Strong Decade for Oregon Ag Commodities

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Oregon Ag
Oregon agriculture continues to be a major contributor to the state’s economy with an overall production value expected to be in the neighborhood of $5.4 billion.

While Oregon agriculture’s overall growth curve has slowed down in recent years, certain crops and livestock commodities have enjoyed a very healthy increase in production value over the past decade. In fact, only one commodity in the top 20 has recorded a decrease over the 10 year period and that drop is very small.

Newly released statistics from USDA’s National Agricultural Statistics Service (NASS) provides a preliminary picture of 2015’s crop and livestock value of production. The numbers indicate that Oregon agriculture continues to be a major contributor to the state’s economy with an overall production value expected to be in the neighborhood of $5.4 billion– similar to the preceding two years.

The value of agricultural production in Oregon last year includes a top ten list with familiar names. Onions returned to the list while hazelnuts dropped out:

(1) Cattle and calves, $914 million
(2) Greenhouse and nursery products, $894 million
(3) Hay, $604 million
(4) Milk, $474 million
(5) Grass seed, $383 million
(6) Wheat, $217 million
(7) Potatoes, $176 million
(8) Pears, $152 million
(9) Wine grapes, $147 million
(10) Onions, $125 million

Oregon produces more than 220 agricultural commodities, so there are always winners and losers any given year. Several top ten commodities dropped in production value in 2015, but still show strong gains over a 10 year period. For the second year in a row, cattle and calves tops the list with a production value of $914 million, which is slightly down from 2014. However, over a 10-year period beginning in 2005, the value has increased 71 percent. The cattle industry tends to be cyclical and the strong prices enjoyed the past couple of years are weakening in 2016. Nonetheless, cattle and calves is expected to be a mainstay at or near the top of all commodities in the foreseeable future.

Hay saw a near $100 million decrease in 2015 compared to 2014. However, the commodity remains solidly in the number three position in Oregon and has actually increased in production value the past 10 years by 70 percent. Similarly, milk recorded a big drop last year of more than $180 million, but has increased 32 percent since 2005. Like greenhouse and nursery, the grass seed industry suffered greatly during the recession but is now back to where it was 10 years ago, recording a 2 percent increase since 2005 to $383 million.

Wheat prices continue to decrease the crop’s value, which also saw a drop from 2014 to 2015. However, wheat is still 20 percent higher in production value than it was 10 years ago. The pendulum has swung widely over the years. Five years ago, wheat’s value was $441 million– twice as much as last year’s figure.

Potatoes remains in 7th place among Oregon’s top commodities and recorded a slight increase in 2015. Potatoes was also 7th in 2005, but the value has increased 36 percent since then. Pears moved up to 8th after showing a healthy gain in 2015. Going back 10 years, that increase has been a remarkable 108 percent.