are
being cautious, not knowing
where this is going to end
up.”
Dryland wheat is the still
the major agricultural crop
for many communities in the
dry, arid climate of Eastern
Oregon. Without access to
irrigation water, there are not
many viable alternatives.
“I’m not really sure how
communities will absorb
those hits,” Rowe said.
Bruce Sorte, community
economist for Oregon State
University Extension in
Eastern Oregon, said wheat
isn’t the only commodity that
may be affected. Fruit also
depends on exports, along
with processed potatoes and
onions.
“Those exports are just
Kuper Bracher, 12, loads a trailer with a soft white
wheat from a bank-out wagon in July 2017 in a field
outside of Helix.
— now depend on it.”
Wood said the last thing
the wheat industry needs
is to jeopardize any kind of
international trade. Orem
said that, while he does not
believe U.S. wheat will
ever truly lose the Japanese
market, the latest develop-
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ments are “troubling” and
“disheartening.”
Blake Rowe, CEO of
the Oregon Wheat Growers
League and Oregon Wheat
Commission, echoed the
farmers’ sentiments. In
addition to TPP, Rowe said
the organization is keeping
Job diversification
Steve
Chrisman,
economic development and
airport manager for the city
of Pendleton, said the local
job base has grown more
diverse over the last couple
of decades, which has helped
insulate the community
against impacts to a single
business — namely agricul-
ture.
“If wheat is not going to
do well, it’s not good for the
city. But it doesn’t cripple it,
either,” Chrisman said.
Chrisman pointed to
Wildhorse Resort & Casino,
Keystone RV and Interpath
Laboratory as examples of
large employers outside the
farm sector. Another recent
development that has him
excited is the development
of the Pendleton Unmanned
Aerial Systems Range,
which he said is beginning
to add full-time permanent
jobs.
Pat Beard, who manages
the Pendleton Convention
Center, added summer
tourism as another economic
driver for the city.
Beard said he knows,
living in a very agricul-
ture-oriented area, the price
of commodities will always
affect the community. But as
the economy diversifies, it is
not as devastating a blow as
it would have been 50 years
ago.
“While it’s challenging
times, it’s part of the life-
style,” Beard said.
That lifestyle is what
keeps farmers like Wood and
Orem working through the
tough times.
“It’s what we do. It’s what
we know,” Wood said.
Orem said he is still
optimistic for the future, and
believes the battle-tested
wheat economy will ulti-
mately prevail.
“We’ve been through
tough times before,” Orem
said. “We’ll figure these
trade deals out. It’s a bump
in the road right now.”
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