Focus: Agriculture + Viticulture in the Columbia Basin

Agriculture + Viticulture in the Columbia Basin A 2022 specialty publication of the Tri-Cities Area Journal of Business

CORE CROP

Apple industry renews focus on domestic market

Constant Challenges

SPUD SUPERSTARS

‘Perfect growing season’ is on potato farmers’ wish lists VIBRANT VINES

Grape growers face a future altered by Covid, weather, smoke

Inflation, market instability and shipping woes dog state’s ag industry

AG INDUSTRY

OVERVIEW

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Tri-Cities Area Journal of Business

A 2022 specialty publication of the Tri-Cities Area Journal of Business

IN THIS ISSUE

4

Overview

14

Exports

29

Passion for spuds keeps grower in business

7

By the numbers

16

Cherries

30

Apples

8

Column: Director of Washington State Department of Agriculture

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Potatoes

33

Hops

Wine grapes

26

Column: President of the National Potato Council

37

Water

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Focus | Agriculture + Viticulture

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Ag drives economy Politics, weather and inflation put the squeeze on Washington ag

BY WENDY CULVERWELL

Pam Lewison is of two minds when winter gives way to spring.

She’s thrilled by the sweet smell of freshly plowed fields, the green fuzz in the orchards, the newborn livestock.

She’s less thrilled by the daunting challenges facing Washington agriculture in 2022. The state’s 35,300 farms and ranches collectively raise more than 300 products.

Lewison, director of Washington Policy Center’s Initiative on Agriculture, which is based in the Tri-Cities, worries that the state Legislature has taken a “combative” stance toward agriculture.

That, along with weather, water availability, fertilizer and fuel prices, supply chain challenges, access to shipping and rising labor costs are all in sharp focus this year.

But she’s nothing if not hopeful in the spring.

“Farmers are optimists and 4

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realists. They see what is, but always hope for what can be,” said Lewison, who raises beans, field corn, alfalfa and teff, a high-protein, low-carb hay crop.

Washington farms produced $9.6 billion in 2016, according to the 2017 Census of Agriculture, the most recent complete federal assessment of the value of agriculture. The census occurs every five years.

The U.S. Department of Agriculture is preparing for the 2022 Census. Operators who want to participate and don’t receive surveys from the National Agricultural Statistics Service can sign up at agcounts.usda.gov/static/ get-counted.html.

The Washington Farm Bureau calculates that farm production coupled with more than $20 billion in revenue related to food processing and manufacturing translates to 12% of the state’s economy.

The Washington Department of Commerce calls it the state’s

second largest manufacturing sector behind aerospace.

Lewison fears inflationary pressure on fuel and fertilizer costs coupled with increased regulation and particularly new overtime wages phasing in by 2024 will force some operators out of the industry.

“There’s a lot of pressure,” she said. “I think that we are at a point where the domino effect will occur with people making hard choices about things costing more and the dollar being worth less.”

She sees a Legislature that is out of touch with agriculture.

She’s particularly worried about the riparian buffer bill, which requires trees and protection zones along creeks and rivers.

She expects it to crop up in the 2023 session. The proposal notably exempts urban but not rural areas from the rules.

“Just because we farm and live in a rural area doesn’t mean we should be the only people who

bear the burden of saving fish or the environment,” she said. She called on voters to voice their support for farmers and ranchers.

Much about 2022 is still unknown, from weather to the impact of the Russia-Ukraine war.

Here are some of the highlights of what’s happening in Washington agriculture, as reported in this year’s edition of the Tri-Cities Area Journal of Business’ Focus Agriculture + Viticulture magazine.

Apples Nothing says “Grown in Washington” more than a shiny fresh apple. The $2.2 billion industry is easily the largest in Washington ag. For 2021 and now 2022, the story is mostly about weather.

The heat dome that settled over the Pacific Northwest in June 2021 is behind a moderate drop in output, according to Todd Fryhover, president of the Washington Apple Commission. The state tallied 122 million bushels, down from its typical 130 million or so.

Fryhover said the unseason-

able snow in April could lead to a similar result in 2022.

Potatoes The first shipments of U.S. fresh potatoes entered Mexico on May 11, 2022, fulfilling a longtime campaign to open the market beyond a narrow zone along the U.S.-Mexico border.

Mexico’s Supreme Court voted to end an embargo in 2021 but the actual deliveries were slow to start. This spring, U.S. Secretary of Agriculture Tom Vilsack met with his counterpart and set a May 15 deadline.

Mexico imported $60 million in fresh potatoes in 2021. That is expected to rise to $150 million, according to the National Potato Council, which is led by Pasco farmer Jared Balcom.

“This is an important moment for the U.S. potato industry,” he said, calling Mexico a “vital market.” Balcom delves deeper into the potato industry in a column on Page 26.

Washington is second only to Idaho when it comes to growing

potatoes – more than 10 billion pounds. Up to 90% of the crop is sold to processors such as Lamb Weston and turned into frozen french fries and other potato products.

Exports There’s good news and bad for exports.

The value was up in 2021 but only because of inflation and price hikes. Shipping volumes dropped as the Northwest Seaport Alliance – the ports of Seattle and Tacoma – turned an unwelcome corner. In May 2021, more shipping containers left empty than full, thanks to the unfavorable economics of oceangoing vessels.

Prior to the pandemic, the Washington ports were evenly balanced, a point of pride, noted Melanie Stambaugh, communications director for the alliance.

In Seattle, the port has created a near-dock yard on the waterfront for ag-filled storage containers on the theory that being able to swiftly move them to oceangoing vessels will get them on their Focus | Agriculture + Viticulture

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way. The U.S. Department of Agriculture is covering drop fees – $200 for regular containers, $400 for refrigerated ones. A similar effort is planned at a near-dock site in Tacoma.

The Northwest Seaport Alliance plans to report on the success of the initiative this summer.

Grapes Washington grape growers harvested 179,600 tons of wine grapes and 103,000 tons of juice grapes in 2021. The bad news: Grapes were affected by the heat wave, which led to smaller clusters.

The good news? The weather in September and October was ideal for ripening, which led to higher quality fruit.

Smoke, which has plagued some but not all recent summers, is a rising threat to grapes and triggered the formation of a special task force to evaluate its impact on grapes and wine, and potential steps to mitigate it. A team of West Coast researchers received a federal grant of nearly $8 million to study the issue in 2021.

Cherries Cherries were another crop heavily impacted by the late 6

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June heat dome. The notoriously fragile fruit shriveled in the 100plus degree weather. Fortunately, much of the Washington crop had been harvested before the real heat set in, said Jon DeVaney, president of the Washington State Tree Fruit Association.

Cherry growers harvested more than 18.6 million 20-pound boxes of cherries in the Northwest – Washington and Oregon – in 2021.

DeVaney said labor remains a challenge in 2022, as does the unseasonable snow in April, which arrived about the same time fruit was setting in area orchards.

He said it could lead to a potential reduction, but not a wipeout, barring more unwelcome weather events before the start of the harvest, typically early to mid-June.

Wheat Washington is the nation’s fourth largest wheat-growing state with more than 2.2 million acres in production – 1.8 million acres planted with winter varieties in the fall and the rest with spring varieties in the warm months.

Nationally, wheat is third among U.S. field crops, after corn and soybeans.

Washington exported nearly

$962 million worth of wheat in 2021, a whopping 43% increase attributed to the Phase 1 trade agreement negotiated with China during the Trump administration.

Winter wheat production will rise 60% in 2022, based on May 1 conditions, additional acreage and yields of 67 bushels per acre, up from 42 in 2021, according to USDA estimates.

Oregon and Idaho will see upticks as well, by 35% and 28%, respectively.

But drought, trade issues and input prices (fuel and fertilizer), as well as foreign competition for customers, pose long-term challenges to the region’s wheat growers.

Most Washington-grown wheat is exported. Like most other ag products, it must get onto oceangoing vessels, an ongoing challenge for ag exporters.

