43. Oregon Farm Bureau (Angela Bailey, President)

Oregon Farm Bureau Responds to Governor Kotek’s Prosperity Council and Recommendations May 18, 2026 The Oregon Prosperity Roadmap articulates an ambitious and necessary vision for growing Oregon’s GDP, strengthening workforce participation, and reducing barriers to investment. Its emphasis on data-driven decision-making, streamlined permitting, and statewide economic coordination provides a constructive starting point for improving Oregon’s business climate. However, a roadmap to prosperity that doesn’t include dirt and gravel roads will be incomplete. By focusing largely on industry attraction and mobility, the Roadmap understates the importance of production agriculture, the industry that is already here, already invested, and already supporting Oregon’s economy in every corner and county of the state. Agriculture is not a future opportunity waiting to be developed; it is an existing economic engine that supports jobs, exports, manufacturing, trade, and rural communities across the state. Agriculture and food processing remain foundational pillars of Oregon’s economy. When accounting for their downstream economic impacts, agriculture and natural resource industries rank among the state’s largest economic drivers. Yet despite their economic significance, these industries are too often overlooked in policy discussions or treated as obstacles to development rather than as essential assets to the state’s long-term prosperity. Oregon’s geography, climate, and irrigation systems support one of the most diverse agricultural economies in the United States. Oregon’s Department of Agriculture identifies eight distinct agricultural regions in our state. 1 Regional Highlights • Willamette Valley – Often described as “the most diverse agricultural region on earth,” this area produces more than 170 crops. This diversity reflects the innovation and stewardship of Oregon farmers who help supply both local communities and global markets. The valley is the center of much of Oregon’s specialty crop production. 1 ODA – Oregon Agriculture Regions

o Key commodities: § Grass seed and specialty seed crops § Vegetables and berries § Hazelnuts, wine grapes, hops, and tree fruits § Nursery stock and Christmas trees § Dairy, beef cattle, and poultry • Mid-Columbia Region – Hood River and the surrounding areas are known for world-class pears, cherries, apples, and a growing cider industry. Fruit orchards dominate the agricultural landscape. Generations of orchardists have built a reputation for high-quality fruit production that remains central to the local economy and culture. o Key commodities: § Pears (a national leader) § Sweet cherries § Apples and growing cider production • Columbia Plateau – Eastern Oregon’s wheat country demonstrates the importance of irrigation infrastructure and working lands. In addition to wheat, the region supports potatoes, onions, vegetables, hay, and dairy operations that contribute significantly to the state’s food system. Irrigation along the Columbia River has enabled production. o Key commodities: § Potatoes § Onions § Processing vegetables § Watermelon § Tree fruit § Alfalfa • Northeast Oregon / Treasure Valley – The Treasure Valley near Idaho is especially important for onion production and grows sugar beets and vegetables. This area is recognized for cattle, hay, onions, mint, potatoes, and sugar beets. Agriculture remains a cornerstone of rural communities and local employment throughout this region. o Key commodities: § Beef cattle § Hay § Potatoes § Mint • Coastal Oregon – Oregon’s coast benefits from the strength of both agriculture and commercial fisheries, producing world-renowned seafood such as salmon, crab, oysters, and clams alongside dairy products and specialty cheeses. The region reflects the full breadth and diversity of Oregon’s food production economy, with the Pacific seafood industry serving as a defining feature of the state’s coastal identity, culture, and economic vitality. o Key commodities: § Salmon, halibut, crab, oysters, mussels, and clams § Dairy products § Specialty cheeses, § Cranberries • Central Oregon – Known for seed crops, garlic, hay, and cattle production, Central Oregon continues to expand its local food and vegetable production as communities grow. o Key commodities:

§ Specialty seed crops § Garlic § Hay § Beef cattle • Southeast Oregon – Large ranching operations and irrigated pastureland dominate this region, where ranch families carefully manage vast landscapes that support Oregon’s beef industry and rural economy. Ranching is the primary agricultural activity. o Key commodities: § Cattle operations § Irrigated hay and pasture production due to low rainfall The diversity represented across these regions is a testament to the resilience of Oregon agriculture. Whether it’s specialty crops in the Willamette Valley, wheat fields in eastern Oregon, orchards in Hood River, or ranchlands in the southeast, each region contributes to a strong and interconnected agricultural system that benefits all Oregonians. Oregon agriculture is not only economically important, but also deeply connected to the state’s identity, food security, open spaces, and quality of life. Oregon consumers benefit every day from year-round access to fresh, locally grown food, fiber, and natural products produced by hardworking farm and ranch families who care for the land and sustain rural communities across the state. As the Council considers strategies for economic growth, Oregon Farm Bureau strongly urges the state to reduce the policy and regulatory burdens that increasingly constrain agriculture and rural industries. Agriculture Is Not a Placeholder The Roadmap repeatedly emphasizes business retention, economic growth, and investment attraction. Oregon agriculture already advances these goals every day. Unlike many industries, farms and ranches cannot simply relocate in response to rising costs or regulatory uncertainty. They are deeply rooted in Oregon’s land, economy, and communities, often representing generations of stewardship, investment, and commitment tied to the same ground. Agriculture is unique in that way, it carries a deep-seated generational connection to the land, and state policy should recognize, reflect, and support that reality. Agriculture is not land “awaiting development”; it is productive economic infrastructure that sustains rural communities, drives local economies, and strengthens Oregon’s long-term economic resilience. • Oregon agriculture, food processing, and related industries, including transportation, manufacturing, and value-added production, generate more than $42 billion in annual economic activity, support more than 692,000 jobs statewide, and account for roughly 13% of Oregon’s gross state product, making agriculture one of Oregon’s most important 2 economic drivers and manufacturing sectors. 2 https://agsci.oregonstate.edu/sites/agscid7/files/main/about/oragecon_report_2021.pdf

