Enterprise Magazine Spring 2022

Economic Development in Oregon’s Mid-Willamette Valley

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How the Willamette Valley’s Ag Industry Adapts and Thrives in the Midst of Global Supply Chain Choas

Spring 2022

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Spring 2022 Features 8

When A Supply Chain Crisis Hits Home

In this Issue 2

SEDCOR Board and Staff

3

SEDCOR Celebrates 40 Years Creating Opportunity President’s Message by Erik Andersson

4

6

BioAg...................................................................................17 Bank of the Pacific............................................................19 Cascade Collections.........................................................21 Chemeketa College..........................................Back Cover Cherriots.............................................................................17 Citizens Bank ��������������������������������������������������������������������16 City of Salem ���������������������������������������������������������������������25 Coldwell Banker Commercial.........................................21 Covanta Marion................................................................17 Datavision...........................................................................17

Quick Hits

Dalke Construction Co. ��������������������������������������������������23

Ascentic Engineering LLC • McMinnville Economic Development Partnership Saalfeld Griggs PC

EnergyTrust of Oregon ����������������������������������������������������� 5

New Members Perlo Construction • A-dec Reliable Creative Solutions Niedermeyer Risk Management

11 Venture Catalysts Bring It All Together 12 Interview Mallory Phelan of Oregon Aglink

18 Insights from OMEP The Power of A Continuous Improvement Business Philosophy

by Jude Gerace

20 Insights from Chemeketa Community College Chemeketa Unveils Agriculture Hub

by Tim Ray, MS

22 County News YAMHILL - Commissioner Lindsay Berschauer MARION - Comissioner Colm Willis POLK - Commissioner Craig Pope

27 Region of Innovators Purlin Mill • West Valley Community Campus

SEDCOR Enterprise Means More Business Ad info: 541-944-2820 sedcor@mtangelpub.com www.sedcor.com

Grand Hotel of Salem......................................................23 Green Acres Landscape ��������������������������������������������������14 Hancock Real Estate........................................................24 Huggins Insurance............................................................10 LS Networks.......................................................................27 MAPS Credit Union..........................................................11 Multi/Tech Engineering Services..................................28 Oregon Cascade Plumbing & Heating.........................15 Oregon Community Foundation..................................... 7 Pacific Power.....................................................................19 Pfeifer Roofing..................................................................26 Powell Banz Valuation.....................................................13 Power Fleet Commercial Sales......................................12 Rich Duncan Construction ��������������������������������������������25 Salem Contractors Exchange.........................................23 Salem Convention Center..................Inside Front Cover Santiam Hospital.................................. Inisde Back Cover Select Impressions ������������������������������������������������������������� 3 Sherman Sherman Johnnie & Hoyt, LLP ��������������������19 SVN Commercial Advisors..............................................25 SwiftCare Medical Clinic.................................................15 White Oak Construction ������������������������������������������������21

Mt. Angel Publishing, Inc.

Mt. Angel Publishing is proud to work with SEDCOR to produce Enterprise.

To advertise in the next issue, contact Jerry Stevens: 541-944-2820 SEDCOR@mtangelpub.com Enterprise Spring 2022 1

SEDCOR Staff Erik Andersson

Executive Council Chair Michael Fowler CEO, CabDoor

Vice-Chair Mike Keane

Shareholder and Managing Officer, Garrett Hemann Robertson

Treasurer Ryan Allbritton

SVP, Chief Banking Officer, Willamette Valley Bank

Past Chair Daryl Knox

Rich Duncan President, Rich Duncan Construction, Inc.

Mark Hoyt

Interim City Manager, City of Salem

Kate Schwarzler

Owner, Indy Commons

Colm Willis

County Commissioner, Marion County Board of Commissioners

Jonathan Avery

Jennifer Larsen Morrow

Roxanne Beltz

City Councilor, City of Monmouth

Chuck Bennett

Mayor, City of Salem

Becky Berger

Owner and CEO, Berger International

Lindsay Berschauer

County Commissioner, Yamhill County

Alan Blood

General Manager, Garmin AT, Inc.

David Briggs

Trial Lawyer, Partner, Saalfeld Griggs PC

Patricia Callihan Bowman

Owner/Career Coach, Express Employment Professionals

Cathy Clark

Mayor, City of Keizer

Cooper Whitman

Director of Operations jkistler@sedcor.com

Jamie Johnk

President, Don Pancho Authentic Mexican Foods, Inc.

Jenni Kistler 503-588-6225

Curt Arthur

Ricardo Baez

eandersson@sedcor.com

Kristin Retherford

Board of Directors

Regional President, Legacy Silverton Medical Center

503-837-1800

Partner, Sherman Sherman Johnnie & Hoyt, LLP

CPA, Partner, Aldrich Group

Managing Director, SVN Commercial Advisors

President

Economic Development Director, City of Woodburn President, Creative Company, Inc.

Rod Lucas

Nick Harville

Store Manager, Umpqua Bank

Marion County Business Retention & Expansion Manager

Timothy Murphy

503-837-1804

Owner, Turner Lumber, Inc.

David Mercer

VP of Operations, DCI

Eric Nelson

nharville@sedcor.com

Area Manager - Willamette Valley, BBSI

Kim Parker-Llerenas

Executive Director, Willamette Workforce Partnership

James Parr

Chief Financial Officer, Salem Health

Craig Pope

County Commissioner, Polk County

Jim Rasmussen

President/CEO, Modern Building Systems

Mark Raum

VP, Commercial Banking Officer, Columbia Bank

Alex Paraskevas Rural Innovation Catalyst Polk County Business Retention & Expansion Manager 503-837-1803 alexp@sedcor.com

Connor Reiten

Government Affairs, NW Natural

Regional Business Manager Pacific Power

Rick Rogers

Abisha Stone

Alan Costic

Tony Schacher

Yamhill County Business Retention and Expansion Manager

President, AC + Co Architecture | Community

Richard Day

Mayor, City of Newberg General Manager, Salem Electric

Scott Snyder

Owner/Manager, Advantage holdings llc

General Manager, The Grand Hotel in Salem

503-507-4175

Brent DeHart

Dave Takata

astone@sedcor.com

President, Salem Aviation

Amy Doerfler

Secretary/Treasurer, Doerfler Farms, Inc.

Theresa Haskins

SVP, Commercial Team Lead, Willamette Community Bank

Kathy Tate

CEO, Online NW

Senior Business Development Manager, Portland General Electric

Dan Ulven

Michael Miller

Jessica Howard

Jenna Van Meter

Marketing and Communications Coordinator

President/CEO, Chemeketa Community College

President, The Ulven Companies Brand Experience Specialist, Crosby Hops

George Jennings

Counsel to the President, Mountain West Investment Corporation

503-588-6225 mmiller@sedcor.com

626 High Street NE, Suite 200 • Salem, OR 97301 503-588-6225 • info@sedcor.com • www.sedcor.com

2 Enterprise Spring 2022

Local Ag Supply Chain and The Global Economy

SEDCOR Celebrates 40 Years Creating Opportunity This is the first edition of Enterprise magazine in 2022, which means it is the first publication of our 40th year as an economic development organization. Happy Birthday to us!