U.S. Wheat Associates projects exports will fall 21% in 2021-22 compared to the 2020-21 cycle, based on USDA export data.

In a May outlook, the USDA projected prices will reach a record in 2022-23 – $10.75 per bushel – thanks to tight supplies but the overall pattern is reduced production. ●

Numbers tell the story of Washington agriculture Compiled by Focus staff

Washington farms and ranches produce more than 300 different crops with a combined value of about $9.6 billion – a figure that triples once food processing is

factored in.

The U.S. Department of Agriculture’s National Agricultural Statistics Service tallied 35,300 agricultural operations in 2021.

Collectively, they cultivated 14.6

No. 1 in the U.S.: Washington is the nation’s leading producer of apples with a 2021 production value of nearly $2.2 billion. It is also tops for blueberries, hops, pears, spearmint oil and sweet cherries.

No. 2 in the U.S.: Washington is second to Idaho for potatoes with a 2021 crop value of $793 million.

It is the second largest producer of apricots, asparagus, grapes and raspberries.

Top 10 exports in 2021: Fish and seafood ($1.23 billion), wheat ($962 million) frozen french fries ($847 million) fresh apples ($643 million) and dairy ($627 million).

million acres.

Here is a look at our agriculture by the numbers, gleaned from the USDA, the Washington Department of Agriculture and the state Office of Financial Services.

Top trading partners in 2021: Canada ($1.36 billion), Japan ($1.2 billion), China ($1 billion), South Korea ($541 million) and Mexico ($457 million) On ice: Washington had nearly 281 million cubic square feet of commercial freezer space in 2021, or about 10% of the national total. Frozen french fries and related products were the most common products stored in freezers in the region.

Head of cattle slaughtered: Washington is the Northwest’s leading processor of beef, slaughtering twice as many animals in 2021 as No. 2 Idaho. The headcount was 1.1 million in 2021, up from 1.06 million in 2020.

The U.S. total was 33.8 million in 2021, up from 32.7 million a year prior.

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From heat domes to supply chain woes, state agriculture weathers a challenging year When it comes to growing food, it all starts with the weather.

No doubt, the weather is having a substantial impact on agriculture of late.

In 2021, the lack of spring rains and low soil moisture resulted in difficult growing conditions for dryland agriculture, leading to a reduction in wheat yields of more than 40% compared to the fiveyear average.

Other dryland crops, like peas, lentils, garbanzos and barley, also had lower than normal yields.

Livestock also struggled, as a drop in dryland hay production led to low feed supply at the same time that poor pasture conditions led to high feed demand.

As if the drought conditions were not enough, a recordbreaking heat wave, or heat dome, also lingered across the Pacific Northwest, reducing the yield and quality of several crops including berries, tree fruit and potatoes.

While the 2021 weather impacts are still not fully known, precipitation deficits have continued throughout Eastern Washington and the chances of recovering over the next several months are difficult to predict.

For the state’s tree fruit growers, weather concerns continued into 2022.

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Cherry farmers are already working to assess the effects of a late spring snow and freeze, as well as the Derek Sandison effect on polWashington State lination due Department of Agriculture to some cold, wet and windy GUEST COLUMN conditions during full bloom. Transportation delays compounded cold weather impacts when producers were left scrambling to find propane to fuel wind machines to protect budding crops.

These weather impacts stack on top of the perennial integrated pest management issues – like apple maggot and coddling moth – mean our tree fruit growers are likely to face a challenging year ahead.

Rising fuel costs Rising fuel costs have been a source of pain for commuters across the state, but those costs also are felt by the agriculture industry. On June 1, gas prices in Washington averaged $5.24 per gallon, an all-time high and over one and half times the retail price paid the year prior.

On average, fuel costs ac-

count for roughly 3% of on-farm production expenses, though that varies by commodity. Still, elevated fuel costs have a direct impact on producers, increasing the cost to power essential farm equipment like tractors, trucks and farm implements.

Rising fuel costs also are contributing to increased transportation costs, shortages and slowdowns.

Producers also are affected by higher natural gas prices. Natural gas accounts for 70%-90% of the costs required to produce nitrogen-based fertilizers, so higher natural gas costs mean an increase in the cost to produce fertilizer.

Nitrogen retail prices have increased over 150% since last year; phosphorus and potassium retail prices have similarly risen.

The U.S. Department of Agriculture estimates that total production expenses will rise by 5% in 2022, partially attributed to fuel and fertilizer prices, which have risen dramatically over the past year, on top of an increase of over 9% in production expenses in 2021.

Despite all these challenges, agriculture remains one of our state’s top industries, with a significant global footprint.

The value of Washingtongrown and processed food and agriculture exports totaled $7.7 billion in 2021, a 15% increase over 2020. Some of that is due to increases in export values, even while the volume of most exports declined.

Throughout 2021, the supply chain disruptions that started in 2020 because of Covid-19 only intensified.

Significant port congestion, a shortage of pallets and containers, and ocean carriers choosing to return to Asia with empty containers instead of shipping our agricultural products are just a few of the many challenges faced

by Washington’s food and agriculture exporters.

It’s a chaotic environment for those in the business of exporting Washington agriculture products.

Ag worker shortage One issue I haven’t mentioned is the difficulty in fielding an able and qualified workforce for agriculture. Struggling to fill job vacancies is nothing new for farmers and other agricultural employers.

The one option more farmers are turning to is the federal H-2A program managed by both the U.S. Department of Labor and the Washington State Employment Security Department (ESD). This visa program allows farmers to recruit and hire from other countries to perform agriculture work on a seasonal basis.

The use of the program has increased in the last 10 years. In 2012, ESD reported 4,405 workers were requested to work in Washington state. In 2021, that number ballooned to 30,018. If the trend continues this year, more foreign workers will be in the state, but the late cold weather damage to fruit trees may have lessened the need for them.

In the coming year, many of these challenges will still be here, and WSDA will continue its efforts to support Washington’s great agricultural community.

Addressing food insecurity In the past year, we have established grant programs like the small meat processors grant, which provided $3.6 million in grants to operations around the state.

Other grant programs are intended to bolster markets for local food producers, such as the farm-to-school grants and meat processor grants, which help improve sustainability for both farmers and consumers.

Food insecurity continues to be a priority issue, with the number of people seeking food assistance in Washington doubling during the pandemic and now with rising food costs due to inflation.

As many as 2 million people in the state still face food insecurity. From our initial emergency response during the pandemic to current enhanced Food Assistance programs and the We Feed Washington pilot food program, WSDA has developed strategies to feed all underserved communities and in doing so also support the diverse farmers and producers in our state.

Researchers at WSDA also have undertaken an effort to assess soil health in our state by participating in the Washington Soil Health Initiative and recently concluded a survey of dryland farmers to further their studies.

This information will be critical for the researchers as they learn ways to support sustainable agricultural operations into the future. ● Derek Sandison is director of the Washington State Department of Agriculture.

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Vibrant vines

Courtesy Washington State Wine Commission

Grape growers face a future altered by Covid, weather, smoke

BY MARY COFFMAN

Like all agricultural producers in the state, Washington’s wine grape growers have faced myriad challenges since the onset of the pandemic.

Tasting room closures, hot temperatures, wildfires, inflation.

“It won’t go back to what the market looked like prior to Covid,” said Vicky Scharlau, executive director of the Washington Wine Growers Association.

But producing quality grapes hasn’t been a problem.

Washington’s wine industry is an important asset for the state, accounting for about $8 billion in economic impacts, including nearly 40,000 industry-related jobs and more than $2 billion in wine revenue.

And it continues to shine with the recent addition of three new specially designated wine grapegrowing areas.

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Residents can do their part to promote the state’s wine industry by buying a special wine-themed license plate, available later this year.

It may be even more important with inflation taking its toll.

“Labor, the cost of fertilizer, the price of steel for trellises – it’s all impacting the growers,” Scharlau said.

