Puyallup Valley Farmland: Metrics and Economic Analysis for Organic February 25, 2013 and Sustainable Agriculture in the Orting Study Area

For PCC Farmland Trust and The Trust for Public Land

By Globalwise Inc., Vancouver, WA

Photo by Dennis Lussier

The Orting Study Area has much of the Puyallup Valley’s most fertile remaining farmland. The area is in an early stage of agricultural renewal, with organic growers discovering that these productive resources fit economically viable farming systems. PCC Farmland Trust and The Trust for Public Land are proving the value of clustering protected farmlands.

Acknowledgements

This project was funded by The Trust for Public Land and the PCC Farmland Trust. Richard Corff, Project Manager, and John Hoey, Washington State Program Manager, at The Trust for Public Land, guided and supported the project from its inception. Melissa Campbell and Hilary Aten, Conservation Director and Project Manager respectively at the PCC Farmland Trust aided the analysis with their deep knowledge of the study area and many contacts. Rebecca Sadinsky, Executive Director at PCC Farmland Trust lent her full support to the project. Karen May, a volunteer at PCC Farmland Trust provided a major boost to the analysis by downloading and summarizing an extensive amount of property ownership data for the study area.

Over 55 persons freely shared their knowledge, viewpoints and concerns. Many of these individuals met with the report author and answered detailed questions. Guidance and support from all of these individuals also made this report possible and their contributions are greatly appreciated.

Photographs of the Orting study area were provided by Dennis Lussier and the staff of the PCC Farmland Trust.

The Orting Study Area

Table of Contents

Introduction ...... 1

Area Setting ...... 1

Study Approach ...... 2 Metrics ...... 5 Land Use ...... 5 Organic Acreage ...... 5 Farmer Characteristics ...... 6 Number of Farmers ...... 6 Farm Workers ...... 6 Farmers Converting to Sustainable Production ...... 7 Average Age of Farmers ...... 7 Community Support ...... 9 Investment and Access to Off-Farm Infrastructure ...... 9 Number and Type of Market Outlets ...... 12 Local Government Support Programs ...... 15 Direct Access to Farm Inputs and Services ...... 17 Observations and Conclusions ...... 19 Benefits of Clustering Farms ...... 19 Findings from the Metrics ...... 20 Final Thoughts ...... 21 APPENDIX A – Questionnaire for Landowner/Farmer Interviews ...... 22 APPENDIX B – Map of Calistoga Setback Levee Project ...... 26

Tables and Figures Figure 1. Map of Orting Study Area ...... 3

Table 1. Metrics to Analyze the Economic Viability of Farming ...... 4 Table 2. Age Characteristics for Non-Farm Landowners with 20 Acres or More in the ARL and RF Zones...... 8 Chart 1. Age & Acreage of Non-Farmer Landowners With over 20 acres in the ARL and RF Zones ...... 9

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Introduction The South Puget Sound region of Washington has experienced some of the most rapid urban development in western Washington over the last 40 years. This pace of urbanization has led to major conversion of farmland and the decline of farming in the region. A counter veiling force is strong public and private action to reverse this trend. Land trusts are vitally important because they permanently protect the best remaining farmland resources. The PCC Farmland Trust and The Trust for Public Land are following a strategic process to identify and evaluate priority western Washington farmlands for permanent protection. One tool for strategic review is the use of metrics to quantify long term viability in urban-edge farming communities. This study is jointly sponsored by the PCC Farmland Trust and The Trust for Public Land. The central purpose is to assess metrics that objectively determine the economic viability of farming in a defined and relatively compact area. Permanent protection of productive agricultural resource properties within close proximity is a key element for long term farming success in urban regions such as western Washington. The first area that the land trusts have chosen to analyze is the Orting area of the Puyallup River Valley in central Pierce County. This report is an assessment of the strengths and weaknesses of agriculture in and near this area. Area Setting The river valley formed by the Carbon and Puyallup Rivers in the vicinity of Orting has a long history of farming and rural enterprises. Agricultural resource land in the valley to the north, west and south of Orting is covered by the Alderton-McMillin Community Plan of the Pierce County Comprehensive Plan. The valley floor is comprised of rich alluvial river deposit soils. In the mid-1800’s, subsistence farming was prevalent. Principal crops were oats, rye, barley, potatoes, peas, fruit trees and vegetables. Later in the 19th century, hops became a valuable crop. Hops were replaced in the early 1900‟s with bulbs, flowers, milk, berries, vegetables and fruit orchards. Dairies were particularly prevalent in the 1940’s to the 1960’s. Dairies, grain crops, tree fruits, and bulbs are no longer significant agricultural production activities. Christmas tree farms and ornamental nurseries are currently a small but stable aspect of agricultural land use. The types of crops grown continue to change over time, with a few conventional growers producing berry and vegetable crops. In the last five to ten years there are clear signs of the return of small farms that grow organic and sustainably produced fruits, vegetables and livestock. For the last 50 years the Puyallup Valley has witnessed farm consolidation and transition of agricultural land to non-agricultural uses. Farmland has been converted into residential, commercial and industrial uses. Most of the small family farms have been replaced by a few remaining larger farms. More recently many landowners with larger property holdings have leased their land to other farmers, or passively hold their land as they pursue off-farm jobs, retirement or initiate property transfer to the next generation. Rarely are members of the next generation farmers. These trends have diminished the number of working farms and eroded the knowledge base, skills, traditions, and rural culture surrounding farming in the valley. Some recent new farmer activities, many encouraged