• Oregon agriculture drives more than $2.5 billion in annual exports and represents approximately 15% of statewide sales activity, connecting Oregon producers to highly 3 competitive national and global markets. • Oregon is the second most agriculturally diverse state in the nation, producing more than 220 commodities with an annual farm-gate value exceeding $6 billion. • Oregon’s farmers and ranchers manage more than 15 million acres of working land, with approximately 96% family-owned and operated. This is not a talking point, it’s an on-the- ground reality of Oregon agriculture and the communities it sustains. o The majority of Oregon’s 30,000+ farms are small-acreage operations between 10 and 50 acres. o More than 1,235 farms and ranches have remained in the same family for at least 100 years, including 47 operations with more than 150 years of continuous family ownership. • Agriculture provides critical year-round and seasonal employment opportunities, particularly in rural communities. o Oregon ranks 15th nationally in reliance on farm jobs. o Oregon ranks 4th nationally for women principal farm operators, with women representing 44% of Oregon farmers and ranchers. • Oregon farmers and ranchers help feed the world while producing high-quality, world-class 4 products; on average, a single U.S. farmer feeds 168 people. Farmers and ranchers continue to produce more with fewer resources – doing more with less to meet growing demands. • Oregon agriculture faces growing economic pressures, including rising labor costs, inflation, regulatory burdens, and global competition. 5 o Nearly 69% of Oregon farmers report operating at a net cash loss. o Approximately 77% of farm household income comes from off-farm sources. o Oregon continues to lose farms and ranches as operating costs increasingly 6 outpace profitability. Economic strategies that treat farmland as expendable for other growth priorities risk eroding existing GDP rather than expanding it. While growth and economic development are important, the state must avoid weakening the protections that preserve Oregon’s agricultural land base and long-term food production capacity. Oregon’s land use system should continue protecting high-value farmland while also supporting the infrastructure, processing capacity, and economic opportunities necessary for long-term agricultural viability. Regulatory Reform and Non-Mobile Industries The Roadmap’s commitment to reducing barriers to investment and growth, particularly through permitting inventories, FastTrack programs, and interagency coordination, is especially relevant to agriculture. 3 https://www.oregonfb.org/oregon-agriculture 4 https://www.nass.usda.gov/Statistics_by_State/Oregon/Publications/facts_and_figures/facts_and_figures.pdf 5 https://www.ers.usda.gov/ 6 https://www.nass.usda.gov/Publications/AgCensus/2022/index.php

Because agriculture is land-based and operates on long investment timelines, regulatory costs accumulate differently than in mobile industries. Delays, uncertainty, and overlapping compliance requirements directly affect production capacity, investment decisions, and farm viability. Oregon businesses benefit most from a regulatory system that is transparent, science-based, timely, and predictable. Regulatory certainty allows farms, ranches, and processors to invest confidently, expand operations, and support rural employment. Examples of regulatory and administrative requirements that warrant careful cost-benefit evaluation include: • Implementation impacts of Oregon’s Recycling and Modernization Act • Oregon’s Climate Protection Program, Clean Fuels Program, and related impacts on agricultural fuel, energy, and transportation costs o Oregon already ranks among the states with the lowest per-capita carbon emissions. Additional fuel and energy regulations disproportionately affect agriculture, transportation, food processing, and rural consumers while increasing operating costs statewide. These policies risk harming the industries that form the economic backbone of rural Oregon. • Workforce regulations that increase compliance complexity without directly improving on- farm workplace safety • Agricultural overtime requirements applied to a seasonal industry with limited ability to absorb or pass through increased labor costs o The Council should engage directly with the agricultural community and workforce stakeholders to evaluate how overtime policies are affecting both farms and employees in practice. Policymakers should consider not only the intended benefits of overtime laws, but also the real-world impacts, including reduced hours, lost earning opportunities, and increased operational strain. Labor policies must remain practical and flexible for seasonal, weather-dependent industries such as agriculture. • Restrictions affecting irrigation flexibility, long-term water supply reliability, and development of additional water storage o Long-term agricultural sustainability depends on reliable water access. The state should prioritize practical water storage, groundwater recharge, and irrigation infrastructure projects that support both environmental stewardship and agricultural productivity. • Maintenance, permitting, and zoning policies affecting essential agricultural infrastructure When regulatory processes are duplicative, unpredictable, or misaligned with operational realities, the result is not improved outcomes, but reduced production, fewer family operations, and diminished rural economic resilience. This directly conflicts with the Roadmap’s stated goals of GDP growth, job creation, and statewide prosperity.