Both our region and our organization have seen significant growth since SEDCOR began in 1982. At the time, we were called the Salem Economic Development Corporation and, as the name would suggest, we were primarily focused on projects in Salem. Now, as the Strategic Economic Development Corporation of the Mid-Willamette Valley, we have a more regional perspective.

As we moved beyond the capitol city limits, the importance of agriculture became abundantly clear.

Several years ago, SEDCOR began offering our Ag Breakfasts as a way to reach out farmers and related businesses with topic of importance to them. These events were also learning opportunities for us, to help better understand the challenges our growers face, and ways we could support them. Over the last few years, we have recognized that agriculture touches many other industries, from processors to equipment manufacturers. We began to tell the story of our regional economy in a new way, using videos to illustrate Erik Andersson the variety of industries that work together to get that bottle of wine to your favorite restaurant or that keg SEDCOR President of beer to your neighborhood watering hole. And I would also like to say that we had picked up on this “ag supply chain” terminology well before you started hearing it in every other national news story.

In this issue, we share how local growers, processors, and manufacturing have adapted to the challenges brought on by a global supply crisis, or at this point, multiple crises. You’ll see that “supply chain issues” are very real to businesses in our region. In recent conversations with local manufacturers, I have heard that some are awaiting shipments from suppliers that are delayed months and even years. All seem to agree that innovation – and innovative thinking – are the most valuable resources to ride out the storm.

And speaking of resources, this issue also features an update on our region’s venture catalyst program as we prepare for changes in the coming year. SEDCOR and our partners at Chemeketa Community College, the City of Salem, the Oregon Entrepreneurs Network, and the McMinnville Economic Development launched this program in 2019 by leveraging local resources with a three-year grant from the Murdock Trust. Most people are surprised to learn of the significant role that philanthropy has played in developing the state’s entrepreneurial ecosystem, and I’m pleased that we get to shed some light on that in this issue. SEDCOR and our partners need to be as scrappy and innovative as the entrepreneurs we target to ensure Mike White, the Mid-Valley Venture Catalyst, continues to offer networking events, workshops, and technical assistance around our three-county region. We recently welcomed Mike into the SEDCOR office and look forward to more exciting collaboration in the months and years to come!

www.sedcor.com

Enterprise Spring 2022 3

QUICK HITS

Dallas Welcomes Ascentec Engineering The City of Dallas was pleased to welcome its newest traded sector employer last November. Ascentec Engineering, based in Tualatin, now occupies the former 131,000-square-foot Tyco/ Praegitzer/AGT building just east of downtown on Monmouth Cutoff Road. Ascentec is transforming the building into a modern CNC manufacturing environment to meet the needs of its global clients. Over $13 million of new equipment is being installed in the building focusing on automation and robotics, part of a multiphase, multi-year investment. The firm plans to hire at least 50 new employees initially, and could grow into several hundred.

"In evaluating new locations to expand, we chose the Dallas location due to its proximity to our current headquarters in addition to local community colleges’ CNC technical centers,” said Ascentec President Ian Ruef. “The area has a great reputation attracting hardworking employees, which aligns well with Ascentec values."

Ascentec Engineering was founded in Oregon in 2001 by a team of engineers with a diverse background in various manufacturing processes. Ascentec has expanded to other continents with offices and facilities in India and Malaysia. Dallas is the company’s first U.S. expansion site. Ascentec provides machining, tooling and assembly for several international markets, including aerospace, semiconductor, defense, medical and circuit board manufacturers. The company also provides full-service design and engineering services.

“This is an amazing win for the community,” said Dallas’ Economic & Community Development Director, Charlie Mitchell.

“We are thrilled that Ascentec chose Dallas. They check all of the boxes to become a key part of our community and economy.”

A large, vacant manufacturing facility can be a liability, but when the market for available buildings is tight, it becomes an asset, and builds on a storied past.

"Dallas has a long history of manufacturing prowess,” said Dallas Mayor Brian Dalton. “The arrival of Ascentec will be a big boost to our economy and we welcome them with open arms. I have no doubt they will thrive here in Dallas."

MEDP Welcomes New Executive Director The McMinnville Economic Development Partnership Board of Directors is thrilled to announce Patricia Herzog has accepted the position as Executive Director for the McMinnville Economic Development Partnership. Herzog, who will step into the role in January 2022, most recently served as the Director of Rural Economic and Community Development with the Nevada Governor’s Office of Economic Development (GOED).

Having visited Oregon and our community, Herzog is looking forward to getting started in her new role stating, “McMinnville has a history of innovative leadership and I am eager to become part of the community. I’m looking forward to collaborating with government leaders and business partners to bring high-paying, sustainable jobs to McMinnville and I’m grateful to the MEDP Board for this opportunity.”

Herzog brings over a decade of experience as a small business owner, a former rural elected official, and a community relations representative in the mining industry. She earned a Bachelor of Applied Science in Management in Technology from Great Basin College and a Certificate in Mediation and Conflict Resolution from the University of Nevada, Reno Extended Studies. Over the past year, she helped allocate $14.8 million dollars in Community Development Block Grant funds (CARES Act) to rural communities.

The Board of Directors noted Herzog has a start date of January

4 Enterprise Spring 2022

3, 2022. Board Chair, John Dietz stated about the decision, “The board is confident that Patricia’s experience and personality will have a positive impact on the future of economic development in McMinnville. We look forward to introducing her to our community at the start of the new Patricia Herzog year.” Heather Hadley Blank will remain in the Interim Director role through the end of 2021 while Communications Coordinator Tayler Brisbin will be transitioning to a part-time role with the organization starting October 4, 2021.

Heather Hadley Blank noted, “We are seeing a lot of economic activity, exciting project leads, new startups, and business expansions happening in McMinnville. We are eager to welcome Patricia to the MEDP Team during this time of growth and innovation in our community.”

Local Ag Supply Chain and The Global Economy

QUICK HITS

Saalfeld Griggs PC Announces New Partner Saalfeld Griggs is pleased to announce that Eric Tweed has become a partner in the firm effective January 1, 2022.

Eric Tweed joined the firm in 2014 and his practice is focused on business law. Eric’s typical engagements include business sales and acquisitions, commercial contracts, corporate governance Eric Tweed and trademark registration and licensing matters. Eric is a member of the firm’s dental and veterinary law industry group and a significant portion of this practice involves advising clients in practice transitions, practice start-ups, and the creation of dental or veterinary service organizations. Eric works closely with clients to understand the legal issues facing their business and industry generally and he takes a practical approach to legal issues in order to assist clients in reaching their business goals. Eric is licensed in Oregon, Washington, Idaho and Alaska.

Eric also draws on his background in non-profit management to assist non-profit organizations of all kinds, both as legal counsel and as a volunteer board member. As a musician and songwriter, Eric enjoys advising clients in the creative industries on how best to protect the art they create. Eric became a lawyer to help clients understand the legal considerations of running a business and to help them evaluate potential opportunities. In becoming a partner, Eric looks forward to continuing to serve the firm’s clients with their business law needs.

Eric currently serves as a board member of NW Human Services. He and his wife live in Salem with their two young children.