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by the land trusts sponsoring this study, are indications that the trend is reversing but this is in its infancy. Two characteristics stand out with regard to the character and function of the community. First, this is an “edge” community with its growth over the last 25 years arising from its proximity to the Tacoma and Seattle metropolitan areas. The transportation lifeline is Highway 162 which joins a network of other roads and freeways going north and west to the Puget Sound region. This transportation linkage supports economic opportunities, jobs, and services enjoyed by residents. Affordable housing, access to urban amenities plus the natural beauty and open spaces surrounding Orting led to fast-paced growth until the great recession of 2008. As the economy recovers the area will likely continue to attract new residents and their demand for more housing and services. The second defining characteristic of Orting is that it is a gateway to summer and winter recreation in Mount Rainier National Park and elsewhere in the Cascade and the Olympic Mountains. Residents also have easy access to the waters of the Puget Sound. This adds to the area’s popularity to live, work, and play. Like other gateway communities, Orting and Pierce County struggle to supply adequate infrastructure such as highway systems, flood control and other essential services. Study Approach The study area is broadly defined as the farmland surrounding the City of Orting in the Puyallup River Valley. It encompasses the major agricultural land area of the Alderton-McMillin Community Plan, which is a subarea to the Pierce County Comprehensive Plan. The area is more precisely described as: Within one mile, east and west of SR 162, extending south from Military Road, along State Route 162, to two miles south on Orville Road. This area comprises approximately 1,684 “farmable” acres and approximately 50 land owners, on Agricultural Resource Land (ARL) and Rural Farm (RF) zoned properties. See Figure 1 for the boundary of the study area. A set of metric measures were established for the analysis of the study area. The metrics are quantitative to the extent possible. This was a collaborative effort by the staffs of the PPC Farmland Trust, the Trust for Public Land and Globalwise Inc. An applied, practical study plan was adopted to analyze information and data and estimate the metrics. This study features extensive review of property records, landowner interviews and contacts with many stakeholders and key observers of agriculture. Over 55 people were contacted, including interviews with 20 landowners and farmers. Many contacts were made with government agency staff and other stakeholders in the study area and throughout Pierce County. Additional quantitative measures beyond those analyzed in this report were considered, but not fully reviewed here because they require extensive data collection and Geographic Information System (GIS) mapping. This is beyond the budget and time available. The qualitative metric measures that were determined to be most essential to analyze are given in Table 1.

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Figure 1. Map of Orting Study Area

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Table 1. Metrics to Analyze the Economic Viability of Farming

Element & Metric Data Sources

Land Use: Acres in commercial WSDA Organic Program data, Oregon Tilth, certified organic or sustainable food Washington State University, and telephone crop production. interviews.

Farmer Characteristics: Number of Telephone interviews with a sample of farmers in the farmers and farm workers operating focus area. in the focus area.

Farmer Characteristics: Number of Telephone interviews with a sample of farmers in the farmers converting to sustainable focus area, local agricultural extension agents, production methods. advocacy groups for local food production, listings of CSA farms and related documents.

Farmer Characteristics: Average age Telephone interviews with a sample of farmers in the of farmers in the focus areas. focus area, local agricultural extension agents and advocacy groups for local food production.

Community Support: Amount of Agricultural extension agents, NRCS staff, local investment and access to off-farm economic development authorities, WSDA, local Farm infrastructure Bureau chapter, University small farm programs, interviews with farmers and local area contacts.

Community Support: Number & type State Farmers Market Association, local farmer of market outlets and their utilization markets, research of wholesale and retail food by farmers within a 20-30 mile business listings, data from local food advocacy distance of the study area organizations and previous special food and agriculture market assessments.

Community Support: Local Agricultural extension agents, NRCS staff, local government support programs economic development authorities, the WSDA, local Farm Bureau chapter, interviews with farmers and other sources.

Community Support: Direct access to Agricultural extension agents, local economic farm inputs and services development authorities, WSDA, local Farm Bureau chapter, interviews with farmers and other sources.

A questionnaire for farmers was prepared and used to collect data and information (see Appendix A). Ten landowners and farmers were identified to survey and nine complete surveys were obtained. The results of the survey are used extensively in the analysis provided in this report.

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Metrics Land Use

ORGANIC ACREAGE A total of 100 acres of farmland within the study area is organic certified or will soon be certified in 2013. This estimate is made from Organic Farm Action review of county level data supplied by the Washington State Department of Agriculture (WSDA) and Oregon Tilth and is The study area has a nucleus supplemented with the interviews of landowners in the study area. of organic farms. The original PCC Farmland Trust purchase More recent land acquisition and transfer activity by PCC Farmland is a 100 acre land base for Trust will expand organic production in the near future. The Reise three active farms. With the property purchase will ultimately add another 120 acres to the Reise property acquisition, 38 organic crop production. Organic crop production will happen over time with 30 acres estimated for conversion in four years and an acres are coming back into additional 45 acres expected for converted over the next six years. production with an established Additionally the Sturgeon Farm property acquisition is moving ahead livestock operation now and with the expected transfer in 2013 it will add a new farm of 95 expanding and seeking acres to organic production. organic certification. Two other new farmers have purchased land in the study area in the The 95 acre Sturgeon Farm last two years and are establishing their operations on about 45 property acquisition is acres. targeted for completion in mid-2013. The concentrated activity that is expanding organic and sustainable farming activity has brought attention to the Orting area for a Two other farmers who follow renewal of farming on the urban edge. organic or sustainable production practices are in the The estimated amount of agricultural land in the study is 1,684 acres. area or seeking land This is the total land area in the ARL and RF zones and is based on independent of the land trusts. analysis of Pierce County property records.

Metric for Organic Acres

• Current land within study area in organic production: 100 acres (5.9% of total ARL/RF zone land) • Projected land in organic production in 3-5 years: 269 acres (16.0% of total ARL/RF zone land) Note: Commencement Bay Guardianship property is not included in the above estimates.

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Farmer Characteristics

NUMBER OF FARMERS The number of farmers operating in the study area can change rapidly. This is primarily because farmland is often leased, with some leases being year-to-year. For many landowners in this study area, if they do not lease their land, it is simply not farmed. Therefore if a lease is not renewed, there may be farming activity on the land in one year but not the next. A difficult determination must also be made in some cases for those land owners who are actually farming. Raising and training horses for breeding or boarding Photo by PCC Farmland Trust might be considered agricultural pursuits but are not farming activities for this study. Baling grass hay for horses would also generally be a farming activity broadly speaking but not within the parameters of this study. The term commercial food crop farming is more suitable for this study. Ten commercial food crop farmers were identified that are operating in the study area.

Metric for Number of Farms

• Current number of farms operating within study area: 10 • Projected number of farms within 3-5 years: 12 Note: Projection adds one farm family each for the Reise Farm and the Sturgeon Farm.