Tax Policy and Competitiveness In addition to regulatory reform, Oregon’s long-term competitiveness depends on a tax and investment climate that supports reinvestment, modernization, and generational continuity in production agriculture. Oregon’s tax structure should encourage reinvestment in productive businesses and support long- term business continuity, particularly for multi-generational family farms and ranches. Additional recommendations for consideration include: • Maintaining competitive tax policies relative to neighboring states • Avoiding new taxes or fees that disproportionately impact production agriculture • Supporting targeted tax incentives for capital investment, on-farm infrastructure, processing capacity, and rural business development • Revising Oregon’s estate tax and succession policies to help family farms and ranches transition successfully between generations • Repealing or reforming policies that reduce agricultural competitiveness, including the Corporate Activity Tax and federal tax disconnect provisions o The CAT adds substantial costs throughout the agricultural supply chain and reduces the competitiveness of Oregon producers in national and international markets. o Agricultural producers need practical and affordable options regarding equipment depreciation, maintenance, and investment. Current policies increase uncertainty and may discourage needed capital purchases at a time when farms are already facing rising operational costs. Support Medium and Large-Scale Agricultural Processing Capacity Oregon would benefit significantly from expanded in-state processing infrastructure for fruit, vegetables, livestock, and other agricultural products. Increasing processing capacity would strengthen local economies, improve supply chain resilience, and create additional family-wage jobs in rural communities. Agriculture Directly Advances the Roadmap’s Strategic Goals Production agriculture materially advances each of the Roadmap’s core objectives: • GDP Growth: Agriculture and food processing generate consistent economic output and export-driven revenue. • Living-Wage Jobs: Farm, processing, transportation, and input-supply jobs support families across all regions. • Business Retention: Agriculture represents one of Oregon’s most deeply rooted and enduring industries. • Global Trade: Oregon agriculture serves as a primary gateway to Pacific Rim markets. Failing to explicitly integrate agriculture into sector strategies, FastTrack eligibility, and regulatory streamlining risks leaving one of Oregon’s strongest economic sectors overlooked, constrained, and increasingly vulnerable.

Recommendations To better align the Prosperity Roadmap with Oregon’s actual economic structure, Oregon Farm Bureau recommends the following:

Explicitly identify production agriculture as a priority sector within economic growth, retention, and trade strategies.
Ensure production agriculture is represented in implementation bodies, including the Governor’s Prosperity Council.
Apply permitting reform and FastTrack concepts to agricultural and food-processing projects, not solely large industrial or urban developments.
Prioritize investment in Oregon State University Extension, Experiment Stations, and applied agricultural research to support innovation, improve productivity, and position Oregon to lead in emerging agricultural opportunities.
Adopt risk-based, scale-appropriate regulatory approaches that recognize differences between family farms and large industrial facilities.
Frame farmland as productive economic infrastructure, not simply as a site for alternative development. Summary Oregon farmers and ranchers are a part of the solution. Oregon Farm Bureau has consistently advocated for policies that promote economic growth through lower costs, practical regulation, infrastructure investment, and a stable business climate. Oregon agriculture is not asking for special treatment; we are asking for fair and accurate treatment. A prosperity strategy that overlooks the state’s most enduring, place-based economic engine risks undermining the very foundation it seeks to strengthen. Fully integrating production agriculture into the Prosperity Council and its roadmap will lead to stronger economic outcomes, more resilient rural communities, environmental stewardship grounded in working lands, and a growth strategy rooted in Oregon’s economic reality. If Oregon is serious about long-term prosperity, agriculture and natural resource industries must be fully integrated into the state’s economic strategy. Policies that improve regulatory certainty, invest in critical infrastructure, strengthen in-state processing capacity, and preserve business competitiveness are essential to ensuring farms, ranches, and rural communities remain viable for future generations. Oregon cannot credibly claim to be advancing prosperity and business friendliness while continuing to impose disproportionate regulatory burdens on farms and ranches. Farmers and ranchers face an ever-growing web of permitting requirements, labor mandates, environmental regulations, and compliance costs that erode competitiveness, discourage investment, and make it increasingly difficult for family operations to survive. Agriculture is not a peripheral industry; it is one of Oregon’s foundational economic sectors. Policies that continually increase costs and uncertainty ultimately push production, processing, and jobs out of state. True

prosperity requires a regulatory and economic framework that supports, rather than constrains, the people who produce Oregon’s food, fiber, and fuel. Oregon Farm Bureau appreciates the opportunity to provide input and looks forward to continued engagement with the Governor’s Office, Business Oregon, the Prosperity Council, and others. Respectfully, Angela Bailey President

Parent: Appendix E: Submissions & Feedback · PDF: pp. 372-379