Saalfeld Griggs PC is a respected business law firm with clients in Oregon, the Pacific Northwest, and beyond. Based in Salem, Oregon, the firm handles complex legal matters in litigation, corporate law, business transactions, employment law, employee benefits and executive compensation, estate planning, and real estate and land use. The firm values close working relationships with its clients for whom they develop practical and cost-effective legal strategies. For more information, please visit www.sglaw.com.

www.sedcor.com

energytrust.org

Enterprise Spring 2022 5

NEW MEMBERS Perlo Construction oversees and constructs new buildings in nearly all commercial market segments including industrial, auto, healthcare, senior living, education, self-storage, wineries, office, retail, food services and cold storage, in addition to tenant improvements and renovations with our Special Projects Group. Perlo has been named one of the PBJ's 100 Fastest Growing Private Companies in Oregon and is on the Oregonian's Top Workplaces in Oregon for five straight years.

Headquartered in Tualatin, Oregon, and in operation since the 1950s, Perlo is one of the largest, locally owned firms in the Pacific Northwest. Our longevity has been key to developing and maintaining exceptional, longstanding relationships within the construction industry. A vast majority of our business stems from repeat clients.

Perlo is currently licensed throughout the Western United States.

Find out more about Perlo Construction at perlo.biz

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QUOTES What has impressed you most about the resilient nature of our Ag Supply Chain?

“The past 18 months has a been a continual onslaught of natural disasters for our region’s growers. Ice storms. Heat waves. Wildfires. Smoke damage. Then, add on top of all of that, the pandemic and its economic impacts. Their ability to adapt has been incredibly impressive, but not surprising. Growers have always had to adapt—they just make it work. Before anything else, farms are businesses. And farmers always think in terms of business first. So, when rapid and radical changes happen, they find new and creative ways to cut costs, to share resources, and to get their product out of the ground and to the customer. A major challenge in the next year will be the rising cost of labor. One grower has planted a French variety of cherries since the tree grows at a particular height that works better with mechanical harvesters. Our region will continue to be a specialty-crop region; it just may be that we grow less labor-intensive, by-hand specialty crops.”

— Alex Paraskevas, SEDCOR “The Ag Supply Chain (ag and ag-adjacent industries) has a built-in culture of resilience. So, when major disruptions in the supply chain happen, they have internalized the practices and knowledge to survive and thrive through it. They are already prepared to be prepared. They make changes. They support each other. For example, crop additives, fertilizers and pesticides have been incredibly scarce. When that happens, those in the ag industry will ask their local agronomist for an alternative. And here’s what’s different than other industries: they will actually share that information with others in their community, because, to them, it is more important for the region to thrive than to squeeze out any local competitors.”

— Abisha Stone, SEDCOR “Ag producers do an incredible job watching markets. And not just their own market. They are watching local, national, and international markets in a variety of products. They understand small changes could have major impacts on the price of their inputs. If prices of, say, fertilizer (or the material used to make fertilizer) go up, that eats away at their profits. Many bought what they could early and tried to lock in the prices they were paying for materials. On the manufacturing side, many who do a lot of in-house production still have to purchase parts from suppliers. They also tried to buy early to lock in prices. But, as you can guess, a lot is out of their control, like a shipping container stuck on a boat off the coast. As we look into the future, I think we are going to see the trend of increased onshoring and reshoring. Many of the current expansions we’re seeing at SEDCOR are businesses building resilience in their supply chain.”

— Nick Harville, SEDCOR

6 Enterprise Spring 2022

Local Ag Supply Chain and The Global Economy

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When A Supply Chain Crisis Hits Home

Local, regional, national, and worldwide supply chain have been strained, cracked, and in some cases, snapped altogether. The Willamette Valley’s ag industry (and associated industries) have absorbed the immediate impact (and cost increases) and are preparing for more delayed ordered and didn’t-see-that-coming alerts from suppliers. Growers, processors, manufacturers, engineers, and all those in our region’s Ag Supply Chain are using their creativity to adapt, survive, and thrive.

By Michael Miller

Not-So-Unbreakable We have heard the phrase, “supply chain crisis” more times in the last year than most of us have had in our entire lives. At the start of the spread of COVID-19, we were given warnings about slowed shipping times and higher prices as factories shut down around the world. Then, as demand diminished dramatically in high-consumption parts of the world, many suppliers slowed their production to match it. Somewhere in the midst of this, a cargo ship turned sideways in the Panama Canal.

More recently, the supply chain crisis we were warned about finally arrived with some very impactful imagery. We saw film of dozens (at times, even hundreds) of fully packed cargo ships floating idle off the coast of southern California with not enough truck drivers to move them. Shipping containers piled up in residential neighborhoods as logistics gurus tried to magically make goods move from cargo ship to truck to warehouse to train to truck to their final destinations.

Supply chains are, by their nature, complicated. Like any intricate and decentralized network, no one part can break the whole thing. That’s the idea, anyway. So when they work, they work incredibly well and allow products to find consumers with extreme efficiency. But, when they don’t work…well.

8 Enterprise Spring 2022

It has been easy for me to think about the supply chain completely in the abstract, like a logistical game of Risk. For the most part, everything I need to live my life is still available and moderately priced.

But now, as I sit and drink a cup of coffee on the deck of Pearmine Farms in Keizer, the impacts of supply chain distrubtions (many happening half of a world away) become much more dire. Molly Pearmine, the fourth-generation operator of the farm delivers the reality of their situation with her signature blunt clarity. “Many of our inputs, things like fertilizer, are going to cost twice as much this year. We have to absorb that cost since we can’t dictate our price or pass along extra costs.”

Her situation matches most growers in the Willamette Valley.

According to Anne Marie Moss, communications director for the Oregon Farm Bureau, “Most farmers are cost-takers, meaning they cannot adjust the price of their product to reflect the true cost of doing business.”

Like a gravitational force, most conversations we have at SEDCOR eventually return to our region’s Ag Supply Chain.

For example, Marion County alone has over 2,700 farms on 288,671 acres of farmland and produces over $701,580,000 worth of agricultural goods. Now multiply that across the other

Local Ag Supply Chain and The Global Economy

two counties (Polk and Yamhill) that make up our region. Then imagine all of the machinists, manufacturers, processors, workers, buyers, programmers and software developers, and countless other industries who support our region’s unique ability to grow world-renowned food and fiber. That is the Ag Supply Chain and it is not only important to our local economy, it is the primary engine of it.

Yes, growers like Molly Pearmine are facing higher costs and wait times, but so are the industries she and other growers like her rely on. Our hyper-specialty agricultural region requires hyper-specialized manufacturers building and installing custom machinery to plant, harvest, process, and ship everything from hemp to hazelnuts. So, what happens when the materials they need suddenly become unavailable--stuck on a ship off the coast?

GK Machine in Hubbard builds and sells machinery for many local farming operations. Owner Gary Grossen says besides income, the biggest loss for his customers is in time. “It is really hard to time the delivery of finished machines. For instance, we have a near-finished sprayer that is waiting to be delivered. But one very small nozzle is being held up. Our suppliers give us a date and then miss it. Then miss the next date and the next one.

In some cases, we are being told some things will not be available until 2023.”

Grossmen says even when GK does find a valuable part, the supplier may start a bidding war for the rare item. “If parts are rare and valuable enough, suppliers won't list a price, they just ask 'how much are you willing to pay?' So we have bidding wars happening and we're having to compete with every other machine manufacturer to get parts and materials.”