FARM WORKERS The farmers reported their usage of family and hired labor in the interviews. Like the farmer count, workforce levels can be erratic from year-to-year. The main factors that affect the size of the workforce in any year are: changes in crop rotations, adding or eliminating field equipment, new crop systems such as hoop houses, idle or fallow cropland, and weather fluctuations that affect yield. We obtained the current workforce data from six of the interviewees. These farmers had 13 full time employees, and 29 seasonal workers and they farmed a total of 220.5 acres. The farmworker metric for the entire study are based on the employee-to-acreage ratios to expand the estimates for all land in farming.

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Metric for Number of Farm Workers • Current number of farm workers in study area: 27 full time and 60 part time = 87 total • Projected number of farm workers within 3-5 years: 34 full time and 77 part time = 112 total Note: Projection adds the estimated work force with operations at the Reise Farm and the Sturgeon Farm.

FARMERS CONVERTING TO SUSTAINABLE PRODUCTION Currently there are four farms using organic and/or other sustainable farming practices. One start-up farm plans to follow sustainable framing practices. Additionally new livestock operator at the Reise Farm property and the prospective owner at the Sturgeon Farm property are expected to be organic farmers.

Metric for Number of Farms Converting to Sustainable Practices • Current number of farms using sustainable practices: 4 • Projected total number of farms using sustainable practices in 3-5 years: 7

AVERAGE AGE OF FARMERS The average age of farmers in the study area is analyzed in two ways. Among active farmers who operate in the study area, the average age is 49.9 years. This includes farmers who farm on leased land. If the land owners who own the land being farmed are included with the ages of the active farmers, the average age is 57.8 years.

Metric for Age of Farmers • Current age of active farmers: 49.9 years • Current age of active farmers and landowners who hold land leased to farmers: 57.8 years

Reviewing the age of the land owners in the study area, which includes many non-farmers, is not considered a metric. However, this data calculation is useful to evaluate inter-generational landownership transfers and the probable timing of land sales. This is an indicator for when new ownership and management control will likely take place. When considering landowners with the exclusion of farmers and landowners with less than 20 acres of land in the ARL and RF zones, the average age is 68 years. This suggests that land ownership and control transfers will be occurring in the immediate future and continue at a high level for about the

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next 20 years. The youngest land owner in the study area is 35 years and the oldest is 85. Table 2 shows the age structure for all of the landowners in the study area who are not farmers.

Table 2. Age Characteristics for Non-Farm Landowners with 20 Acres or More in the ARL and RF Zones Range of Acreage No. of Age Group Owned in Age Landowners Group 40 & Under 1 26 41 to 50 2 20 - 56 51 to 60 4 22 - 44 61 to 70 2 42 - 108 71 to 80 11 20 - 156 81 to 90 1 26 Total 21 Data from interviews and published on-line records.

Chart 1 displays the data in Table 2 in a scatter diagram form.

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Chart 1. Age & Acreage of Non-Farmer Landowners With over 20 acres in the ARL and RF Zones

90

80

70

60

50 Age 40

30

20

10

0 0 25 50 75 100 125 150 175 Acreage

Community Support

INVESTMENT AND ACCESS TO OFF-FARM INFRASTRUCTURE Off-the-farm investments in capital improvements that support the efforts of farmers in the study area were evaluated. Primary examples are off-farm drainage facilities, public cold storages, bulk dry product warehouses, agricultural research projects and demonstration plots, incubator/new farmer training, agricultural testing services and food processing plants. These types of infrastructure located within a 20-30 mile distance of the study area were evaluated with regard to the needs of small- scale farmers. WSU Research & Extension Center The most prominent infrastructure in place is the WSU Puyallup Research and Extension Center. This 160 acre complex is in the Puyallup Valley and within 10 miles of the study area. Access to this facility and the research and extension faculty is a major advantage for small scale Research at Your Door Step growers for two key reasons. First, the research is mainly Orting area farmers can easily tap focused on small organic and sustainable farm businesses that the resources of a major land operate in urban settings. Second, work at the Research grant university at the WSU Center is conducted in the same micro-climate and soils Puyallup Research and Extension conditions as exist in the study area. Local growers have the Center. opportunity to work in close cooperation with WSU

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researchers by requesting that WSU establish test plots on the farmers land. Farmers can also conduct their own “shadow” field trials with new techniques and ideas generated from attending field days at WSU Puyallup and developing close rapport with the researchers. This convenient advantage for farmers in the study area can hardly be overstated. Current WSU Puyallup research projects that are valuable to the organic growers are:

• Effective ways to draw samples to determine soil fertility on small acreages • Management practices for pastured poultry and whole farm nutrient management for other livestock such as beef and swine • Use of cover crops and application of organic soil amendments to improve crop yields • Adoption of organic no-till production practices • Recommended farm practices for food safety • Advanced greenhouse propagation and production practices and • Raspberry and strawberry plant breeding for extended season fresh market production. WSU Puyallup also conducts “Cultivating Success” classes for farmers to write farm plans and adopt sustainable local farming systems. One new farmer in the study area has completed this program and is using principles from this class to develop their farm plan. Water Management Another major element of infrastructure is water drainage. The City of Orting has partially approved and funded a large flood control project known as the Calistoga Setback Levee. It is designed to provide greater flood protection for the City of Orting and enhance salmon habitat on the Puyallup River from River Mile 19.8 to 21.3. (River Mile 21.3 is at the Calistoga Bridge in Orting and the levee improvements continue downstream to RM 19.8. See Appendix B for a map.) The project is designed to increase flood protection for residents of Orting but it also will reduce flooding of ARL and RF zoned land along the Puyallup River in the study area. The portion of the study area that will receive the most direct benefit is west of Orting and west of the Puyallup River. Several locations in this area are subject to high water during winter storms and approximately 15 percent of the ARL and RF zoned land in this area is within the 100 year flood plan. Wet spring weather can delay field operations and prevent planting of longer season crops, as was experienced in the spring of 2012. The project will enlarge the riverine area controlled by the levee by removing the existing east bank levee (on the Orting side of the Puyallup River) and constructing a new levee setback approximately 7,600 feet long and located approximately 200 to 500 feet away from the existing river channel. This enlarged area will not remove any farmland. The levee will greatly expand the capacity of the Puyallup River to contain the carry the flow within the levees in this section of the river during high water events. Through the Salmon Recovery Funding Board, Washington State Department of Ecology and US Department of Agriculture - Rural Development, Orting has been approved for a $2.0 million loan and has commitments for total funding of $5.7 million for construction. The City is also seeking $4.9 million from the Pierce County Flood Control Zone District that will allow for the completion of Phase II of this project. Phase I will construct about 63 percent of the total project area based on the estimate that Phase I will reconnect about 29 acres of flood plain to the river and also reconnect 55 acres of

