The threats listed below are not by rank or priority, as each one or a combination thereof, diminishes the competitiveness of our agricultural sector.

MINIMUM WAGE INDEXING

I do not believe there is anything immoral or anti-business in an established minimum wage. However, I do think that the indexing based on the Portland Consumer Price Index will lead to an uneconomic upward ratcheting of other wages, negatively impacting the competitiveness of our manufacturing sector, and discouraging job creation in the tourism, service and retail sectors.

WASTEWATER

There is no doubt that unabated discharge of untreated wastewater into our rivers and oceans causes great environmental damage. Over the past 10 - 15 years we have seen a slew of regulations and directives from governmental agencies to mitigate the pollution. Some of these governmental missives are unfunded mandates with unrealistic time lines and significant penalties for non-compliance. The rule writers need to understand that there are geographic and weather differences throughout the U.S. and “cookie-cutter” regulations are not always appropriate to our area.

TRANSPORTATION

With about 66% of the population of the United States living within 200 miles of Philadelphia, PA, one would think that this region would be a prime target for our agricultural marketing efforts. However, it costs more to ship from West to East than from East to West. Having to pay more per unit to produce a product is bad enough, but when you add on additional shipping costs, some of our products are not competitive. It doesn’t take a rocket scientist to understand that the corn and beans grown and processed in the mid-West sell for less than those grown and processed in Oregon.

Our growers and processors have worked very hard to establish strategies to market their products globally. The Port of Portland and the Columbia River Waterway to the Pacific Ocean are mandatory assets to the movement of products worldwide. SEDCOR strongly supports the deepening of the Columbia River channel to facilitate the newer, larger ships, which will help our area products be more competitive.

We also support the widening of I-5 and improvements to the rail infrastructure. Time is money, and products stalled in road or rail traffic become less competitive in the world marketplace because of those delays.

INSURANCE

If Oregon has a competitive advantage, it is within our Worker Compensation rates. We must vigorously protect our existing system to ensure long-term rate stability. The double-digit increases in health insurance rates continue. I see nothing on the horizon that will reign in these escalating costs.

ENERGY

Within the SEDCOR geographic area, Northwest Natural, Portland General Electric, Pacific Power and Salem Electric serve our agricultural sector. Each of these utilities has done outstanding jobs in serving their customers. However, the political urge to save every salmon, whatever the cost is detrimental to the long-term economic stability of the Northwest.

The purchase of PGE by the Texas Pacific Group seems to be a viable alternative benefiting the ratepayers. I am very suspicious of the effort of the City of Portland to acquire PGE. The history of the City of Portland in managing a large utility is not a glowing testament to their abilities. Most importantly, the governance structure proposed by Portland does not give our ratepayers a balanced voice in the management of the operation. I guess a worst-case scenario would be that our ratepayer dollars would subsidize the City of Portland’s City Council elections.

FOREIGN COMPETITION

Whether we like it or not we are in a global economy. Our agricultural producers and processors are at a distinct global disadvantage, given the issues highlighted above, coupled with lower wages, the lack of mandatory benefits, and direct subsidies provided by foreign countries.

WEATHER

The bane of agriculture.

The Willamette Valley is blessed with excellent soil, water and weather conditions to produce a wide variety of fruits, nuts, vegetables, seeds, garden products and other commodities. The threats to the survival of our key employment sector are significant. I suggest that the larger community, outside of the SEDCOR membership, must be cognizant of these threats and strive for balanced, informed policies impacting our valuable agricultural sector.