Growers are reacting by making hard choices about their capital investments. “Many are having to fix the equipment themselves,” says Grossen. “Smaller farms are waiting to invest in the new equipment. Many people do not understand how much small added costs accumulate and create much higher prices for everyone in the chain. When parts cost us more (even small things like bolts), we have to pass that cost onto the growers we sell to.”

Again, in most cases, growers are not in a position to pass that cost along.

When The Goin’ Gets Tough, Growers Get Creative Agriculture, perhaps even more than other businesses, is inherently creative. No season is ever the same. The weather could be hotter (or colder) and a heat wave (or cold snap) could come right at the wrong time. Consumer preferences change.

Processors go bankrupt. As my SEDCOR colleague (and spearhead of the NW Ag Innovation Hub) Alex Paraskevas likes to say, “Willamette Valley farms are internationally competitive small businesses.”

So when something like our current supply chain crisis occurs, everyone in the Ag Supply Chain does what they always do: they get creative.

Molly Pearmine says of her industry “It is, and will always be, about relationships.”

For the team at GK Machine, relationships with many of his customers have been strengthened. “We have had to come up with creative solutions together,” says Grossen. “We have hired more engineers onto our team because growers want to take a leap and invest in automation and robotics. Because not only is there a materials shortage, there is a labor shortage. So, many of our customers are investing now to mechanize and automate the labor they're missing. Our team is working around the clock Continued on page 10

www.sedcor.com

Enterprise Spring 2022 9

SUPPLY CHAIN CRISIS continued from page 9 have probably had before the outbreak, but they just didn't. We weren’t forced to like we are now. It has spurred forth much more creativity on all sides. Internally, we are utilizing our creative resources to make do with whatever fiber we have. On the customer side, they are coming to us because they know we will use that creative energy to help them get the job done. As much as price, availability, and timing, creativity has become a major value proposition.”

A Breakdown Revealed Strength

to come up with very creative solutions because many growers know, or are beginning to realize, this problem is not going away.”

For UCF, a major finished wood products supplier with regional offices in Woodburn and McMinnville, the supply chain struggles have led to many fruitful conversations. According to Nick Craig, UCF’s General Manager of Operations, “The events of the last two years have caused us to have conversations we could

As I take my last sip of coffee, Molly shows me the brand new tractor the farm bought in 2019, just before the first shutdown.

“We were very lucky we bought this when we did! I know the backlog of orders is stretching as long as two years.”

Molly smiles. I don’t think she smiles just because she feels lucky. I think she smiles because she also knows that even if the tractor didn’t come, everyone on the farm would have found a way to make it work. This has been a theme with every tradedsector leader I have spoken with during the era of Covid.

They have made it work. And they have done so with an extreme sense of optimism. “I think we are the ultimate optimists,” says Molly.

Grossen puts it this way: “We are working hard to have fun with the whole situation. Because yes, this is a hard time and we are tackling challenges I would have never imagined. But if you're not smiling, you're crying. The crisis will eat you up if you let it. We just won't let it.”

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Local Ag Supply Chain and The Global Economy

Venture Catalysts Bring It All Together SEDCOR understand our region needs a thriving ecosystem of entrepreneurship. We also understand that ecosystem needs to be built, maintained, and nurtured. We work with many partners to support the Venture Catalyst program in communities all over the Willamette Valley.

LET’S GROW YOUR BUSINESS TOGETHER

CLIENT FOCUSED PROFESSIONAL EXPERTS Kelly Montoya, owner of Little Sous, a subscription box service, with her daughter. Little Sous was one of the first recipients of funds from the Mid-Valley Angel Fund.

At SEDCOR, we visualize economic development as a three-legged stool. Each need to exist for a economic area to find long-lasting success.

The first leg is recruitment. Growth, at some level, requires businesses moving into the area and bringing with them their capital investments, their jobs, and their tax revenue.

In many cases, recruitment projects are the one who get the headlines, but they hardly the most important.

The second leg is expansion. Even though the newspapers rarely report about them, the projects we work on most fit into this category. Expansions are great indicators of healthy regional growth and almost always lead to higher pay, increase productivity, and more stability for local communities.

The third leg is entrepreneurship. Nearly all of the traded sector businesses we work alongside began as an idea in the mind of a passionate entrepreneur. In order for that idea to become a thriving business, it needed investment. The entrepreneur needed to find connections, get guidance and support. They needed a catalyst.

In June of 2019, Mike White began as the Willamette Valley’s Venture Catalyst. Since the inception of the VC program, Mike has worked tirelessly to make our region a place where entrepreneurs succeed through constant connections, valuable programing, and the launch of the region’s first Angel Fund which recently invested $50,000 in four regional businesses.

“The Angel Fund is about more than access to capital, even though that is vitally important for businesses just starting out. Investors, many of which are seasoned and successful business owners themselves, give invaluable guidance. Plus, the investment gives the businesses credibility and the business owners a new level of confidence.”

Continued next page

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• Commercial Lending • Business Services • Insurance: Commercial & Personal • Mortgage Lending • Investments & Retirement Services • Private Client Maps Professional Center 465 Division St. NE Salem, OR 97301 503.588.0181 • mapscu.com Federally insured

by NCUA Enterprise Spring 2022 11

Little Sous (a subscription box service that helps kids and parents create culinary experiences together) was awarded the highest level of investment and has experienced immense growth. “The investment gave them the resources to expand into kid-friendly but actually functional kitchen tools, giving the business multiple streams of income,” says White. “Resources, capital, guidance, everything entrepreneurs need to succeed is here in the Willamette Valley. My job is to bring everything together.”

The Oregon Community Foundation has made a major impact to the state's entrepreneurial ecosystem. Melissa Freeman, OCF’s Director of Initiatives and Partnerships, says her organization understood the importance of funding people and not places.

“We believed the Venture Catalyst would have very tangible impact. Small, emerging entrepreneurs, especially those in small communities, do not have access to traditional capital or the guidance, resources, or information. A Venture Catalyst can go directly to where the need is greatest. They can build communities and help entrepreneurs connect with mentors.”

For the Mid-Willamette Valley's Venture Catalyst, the Oregon Entrepreneurs Network was fortunate to secure a three-year matching grant from the Murdock Trust to launch the program.

Jeff Grubb, Trustee for the Murdock Trust, says entrepreneurship is a vital tool in building healthy communities.

Grubb says, “Our benefactor, Jack Murdock, was an entrepreneur and believed strongly in the power of entrepreneurship. He recognized that entrepreneurship played a key role in the ecosystem of a thriving community by contributing to a strong economy, creating jobs, driving innovation, and being able to invest in the groups and organizations that serve the common good. These are values and beliefs that are held at the core of the Murdock Trust today and help guide our work and investments.”

He added, “It is our hope that, with the support of programs like the Venture Catalyst, Oregon will be known for an ecosystem that supports and encourages innovative thinking and economic growth through robust entrepreneurship. We believe this ecosystem will be built on relationships and partnerships formed by individuals from a variety of backgrounds and life experiences that are supported, in part, by programs like the Venture Catalyst.”