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Riparian area which has a year round un-named stream that will allow salmon spawning. Phase II will connect about 17 acres. Some fields in the study area are subject to standing water when seasonal high rainfall storm events occur. While valley land throughout western Washington is susceptible to flooding, field drainage would improve with regular cleaning of drainage ditches. Because many fields in the ARL and RF zones are passively managed for grazing and “light” farming, the owners have little economic incentive to maintain ditches or subsurface drainage systems. Without Puyallup River dredging, a past method of removing sand and gravel bar deposits, the river bed is rising. Long-time Orting area farmers point to this long-abandoned practice is a key barrier for field drainage. Commercial Cold Storage Services & Transportation As a major transportation hub and distribution center, the South Puget Sound region has an ample supply of public commercial cold storages that are accessible to farmers who need refrigerated storage for packed fresh products. Frozen product storage is also available from these companies. Some are located in the Puyallup-Fife-Tacoma area, with some being greater than 30 miles from the study area. Washington Cold Storage Apex Cold Storage and Versacold Logistics and SCS Refrigerated Service are within 30 miles. Tacoma also has at least two ice manufacturers who can supply ice for packing vegetables and fruits. The vast commercial transportation network in the Tacoma metropolitan area is well adapted to meet refrigerated trucking needs on a contract hire basis. Farmers also have many options for the purchase or lease of new or used transportation vehicles and equipment. Food Processing The main gap in off-farm infrastructure for farmers in Pierce County is the lack of food processing plants. Fruit and vegetable farmers need outlets to sell their crops, even if their main customers buy fresh products. When weather problems impact product quality, or fresh markets suddenly decline, financial losses are minimized if there are secondary sales channels. Closure of Nalley’s food processing complex in 2011 effectively signaled the end of vegetable processing in the Tacoma region. When Pinnacle Foods closed the Nalley’s plant, it was already limited to producing canned prepared foods such as chili. None of the food ingredients were sourced from local farms in or near Pierce County. The owners of the Nalley’s brand stopped sourcing local cucumbers for pickles in 2008. Food processing, especially for fruit and vegetable crops, is a very minor business activity in Pierce County. In fact, there are virtually no food processors in the County that source raw ingredients from local farmers. The few remaining food processors are larger companies that source bulk raw commodity ingredients for their processed foods and none of them purchase fruits or vegetables for their products. Much of the fruit and vegetable food processing activity in western Washington has moved to the major crop production areas of Eastern Washington and elsewhere. High land costs in the Puget Sound region are also a barrier especially for properties close to rail lines and major highways. Odor problems and waste water discharge are often additional barriers to operating food plants in the more densely populated urban areas.

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Fruit and vegetable farmers in Pierce County cannot rely on food processing as a secondary outlet for their crops. While this is a disadvantage, the situation is similar in most other areas of western Washington. Meat processing is also very limited. Kapowsin Meats in Graham slaughters and processes hogs with USDA inspection but this business is not organic certified. The mobile slaughter facility owned by the Puget Sound Meat Producers Cooperative is attempting to serve a large area of producers across four to five counties, Including Pierce. To date this has not proven to be a workable processing alternative for small organic and sustainable meat producers in Pierce County. The small scale poultry processing unit rented to growers by the Pierce Conservation District is a popular and feasible way for small scale poultry meat producers to process chickens. This is an effective bridge for some poultry producers to move up to have their own small farm processing facilities on their farms.

Metric for Infrastructure • Overall rating for infrastructure: neutral. The cumulative dollar value of infrastructure cannot be meaningfully measured. • The close location of the WSU Puyallup Research & Extension Center to the study area is very positive. • Seasonal flooding is a negative factor for some parcels in the area; construction of the setback levee for the Puyallup River will have longer run positive influence on farming in the portion of the study area that is west of Orting. On balance water management is slightly negative. • Off-farm infrastructure, such as cold storage and transportation services is slightly negative to neutral. • The availability of off-farm food processing for fruit, vegetable and livestock producers is negative.

NUMBER AND TYPE OF MARKET OUTLETS This metric reviews food wholesalers, farmers markets, restaurants and other food service companies. Food Wholesalers There are four produce wholesaler operations in the Tacoma/Puyallup/Fife area. Of these, the only wholesaler that supplies fresh organic produce is Terra Organics, which operates a direct delivery service to businesses and residents in the greater Tacoma and Seattle metropolitan areas. They are a young, growing company. They purchase both local organic fruits and vegetables and organic produce from outside the area. The three main wholesale organic produce distributors outside of the Tacoma area that distribute into this area are Charlie’s Produce, Organically Grown Company (OGC) and Pacific Coast Fruit (PCF).

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Charlie’s ships from their Seattle facilities and OGC and PCF ship from their Kent facilities or drop ship from trucks going north from their Portland warehouse centers. Orting area organic suppliers who have sizeable volume to sell to wholesalers will likely give strong attention to these three main distributors and to Terra Organics. Some direct marketers such as Terry’s Berries purchase local organic food to supplement their own production. Sidhu Fruit Stand is a new roadside stand that plans to open in 2013. It is just north of the study area and the owner will supplement their own farm produce by purchasing berries and vegetables from nearby farmers. Recently Tacoma Meats, the only retail organic certified meat shop in the area, closed due to the retirement of the owner and no successor. High quality locally produced beef, pork, lamb and goat meat is in demand but the dominance of conventional distribution and lower pricing has limited the market to date. Counting the local “re-marketers” five organic and sustainable wholesale outlets where identified in the 20 to 30 mile distance from the study area. As noted above, any major organic suppliers who want to achieve regular sales to wholesalers are likely to ship more than 30 miles to OGC or to Charlie’s, or they will sell to Terra Organics. A total of five organic food wholesalers and re-sellers were identified. Farmers Markets Nascent Organic Food Market

