Policies from D.C., Salem Are Hurting Farmers

ODFA joined seven other Oregon agricultural organizations in this commentary addressing the cumulative impact of state and federal policy decisions on farmers and ranchers. The piece was originally published by Capital Press on Sept. 29, 2026.

Farmers and ranchers know uncertainty better than most. A spring freeze, wildfire, livestock lost to predators, or rain just as the hay is ready to cut can undo months of work. Agriculture demands resilience and the ability to manage risks often beyond our control.

But many of the challenges facing Oregon agriculture today are not beyond anyone’s control. They are the result of policy choices in Washington, D.C., and Salem, and our government has the power to change course or make different decisions.

Whatever one’s view of the war with Iran, the consequences for agriculture (and others) are impossible to ignore. According to AAA, Oregon diesel prices have climbed to nearly $6.90 a gallon, while the same market forces are driving up the cost of the off-road diesel farmers rely on to plant, harvest and operate their farms. USDA projects farmers will spend nearly 29 percent more on fuel and oil this year, while fertilizer prices have risen more than 30 percent since tensions in the Middle East escalated.

Then came the decision to increase beef imports at a time when America’s cattle herd is near historic lows. The announcement put additional downward pressure on cattle prices during one of the most important marketing periods of the year and weakened the incentive for ranchers to rebuild their herds. The timing could hardly have been worse. Roughly 70 percent of spring-born calves are sold between September and November, placing the administration’s import window squarely in one of the most important marketing periods of the year. By August, cattle prices had fallen by nearly 15 percent.

Agriculture has also absorbed costs and uncertainty from federal trade policy. Tariffs increase the cost of production, while retaliation and anti-American purchasing sentiment threaten markets farmers have spent years building.

At the same time, the administration deserves credit when it gets things right. Efforts to make the H-2A program more workable, updates to Endangered Species Act regulations, and improvements to grazing management on federal lands matter to Oregon’s family farms and ranches.

Unfortunately, the problems coming from Washington are landing on an industry already struggling under costs imposed in Salem.

Oregon farms face housing, labor and employment requirements that go well beyond federal standards, adding significant costs and complexity that put family farms and ranches at a competitive disadvantage. This will be magnified as the agricultural overtime threshold drops to 40 hours in 2027.

Oregon’s Climate Protection Program increases costs for transportation, food production and agricultural processing. The Recycling Modernization Act adds packaging costs that ultimately reach farms and consumers.

Oregon’s Corporate Activity Tax adds another layer of cost for agricultural businesses, including some farms, processors and suppliers. Because the tax is based on commercial activity rather than profitability, its costs can fall particularly hard on high-volume, low-margin businesses.

These pressures are cumulative. USDA’s latest Census of Agriculture found that 69 percent of Oregon farms operated at a net cash loss, even before the latest market shocks.

Oregon needs leadership willing to look beyond partisan politics and ask a simple question: Is a policy helping or hurting Oregon?

Federal agricultural policies should be evaluated on their merits, with Oregon farmers and ranchers at the table and their real-world impacts taken seriously. When Washington takes actions that reduce costs, improve access to labor or provide regulatory relief, our governor should support them, or at the very least not stand in the way simply because they came from an administration of the other party.

Too often, Oregon has defaulted to opposition including challenging common sense ESA changes, opposing much needed federal guest worker reforms and pursuing positions that negatively impact responsible Columbia River hydropower generation. These were opportunities to reduce regulatory, labor and energy costs for family farms already struggling to stay afloat.

Oregon cannot blame Washington D.C. for problems created here at home. Before adding another mandate, regulation or tax, state leaders need to consider what happens when those costs land on the same farm, in the same year, alongside higher fuel prices and uncertain markets.

The status quo is untenable.

Oregon agriculture needs stability and common sense from Washington and real regulatory relief from Salem. We need a governor willing to stand up to the Administration when federal policy hurts Oregon, support the Administration when federal policy helps Oregon, and lead the fight to address the out-of-control costs and regulations our own state government constantly imposes.

Submitted by

Columbia Gorge Fruit Growers
Oregon Association of Nurseries
Oregon Cattlemen’s Association
Oregon Dairy Farmers Association
Oregon Farm Bureau
Oregon Pork Producers
Oregon Seed Council
Oregonians for Food & Shelter

Originally published by Capital Press on Sept. 29, 2026.

Read the original commentary at Capital Press.