The vast majority of Washington wineries are small, familyowned businesses, so inflation has a larger effect, she said.

“It’s very difficult for the smaller operations,” she said.

Despite the pandemic, fires and inflation, Washington’s wine industry is still vibrant and boosted by a solid foundation built on years of growing quality wine grapes and bottling them into premium wines.

Last year, there were 1,050 wineries in the state – equal to 2020,

and up from 1,000 in 2019.

New growing regions Three new American Viticultural Areas were approved in Washington in 2021 – White Bluffs, The Burn of Columbia Valley and Goose Gap – increasing the total number of AVAs in the state to 19.

White Bluffs is 93,738 acres and wholly contained within the Columbia Valley AVA. It is centrally located within the Columbia Valley, north of the Tri-Cities.

“White Bluffs is defined by great old vineyards that have a stellar reputation for producing fine wines,” said Kevin Pogue, who wrote the AVA petition for White Bluffs. “With ample irrigation from the Columbia Basin Project, there’s plenty of room for expansion.”

The White Bluffs AVA has more than 1,127 acres of wine grapes spread between nine commercial

vineyards. Varieties include Cabernet Sauvignon, Merlot, Syrah, Riesling and Sauvignon Blanc.

Kent Waliser, director of wine and grape sales for Sagemoor Vineyards near Pasco, which has four vineyards in the AVA, said 92 wineries buy fruit from their vineyards.

“A number of vineyards have been around for over 40 years, so they’ve really stood the test of time,” he said in a release. “This is a place that’s been known forever, but not by name until now. It’s about time that we can identify it as a place.”

The Burn of Columbia Valley AVA is 16,870 acres, also situated wholly within the Columbia Valley AVA. It is west of the Horse Heaven Hills and is planted with about 1,500 acres of wine grapes between three commercial vineyards, growing mostly Cabernet Sauvignon. Ste. Michelle Wine Estates and Mercer Ranches manage the vineyards within The Burn.

“The Burn is a spectacular and beautiful hidden gem,” said Rob Mercer, president of Mercer Ranches. “Almost no one has seen this incredibly productive plateau that rises above the Columbia River on the very eastern edge of the Columbia Gorge. The Burn has soils similar to the Walla Walla Valley, but temperatures that are much warmer and milder.”

Goose Gap AVA is 8,129 acres and located within the Yakima Valley AVA and the larger Columbia Valley AVA. There are about 1,800 acres of wine grapes split between two commercial vineyards, growing 16 varieties with fruit sold to more than 20 wineries.

“The AVA takes its name from a saddle of land known as Goose Gap, which was named because it was a flyway for geese between rivers, providing hunters with an exceptional site for hunting,” said Alan Busacca, who wrote the

Courtesy Ste. Michelle Wine Estates The Burn of Columbia Valley is one of three new American Viticultural Areas approved in Washington in 2021. There are now 19 AVAs in Washington.

AVA petition. “Goose Gap and the adjoining Goose Mountain, which is also within the AVA, create a rough triangle that traces the geography between Candy, Red and Badger mountains.

Smaller crop Record-breaking heat in 2021 resulted in high-quality wine grapes, while at the same time affecting the overall yield of the crop.

The Washington State Wine Commission’s annual Grape Production Report recorded 179,600 tons of wine grapes harvested in 2021, a slight increase over the previous year. The report is compiled with information provided by all wineries throughout the state.

“Both 2020 and 2021 were small harvests, but unlike the previous years where myriad factors contributed to a smaller harvest, in 2021 there was really one major factor that impacted yield size across the state – the historic heat event in June,” said Steve Warner, president of the Washington State Wine Commission, in a news release.

The harvest was lower for Washington juice grapes as well, with an estimated 103,000 tons harvested in 2021, down from the

10-year-average of 178,000 tons.

But the price for Concord grapes increased by 46% over 2020, to $300 per ton.

In early April 2021, bud break began in the Columbia Valley, ahead of historical averages. And by the time the buds bloomed in the third week of May, hot, dry winds swept through the area.

Then at the end of June, a heat dome sat on the West Coast, shattering temperature records. In the Columbia Valley, there were four straight days when temperatures rose to 118 degrees Fahrenheit.

While 2021 is considered one of the warmest vintages on record, temperatures did cool throughout September and October, allowing for extended ripening.

The high temperatures reduced berry and cluster size but the longer ripening time also produced higher quality fruit.

While the crop was smaller than growers and winemakers would have liked, Brix levels, which measure sugar concentration, were somewhat elevated and the acids held on surprisingly well, considering the warmth, Warner said.

The state’s winemakers and growers reported the overall quality of the fruit to be fantastic, with Focus | Agriculture + Viticulture

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179,600 tons of wine grapes were harvested in 2021, great 1% more than the flavor previous year. and concentration.

Once again, the most popular grape grown in Washington in 2021 was Cabernet Sauvignon, which has been the most produced variety since 2015.

Last year, growers produced about 50,865 tons of Cabernet Sauvignon, making up 28% of the total wine grapes grown in the state. Chardonnay was the second most popular at 25,675 tons, or about 14% of the total.

Riesling, Merlot, Syrah and Sauvignon Blanc rounded out the top six.

While the total crop came in at 1% more than the 2020 production, several varieties fared well during the heat, according to the state wine commission. It noted that Syrah grew by 15% and Sauvignon Blanc by 8%.

Farmers received an average of $1,460 per ton, a decrease of about $35 from 2020. Mourvedre received the highest average price per ton, at $2,447.

ated in 2019.

Last year a team of researchers from Washington State University, Oregon State University and University of California Davis received an $8 million grant to study the impact of smoke on grapes and wine.

The project is funded through the U.S. Department of Agriculture’s National Institute of Food and Agriculture’s Specialty Crop Research Initiative.

“We need more information about how the wildfires impact grapes – and also about the impacts on wine,” Scharlau said.

Often grape growers will not know if their grapes are tainted by the smoke until the wine is in the bottle, she said.

The task force is focused on four main areas: assessing smoke risk in the vineyard; understand-

ing smoke impacts on grapevine heath and fruit quality; developing winery tools to mitigate smokeimpacted wines; and providing information to growers during wildfires to help mitigate impacts.

Wine plates To boost wine tourism in the state, Washington lawmakers passed a bill in April to create a Washington wine specialty license plate. Revenue from the license plate sales will go to State of Washington Tourism, the state’s official destination marketing organization.

The plate will cost $40 and $30 for a renewal. Demand is expected to be high, since more than 4,000 Washington residents signed a petition to support creating the specialty plate.

“We’re thrilled to see an official license plate celebrating our state’s great wine industry,” Warner said. ●

Wildfire woes After the pandemic closed tasting rooms throughout the state, fierce fires blanketed the west with dense, thick smoke last year.

Persistent exposure to smoke compromises the quality and value of wine grapes and adversely affects the wine itself. Northwest growers only had to look south to find evidence of how devastating the fires could be to their crops.

In 2020, the wildfires in California cost wine grape growers there up to an estimated $3.7 billion, according to the West Coast Smoke Exposure Task Force, a group creFocus | Agriculture + Viticulture

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Buyers await Courtesy Port of Seattle Container ships dock at the Port of Seattle in the shadow of the Space Needle. More containers left the Ports of Seattle and Tacoma empty in 2021 than full. For Washington exporters, lack of access to oceangoing vessels is a significant barrier to serving their overseas customers.

Value of ag exports is up, but there’s a hitch

BY WENDY CULVERWELL

Washington state saw the value of agriculture exports increase by more than $1 billion in 2021.

There’s a big asterisk tied to the impressive $7.7 billion figure for agricultural products originating in Washington.

“Be clear that while values are up, volumes are predominantly down,” said Rianne Perry, manager for international marketing at the Washington State Department of Agriculture, which tracks export statistics.

Inflation and supply-chain related bumps drove up prices and, by extension, shipping values.

Washington exported $21.7 billion of ag products, a figure that reflects wheat, soybeans and other products that passed through the state en route to foreign markets.