Pierce County has eight farmers markets. The strongest and Tacoma and the surrounding most established markets are the Puyallup market, Proctor area is an undeveloped organic market, 6th Avenue market and Broadway market. The other food market. Lower per capita markets are newer and have lower sales. Many factors are contributors to the limited growth and sales momentum at income does not fully explain several farmer markets. Pierce County’s lower per capita this lagging position. More personal income in comparison to King and Snohomish local supply will bring out latent counties is a factor that limits market sales for fresh, local, demand as consumers sustainably produced foods. A lack of local seasonal fresh “discover” their new purchase fruits, vegetables, meat, eggs and other products is a current options. limitation for farmers markets. Local farmers are quite selective about participating in the local markets and improved performance in Tacoma area markets would be a boost for organic farming in the Orting area. Farmers must devote a large effort to succeed at farmers markets. Some growers report that the sales they generate at the markets will not justify the cost and effort of selling at Tacoma area markets. Average sales at Seattle markets are higher but the travel time and added cost is a factor. Better sales in the local Tacoma area markets would greatly help the newer, less experienced Orting area organic producers. Effort is underway to establish a farmers market in Orting. Two earlier efforts failed. At least two farmers in the study area are interested in emphasizing sales in the Orting community. This could be a means for expanding markets for the newest organic farmers.

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Retail Stores The launch of the Tacoma Co-op is a hopeful indicator of growth prospects for retail sales of organic food. The Co-op operates at a central Tacoma location and has a strong commitment to local suppliers. This should be a helpful growth outlet for organic producers in the Orting area in the years ahead if current procurement policy remains in place and this young market outlet continues to grow. Retail food stores in the Tacoma area provide moderate-to-good market outlets for local organic growers. The main independent retailers in the Tacoma area are: Tacoma Boys (3 stores), Marlene’s (two stores) and Metropolitan Markets (one store). Tacoma Boys does some direct farm buying of both conventional and organic produce. Marlene’s and Metropolitan Market rely heavily on wholesaler suppliers such as Charlie’s and OGC. The growth of produce sales among this group of retailers appears to be moderate. Kitsap Peninsula grocery markets in Gig Harbor, Bremerton and Poulsbo are a reasonable extended market area for growers in the study area. Stores include Green Harbor, WHOLEFOODS Market (not the national chain, Whole Foods), and Central Market. Greater supply from the additional organic acreage in the study area can propel one or more of these retailers to dedicate more space and advertising to local fresh produce. This needs marketing attention in conjunction with organic supply growth. Each store group is counted separately; the count is four. Restaurants & Food Service The restaurant sector is currently a weak supply channel for local, sustainable food products. One of the leading potential players is the Murano Hotel which has restaurant, room service and banquet service sales. The executive chef believes local sales can be achieved with the larger supplies and more choice of local organic and sustainable berries and vegetables. Two main requirements are considered keys: a larger and more consistent supply and direct delivery service from growers to buyers. Other restaurants can become valuable customers as well. Tacoma has at least four restaurants whose menu selections are well suited to local produce and meat products. Other less well known restaurants can also be counted to buy more local foods if selection as selection and availability expand. The restaurant buyer count is nine. Catering in the Tacoma area offers greater opportunity with expanded supplies of organic foods. Three leading independent catering companies have potential to integrate local fresh food supplies in their catering selections. The larger restaurants also offer premium catering services. Three potential catering company buyers are counted in the metric. Sales by organic and sustainable growers to the leading institutional food service sales outlets are hard to evaluate. The major universities in Tacoma include: University of Puget Sound, Pacific Lutheran University and the University of Washington-Tacoma. However UW-Tacoma does not operate its own dining or catering facilities. The two other universities feature university self-managed or co-managed dining and catering operations. The existing produce wholesalers are currently key suppliers. It is not likely that Orting area growers will gain access to these large volume customers in the near future unless supplies increase dramatically and direct distribution is established by a farm or a group of farms. University faculty, staff and students are a market target for direct-to-customer drop off

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deliveries. A count of one is suitable for the universities as a buying unit based on expected growth in the organic supply in the study area.

Metric for Market Outlets • The local organic and sustainable food buyer count within a 30 mile distance is 30 - 35. • Wholesale food distribution is dominated by four firms, two from the greater Seattle area. • Farmers market outlets are numerous but not currently a strong channel for direct sales. Improvement in farmers markets is especially important for the newer, small organic farmers. • Sales to Tacoma area restaurants and others food service businesses are currently weak but growth potential is evident. • Sales through catering companies have growth potential and should improve with expanded supply.

LOCAL GOVERNMENT SUPPORT PROGRAMS Local government support plays a direct role in success of farmers in a community. There are many ways this support can and is being extended to agricultural producers in the Orting study area, as well as all farmers in the County. Extension Education & Government Liaison WSU Pierce County Extension is currently planning to fill the Inviting Local Government to vacant position of agricultural agent. Pierce County needs this Act position to aid the transfer of technical and scientific Concentrated effort by land knowledge from WSU researchers to growers. The budget for this position is approved and the position is expected to be trusts to protect farmland is a filled in mid-2013. call to action for local governments. Pierce County has An informal coalition of farming advocates called the Ag become a willing partner. Roundtable has been meeting to address regulations, markets, and land conservation. The group is reviewing previous recommendations for strategies to strengthen local agriculture and consider new issues. This respected group is receiving support from elected officials. One early, positive outcome is the County Executive’s budget request for the position of Farm Business and Development Specialist. This staff person would help farmers traverse County government services and requirements. Local Government Policy The Ag Roundtable is in process to address a refined strategy and policy framework in 2013. Their emphasis is on conservation and preservation of farmland, restoring and encouraging farm-related infrastructure, addressing policy gaps in zoning and related land use planning and supporting local markets for small farmers.

