Northwest Farmers Mull What to Grow This Spring

02/01/2008

Corn and wheat prices have spiked to record levels, so naturally more Pacific Northwest farmers want to grow those crops. That leaves processors scrambling to find farmers who will grow second-tier crops like alfalfa, beans and potatoes. The pressure is building in the Columbia Basin as spring nears and farmers make decisions on which crops to grow. Richland Correspondent Anna King has the story.

SOME PEOPLE READ THE FUTURE IN TEA LEAVES; FARMERS READ THE FUTURE IN SEEDS.

HERRON: "The wheat you see here is soft white winter wheat. It's a variety called Alpowa."

DANA HERRON SELLS SEEDS FOR A LIVING. THE WHEAT HIS IS SORTING TODAY IS ALREADY SPOKEN FOR. AND HE SAYS HIS CORN SEED IS ALMOST GONE TOO. DROUGHTS IN PLACES LIKE AUSTRALIA HAVE DIMINISHED WORLD STOCKS OF WHEAT. AND INCREASED DEMAND FOR ETHANOL HAS DRIVEN UP THE PRICE OF CORN. MANY PACIFIC NORTHWEST FARMERS ARE TAKING ADVANTAGE OF THE BOOM BY PLANTING THOSE CROPS. HERRON SAYS IT'S TURNED THE REGION'S AGRICULTURE ECONOMY UPSIDE DOWN.

HERRON: "Most farmers have well defined rotations that they follow a two year or three year or four year rotation. But some of those decisions now are becoming price related. If they can make more money on wheat they will plant wheat. If they can make more money on corn they will plant corn."

BUT THERE IS JUST ONE PROBLEM: IF EVERYONE WANTS TO PLANT WHEAT AND CORN WHAT HAPPENS TO ALL OF THE OTHER CROPS?

HERRON: "Some of the guys that need sweet corn won't get it. Some of the guys that produce bluegrass seed for sale to golf courses are having a difficult time getting those acres placed. It's becoming quite a scramble it's a very interesting time to be in the business."

SOME CROP BUYERS HAVE INCREASED THEIR PRICES TO LURE MORE FARMERS TO GROW THINGS LIKE POTATOES, ALFALFA AND VEGETABLES INSTEAD OF WHEAT AND CORN. BUT SOME CROP BUYERS CAN'T KEEP PACE. TAKE PATRIC CONNELLY, HE'S A BEAN BUYER FROM QUINCY, WASHINGTON.

CONNELLY: "Corn is a four letter word and wheat is a five letter word."

CONNELLY SAYS HE'S WORRIED THAT IF HE CAN'T SUPPLY BEANS TO HIS CUSTOMERS THIS YEAR, THEY WILL LOOK ELSEWHERE. AND BEANS MIGHT BECOME A HISTORICAL CROP IN THE COLUMBIA BASIN.

CONNELLY: "We've struggled. Last year we didn't get enough of what we wanted and this will be a tougher one this year. But it is for everybody."

WITH ALL COMMODITY PRICES UP, THE RACE FOR IRRIGATED FARM GROUND IS INTENSE. FALLOW GROUND IS BEING TILLED UP AGAIN; SOME FARMERS ARE DOUBLE CROPPING OR RAISING MORE THAN ONE CROP PER SEASON. THIS IS ESPECIALLY HARD FOR SEED BUYERS LIKE HERRON AND HIS PARTNER CRAIG TEEL. TEEL SAYS RENTS AND LAND PRICES HAVE BOLTED.

TEEL: "We are seeing some $700 an acre rent for potato ground right now. That's unprecedented. Two years ago it was 450 to 500. So it's jumped that much. The competition for acres is tremendous."

TEEL AND HIS PARTNER HERRON DON'T EXACTLY KNOW WHAT WILL BE PLANTED ON THOSE ACES. FARMERS ARE STILL PUSHING PENCILS IN THEIR OFFICES AND MAKING CALLS TO FIND THE BEST PROFITS SAYS HERRON.

HERRON: "And what ever makes them the most money is what they will plant. Some of these decisions will be last moment decisions because the potato processor that has to have more potatoes will bid the land higher than the next guy. So it's difficult for me to comment, because we don't know just yet."

BUT HERRON SAYS THERE'S ONE THING FOR SURE:

HERRON: "Everything is cyclical. You look at a 50 or 100 year price cycle on commodities this is new ground, no one has been here before. But farmers will over produce any market you give them an opportunity for."

THAT MEANS WHEAT AND CORN PRICES WILL COME BACK DOWN. IT'S JUST A MATTER OF TIME. I'M ANNA KING IN RICHLAND.

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