The decline in volume doesn’t apply to all the Washingtongrown products shipped overseas.

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But it was true for most, Perry said.

Empty containers The problem in 2021 was the same as the year prior: Oceangoing vessels unload at the Ports of Seattle and Tacoma – collectively the Northwest Seaport Alliance – and leave with more empty containers than full ones.

“They can make more money going back to Asia with empty shipping containers,” she said.

Perry said it isn’t a question of demand. Washington-grown products have buyers ready.

“There are a lot of lost sales.

These are products that have buyers – they just can’t get product to them,” she said.

The number of empty containers leaving the port is growing.

According to the alliance, it grew to 836,000 in 2021, up 41% over the year prior.

Collectively, the two ports handled 3.7 million containers in 2021. Of those, 1.46 million ar-

rived full and 692,000 left full.

In May 2021, for the first time, more containers departed empty than full.

Not coincidentally, The Northwest Seaport Alliance noted a 30% drop in agricultural commodities shipped in the last half of 2021.

That was a difficult shift, said Melanie Stambaugh, communications director for the Northwest Seaport Alliance.

The alliance ports were balanced prior to the pandemic – receiving as many loaded containers as they sent out.

“We really prided ourselves on that,” she said.

In a bid to reverse the trend, the alliance is collaborating with the U.S. Department of Agriculture on near-dock facilities where shippers can send containers ready to load.

A 49-acre “pop up” yard at Seattle’s Terminal 46 began operating this spring. Another is being

prepared at a near-dock facility at the Port of Tacoma. The facilities can handle refrigerated cargo as well as Washington’s top ag exports – hay and forage materials.

For shippers, the extra step of leaving a container near the dock would normally add the extra expense associated with dropping off and picking up a container.

The federal agency is covering the cost – $400 for refrigerated containers and $200 for nonrefrigerated ones.

The USDA is partnering with the Port of Oakland, California, on a similar project while the U.S. Department of Transportation is working with the Port of Savannah, Georgia, to ease shipping congestion.

Trends to celebrate While shipping is a struggle, there are trends to celebrate in ag exports.

In 2021, Canada remained the top buyer of Washington-grown food and agriculture, followed by Japan, China, South Korea and Mexico. Our neighbors to the north purchased $1.36 billion worth of fish and seafood, fresh apples, sweet cherries, onions and fresh berries.

Japan, No. 2, purchased $1.2 billion of hay, frozen french fries, fish and seafood, wheat and beef.

China moved up to No. 3 as it bought U.S. commodities to comply with the United States-China Phase One Trade economic and trade agreement, approved in 2020 during the Trump administration.

Under the agreement, China agreed to purchase wheat and other Washington-grown products. The numbers ticked up in 2021, with China purchasing nearly $1 billion worth of wheat, hay, beef, fish and seafood and dairy. Perry doesn’t believe that level of spending is sustainable.

“My crystal ball would be that this won’t continue. I think some of this is the obligation of the Phase One agreement. I would expect for things to settle back in the $400 million-$500 million range, which is where our exports to China have been,” she said.

South Korea, No. 4, purchased $541 million worth of wheat, hay, french fries, frozen, sweet cherries and dairy.

Mexico moved up a spot to No. 5 on the strength of its apple purchases.

“We were really happy to see Mexico bounce back to No. 5,” Perry said.

Mexico purchased $457 million worth of apples, frozen french fries, dairy, pears, hop cones and extracts. Fresh potatoes were notably missing from its shopping list.

U.S. potato growers have long coveted the market but were barred from shipping beyond a narrow zone along the U.S.Mexico border. Mexico’s Supreme Court voted 5-0 in April 2021 to end the embargo.

Mexico accepted its first shipments of U.S. fresh potatoes on May 11, 2022.

“The Washington potato industry is excited about it,” she said.

Who’s buying?

Frozen french fries, widely produced in the Mid-Columbia, rose to $847 million, an inflationmatching 8%. Top buyers include Japan, South Korea and the Philippines.

Sweet cherries, also widely grown in the Mid-Columbia, declined sharply, falling to $267 million, a 22% decline. The infamous late June heat dome that settled over the Pacific Northwest and sent temperatures unseasonably high affected cherries, berries and even some vegetables.

Washington’s top exports in 2021 Fish and seafood: $1.2 billion Wheat: $962 million Frozen french fries: $847 million Fresh apples: $643 million Dairy: $627 million Hay: $623 million Hop cones and extracts: $337 million Beef: $317 million Sweet cherries: $267 million Pulses (dry peas, beans, chickpeas, lentils): $137 million Total exports: $21.7 billion Washington grown: $7.7 billion Source: Washington State Department of Agriculture

Canada, South Korea and China are the biggest international markets for cherries.

Apples, Washington’s signature product, is the fourth mostexported product with a value of $643 million in 2021, up 1%.

Buyers included Mexico, Canada and Taiwan.

The biggest gains in value were posted by wheat and beef, both driven by demand from China. Washington wheat growers exported $962 million worth of wheat in 2021, a 45% gain in value, and $317 million worth of beef, a 49% gain in value. ● Focus | Agriculture + Viticulture

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Juicy gems Growers report good volumes despite chilly spring

BY LAURA KOSTAD

It’s hard to say how 2022 will play out for Washington’s cherry growers.

“It’s always a weather-vulnerable crop, and there are many ways the cherry crop can be sabotaged by weather,” said Jon DeVaney, president of the Washington State Tree Fruit Association. “The joke is that cherry growers don’t have to travel to Las Vegas to gamble.”

Cold weather in late April may have damaged buds and put a damper on pollinator activity.

“It can take weeks to see if flowers were successfully pollinated or not; we’re still waiting to see if fruit will develop,” he said.

Every year it’s watch-and-wait as growers (and the public) anticipate the seasonal crop that’s only available from the end of April through late August, if California’s growing season is included.

Locally, cherries usually start to appear in early June, sometimes as soon as Memorial Day weekend, with volume peaking around July 4.

This year, DeVaney said, “it may be later before the market sees its first cherries. Many of our 16

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growers are reporting we should have good volumes for Fourth of July and beyond.”

So, it may be a potential reduction, but not a wipeout, barring any other unusual weather events that might stress the delicate fruit.

In 2021, the equivalent of over 18.6 million 20-pound boxes of cherries were harvested in the Northwest, mostly in Washington and Oregon, DeVaney said.

In 2020, nearly 18.3 million boxes were picked.

“Last year’s crop would have been larger if it had not been for the unseasonably warm temperatures seen during the El Nina event, especially in Yakima Valley.

Tri-Cities’ cherries had already been harvested, primarily – the heat dome caused very definite damage, particularly shriveling of the fruit,” he said.

Washington grows more sweet cherries than any other U.S. region, according to the tree fruit commission.

Inflation takes a bite DeVaney said the industry is hoping reduced volume this year will translate to a stronger price for cherries amid rising produc-

tion costs.

The Russia-Ukraine war, economic fallout from the Covid-19 pandemic, ongoing supply chain disruptions and mounting effects of China’s current Covid-related lockdowns loom over the orchards.

“The overall global trade environment remains unsettled,” DeVaney said. “Inflation in costs every consumer is seeing – not the least of which is fuel – so any product that needs to be delivered by truck or airplane means we’re seeing higher costs of transportation, whether it’s moving cherries from orchard to packing facility … or to stores themselves, it drives up the price to deliver the product.”

He said fertilizer and chemical costs also are on the rise.

Fortunately, most cherry markets are focused on North America and east Asia, and due to cherries’ delicate shelf life, they are largely air freighted, meaning less risk of shipments being held up and fruit going bad.

However, demand for air freight services is also on the rise due to shipping backups and delays, contributing to the higher price customers will see this season.

Cherry pickers The pandemic presented its own unique set of challenges to the agricultural sector, especially when it came to social distancing measures that affected temporary worker housing situations and transportation of those workers.