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Agri-tourism has high potential in the study area and local agricultural leaders are considering policy barriers for this aspect of farm business. The City of Orting has also indicated its interest in promoting agri-tourism in partnership with surrounding farms. One of the larger issues facing agriculture throughout Pierce County is the upcoming compliance update to the Comprehensive Plan and potential changes to regulations in agricultural zones. Due to previous errors in designation of ARL zone parcels, Pierce County Planning and Land Services (PALS) is committed to a zoning designation review. A significant amount of land in the ARL zone will be re- designated according to staff in PALS. How this rezoning will impact agriculture across the County is not known. However, PALS is currently projecting that study area land near Orting that is designated as ARL will remain unchanged. However, unforeseen changes in zoning designations are frequently made at the time of Comprehensive Plan updates. It is important that land trusts act quickly to place conservation easements on priority farmland before the next update, which is scheduled for June 2015. Pierce County has been a partner with land trusts in the use of Conservation Futures funds for placing conservation easements on farmland. The County has also been an active partner with land trusts in securing grant funding to extend the investment in conservation easements for agricultural properties. Pierce County has implemented the transfer of development rights (TDR) tool to allow rural land owners to sell their density rights to landowners in other areas where additional density can be incorporated in development projects. The County is holding development rights in a “bank” but to date no development right transfers have been completed. This mechanism is in place as one more tool to hold ARL and RF zoned land in agricultural use. Pierce Conservation District The Pierce Conservation District (PCD) is a subdivision of state government created to promote the conservation of renewable natural resources in Pierce County. The PCD has many programs to assist and inform landowners on management of their farm property. The PCD and the land trusts have a strong working relationship. For example, PCD has cooperated with PCC FT, TPL and Washington FarmLink to host open houses for farmers who are exploring the purchase of farmland near Orting. PCD also has been helpful in giving technical advice to beginning organic farmers on such topics as pasture rotation, fencing, mud management, and control of invasive plants. PCD also collaborates and supports farmers using NRCS programs such as the Environmental Quality Incentives Program (EQIP). This program benefits growers with financial incentives and technical assistance to plan and implement on-farm conservation practices. Several growers in the study area are participants in EQIP. This rather unique partnership by the Conservation District and land trusts strengthens farm operations for organic and other producers in the study area.

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Summary for Local Government Programs • Local government is increasing its support for local, sustainable agriculture, to the benefit of the farmers in the study area. • Extension support is currently limited but this should improve with the return of the agricultural agent position. • The work and early accomplishments of the Ag Roundtable are very positive. • Maintaining ARL and RF zoning in the study area in the upcoming Comprehensive Plan Update is a key for agriculture expansion in the study area. • Land trusts have a strong working relationship with local government in the County. • The Pierce Conservation District is an advocate for small, resource conserving farms and helps to leverage available local, state and federal programs.

DIRECT ACCESS TO FARM INPUTS AND SERVICES Farm Supplies, Equipment, Consultation and Other Specialized Services Direct farm services and supplies for farmers were assessed in landowner interviews. Farmers responded that obtaining most services and supplies is not a significant obstacle. There are clearly fewer farm suppliers compared to the past. This includes major suppliers of seeds, fertilizers, animal feed, veterinary products and specialty farm supplies. Only one large tractor dealer is located in the area, which means less choice and less competition. Local hardware and home improvement stores often carry general supplies such as lumber, tools, fencing, fasteners, wire, and irrigation equipment needed by farmers. Infrastructure for Farms has These same suppliers serve weekend farmers, so access to declined but Not Vanished stores is adequate. While there are fewer products The local farmers report that they often purchase used farm implements. This includes tractors, plows, disks, planters, and services available locally, sprayers and field mowers. Because of the specialty nature farmers have adapted to of these implements, farmers will usually carefully research conditions. This may prove to be a the availability of this equipment and travel long distances to longer term challenge but it select the right equipment for their needs. appears manageable for the near term. The fewer number of suppliers is partially offset with the expansion of on-line purchasing and direct shipping. This has Meat processing is a very real improved delivery of smaller, less bulky and light weight challenge now for Pierce County supplies. In this case, the physical distance of farmers from livestock producers and deserves suppliers can be great without costly delivery changes or immediate attention. delayed delivery. Seed is an example of a specialty input that is easily shipped, minimizing the hardship of long Vegetable and fruit growers distance from suppliers. Loss of local fertilizer suppliers was would benefit from nearby indicated as a small hurdle by some farmers. Welders, processing but can manage mechanics, metal fabrication and similar services were without it. considered be adequate by farmers who were interviewed.

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Farm consultants who serve as technical advisors are not found in the south Puget Sound region. This is a limitation even though farmers did not report that they brought in agronomists from outside the area. If a grower needed such services, the travel distance from the Skagit and Whatcom counties or from the Willamette Valley of Oregon would be a significant expense. The outside consultants also lack familiarity with soil and micro-climate conditions of the Puyallup Valley. Most fresh fruit and vegetable farmers develop their own on-farm facilities for sorting, washing and packing their fresh produce. Recent concern for food safety standards, which are covered by Good Agricultural Practices (GAPs) or the forth coming federal Food Safety Modernization Act, may pose on-farm packing challenges for some growers. The alternative is to contract with larger farms/product aggregators. Two farmers who are in the Tacoma-Auburn area are well suited to provide post- harvest transportation and packing of fruit and vegetable products. Meat packing, as noted previously is very limited in Pierce County and surrounding areas of the south Puget Sound. Other than meat packing, there is no particular barrier for additional farms that locate in this area to operate their own fresh packing or contract with existing farms for this service. Farm Finance Orting area growers have access to the traditional agricultural lenders at a comparable level to most growers elsewhere in western Washington. The Northwest Farm Credit Services (NFCS) has an office in Chehalis, Washington that serves the South Puget Sound region and their loan officers frequently work throughout their region that spans the south Puget Sound and southwest Washington. NFCS has programs for part-time farmers, young-beginning farmers and small producers as well as programs targeted to large, commercial farm businesses. Several farmers interviewed in this study report that they borrow from NFCS or have considered them. Commercial banks make real estate and operating loans to farmers. However, banks realize that agricultural lending is rather specialized and small scale farming pose risk assessment challenges. A few banks have truly embraced “triple bottom line” investment objectives: social, environmental and economic. An example is One Pacific Coast Bank (OPCB), which is the lender to two farmers that are associated with PCC Farmland Trust. OPCS has offices in Seattle and elsewhere in the Northwest which can serve Orting area farmers. Smaller community banks and credit unions are potential lenders to growers in the Pierce County/Orting area. However, the relationships of farmers to these local lending sources do not appear to be strong. An emerging opportunity for small farmers is direct financing, where individual investors link to borrowers. Along with the land trusts, entities like Slow Money Northwest (SMNW) are an avenue to match farmers to investors. There is an example of one angel funder that purchased a farm and subsequently re-sold the property to a farm family in the study area. The SMNW Farmer Reserve Fund is a very promising and innovative program. This initiative allows the participating lender, in this case North Coast Credit Union in the Skagit Valley, to offer lower interest loans to riskier new farmers because SMNW has deposited funds in the credit union’s loan loss reserves. The funding for supplementing the credit union’s loan loss reserve comes from an “impact” investor or foundation. A farmer who is just starting or is not well established is evaluated for their qualifications by a regional technical assistance partner. The local Cultivating Success program might be suitable for this technical assistance role.