SEDCOR President Erik Andersson is grateful for the leadership and engagement of the Murdock Trust and the Oregon Community Foundation in funding these important entrepreneurial resources around the state. While financial sustainability of the

Mike White gathers people at a recent PubTalk.

venture catalyst program may be challenging, it is well worth the effort. He is particularly excited to see entrepreneurs build innovative businesses in the region's more traditional industries like agriculture and food processing, connecting to SEDCOR's Northwest Ag Innovation Hub. For instance, through the Angel Fund Mike White helped build, two food-related start-ups were recently funded. Some may not immediately think of food products when they think about entrepreneurship, but a business like Kettle Chips is now a household name and a large local employer. But not all that long ago they were just starting out as a new product on the shelves of our local Roth's Fresh Markets.

Mike White has countless stories of new and exciting businesses being built, launched, and supported through the Venture Catalyst program. “HelloCare is a company doing incredible things to bring senior care to more people at a better price. The owner, Helen Anderson, came to one of our Start-Up Boot Camps with her idea.

In less than two days, she had more than a good idea, she had a real plan, plus strong connections she could return to for more guidance. Now, HelloCare has over thirty employees and more than a million dollars in revenue. It’s just the beginning for them and that is just one story of many.”

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Local Ag Supply Chain and The Global Economy

Interview

Mallory Phelan of Oregon Aglink

Who Is the Oregon Farmer?

What Is the Oregon Farm?

Interview with Mallory Phelan

Mallory Phelan is the Executive Director Oregon Aglink. She and her team bring together farmers, ranchers, and processors throughout the state, Mallory and her team work to preserve and enhance Oregon agriculture by showcasing its importance to the economy and lifestyle of Oregon.

SEDCOR:

What is Oregon Aglink?

Mallory Phelan: A glink is a membership organization that was founded in 1966. When we started more than 55 years ago, growers all over the state noticed there was a lack of awareness of Oregon ag. There was a major disconnect between the people growing food and the people consuming the food. The urban-rural divide, as it is now usually called. And that divide is still present. So, we were founded to try and bridge that gap.

We run a few different programs around education. One of the most popular is our AdoptA-Farmer program.

Adopt-A-Farmer is a no-cost program for middleschool students anywhere in the State of the Oregon and for students of nearly any subject.

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Mallory Phelan, the Executive Director at Oregon AgLink.

Enterprise Spring 2022 13

Interview

Mallory Phelan of Oregon Aglink he class could be art, science, economics, whatever the subject might be, we T help bring it to life through agriculture. We fund field trips for classes to go visit farms or ranches all over Oregon. Then, we place that same farmer into the classroom a couple of times throughout the year and help bring concepts they are reading about to life.

SEDCOR:

ven beyond the students you serve, what do most people not understand E about the Oregon grower on a personal level? Who is the Oregon farmer, as a person?

Phelan:

I believe many people think of growers as a homogenous group, a monolith.

People imagine everyone in ag as being the same age, the same gender, the same everything. In reality, growers are far from monolithic in these areas, and especially in the way they think, act, and vote.

I also think people are always surprised to learn just how educated growers are. Many of those we work with have highly specialized advanced degrees in science, economics, and other related fields. So, there is the formal education they have and the knowledge they learn in school, but there is also a vast amount of generational knowledge being passed down. And that could mean the practices and instincts they learned from a parent or grandparent. But, in many cases, it is the knowledge they take and share amongst themselves. ight now, the average age of a farmer is closing in on 60. That number is R thrown around a lot, usually in a very nervous, frightened tone. What we don’t hear about is the younger generation of growers and the amazing things they are doing to innovate. Some are stepping into farming from the outside and do not have family knowledge to pull from, but they are collecting mentors and knowledge is being shared and improved upon that way.

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SEDCOR:

ost of us don’t ask too many questions about the food we buy at the M grocery store. We figure someone grew and harvested it, but not much more than that. What would people be surprised to know about when it comes to art of farming?

Phelan:

h my gosh, there are so many moving pieces. It is definitely not as simple as O dropping a seed in the ground and, boom, a few months later you have a plant to pull up and a product to sell. There is almost nothing about farming that can be siloed off. It is highly impacted and dependent on things outside of their control. Markets, weather, regulations, consumer preference.

SEDCOR:

I think when many people picture ag, they imagine the large, factory-style farming happening in the Midwest. They think of soy, corn, and wheat.

They picture million-dollar combines spewing diesel and carbon. What’s different about how we farm here?

Phelan:

e can grow so many crops here. And while we don’t have tropical crops like W citrus and avocados, we are still an extremely diverse growing region. Even each farm tends to be very diversified. They try to not put all of their eggs in one basket and work hard to find just the right balance. rowers have to think very far ahead. Yes, they are looking at what to grow this G year or next year, but they are also thinking generationally. They may want to plant more permanent crops like hazelnuts or fruit trees. Those crops take a lot more labor and investment upfront, but they can produce for much longer.

They are also thinking about rotational crops and doing what it takes to keep their soil healthy for the long haul. We just have so many options in the Valley.

In fact, a lot can grow on the East side of the state as well. regon is a specialty-crop state. We grow more than 220 different crops, which O is one of the highest in the nation.

14 Enterprise Spring 2022

SEDCOR:

Does that diversity make processing more complicated?

Phelan:

regon has quite a few co-ops that have formed to help get some common crops O to market. But since we grow so many things, there is just more to consider than with the commodity crops grown in other parts of the country. How you transport out of the farm? Are you taking everything to the Port of Portland? Is it going down the Columbia? Is it going on rail? This can cause bottlenecks in shipping and processing.

Continued on page 16

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Enterprise Spring 2022 15

Interview

Mallory Phelan of Oregon Aglink

I nvestments are being made in processing capacity around the state, but we definitely have shortages and gaps. Meat processing, for instance, experiences these bottlenecks in a very major way. Hemp is another example of a crop people were excited about, and one that many people grew, but in many ways fell flat because the processing infrastructure just wasn’t there.

these kinds of technologies. Those of us in ag have been talking about tech adoption for a long time, but this moment feels different. nother trend I see continuing is the creation of A smaller, niche markets. Younger generations are finding interesting ways to make money in food production and are finding markets for their products. For instance, there is a company that sells pork finished with Oregon hazelnuts. Oregon does not do much in pork, but we certainly grow a lot of hazelnuts. Obviously, Hazelnut Finished Pork is a very specific product with a very specific market, but they are making it work.

ome farms are trying their hand at becoming S vertically integrated. To do this—and to do almost any harvesting and processing—farms have to get very creative with their equipment and facilities.

Again, because we have so many crops and each has its own character and needs, there is a need for highly specialized equipment. Most of the major manufacturers of farm equipment are developing and producing their equipment for the giant commodity farmers; that’s where the money is.

ven with those small, niche markets, economies E of scale will still need to exist to feed more people.

To return to the first question, I think people do not understand how much food a relatively small farm can produce. It is not until people see truckloads of green beans, cauliflower, onions, and other specialty crops that they understand how insanely efficient the family-owned commercial scale farm is and they understand how incredible it is to always have shelves stocked with delicious local food.

armers in Oregon are very innovative. They will F personally modify their equipment to fit their particular needs. There are some very cool companies building equipment specifically for specialty crops. It takes a very sophisticated engineering mind to build out these solutions.