Most restrictions have gone away, but in 2021, what was key to the industry’s resilience and ability to adapt was the labor force’s willingness to be vaccinated.

“It reduced the risk substantially,” DeVaney said, referring to the catastrophic domino effect of disruption that outbreaks among an unvaccinated labor force could have had on all aspects of getting fruit to market.

“Though vaccination rates among packing facility workers, for example, who work full-time yearround tend to reflect more of that of the surrounding community,” he said.

To enter the U.S., however, foreign workers were required to be vaccinated. The federal H-2A visa program allows farmers to recruit and hire from other countries to do ag work on a seasonal basis.

“The H-2A workers were very pleased to have the opportunity – not ‘Do I have to do this?’ but more, ‘Can I have it?’ It may be a reflection of the fact that, in Mexico, they were slower to get vaccine opportunities made fully available.”

Rolling into the 2022 season, many returning workers were in position to be approved for work visas since they are fully vaccinated.

Despite the ongoing struggle to recruit domestic workers, DeVaney said the overall labor market is very competitive.

“Anyone driving through eastern and central Washington will see signs saying, ‘Workers wanted’ advertising higher pay rates and even sign-on bonuses,” he said.

“While we are still seeking Focus | Agriculture + Viticulture

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domestic labor, there are many H-2A applications being prepared because there’s certainly the expectation in this market that it’s not going to get easier to find domestic workers for seasonal jobs,” he said.

DeVaney said the industry continues to struggle with little cherry disease, a pathogen-caused infection carried by mealybugs that results in infected trees producing cherries of smaller size, featuring poor color and flavor.

The disease remains incurable and currently the only solution is to remove the tree.

A healthy pick Even with so many challenges facing cherry growers this year, DeVaney remains optimistic.

“The industry is still able to grow outstanding quality fruit in our region and make available this healthy, delicious product for consumers,” he said.

Courtesy Washington State Tree Fruit Association

The pandemic prompted many people to adopt healthier lifestyles and cherries are positioned to sell well as a superfood powerhouse.

“The focus on health is something that our cherry industry has been focusing on for a while.

We think it will continue to be a motivating factor,” DeVaney said.

“Cherries are good for heart health and for anyone under stress – they are an important means of counteracting that bodily inflammation that occurs.

Cherries are also just naturally delicious.”

And though cherry season is short, they do freeze well so they can be enjoyed year-round. ●

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Spud superstars

Courtesy Washington State Potato Commission

‘Perfect growing season’ is on potato farmers’ wish lists

BY KRISTINA LORD

So many variables can send farmers’ careful preparations sideways.

It’s been a common refrain this spring among leaders at many of the state’s commodity groups.

Shipping delays affecting the export market.

Inflation gobbling up profitability.

The war in Ukraine creating market instability.

Unpredictable and unseasonable weather.

Despite the challenges, potato growers are ready to produce their crop to feed a state industry valued at $7.4 billion. This includes processed potatoes destined to become french fries, hash browns and the like.

To market with Mexico The fresh potato market fully opened in Mexico in May 2022 after a years-long fight and drawnout court battles.

“But a smooth road ahead is not guaranteed with continual pushback expected from Mexico’s potato industry. We will continue to monitor, but for now are celebrating this historic event and remain cautiously optimistic about the opportunities for Washington fresh potatoes in Mexico going forward,” said Rianne Perry, manager for international marketing at the Washington State Department of 22

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Agriculture, which tracks export statistics.

Chris Voigt’s enthusiasm also was tempered.

“Realistically, it’s not likely going to be a huge fresh market for us,” said the executive director of the Washington State Potato Commission.

The first fresh potato shipments south of the border in May weren’t Washington potatoes but from Idaho and Colorado, he said.

Washington’s fresh-market spuds come out of the ground later in the growing season and likely will head south sometime in August, Voigt said.

Also, the state’s fresh potato footprint is getting smaller and smaller, “mostly because we are so good at processing potatoes and the demand has been really strong,” Voigt said.

“We have fewer and fewer fresh acres every year because we’re getting more and more processing acres,” he said.

The state’s red potato growers, who are primarily on the west side, have a unique opportunity to succeed in Mexico, he said.

But the Mexican border opening is good news for the state’s growers as it gives them more opportunities in the domestic market.

“Even if Washington state isn’t the biggest shipper to Mexico, it still helps Washington growers because every time Idaho can sell

or Colorado can sell a potato to Mexico, that’s one less potato here in the U.S. that we have to compete with – so it’s good for everybody,” Voigt said.

What’s the outlook?

Last year’s record-setting heat wave took its toll on the potato crop. The hardy tubers aren’t as sensitive as delicate cherries, but hot temperatures did impact plant growth.

Because the heat hit last June, it affected tuber initiation, which is when potatoes begin growing underground. The heat messed with their biological clock so overall yields were down.

“We were down about 10% in production, which is huge for us.

I mean 10% doesn’t sound like a lot but that’s actually a pretty big number because we’re usually pretty consistent year in and year out,” Voigt said.

In an industry that produces about 10 billion pounds of potatoes a year the loss equaled about 1 billion pounds.

Stored potatoes from the previous harvest also took a hit as potato rot was a problem last year.

As for this year’s outlook, there’s still a lot of growing days ahead for the 165,000 or so acres of potatoes in the state, Voigt said in mid-May. Potatoes prefer 75- to 85-degree days but this spring’s cooler temperatures lasted longer than usual.

“We need to have a perfect growing season and I’m a little nervous because of this cool wet spring we had. We might not meet our full yield potential. There’s still a possibility we can, but we are kind of starting behind the gun here,” he said.

Fourth of July is usually when growers get an indication of what fall yields will be like, he said.

The bottom line

Ukraine such a large producer of both canola and sunflower oil to the world, losing that is going have huge ramifications to the availability. So what was a tough situation already is made even worse. We don’t understand the ramifications of that. The prices of cooking oil have shot up and will continue to rise and that’s going to continue to have an impact on our potato processors,” Voigt said.

Growers negotiate contracts with potato processors at the end of September, so they know how much ground to prepare for the spring planting. All growers received a 20% bump on contract prices, Voigt said.

But rising input costs (fertilizer and fuel) mean the increase should just cover expenses – if growers get that perfect growing season with high yields, Voigt said.

Growers also are concerned about how the Russia-Ukraine war will affect the market.

Voigt said prior to the war, potato processors and frozen french fry manufacturers were struggling to secure enough cooking oil.

“Now with war going on and

Supply chain woes continue to be a problem for the industry.

It’s been a struggle to get the state’s processed taters into shipping containers.

The situation is improving but at its peak shipping companies were getting paid more to deliver containers from China to Seattle than from Seattle back to Asia.

Their business model was to “turn and burn” as fast as they could, ferrying empty containers from the U.S. back to China so they could fill them again there, Voigt said.

“It’s getting better. We’re still not where we want to be, but instead of leaving 20% of the business

Exports improving

on table, now it’s more like 8% to 10%,” he said.

The potato industry still has the same traditional overseas customers but business with the Philippines, which Voigt said the industry had hoped was going to be a rising golden star, hasn’t grown because of high tariffs.

“Our product is 10% higher compared to other french fries going into that country. A free trade agreement hasn’t been signed in a long time by the U.S. so we’ve fallen behind in free trade agreements and our competition – they’ve been aggressive in free trade agreements and so now we’re really in a position where all our products all cost more money because we’ve fallen behind on our trade policy in this country,” Voigt said.

For the love of the spud Still, demand for spuds in all their various forms remains high.

“We ate less potatoes and potato products last year but that was only because we had less to sell. But the demand is still there,” Voigt said.

What does Voigt wish consumers knew about our state’s starchy crop?

Courtesy Lamb Weston Focus | Agriculture + Viticulture

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He said when he thinks of heathy foods he thinks about broccoli and oatmeal. He said the potato offers the nutritional content from both these superfoods.