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Recently SMNW teamed up with Cascade Harvest Coalition to establish “Seeds of Success.” This is the first rural agricultural Individual Development Account (IDA) program in Washington. This program will help participants purchase farmland, farm equipment, and livestock at a small scale. A farmer or rancher puts money into a savings account and prepares a project and savings plan. The farmer can put up to $2,500 per year for two years. This is matched with grant funds. The program also connects the farmer/rancher to technical assistance, mentorships and supportive community members. Large commercial banks are low potential lenders for the new and existing small scale farmers in the Orting area. The large banks do make farm real estate and operating loans. These banks generally lend through specialty agri-business centers. These centers do not target niche type agricultural enterprises such as the farms found in the Orting area. Like nearly all other areas in western Washington except the Skagit Valley and Whatcom County, Orting area growers are likely to remain underserved by the large bank, commercial lenders.

Summary for Direct Access to Farm Inputs and Services • Access to farm inputs is generally acceptable but the trend of fewer suppliers is a limitation. On-line vendors with direct delivery service help offset some loss of input suppliers. Finance alternatives are emerging and improving but are neutral for this area.

Observations and Conclusions Benefits of Clustering Farms The clustering of farms in the Orting area is already conferring benefits to growers. The three farms in the Orting Valley Farms group have started building firm working relationships. For example, one new farmer is employed at another nearby farm while he establishes his own farm. One farm in the study area purchases eggs and vegetable crops from the other farms to fill its customer orders. Other joint marketing arrangements among these and other farmers are likely to expand over time. Two additional farms have located in the study since establishment of the Orting Valley Farms group. These farms are also benefiting from farm-to-farm collaborations. The main benefits for small scale organic/sustainable growers from close proximity that are demonstrated at this early stage are:

• The direct sharing of improved production techniques and management knowledge based on similar soil and climate conditions. • Cost saving by jointly purchasing inputs such as fencing supplies and soil amendments. • Ease and practicality of sharing equipment and bartering for services between farms. • Reduced marketing cost and increased sales volume created from coordination and integrated marketing activities. All of these collaborations and synergies are very important to increase the economic viability of farms.

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The strategy of clustering farms with the protection of conservation easements is also positive for local government engagement. When land trusts make the investment in a small area and carry through with placing farmers on the properties, this gains the attention of local elected officials and key agency staff. While every county might not respond as positively as Pierce County, this focus spurs government action. Pierce County has clearly heeded the call and is responding with significant support. A change of local market dynamics is another expected positive outcome from the expansion of organic farming in the Orting area. The livestock operation at the Reise Farm will be a notable expansion for a small local farm. This farm plans to continue selling their increased volume of meat products in local markets. The prospective large organic farm business at the Sturgeon Farm (possibly 70 acres of organic fruits and vegetables) will also bring significant supplies of food crops and perhaps meat products to consumers through local retailers, farmers Photo by Dennis Lussier markets, and other supply channels. With greater choice and more readily available local sustainable food supply, the stage is set for demand growth. This will be a major factor for moving Tacoma out of its current micro food market status where only the most ardent locavores are served. Findings from the Metrics The metrics analysis indicates that farming in the study area is economically viable. The growth prospects are greater for fruit and vegetable production than for meat production. The challenge for meat production is the lack of nearby USDA approved processing at reasonable cost. Future farm expansion in the study area is enhanced in many ways. These include:

• The research and outreach programs of the WSU Research and Extension Center. The study area could hardly be closer to a well-recognized research complex with strong emphasis on small farms viability and improved organic food production. • Locational advantages exist for organic and local food demand in both the Tacoma and Seattle metro markets. Tacoma currently shows moderate market opportunities but this will change with the expanding supply of organic food. “Supply-push” into market channels will benefit distributors, retailers, restaurants, caterers and farmers markets. • Internal support for agriculture is evidenced by the emergence of the Tacoma Food Co-op, the Ag Roundtable, and the recent actions of Pierce County government to add an Extension position, create the position of Farm Business Specialist and use Conservation Futures funds for farmland conservation easement acquisitions. • The farm labor supply, water resources and soils conditions are very adequate for the number and types of farms envisioned on the near term growth in the study area. Factors that are neutral to negative for the study area include:

• Lack of food processing facilities in the area is unfavorable to growers. These secondary market outlets are helpful in times of excessive short term supply or if weather conditions result

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in lower quality production. The lack of access to USDA inspected meat packing is a particular concern. • Retrenchment in farm suppliers, especially equipment dealers and farm consultants, is a limitation for farmer expansion. • Agricultural finance is neutral in the study area. It would help if Pierce County credit unions expanded their portfolios to include farmers. Final Thoughts The economic returns for organic and sustainable farmers have been favorable for several years and the outlook remains positive. Farmland investment has also been favored with low interest rates. Meanwhile, the recession and slow recovery has brought dissatisfaction with traditional investments like company stocks which leads businesses and individuals to look to invest in other assets. Commercial and residential development has been stagnant since2008. Given these conditions, it is an opportune good time for land trusts to place conservation easements on farmland and return high quality agricultural resource lands to farmers. This analysis confirms that when all the factors are considered, local conditions in Pierce County support the economic viability of establishing more sustainable, organic farms in the study area. Since the study area is relatively close to Seattle, Orting area farmers have nearby markets in both Tacoma and Seattle. For market access, the Orting study area is particularly well positioned. The diminishing supply of local businesses that offer products and services to farmers is a long term concern. Currently however, this is a minor problem. Fewer suppliers mean increased operational costs and added management time and attention for farmers in the study area. However this is not so critical that it poses a threat to farming. Much of western Washington shares similar conditions, with the exception of the Skagit Valley. Probably the greatest challenge is not reflected directly Photo by Dennis Lussier in the metric framework. The challenge is matching the protected farmland with farmers which possess the farming skill, business acumen and financial resources to purchase land and secure the operating funds. More emphasis by land trusts and their partners on finding and preparing “farm-ready” farmers is warranted. Taking all factors into account, the strategy of clustering organic farms in the Puyallup Valley near Orting is poised for continued success. There are ample opportunities for more well managed organic farms.