SEDCOR:

ow do you imagine the future of ag in Oregon?

H What makes you excited?

Phelan:

he most obvious change will be the adoption T of technology by growers. Almost all parts of the process will be more mechanized and more automated. Self-driving technology will make its way into farm equipment. I think some of the most exciting innovations will come in field management.

For instance, I was reading about a drone being developed that can fly above a field to identify and exterminate moles in a grass seed field. ight now, a lot of this tech adoption is coming out R of necessity. Labor shortages are a major pressure pushing growers to consider bigger investments in

SEDCOR:

hat can people do to familiarize with themselves W farms and farmers?

Phelan:

bviously, you can shake hands with your small O farmer at the summer market, but many larger, commercial scale farmers are also very interested in connecting with their customers. I know many who are more than happy to answer questions and help people understand how the ag industry actually works. They love what they do and are happy to share it with as many people as they can.

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Local Ag Supply Chain and The Global Economy

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Enterprise Spring 2022 17

INSIGHTS FROM OMEP

The Power of A Continuous Improvement Business Philosophy In 2008, while on a 3-month long bike

honored measuring the experiments we undertook so that they

ride through Patagonia, I decided to

didn’t seem haphazard.

act on a business idea—to be a custom hand-built bicycle wheel builder. Like all of my adventures, this idea was not well thought out and the success of my business is owed to endless grit, a great team, and learned lean efficiencies Jude Gerace OMEP Account Executive

through my partnership with OMEP.

THE BEGINNING (OR, WHAT NOT TO DO)

While we had many “wins” in the shop, we also became a trusted partner for component manufacturers—they appreciated our dedication to continuous improvement systems, quality, and our curiosity about their products.

Lesson Two: Possibility and Freedom Like most small business owners, I had come to accept that I would be working 60+ hours a week and constantly thinking (and worrying!) about the business. Engaging in process improvement

During the foundational years I was a classic case of what not to

meant that I could trust my system to produce reliable results

do. I worked incredibly long hours, didn’t take time to work on

throughout the business. That included administrative tasks,

the business, didn’t take care of myself, and didn’t believe I could

production and sales.

execute on an ambitious strategy. At the time I worked with a variety of well-intentioned consultants that just didn’t seem to take the time to really understand my pain points or how a micromanufacturing business operated. Instead, they would offer up generalized business advice that was really difficult for me to apply in my specific business. The wrong consultants at the wrong time added to the anxiety I had about getting my business model to a sustainable point.

FINDING STABILITY

When things went off the rails the team could talk about a process improvement instead of individual actions.

The impact to our business was tangible. We were able to achieve work/life balance because we understood production times and could accurately schedule projects. We also learned how to scope and price projects so that they were profitable.

Our customers were delighted by the fact that we were usually on time.

Things began to change when I learned how to manage cash

Lesson Three: Cash Flow Through Inventory Management

flow, which gave me some breathing room. I saw first-hand

As a small business owner I didn’t realize that through controlling

how inefficiently I was running my business. Through this new understanding, I created contingency plans and useful forecasting models. I also signed up for a lean fundamentals class that OMEP was teaching at Prosper Portland.

Before the class, I had a vague sense of what lean was but didn’t realize how it would radically shift how I thought about my business. Implementing the lessons learned in the class was a slow process, and the culture shift happened gradually, but it gave me the chance to do things differently.

LEAN LESSONS LEARNED Lesson one: Experiment Often I was afraid to try new things because I had a fear of looking foolish in front of my staff and advisory board. As a small business owner, the underlying message I believed was that resources will always be thin so choose a strategy wisely. This meant that I often led my staff into analysis paralysis because I wanted to choose the “Right” strategy.

Shifting the culture to one of curiosity and learning from

inventory bin levels I could significantly increase the cash flow in my business.

Understanding the root cause of my inventory issues and modeling out a future state helped me to confidently approach and re negotiate with my suppliers. Not only was I able to negotiate a better price, I also negotiated better shipping times.

I also set up a Kanban system for specific items which freed my time to work on other efficiency projects (or leave early to go for a bike ride).

Before understanding the lean process, I had resigned myself to working countless hours managing systems, quality, and people.

With continuous improvement as the underlying philosophy in my business model, I increased monthly cash flow by several thousand dollars through better inventory management. We reduced the time necessary to close a sale, and were able to work predictable hours (something I didn’t dream was possible a year prior!)

My experience was one of empowerment. Lean principles and

missteps in the spirit of uncovering new ways to overcome

a continuous improvement mindset allowed me to empower my

challenges didn’t come without growing pains. Old habits die hard.

staff to create a culture of curiosity and experimentation. Although

Yet, once we were able to adapt, we had better conversations about

I sold the business in 2019, I carry these lessons with me today, and

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18 Enterprise Spring 2022

Local Ag Supply Chain and The Global Economy

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Enterprise Spring 2022 19

INSIGHTS FROM CHEMEKETA COMMUNITY COLLEGE

Chemeketa Unveils Agriculture Hub Chemeketa Community College's new Agriculture Hub was built with innovation in mind, not only the materials and technology in the building, but how it will drive innovation in the agriculture industry in the Willamette Valley for years to come. The Ag Hub is Tim Ray, MS the first net zero building on the Agricultural and Extension Chemeketa Salem campus, the Education Dean innovation included in the building Agricultural Sciences to achieve this is incredible, from and Technology automatic windows and a passive heating and cooling system, to solar panels and live plant walls, the building is truly a world class learning laboratory.

The innovation goes beyond the building, including a new state of the art GPS guided Valley Linear irrigation system that will be used to irrigate approximately one and half acres of fruit, vegetable, and nursery crops.

This new irrigation system will allow students, growers and technicians to work together to produce high quality food and nursery crops on a small scale, using state of the art technology. Our hope is to be a demonstration site for local growers and dealers to be able to come and see new technologies and how they can make a difference in their operations.

At the Chemeketa Ag Hub, we have a desire to work together with local growers, producers, processors, dealers, and others to be a center of research, demonstration, problem solving, and innovation. Our degree, certificate, and non-degree workforce development programs uniquely position Chemeketa to serve not only the horticulture and nursery industry, but the broader agricultural community as well. Our new Irrigation and Crop Health Certificates along with the work we are doing in collaboration with Oregon State University Extension around dry farming in the Willamette Valley gives local agriculture producers access to facilities and services that are prepared to meet the local needs of agriculturalists.

In addition to the new fields and irrigation system, we have a new greenhouse under construction as well. The new greenhouse is state of the art with 4 growing zones that can be controlled independently in 1,2,3, 4 separate zones. It has a dedicated propagation zone and 3 growing zones. In conjunction with the new greenhouse we also are preparing 20 Enterprise Spring 2022

a new Woody Ornamental Demonstration Lab (WODL) that will provide students and industry with the opportunity to grow, culture, cultivate, and market a number of woody and nursery ornamental plants that currently is not possible. This space will provide the opportunity for students to learn with industry professionals in the areas of pot in pot, ball and burlap, and bare root production systems.

The infusion of the Electronics program into our Agriculture Science and Technology Department is a huge benefit to the agriculture industry in the Willamette Valley. Automation, technology and electronics are big parts of producing, processing, transporting, and marketing agricultural products. The addition of the Electronics program allows us to offer the Irrigation Certificate by incorporating courses from both Horticulture and Electronics to give students, growers, producers, and processors access to high quality instruction, training, and ongoing professional development.

