Harvest prognosis fair despite 'huge' fuel impact
Costs up across board, some crops fare better than others
COLUMBIA BASIN — Reports from representatives within the agriculture industry are painting a positive picture of this year's harvest season, but growers are feeling the price of fuel.
"Huge," Grant County Farm Bureau president John Bates said with a grim laugh when asked what kind of impact those prices are having. He listed some of the areas that have been impacted, including the cost to move his product, the price of fertilizer and the price of twine.
"That's going to be the downside," Bates said. "Even though some things have done well, costs went up and ate it all up."
Overall, though, Bates said he thinks it's been a "fairly decent season" as far as quality and tonnage, depending upon the crop.
Washington State Potato Commission executive director Chris Voigt said the harvest is mostly wrapped up, although some growers harvest into the middle of November. Reports on the season are all over the board, he said, with some drawing high yields and others reporting below average. Voigt estimates that when all is said and done, the potato season will come out on average in yields and quality.
"No record breakers but no big heartbreaks, either," he said, noting that the majority of most products grown in the area are on a contract basis.
Prices for potatoes that are not yet contracted will probably lead to a good year.
"And we're due a good year," Voigt continued. "It's been several years since we've had one — it's been a lot of break-even and money-losing years, so we're finally getting a year where I think growers can make some money. They'll make some money on their contracts because they've got a decent crop, but the real money will be if they have any open potatoes that they can sell on the open market."
Fuel prices are eating into the bottom line, Voigt said, noting that the potato industry is quite mechanized. The prices growers are getting are not keeping up with the rising cost of fuel and fertilizers.
"It makes people pay more attention to what they are doing," he said. "Instead of just running a tractor out there to get a job done, they really evaluate it now. 'I've got 50 weeds out there, do I need to pull a cultivator to control those 50 weeds or can I just let those 50 weeds grow, because it's costing money?'"
Allen Floyd reiterated that potato qualities and yields are good.
Floyd, general manager at Harvest Fresh Produce, Inc., in Othello and WSPC commissioner, added that prices are favorable compared to a year ago, thanks to efforts by United Fresh Growers of America. Each state has an individual group that's a member of United of America, and United Fresh Growers of Washington and Oregon have helped control the number of acres available and coordinate future planning with good information, Floyd said, as opposed to guessing.
Those efforts began last year, with United Growers of Washington forming in March earlier this year. The organization represents about 70 to 80 percent of fresh potato growers, Floyd said.
"It's my hope that all the growers remember what happens when we over plant, and try to hold our planning to December of this year, so that we all have a good chance at a good price next year," he said. "Everybody needs to curtail their planting, hold it in line and not get greedy. If we do (get greedy), we're right back where we were."
Floyd added that growers cannot pass the price of fuel on to their buyers, and competitors in states like Colorado, Idaho and Wisconsin that are located closer to buyers have the advantage.
"We have an advantage over them because we can raise extra tonnage," Floyd noted. "The only thing that keeps Washington viable in the fresh industry is the fact that we have such a long growing season."
In addition to fuel costs, Floyd added that demand has been hurt by hurricanes, in the areas where users of the larger potatoes grown in the area reside.
Dan Kelly, assistant manager with the Wenatchee-based Washington Growers Clearing House, which primarily deals with such tree fruit as apples, pears and cherries, said that the impact of fuel prices is no different for growers than it is for the average person, other than the fact that growers are using more fuel, so there is a bigger effect.
But while the cost has increased, Kelly added, the harvest has not slowed down. The size and quality of the fruit, and the size of the overall crop, are very good, he said.
"It looks like it's going to be a manageable crop," he said. "Things are moving along well, and prices maintaining at a reasonable level."
But Kelly said some labor issues have arisen.
"(Growers are) not getting enough pickers in a number of different areas," he said, noting that they have had to extend their picking by several days due to the lack of extra labor.
Rebecca Baerveldt, export marketing manager for the Washington Apple Commission, said that the fruit is sizing up smaller, after it was larger last year. Larger fruit is more difficult to sell on the domestic market, she explained.
The apple harvest season typically runs until November, Baerveldt said.
"We're down from the record volume that we had last year, but we're still at roughly 90 million boxes," she said.
The wheat harvest typically concludes around Labor Day, and doesn't appear to have fared as well.
Jeff Emtman, president of the Washington Association of Wheat Growers, said that winter wheat's season was probably average to above average, while spring wheat was below average to average, due to a dry spring and some areas that did not get much moisture. Wheat also felt the heat from the price of fuel.
"I wish I had optimistic news," Emtman said. "Between the price of soft white and the price of fuel and fertilizer, wheat isn't very optimistic right now."