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APPENDIX A – Questionnaire for Landowner/Farmer Interviews

Name/Position: (Need to interview owner or key manager) Address: Farm Name/Property Identifier: Telephone & E-mail:

Introductory Statement: We are conducting a study for The Trust for Public Land and PCC Farmland Trust, two conservation organizations dedicated to protecting farmland and ensuring that farmers and the land remain in permanent, sustainable production. These organizations are working together in the Puyallup Valley to support the resurgence of family farmers and to support the viability of all the farms. We are contacting owners of agricultural land in the valley near Orting to deepen our understanding of the plans and interests you and your neighbors have regarding farming and rural land use. As part of our effort, we are conducting an informal survey and we’d like you to participate.

Unless you give us permission otherwise, all responses will be kept anonymous and no answers you give will be attributed to you or your farm. Our interest is to only to get complete and objective responses and summarize all of the information we receive.

1) Please describe your farm: a. Acres in crop production, or number of head of livestock, square feet of greenhouse (or other as appropriate)

b. Years farm has been in operation

Type of crops and general estimate of acres by crop or crop type; also acres devoted to livestock/livestock products produced.

c. Irrigation? If so, how many acres? d. Do you have your own source (on-farm) for irrigation water?

e. Do you have land in wetlands or buffers that are not available for ag production? ______If do, how many acres? ______Other descriptive attributes, if any:

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2) Is your land being farmed now or is it inactive for farming or livestock production? a. Land is completely idle for crop or livestock production ___ If idle, how long has your land been idle from farming: ____ years b. Land is being farmed but not very actively ___ c. Land is being actively farmed ___ Explain:

3) Are you following sustainable farming or ranching practices? a. No ___ b. Yes ___ Explain:

4) Is your farm certified for organic crop production or is it in transition to be certified for organic production? a. Neither in transition or organic certified ___ b. Farm is in transition to organic certified ____ c. Farm is organic certified ____

5) Is the certification agency the Washington State Department of Agriculture or Oregon Tilth? a. If no, who is the certifying entity? ______b. Yes ___ Note which: WSDA or Oregon Tilth: ______

6) Have you made capital investments/improvements in any of the following in the last 3 years: a. If no ___ b. If yes, please identify: i. On-farm permanent buildings for crop storage, livestock housing, equipment or shop, etc. (not including family residence, farm worker housing or growing structures such as greenhouses) ___ ii. Farm worker housing (excluding owner or family) ___ iii. On-farm well for irrigation or animal water supply ___ iv. Irrigation system including ditches or other conveyances ___ v. Permanent irrigation equipment (pipe, plastic, etc.) ___ vi. Dikes, water storage or land drainage ___ vii. Other structures on the land not covered above (such as hoop houses/greenhouses, posts for trellis systems, etc.) ___ viii. Livestock fencing or protective fencing for crops ___ ix. Farm road improvements ___ x. Other ___ describe:

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7) Do you hire full time and/or seasonal workers in addition to your own labor and other immediate family members? a. No ___ b. Yes ___ please give the number and other descriptive explanation

8) Do you market a majority of your crops, livestock, or livestock products within approximately 100 miles of your farm? a. No ___ b. Yes ___ Please explain, including the approximate % within 100 miles:

9) How many market outlets do you sell in? (E.g. Puyallup Farmers Market and the Proctor Market would each be counted as outlets; CSA sales would be a third, road side stand would be a fourth, each wholesaler would be counted, etc.) Please indicate all that you sell to and if they are in Pierce County:

10) Do you participate in any of these local programs/activities that are available to Pierce County farmers? (Check any that apply) a. WSU Extension ___ b. WSU Research Center at Puyallup/Small Farms program ___ c. Pierce-King County Farm Bureau ___ d. Pierce Conservation District Programs ___ e. Farm Credit Services’ Loan programs ___ f. Local Farmers Markets in Pierce County or elsewhere in Western WA ___ g. Puget Sound Meat Producers Co-op ___ h. Other marketing cooperatives or joint ventures ___ i. Puget Sound Fresh/Cascade Harvest Coalition ___ j. Washington Sustainable Food & Farming Network ___ k. Other ___ (List) ______l. Other ___ (List) ______m. None of the above ______n. Not sure/don’t know about local programs/activities ___

11) Please describe where you generally purchase the farm supplies and services for your farm (local area or do you have to get them from outside Pierce County)?

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12) If you currently farm or are a beginning farmer, what is your current intention? a. Farm for 5 years or less ___ b. Farm for 5 to 10 more years ___ c. Farm more than 10 years ___ d. Not sure ____ Explain response

13) Do you intend to sell or transfer your property in the next 1-5 years? a. No ___ b. Yes ___ Explain response ______

14) Would you be willing to talk to a land trust about conserving your property? a. No ___ b. Yes ___ Explain response

15) Would you be willing to participate in community open houses to help us identify and map priority agricultural lands for protection in the Puyallup Valley? a. No ___ b. Yes ___

16) If open houses were to be held in the Puyallup Valley, do you have any recommendations for convenient locations that can hold medium-sized groups?

17) Would you like to see a summary of the findings from these interviews? Yes __ (If yes, ensure we have address or e-mail.) No __

18) Thank you. Are you willing to be listed in the acknowledgements section of our report, as having been contacted for this study? This report will be available to the public.

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APPENDIX B – Map of Calistoga Setback Levee Project

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9311 SE Butte Avenue Vancouver, WA 98664-3623 Phone: (360) 696-3888