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FROM CONCEPT TO COMPLETION Enterprise Spring 2022 21

COUNTY NEWS

Yamhill County Support Local Farmers

by Commissioner Lindsay Berschauer American farmers are among the most resilient and creative entrepreneurs. There are very few “constants” in farming which necessitates adjustments for each new season. Yamhill County is proud to have agriculture as our primary industry, ranking 6th among Oregon counties in annual market value of production.

With the largest concentration of wine growers and producers in the state, our focus as Commissioners has been to champion and support our agricultural foundation.

Recent market shifts, exacerbated by the COVID-19 pandemic, have challenged our growers and producers in ways they likely didn’t expect. In the past few years, farmers have experienced a rapid decline in labor participation, causing disruptions with harvest, increased labor costs, and changing projections for future seasons. Additionally, supply chain delays have made it harder to find new equipment and acquiring replacement parts for older equipment may impact this year’s harvest. Some farmers are finding that equipment supplies and installation are backed up over a year. Meanwhile, the cost of inputs is steadily rising between fuel and energy costs, fertilizer and chemicals.

Another looming challenge is a state legislative push to mandate overtime for agricultural workers. While overtime pay is not a damaging policy in and of itself, currently farm workers are exempt from overtime pay due to the nature of farming being seasonal and temporary. Ag employees don’t work traditional 8-5 hours, and very few states have enacted mandatory overtime laws because of this. House Bill 4002 would phase in mandatory Ag overtime pay in Oregon with taxpayers footing

half the cost in the first years, and continuing to pay portions of the cost until fully implemented.

While a staggered approach may seem beneficial, it simply delays the inevitable harm it will cause to our family-owned farms.

Mandatory Ag overtime was introduced in the 2021 legislative session and failed, in large part because Oregon grows 225 different commodities and every farm has different growing conditions, staffing needs, and ability to provide employment benefits. Oregon’s 36,000 family farms have seen labor costs nearly double in the last decade, with farm worker pay outpacing minimum wage at nearly $18/hour. Couple that with Oregon’s punitive tax and regulatory burdens on businesses in general, and this policy would have an immediate, negative impact.

Without a consistent and equally applied federal law around agricultural overtime pay, states with no mandates are at a competitive advantage over states with the requirement. In Yamhill County, farmers anticipate massive cost increases if House Bill 4002 passes in the short session. Some of our farmers fear hundreds of thousands of dollars in additional labor expenses, which would necessitate eliminating other benefits offered to employees like healthcare plans and bonuses.

Other states that have passed this type of legislation have seen workers’ hours capped, a rapid shift to mechanization, and a decrease in growing labor-intensive crops. Putting Oregon’s farmers at significant risk with a one-size-fits-all state mandate is the wrong solution and harms the very people it is intended to help. This discussion belongs at the federal level in order to ensure Oregon’s agricultural industry stays competitive.

Farmers may be a resilient group, but it is essential that the rest of us understand the realities of the agricultural industry.

Farmers operate within fixed margins and in worldwide markets with restricted commodity prices. They are incredibly sensitive to inflationary costs. In addition, farmers are typically paid once a year for their crops and are required to forecast and budget a year in advance, despite changing market conditions.

Most Oregonians are unaware of the significant risk involved in this business model, let alone the fact that there are no guarantees of return or profit. My hope is that efforts to educate not only lawmakers but future generations continue to increase an awareness and understanding that leads to better public policy. As Commissioners, we will continue to elevate our farmers’ voices and protect our agricultural industry.

22 Enterprise Spring 2022

Local Ag Supply Chain and The Global Economy

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COUNTY NEWS

Rebuilding the Santiam Canyon Colm Willis, Marion County Commissioner

Nearly a year and a half after the devastating fires in the Santiam Canyon, someone who does not live in or frequently pass through the canyon could be forgiven for thinking that much of what was lost or damaged has been restored. But everyone still directly involved in the process knows that the road to full recovery is arduous and ongoing.

While 100% of ash and debris has been removed on all residential properties, and 90% of 24,250 identified hazard tress have been removed, there is still much to do.

There were 724 homes lost to the fires in the Santiam Canyon.

Some individuals and families lost everything. Marion County sprang into action during and in the immediate aftermath of these events, and we continue to be actively involved in the community’s recovery. Of the homes lost, 318 (44%) have been issued permits to rebuild.

Immediately after the fire, the Board of Commissioners cut red tape that could have hindered recovery, and we provided financial relief. Marion County has relaxed restrictions and is permitting individuals to live in RVs or trailers while their homes are being rebuilt. In September 2021, the Board of Commissioners passed a resolution providing more than $2.7 million in property tax relief for fire-impacted properties.

Additionally, we coordinated closely with partners to ensure fire victims have current temporary shelter, including 15 survivors in non-congregate care with the Oregon Department of Human Services, 12 FEMA trailers in Mill City, and 24 rooms becoming

ntly

available at ARCHES Inn. Looking forward, the Marion County Board of Commissioners is working quickly to establish longer term temporary housing options (units that can be occupied for three to five years) to support canyon residents until their homes are restored to them.

In the cities of Detroit and Gates, we are establishing communities of “tiny homes” (16 units in each city for a combined 32 units) using $4.5 million in Oregon Housing and Community Services (OHCS) funds.

To ensure canyon infrastructure can support these housing options now as well as future growth, Marion County has worked feverishly to complete preliminary repairs to 35 miles of county roads, including repaving 16 miles of North Ford Road. We also allocated $50 million for sewer and septic updates across Mill City, Detroit, and Idanha. We are continually working with the Oregon Legislature to secure additional funding for these projects.

In all of this, I cannot adequately express how grateful I am for the incredible men and women at the county and in the canyon who have consistently gone above and beyond to help their neighbors. I have been moved to see such dedicated and selfless service on the part of so many in this enterprise, and it makes me proud to call this community home.

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Enterprise Spring 2022 25

COUNTY NEWS

Looking Forward to the Future of Ag

by Commissioner Craig Pope

As many of you may know, my roots are in production agriculture.

Most specifically in Polk County. When I speak about the amazing transitions I have witnessed in production ag in my lifetime, my thoughts often lean toward the risk/benefit scenarios faced by farmers today versus what they were when my father started farming in the mid-1950’s. The risks are always there, perhaps on a larger scale today, and the rewards can be amazing when everything aligns their way.

I am always excited about the technological advancements in agriculture, and I am proud that I have had a hand in providing some of those advancements in my personal career. So much of my former company’s efforts in design and manufacturing of ag equipment was focused on reducing the need for labor and improving efficiencies. The expectation from the ag community for more improvement in those categories has only grown more intense over the past decade and considerably since Covid19 struck. Labor challenges alone (lack of workers and new regulations) force farm operators to consider new solutions that require significant cash investments or downsizing to a management level that family members can maintain. The latter is often untenable in a more competitive global market.

It is incredible to see the newest advancements in self-guided, highly technical equipment. Larger capacity, more power, more efficient, state of the art and more responsive to global climate interests with features such as electric power. Though I can hardly wait to see all of these technology changes come to Polk County, I know that these advancements come at a cost; sometimes a cost that cannot be met by family farms.

