|
|
|
 |
|
Home / Washington Business - November/December 2005 / Industry Profile - Washington Agriculture: A Growing Problem |
|
|
|
 |
|
|
|
Industry Profile - Washington Agriculture: A Growing Problem |
|
|
|
Written On: November/December 2005 |
|
|
|
Written By: by Daniel Brunell |
|
|
|
Napoleon said that an army marches on its stomach. To paraphrase the little fellow in a broader context, societies march on their stomachs.
Think of it this way. One of the secrets behind the United States since its inception has been the large amount of surplus agriculture. This has been the basis of local, domestic and international trade for centuries. Without this ample supply we would never have been able to feed our ever-growing population, prosper as an economic power, and help provide opportunity to the once hungry and meek. America was built on strong agriculture. This is just as true today as at anytime in the past.
Within the United States, Washington’s agricultural juggernaut stands out in the strong and competitive international agriculture market. Washington has many things working in its favor. We have an ample supply of rainfall west of the Cascades and water from two major river systems for irrigation east of the mountains. The soils on both sides of the state are rich and varied, able to support a wide variety of plants. Finally, through the blessings of geography, Washington is close to enough major foreign markets to be able to sell its’ products fresh to Pacific Rim nations.
For all of these natural conveniences, our prosperous agriculture industry is under ever increasing pressures. The international trade that has brought so much has become a more competitive marketplace. More countries are producing agricultural goods and are able to get them to U.S. markets through rapid transportation systems such as global air freight.
One of the causalities of this new global competitiveness was Washington’s asparagus industry. At one time, the Dayton plant canned nearly half the world’s asparagus. However, the plant closed last year. Producing canned asparagus in Dayton became just too expensive.
"Washington has some of the most stringent labor and environmental laws in the nation," said Dan Fazio of the Washington State Farm Bureau. "These regressive regulations not only bring heartache, but additional costs which make it harder for farmers in Washington."
Our farmers have a harder time because it is so expensive to operate in this state. Washington currently has the highest minimum wage and the highest unemployment insurance costs in the nation. What has made us so competitive is the fact that because we are close enough to major markets; we can sell our products fresh. However, with better transportation and growing international competitiveness in agriculture, Washington’s farmers can no longer bear these costs and survive. Yet, regulatory costs are not the only life-and-death problem facing agriculture.
In eastern Washington, the lifeblood of the industry is water. Most of the land in the region was sage-covered desert until the great work projects of the 20th century created huge impoundments behind a series of dams on the Columbia and Snake rivers. Water from these reservoirs has turned the ground into some of the most productive acreage in the world.
The water creates controversy over who can use it. A controversial issue, water rights has caused fights between farmers, power interests, Native Americans, sport and commercial fishermen, environmentalists, politicians, lawyers, and scientists. All are fighting a three-way battle promoting more water for electrical turbines, or for fish, or for farms.
One of the major complaints of farmers is the way water rights are allocated and used. As it stands now, water rights are issued on a first-come, first-serve basis for a specified amount. If you use less than that amount for more than five years, you lose your right to that water. After one loses a water right, it is almost impossible to regain it. A tangled a jungle of regulations, mandates and responses to reactionary environmentalists conspire against anyone wanting a water right. Washington has not awarded a new water right since 1994.
"We need radical water rights reforms in this state," said Jim Hazen, executive director of the Washington State Horticultural Association. "As it stands now, growers are punished for conserving water."
However, the fight over water has been pushed aside by a new and more dangerous problem—increased energy costs. The rising price of fuel has caused widespread problems, especially in the wheat-growing areas. Wheat markets have fallen by 50 cents a bushel from last fall and costs to ship to market have risen. Off-road diesel in Whitman County, used by growers to power the equipment, has increased from $1.36 a gallon to $2.49 in the past year alone. If this trend continues, the price of a gallon of fuel will be more thn a bushel of grain.
"I’ve heard that observation from many veteran agricultural people," said Alex McGregor, president of the McGregor Company. The McGregor family has been working out of Colfax for more than 120 years and owns one of the largest fertilizer dealerships in the Northwest. "It has happened before in the bleakest years of the Great Depression when my family sold its wheat for 24 cents. We kept the horses and mules a few more years then and let the tractor sit. We don’t have that option today."
It’s not only fuel prices. Nitrogen used in fertilizer to replenish the soil is made from atmospheric nitrogen stabilized with hydrogen from natural gas. Nitrogen prices spiked an unprecedented $95/ton—up almost 20 percent—within a week of Hurricane Katrina ravaging the petroleum-rich Gulf Coast. Initial estimates suggest this will add $50 million to the cost of fertilizer for Washington’s farmers in the coming year.
With all these problems, agriculture is worth saving. It is the life blood of eastern Washington. Yet, we cannot be stuck in the old imagery of farms. After all they are businesses too. They need, like all of us, a good economy to survive. If we are not constantly vigilant to their needs, we might face a day when China is sending apples to Washington instead of vice versa.
|
|
|
|
|
 |
|