“It’s like slamming broccoli and oatmeal together and that’s what a potato is because you get all the vitamins and mineral content that would be in the broccoli, but yet you’re picking up the fiber and energy of the oatmeal, so it literally is the ultimate food product,” he said.

He also said growing potatoes is good for the planet as the three biggest factors affecting sustainability for food production are the amount of water, land and fertilizer needed to produce food.

“Did you know you can produce five times the amount of food on an acre of ground growing potatoes in Washington than you can growing rice in California?” Voigt said, explaining he’s referring to per-acre calorie count. Potatoes also require less land, water and fertilizer than

rice, which is better for the environment.

“You can help the planet by eating more potatoes,” he said.

Researching efficiency Potato industry growers, processors and input suppliers hope to become even more efficient at growing their crop. They contributed toward a $3.5 million endowment at Washington State University to fund research serving potato agriculture.

The endowment will plow interest from the fund to fuel research “on how to grow more potatoes using fewer resources and really focusing on the soil,” Voigt said.

Steve Culman has been hired as the first distinguished endowed chair in soil health for potato cropping systems, joining the Department of Crop and Soil Sciences in Washington State University’s College of Agricultural, Human, and Natural Resource Sciences

(CAHNRS).

“Steve’s ideas and experience will help him sift through the complexities of our soil and unearth answers for potato agriculture,” said CAHNRS Interim Dean Richard T. Koenig in an April press release. “His new research program wouldn’t exist without our partners in the potato industry, and I’m grateful and excited to see the advances it will bring for health, productivity and sustainability.”

The Columbia Basin Soil Health for Potato Cropping Systems Working Group led development of the endowed position. Made up of industry leaders from AgriNorthwest, Corteva Agriscience, J.R. Simplot Company, Lamb Weston, McCain Foods, Oregon Potato Company, Stahl Hutterian Brethren, Trical Soil Solutions and the Washington State Potato Commission, the group helps scientists prioritize research in potato production. ●

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Pasco farmer says U.S. potato industry is focused on the future Despite all the changes the nation has experienced over the two-plus years of this pandemic, the U.S. potato industry remains as committed as ever to fighting for federal policies that protect our businesses, our families and the communities we support.

Years ago, when I first attended the potato industry’s leadership development course as a young grower and business owner, it was hard to envision myself as the president of our national trade association one day.

However, when I was passed the gavel and took over as the National Potato Council’s 2022 president in February, I reflected on the hard work that got us here and my desire to use the momentum we have built – despite a global pandemic – to leave NPC and the entire industry in a stronger position than any of us could have anticipated.

Whether it is in the area of trade, nutritional regulations, environmental policies or labor rules, we have seen firsthand what we can do as an industry when we stand together.

As challenging as it was to operate in a mostly virtual environment, I’m pleased to report that we delivered tremendous results 26

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for our industry in 2021.

Based on the final data, we now know that through the work of NPC and our Jared Balcom National Potato Council state partners over $350 milGUEST COLUMN lion in federal assistance was provided to support the potato industry throughout the pandemic.

Through programs like the Coronavirus Food Assistance Programs, surplus potato purchases by the U.S. Department of Agriculture, substantial potato participation in the Farmers to Families Food Box programs and other federal programs, we were able to deliver the largest federal disaster support ever provided to the potato industry.

Now, as the country – and the world – reopens, we are hoping we can return to advocating for a proactive policy agenda that is fighting for a brighter tomorrow.

Easing bottlenecks The U.S. potato industry is dependent upon an efficient transportation system in moving product from the farm through

the supply chain to the end consumer. Unfortunately, current supply chain disruptions are creating severe shortages of vital inputs for potato production and inflating prices for those fortunate producers who can secure supply.

NPC has identified several specific regulatory and legislative actions that could assist in relieving some of the current bottlenecks that are severely impacting producers, including removing burdens on truck drivers and easing regulatory impediments on shippers.

Workforce challenges Anyone in the specialty crop industry is aware of the challenges of finding labor to plant and harvest crops.

To address the crisis, last year the U.S. House of Representatives passed the NPC-supported bipartisan Farm Workforce Modernization Act, sponsored

by U.S. Rep. Dan Newhouse, R-Sunnyside – the second time it has passed the bill during consecutive sessions of Congress.

NPC and our partners in the Agriculture Workforce Coalition are now encouraging the Senate to improve upon that bill and create the opportunity to secure a

Courtesy Washington State Potato Commission

long-term fix to this crisis.

Fighting for fair trade As the former NPC vice president of trade affairs, I’ve spent years immersed in the details of our country’s trade agreements – including the recently adopted U.S.-Mexico-Canada Agreement (USMCA) – that particularly benefits growers from the Pacific Northwest.

However, one longstanding dispute with a trade partner has preoccupied the industry for literally decades. If you’ve been following the news, you know that country is Mexico, which has all but closed its borders to U.S. fresh potatoes for the past 25 years, despite trade pledges to the contrary.

However, in early April 2022, U.S. Secretary of Agriculture Tom Vilsack met with Mexico Secretary of Agriculture and Rural Development Victor Villalobos in Mexico to discuss their shared priorities, including agriculture trade.

Most notably for the U.S. potato industry, the secretaries jointly announced the two countries had concluded all necessary plant health protocols and the entire Mexican market opened in May 2022 for all U.S. table stock and chipping potatoes.

We can finally realize the full potential of this expanded market. All told, the U.S. potato

industry estimates that access to the entire country for fresh U.S. potatoes could provide a market potential of $150 million per year in five years. This would increase global fresh potato exports by over 10% and support thousands of direct and indirect American jobs in the process.

Whether it’s trade, legislation, or nutritional programs, NPC and the entire U.S. potato industry continue to advocate for policies that will set the stage for

a strong and prosperous future for our growers and those up and down the potato supply chain.

To find out more about how the grower-led National Potato Council is fighting for policies that protect the long-term health of our industry, go to: nationalpotatocouncil.org. ● Jared Balcom is the 2022 president of the National Potato Council and owner of Balcom and Moe Inc. of Pasco.

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Passion for spuds keeps grower in business

BY PAM LEWISON

For some farmers, growing potatoes is about a passion for growing things and connecting with consumers.

Reagan Grabner, of CSS Farms, is one of those farmers. His family is one of the more than 300 families who make up Washington state’s potato growers.

“I was raised on a wheat farm and had the opportunity to work for a potato processor,” he said. “I really fell in love with the idea of growing a product that was more than a commodity, something that had high standards and a story that my customers cared about.”

CSS Farms produces potatoes for chips and french fries, and baby potatoes for fresh markets just outside Pasco. For Grabner, of all the varieties of potatoes the farm produces, his favorite way to incorporate potatoes into a meal is the simplest.

“It’s probably not the right answer, but I love roasted, simply prepared baby potatoes,” he said.

Helping Grabner grow his spuds are a team of 25 full-time employees with an addition of 25 seasonal employees, during the busy harvest season. For him, working alongside great people brings a lot of satisfaction.

“Accomplishing really hard goals as a team is the best part of farming,” he said.

Among those hard goals are those achieved by the plants themselves during the earliest parts of the growing season.

“It is the best job in the world because I get to see little miracles of life every day,” Grabner said.

“When potato plants first crack through the soil, it is about the most amazing thing someone can witness.”

He called farming hard work

with intangible rewards.

But it is not just the intangible rewards that make farming so important for Grabner. As a father of four boys and a wife he calls “a saint,” Grabner characterizes his job as important for other reasons, too.

“I get to be the steward of an amazing resource of land and help

knowledge of farming are one of Grabner’s business concerns.

“People who don’t have a full understanding of what we do telling us that we should be doing it differently is frustrating and one of the many challenges we face, amongst the weather, labor shortages and other risks,” he said.

Grabner extends an invitation to

Courtesy Pam Lewison Reagan Grabner raises potatoes for chips and french fries and for the fresh market at CSS Farms near Pasco. Grabner, who grew up on a wheat farm, said he chose potatoes because he liked the idea of growing a product “that was more than a commodity.”

provide a livelihood to many awesome families,” he said.

