Washington’s Business Climate Makes Farming Challenging

Ask most growers, and they’ll tell you, between low commodity prices, high input costs, and trade uncertainty, this is a challenging farm economy.  That’s the universal sentiment across farm country nationwide.

However, Washington State Potato Commission Executive Director Chris Voigt argues that it's even more difficult to farm in the Evergreen state.  He noted not only are growers competing with China and India for international market share, but Washington growers are competing states like Idaho, North Dakota, Minnesota and Colorado for domestic markets.

"The USDA published the most recent data of sort of profitability or farm financial viability," Voigt said.  "And Washington state, embarrassing enough, is ranked 50th. We are dead last in farm financial viability. I mean, the cost of growing crops here in Washington state are so much more significant than other states. And that just really kind of puts us at a competitive disadvantage.”

Voigt acknowledged all states have different and unique struggles to overcome.  And in years past for Washington, it was primarily about geography...being so far away from the population centers of the East Coast.

“And so we've always had that freight disadvantage, but we've been able to make up for it in our consistent yields and high quality," Voigt said.  "But as the cost of production has continued to escalate here in Washington State, labor really kind of leading the way as well as energy cost. It's really kind of put us at a cost disadvantage and we're suffering from that.”

Voigt added he’s concerned that if the farm economy in Washington doesn’t turn around, the rest of the state will start to see an economic ripple, from lost jobs, to increased food costs, to fewer donations to food banks when people need assistance the most. 

If you have a story idea for the PNW Ag Network, call (509) 547-9791, or e-mail glenn.vaagen@townsquaremedia.com