Business - Business News

POSTED: Sunday, Dec. 14, 2008

Whatcom County farmers look to 2009 with concern about prices, economy

This year's cooler-than-normal spring and summer was good news for some Whatcom County farmers and bad for others. What was bad across the board, however, was the global and national economic slowdown. For dairy farmers and producers of commodity products such as apples and blueberries, it meant a sudden drop in prices and slower sales.

The one crop that seems to have fared well is Whatcom County's dominant fruit: raspberries. In 2008, farmers got very good prices for the red berry. Prices may drop some in 2009, but still be better than average.

Some farmers with value-added products fared better this fall, but next year's economy may be as worrisome for Whatcom County farmers as a midsummer hail storm.

"Next year may be a time to hunker down," said Cheryl DeHaan, who has operated a dairy farm for more than 35 years and is a program manager for Whatcom Farm Friends. "The price of milk has been dropping, so it's the kind of down period where you put off some construction or a remodel until the price starts to turn around."

For those farmers who can make adjustments, one option is focusing on the local market. John Belisle, owner of BelleWood Acres, didn't get as good a crop as he hoped for this fall, but his farm had the best fall ever in terms of selling to the local market. He is considering expanding sales on the farm near Lynden by converting a building on the property into a bakery.

"The specialty apple was in demand locally this year, so sales were better in that market than the commodity apples," Belisle said. "We're fairly upbeat going into next year, because I think more people will be looking local more."

RASPBERRIES IN DEMAND

While the steady rain in the spring put a damper on raspberry production, farmers were able to get a good price for the fruit, up to three times higher than last year. Longtime farmer Darryl Ehlers said that although things got off to a slow start in 2008, the quality of the berries he harvested were good. Plus, the price farmers received for juice berries was around $1.60 per pound, much better than 2007, when the price was in the 40 cents per pound range.

Raspberry farmers were harvesting in August, before the financial meltdown really began. However, there is still a fair amount of demand that may keep the price high, Ehlers said.

Prices for one of Ehlers other crops, blueberries, was headed in the other direction. The blueberry has been gaining in popularity, and farmers all over the world have been planting more of the crop. The price for blueberries was around $1.50 a couple of years ago, falling to about 75 cents this year.

"There was a bit of a blueberry rush, so there is much more supply now," Ehlers said.

Ehlers has been busy preparing his berry plants for the winter. He's hoping for cold, frosty weather, but not the winter winds that can dry out the plants.

"I'm hoping for a good stretch of cold, clear days," Ehlers said.

DAIRY FARMERS SEE PRICES DROP

DeHaan said the first part of 2008 started off well, with milk prices for farmers around $20 per 100 pounds of fluid milk. However, by September the price had dropped to around $13, when the costs of production were in the $17 range.

"It really got tough for a few months," DeHaan said.

While the price remains low, expenses such as fuel and feed have come down as well, getting it closer to break-even. The challenge for dairy farmers is that it is difficult to quickly make the switch to value-added products, while fruit farmers can sell items like market jams and pies.

"Dairy farmers understand that there will be ups and downs (in prices), so we try not to spend all of the money during the up period in order to weather the down times," DeHaan said.

The cool, wet weather in the spring and summer of 2008 was good for dairy farmers because they were able to grow a lot of grass and corn to use as feed. Feeding the cows grains is usually better in terms of milk production, but with the price expected to be low, production can be curtailed if there is a saving on expenses.

Those of those who can diversify will continue to do so. Belisle will continue to change his variety of apples and continue to find ways to bring a unique product to the local market. Ehlers is considering adding Linginberries, which is like a cranberry, and other berries.

"If the economy leads to deflation, it will be an interesting dilemma - whether you try to sell more at a lower price or go even more into value-added products," Belisle said. "What's important is to develop each aspect of the business. I don't want to give up any of the slices, because it all can change quickly."