The resources he cares for and the people he works with are hallmarks of Grabner’s discussions of his farm. He credits the river with the existence of the farm.

“This farm only exists because of the water in the Snake River,” Grabner said. “That is its source of water. Without it, we would raise dryland wheat every other year. If there was a change that prevented access to that water, the farm would cease to exist.”

The naysayers in the state and the people who try to direct farm policy without any direct

any legislator interested in seeing how involved he is in the growing and harvesting of the crops.

“We have started our growing season and will begin our potato harvest in late July. We would be glad to show any legislator interested around the farm and teach them about potato farming. I hope they don’t mind getting up early,” he said.

Learn more about Washington state’s potato legacy at potatoes. com. ● Pam Lewison is the director of Washington Policy Center’s Initiative on Agriculture, which is based in the Tri-Cities.

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Core crop

Courtesy Washington Apple Commission

Apple industry renews focus on domestic market

BY LAURA KOSTAD

As summertime approaches, consumers begin to look to local markets for the parade of fresh fruits, and apple orchards buzz with preparations for the late summer harvest.

Last year, 122 million bushels were harvested in Washington, the nation’s leader in apple production.

It was a moderate crop compared to past years that have seen totals in the mid-130 million range.

“A lot of it had to do with the heat we had in June (2021),” said Todd Fryhover of the Washington Apple Commission, referring to the heat dome that settled over the region.

Contrast that with this spring 2022, which saw snow in midApril.

“It didn’t get dramatically cold, but it certainly doesn’t take much to affect our crops,” he said. “We’re probably looking at a similar size crop (for 2022), depending on what happens with pollination weather.”

As the calendar flipped to 30

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2022, it was clear the apple industry was seeing signs of improvement in the wake of the Covid-19 pandemic.

Though working conditions are largely what they were prepandemic, adjusting to social distancing measures was a major hurdle.

Roughly 30,000 foreign workers come to Washington every year through the federal H-2A program to work in agriculture.

This visa program allows farmers to recruit and hire from other countries to perform work on a seasonal basis.

“That fruit isn’t going to pick itself. Every single apple is picked by hand. … We need to do everything we need to do to take care of the labor force; if that means building more housing, buying more buses or paying higher wages, we’ve already committed to that fruit,” he said.

Fortunately for the industry, Fryhover said, “it doesn’t look like Covid is going to be as impactful as it was this time last year. We will continue to prioritize our workers’ safety and health.”

However, as the world contin-

ues to churn with the economic toll from the pandemic, Russia’s invasion of Ukraine, China’s latest pandemic-driven lockdowns and other ongoing supply chain disruptions, challenges clearly still lie ahead for Washington’s apple growers.

Worldwide appeal Washington’s apples are enjoyed in 23 other countries around the world.

Fryhover said the state exports 30% of the apples, pears and other fruits it produces. Of the fruit that remains in the U.S., only 3% stays in Washington.

To get the fruit overseas poses logistical issues as shipping is one of the biggest challenges facing the industry this season.

“We still have vessels at anchor along the west and east coasts, more vessels off the coast of China … If you load a container and it doesn’t get picked up or sits waiting for two to three weeks, we’re dealing with a perishable commodity,” Fryhover said.

The financial risk escalates with rising shipping and other costs.

Fryhover said the system is

strained even within the U.S. as freight rates to Florida were once $8,000 and are now $15,000. “You know what that’s like trying to pass it along to your customer,” he said.

“The third whammy is the cost of your inputs. Fertilizer and packaging expenses going up and then the 7% to 8% inflationary pressure. All these things are impacting the grower and the elasticity of price can only stretch so far,” he said.

Tariff pressures The industry also is still struggling under retaliatory tariffs which add an additional 20% on top of the customary 50% in China and India. The tariffs were introduced during former President Donald Trump’s term in response to tariffs he placed on aluminum and steel coming from those countries.

Fryhover said he doesn’t see that changing under the Biden administration.

The European Union plus its neighboring eastern European countries make up the second largest apple production area in the world. With a damper on imports from Washington, other countries are stepping in to deliver. Fryhover said that apple orchards also are on the rise in India.

“In the great state of Washington, we do such a great job on tree fruit that we can compete on a quality level with anyone in the world … but we aren’t going to be able to compete on price,” he said.

Back on the homefront Fryhover said this season will emphasize the importance of the domestic market, which consists of 500 million consumers across the U.S., Canada, and Mexico – 20% of U.S. apple exports go to Canada and Mexico.

On the homefront, the indus-

Courtesy Washington Apple Commission

try adjusted over the past couple of years to shifts in shopping habits.

As stores fine-tuned mobile shopping options to accommodate curbside pickup and delivery and people began making fewer, shorter trips to stores, packers started putting apples in bags of uniform weight.

“The industry is so resilient,” Fryhover said. “Our packing lines are set up to do trade packs, not bags, and so we’ve really had to come up with creative methodologies to get more fruit into the bags for domestic retail. Some have been able to buy machinery for bags, others are doing it with labor.”

Even as mask mandates have lifted around the country and the pace of life has largely returned to normal, Fryhover said bagging is here to stay and will probably even increase over time.

“Shrinkage goes to zero,” he said, referring to the rate of retail theft. “Brands can use high resolution graphics. The message is on the bag and so they can promote themselves more.”

The commission and the Washington apple industry continue to promote the proprietary

Cosmic Crisp variety, developed

by Washington State University.

The sweet juicy variety is allowed to be grown in Washington for

The state exports 30% of the apples, pears and other fruit it grows. Of the fruit that remains in the U.S., 3% stays in Washington.

the first 10 years of its patent.

Fryhover said one of the industry’s objectives is to find new markets for Cosmic Crisp.

“We are concentrating our efforts mostly in California,” he said.

He said Cosmic Crisp is best promoted using product samples handed out at retailers, which ceased for most of the pandemic.

“It’s starting to come back, but that’s been one of our major challenges,” he said.

Overall, his outlook for this growing season is optimistic.

“We just have to take those challenges facing us and turn them into opportunities,” he said. ●

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Exports expand Courtesy Hop Growers of America When the bines are stripped of the cones, the leaves come off as well. The hops and leaves are processed through a number of belts, where gravity separates them, ensuring bales are packed with hops.

Craft beer drives thirst for hops

BY MARY COFFMAN

More than 84.6 million pounds of hops were grown in Washington in 2021, a 14.1% increase over 2020.

“We were all kind of surprised to see a record crop last year, after the spring heat dome, which hit when the vines were vulnerable,” said Maggie Elliot, science and communications director for the Hop Growers of Washington.

A historic heat wave enveloped the Northwest in June 2021, with temperatures topping 115 degrees, threatening to stunt the crop.

Fortunately, record snowfall in the Cascade Mountains filled the Yakima reservoirs in early June, allowing growers to nurture hops using precise irrigation practices and reducing the impact from the heat wave.

“The aroma varieties took the hardest hit from the heat,” Elliot said.

Aroma hop varieties aren’t as heat tolerant as the alpha varieties, she explained.

Aroma and alpha are the two kinds used to brew beer.

Alpha varieties provide the distinctive bitter bite to beer. Alpha varieties are often processed into extracts used by major brewers.

Aroma varieties contribute to the aromatic depth that craft brewers use to create unique flavor profiles. Aroma hops are often added to the beer near the end of the boiling process, providing the beer with a final layer of finish. Sometimes brewers will add the aroma varieties after the boil is complete, when the mixture is fermenting, which is a process known as dry-hopping.

Demand spikes Elliot said just a few years ago, Washington’s hop acreage was almost evenly split between alpha and aroma varieties. But with the expansion of craft breweries throughout the world, demand for aroma varieties has spiked.

“Now about 80% of the hops grown in Washington are aroma varieties,” she said. “Aroma varieties are one of the key areas of innovation for the U.S. hop industry and the American varieties meet the need and are highly prized around the world.”