For example, John Deere’s newest 8R line of self-guided tractor (not yet fully autonomous) starts at a cool $600,000, and the autonomous add-on kit that is due to be available later this year will add a significant amount more. Modern combines with required attachments also start at $600,000 and can go over a million dollars. They all require labor with more skillsets than ever before but they can do the work of a fleet of machines that came

26 Enterprise Spring 2022

before them. The reality at the simple finance level is that $1 million at today’s best interest rate of 3% is $30,000 annually, rolled up in a 10 year amortized loan with annual payments of $117,000+. A Polk County farm must have enough high quality acres with a sustainable rate of return from high demand crops to secure the funding required to finance equipment of this type and volume.

I don’t think most consumers have any real idea what the risks are for our farm businesses today. This hasn’t changed over the years really, my family has always said this and I have heard many farm families say it. The risks however, are occasionally well rewarded if all the decisions worked as planned, including weather, labor supply, global markets, global supply chain, transportation and government regulations. Add a global pandemic on top of that and one should wonder why anyone would take such a risk to be a farmer.

The fact is, there are fewer farmers and ranchers today than ever in the history of our country. Farm and ranch employment make up approximately 1% of the employed US population, and that trend will continue downward as costs rise beyond market returns. Add on banking regulations that discourage local lending, government interventions that drive away seasonal labor and tools required to support a successful operation, and societal or education systems that discourage youth to enter ag careers.

The need for food and fiber however, will still drive demand for farm and ranch production. The available acres for farm and ranch production will still demand a financial return to the landowners and there will be ag operators that will find the capital and bear the risk to produce crops. Their practices will adapt and change over time. This is what a free market system encourages.

I have watched it happen over and over in Polk County. We have farm and ranch families in Polk County that lead innovation across their industries and continue to develop strategies for global market access that make their enterprises more competitive than ever in our history. I praise them all, and am proud to come from those roots.

Local Ag Supply Chain and The Global Economy

REGION OF INNOVATORS

Jorns Does That Hubbard’s Purlin Mill newest machine can bend steel in ways no other machine can. Plus, it is the only machine like it in North America.

What if you could bend steel with just a fingertip?

The Jorns JDB Double Bender, a new piece of machinery at the Purlin Mill in Hubbard is the only one operating in all of North America. And yes, it may not give you Superman-like strength to bend steel, but it does allow for an unparalleled level of strength, accuracy, variety, and simplicity.

“You can literally begin a project by just drawing a shape with your finger on the onboard touchscreen,” says Don Branch, President of Purlin Mill. “The machine will formalize your drawing and you simply backfill it with measurements, gauge, angle, and other specs. Very quickly, you can start feeding it steel and turning out product.”

The Purlin Mill, which has been operating in the Willamette Valley since 2008 purchased the machine from the manufacturer in Switzerland in 2019. Because of supply chain issues, the Jorns was not operational until late last year. “Once our customers learn what the machine can do, they are very excited,” says Branch.

So, what can it do? As the Purlin Mill website puts it, “Our bending capabilities will be 49” Max. throat depth, 40’ Max. bending length, 30 gauge to 11 gauge Max. Steel, 4.0 mm. Max. Aluminum, 2.00 mm. Max. Stainless Steel. This machine makes very clean and accurate bends. It can make diagonal bends, ½ round bends, tapered ends for a tight fit, open or closed hems and much more.”

For those of us squarely outside the world of steel construction, Branch puts it this way, “It can bend thicker steel than most machines and can do it with a level of fine-tuning--much of it automated--no other machine is even close to capable of. Plus, while many bending machines work with a max of twenty-foot

sheets, the Jorns works with pieces up to forty feet. ” As an example, Branch points to gutters. The Jars can manipulate a forty-footsheet of steel with tapered ends so pieces fit perfectly together.

Traditional rollers cannot do that and so you have to try and make two pieces of the same size fit together with extra pieces.

Eventually, those pieces get clogged. We avoid all of that, just by starting with a better product.”

The capabilities of the Jarns are largely open-ended, which allows Branch and his team to act quickly to meet demands.

“As long as what they want is made out of steel, there is a good chance we can make it for them. And quickly. Plus, if the project needs to be replicated, we can show the machine a barcode of the specs and it will immediately bring it up, ready to go.”

This means architects and engineers can design with a known material, but have far more options to add style and functionality to their projects.

“Right now, most of our customers have been local,” says Branch. “But as more people see the machine and imagine what they can do with it, we definitely see expansion in the very near future.”

Learn more about the Purlin Mill and the Jorns at thepurlinmill.com

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Enterprise Spring 2022 27

REGION OF INNOVATORS

Regenerating Resilience The community of Willamina is building an inclusive, resilient, healthy, (and downright delicious) local food system at the West Valley Community Campus through public-private partnerships, community engagement, and plenty of (real) horsepower.

The West Valley Community Campus resides in a high school building constructed during FDR’s presidency as a New Deal-era project. Until 2003, it housed Willamina's high school, but has since sat empty. Through generous donations, grants, and local volunteer labor, the high school building has been repaired and renewed.

Kenna West, Willamina’s City Planner, has an obvious love for her community. “We definitely have something special here,” she says. “Our city is growing and for good reasons. It is beautiful. It is close to even more beauty. With this project, we want to elevate our town even more.”

The campus aims to bring the community together in many ways, including music, education, space for local artists, and fitness classes. Primarily, though, their focus will be on food.

“There is nothing that brings people together more than food,” says Susan Richman, a local farmer and leader at FarmLink, a grassroots organization that advocates for small, local growers.

“We have such an incredible local food system sitting in our own backyard. Through the Campus, we can provide a space where growers can sell directly to consumers.” According to Richman (who produces food on her own land with horses, not internal combustion engines), the Community Campus plans to host a year-round farmer’s market, plus infrastructure for CSA (community-supported agriculture) pick-ups.

“There is demand for great ingredients,” says Richman.

“In many cases, Willamina residents with the means to do so will travel outside of town and shop at stores with high-end ingredients. Food of the same quality is being grown right here.

We just need to build the system and give more people access to that food, regardless of means."

Susan Richman leads her team as she harvests local pumpkins.

West believes the campus and its food programs will add another layer of economic resilience to the growing community.

“We are definitely seeing this as an economic development project.

We have very creative people in our town, those with a very entrepreneurial mindset; they just need a place to launch, they need an outlet.” She also sees the potential for increased agri-tourism by customers connecting directly with growers. “Once they are given the opportunity, people love seeing how their food is made. They want that connection and to build that relationship.”

Both Richman and West envision the space growing more than dollars. To them, it is all about livability and building a town as unique as the people who live there. “There is space for a vegetable garden, edible plants, and herbs. Also, we want to build a community kitchen where new food-based businesses can experiment and launch. I imagine classes for those interested in preserving food through canning and fermentation. Again, all of this to bring people together, centered in food. There’s power there.”

“We have a unique culture here,” says Kenna West. “We are both fiercely independent and wildly creative. That’s why I think this project will work and why so many people love it.”

Learn more about the West Valley Community Campus at westvalleycommunitycampus.org

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Local Ag Supply Chain and The Global Economy

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