Matt and Erin Henderson, of Albany, who attended the Northwest Ag Show March 13, 2024, in Salem, said they’re prepared to tighten their belts. “I think we’re all going to weather the storm. … We’re looking at the profit margins getting skinny for the next couple of years,” Matt Henderson said.

SALEM — Attendees at the Northwest Ag Show were generally pessimistic March 13 about the economic outlook for agriculture in the Willamette Valley this year, but many offset it with a dose of “farmer optimism.”

Rising costs of diesel, fertilizer, labor, electricity, insurance and taxes, combined with more regulations, contributed to their mindset.

Mike and Shirley Everitt, of Turner, have 93 acres and lease 500 acres they use to raise several varieties of grass hay.

They said the past season’s yields were halved by drought. “There wasn’t any grass to bail. There was a lot less stubble,” Mike Everitt said.

“We’re getting through it — and typical farmer optimism — we hope this will be a better year,” he added.

Shirley Everitt said restrictions on overtime will hamper business. Oregon’s overtime threshold for ag workers currently is 55 hours, but it will drop to 48 hours in 2025 and hit 40 hours in 2027.

“Our season is six weeks. That really hurts,” she added.

Her husband said he’d have to hire more workers so he doesn’t have to pay overtime.

Mike Everitt said he understands why people would shy away from a career in farming, but the former teacher enjoys the lifestyle, the challenge and working with his sons.

“You plant it and you see it grow and you harvest. It’s kind of a rush,” he said. “I love being in the field and doing the work.”

Pessimism prevails

“I wouldn’t recommend to anyone else to get into the farming business,” said Jack Scott, who farms 140 acres of hazelnuts near Lebanon.

Prices for nuts aren’t promising, either. “We had some really good years for a while and then everybody got into hazelnuts,” Scott added.

He said he remained in agriculture in large part because he had a nice spread in the country.

Turning to gas tractors

Marty Reagan, who owns 5 acres and leases 54 acres to farm hay near Aurora, said he’s had to nearly double his prices because the costs of fuel and twine have doubled.

“People still have to feed their animals, but they’re not happy,” Reagan said.

His operation isn’t big enough to get fuel delivered at a discount, and the nearby farm store in Canby, that sold diesel went out of business in 2021. He has been going to a Pilot truck stop for diesel.

Reagan also bought and restored three 1951 tractors that run on gasoline so he could avoid purchasing diesel if he wanted. If that doesn’t work out for his bottom line, he figured he can still sell them as antiques.

Weathering the storm

Matt and Erin Henderson, of Albany, run horses, bail hay and sell livestock panels, and they’re prepared to tighten their belts.

“I think we’re all going to weather the storm. … We’re looking at the profit margins getting skinny for the next couple of years,” Matt Henderson said.

“Hunker down and get through it,” added Erin Henderson.

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Inputs are up, which means farmers have to work for a little less, the couple said.

Matt Henderson said labor woes include the quality of employees not being as good as a decade ago. Instead of farm kids who grew up driving tractors applying for jobs, city teens are seeking work, and they need weeks of training for a season that lasts only a few weeks.

The 54th Northwest Ag Show opened for business March 13, offering attendees a glimpse at the newest agricultural equipment and services, and concluded the afternoon of March 14 at the Oregon State Fair and Exposition Center in Salem.