According to a report released earlier this year by the Hop Growers of America, hop acreage increased throughout the Pacific Northwest growing areas in Washington, Idaho and Oregon.

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Courtesy Hop Growers of America A top cutter disconnects from a truck filled with hops so it can drive to the picking facility and an empty truck ready to be filled can take its place.

Northwest in 2021, an increase of about 2,100 acres, or 4%, from 2020.

Yields were expected to be at 1,915 pounds of hops per acre, an increase of about 8% year-

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over-year, with the total production in the Pacific Northwest reaching 116 million pounds.

All three Pacific Northwest states saw increases in the acreage planted during 2021, but

Washington remains the largest growing region, accounting for 71% (about 43,380 acres) of the total U.S. hop acreage. Idaho grows about 16%, with 9,800 acres strung with hops. And

Washington produced

Oregon and more than 70% of the grows about best $662 million U.S. hop 7,600 acres, pracor 13%. tice crop in 2021.

Elliot said compliWashington grows ance also about 30% of the world’s have increased. hop supply and exports about “It’s remarkable how much half of the crop each year. costs, like fuel and fertilizer, have “Our exports have increased increased,” Elliot said. dramatically over the past 10 Many growers are under conyears,” she said, adding that there tract to sell their hops at a fixed is increasing interest in aroma price up to five years in advance, varieties.

Elliot said, and inflation is going “We are seeing interest in craft to hurt their margins for years to beer growing throughout the come. world.”

And, of course, Covid-19 The industry is responding to played a role in the higher that growth and interest by proproduction costs, with farmers moting hops grown in the U.S. having to distance workers durand educating brewers across the ing transport and operations and globe about the unique qualities hiring additional workers to fill of aroma hops. in for those who had to quaranElliot said they are focusing tine due to exposure. In many much of their energy on markets cases, they had to hire extra staff in Europe and also in Brazil. to perform worker health checks “We see huge potential in and to sanitize equipment, veBrazil, where the craft beer inhicles, tools and other surfaces. dustry is growing dramatically,” Additionally, federal H-2A she said. worker housing could not be used at full capacity due to social Inflation takes a bite distancing requirements, increasWhile craft beer interest ing the costs to house guest flourishes and markets increase, workers. inflation is also impacting the Washington State Univerindustry and likely will result in sity recently updated its Pacific consumers paying higher prices Northwest Hop Cost of Producto enjoy their favorite adult tion Study completed in 2020, brews. estimating the annual cost of The report notes that growproducing mature standard ers are facing substantial trellis hops using drip irrigation increases in production costs. at $13,588 per acre (including Those increases are driven by variable and fixed costs, deprethe expansion of harvesting and ciation, etc.). production capacity to handle The report noted that inthe doubling of strung acreage creased inflation impacting over the past decade, updatsupplies, fuel, labor and other ing equipment, increased labor inputs was estimated at 6.5% costs (including health care and for 2021, which bumps up the other benefits), and inflation in cost of production per acre to the cost of fertilizer and other approximately $14,471 when approduction inputs. plied to the 2020 figure derived Administrative and operating costs associated with food safety

by WSU. ●

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Fickle spring Late winter bolstered water supplies, took some of the sting out of drought

BY JEFF MORROW

Thanks to a very wet April, the Pacific Northwest has a lot of water.

That’s potentially great news for water users.

After declaring a drought in the Mid-Columbia on July 14, 2021, the Washington Department of Ecology downgraded Benton and Franklin counties to “drought advisory” status in late May. Five watersheds spanning parts of Spokane, Lincoln, Grant, Adams, Whitman, Stevens, Okanogan and Pend Oreille counties remain in “drought emergency” status.

“2021 saw extreme temperatures and near record-low precipitation across much of the state,” said Ecology drought coordinator

Jeff Marti. “In 2022, conditions have been much more normal, but we’re still trying to make up a deficit in some places. Extending the drought declaration for these areas will give us more tools to manage water supplies and respond to changing conditions.”

The cool, wet weather is good for irrigators. Ecology does not anticipate issues for them this summer. Some junior water right holders in lower elevation basins could get curtailed, but not in the Tri-Cities, it said.

Likewise, the U.S. Bureau of Reclamation expects a full water supply through September in the Yakima Basin.

‘Awesome April’ The Natural Resources Conservation Service used the term “Awesome April” to describe the

welcome combination of snow, precipitation and cooler weather in its May 1 water supply outlook.

“So much for the doom and gloom as reported last month,” the authors said. “This Awesome April brought most of the winter’s missing snow in just one month.”

Snowpack was measured in feet instead of the usual inches and led to one of the best April comebacks for water in recent memory, even better than April 2011.

“Going back to 2009, there have only been two significant years where April saved the day,” the conservation service said.

Typically, April snow is light and evaporates when the weather warms, meaning it has little impact.

But this year’s rain and snow was accompanied by cool tem- Focus | Agriculture + Viticulture

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peratures, which slowed stream runoff.

The average April temperature in Pasco was 48.9 degrees, according to the Office of the Washington State Climatologist. April precipitation totaled 1.93 inches, the highest since records began in 1998.

The Department of Ecology said it was the third coolest April on record for the state, and the coolest ever recorded in Walla Walla, Ritzville, Wenatchee and Ephrata.

And it was the 10th wettest April ever recorded too.

The snow-plus-cold led to surprising gains in snow water equivalent at higher elevations throughout the state.

Snowpack measurement in almost every region has been above 100% of the median; precipitation in the central Columbia region to May 1 of this year was 205% of the average and the Lower Yakima region was at 219%. Reservoir levels are up.

Washington is the only western state with normal or better reservoir storage levels, according to the National Weather Service.

Other problems The cold and rain slowed early seasonal field work across Idaho and parts of Eastern Washington.

Planting and emergent growth both lagged from previous years, especially with grain and vegetable growers.

“However, winter wheat yields look promising across the Inland 38

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Northwest,” the National Weather Service said.

“Some drought-stricken areas of central Washington did see small improvements in winter wheat and range conditions due to the spring precipitation. Yet it was not widespread enough and lacked in north central Washington.”

Breezy conditions brought blowing dust to parts of Grant County, and livestock producers in central Washington remain concerned on the outlook of hay and rangeland for their herds.

Too, the Kennewick Irrigation District started the irrigation season with an above-average amount of winter damage to its system, courtesy third-party contractors installing high speed internet infrastructure. In May, the irrigation district declared an emergency, which allowed it to bring in outside help to speed up repairs.

On June 1, 500 of its 25,000 customers were without water.

On a more positive note, KID now fully controls its formerly federal water facilities after the Bureau of Reclamation transferred ownership in January.

The transfer covers the federally-owned works facilities within the water conveyance and distribution system – which includes about 100 miles of canals and appurtenant works (which are the works near dams), as well as a 46-acre parcel and 971 acres of easements.

KID has been responsible for operation and maintenance of the system since July 22, 1953, and

has repaid most of the project’s construction costs.

Owning it outright will give KID flexibility to determine the best use of the infrastructure, including the potential to create linear parks and walking paths, said Gene Huffman, KID board president.

Long-term effects Drought conditions have lessened, but have not disappeared, the Department of Ecology cautioned.

Long-term precipitation deficits from the past one to two years persist. Below normal soil moisture at the root zone is a significant issue for dryland farmers and is the result of lower-thanaverage rainfall in the last one to two years.

The forecast gives cause for optimism.

The state climatologist’s office said the outlook showed a 40%-50% chance of below normal temperatures and above-average rainfall in May, when the Tri-City average is typically 74 degrees.

Beyond that, Mid-Columbia should settle into its usual summer routine: hot and dry.

In conclusion, the cold, wet April delivered a much-needed boost to the region’s water supply and helped Eastern Washington shake off the worst effects of drought.

The bad news is it wasn’t enough to get completely out of it. ●

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