Oregon agriculture and land-use planning.

• Author: Bernasek, Tim

1. INTRODUCTION II. BACKGROUND III. AGRICULTURAL LAND AVAILABILITY IS CRITICAL TO SUSTAINING AGRICULTURE INFRASTRUCTURE IV. PROPERTY RIGHTS ARE MAXIMIZED THROUGH PROPER PLANNING V. SOURCES OF CONFLICT A. Implementation of Current Planning B. Regulatory Reform VI. SOLUTIONS A. Address Property Owners' Concerns Over Loss of Property Rights B. Reduce the Cost of Regulatory Compliance C. Regionalize LCDC VII. CONCLUSION I. INTRODUCTION

   Both land-use planning advocates and opponents cite various reasons to support or oppose the system of land-use planning that has been implemented in Oregon over the past thirty years. Orderly development, environmental protection, property rights, open space, transportation corridors, and affordable housing are only a few examples. This essay will focus on economic arguments as the basis of support for a system of statewide land-use planning. Specifically, this essay will focus on agriculture's impact on the state economy, and will argue for a system of land-use planning that designates land for agricultural uses as an important factor in maintaining the health of Oregon's agricultural economy. In addition to enhancing agriculture's viability, proper planning does in fact maximize private property interests. Finally, this essay will discuss sources of conflict that have arisen in the current model of land-use planning and suggest improvements for this system.

   I should make it clear at the outset: the arguments laid out in this essay are mine. For most of my professional career, I have been privileged to represent the Oregon Farm Bureau Federation, the largest general agricultural association in the state. Without a doubt, many of the arguments I advance are the result of conclusions reached after wrestling with land-use planning issues on behalf of my client. However, I have not asked for, nor have I received the Farm Bureau's endorsement of the observations laid out in this essay.

2. BACKGROUND

   Oregon agriculture continues to be a major player in Oregon's economy. Given its position as one of the top industries in the state, policymakers should focus on creating a regulatory environment conducive to maintaining, if not strengthening, agriculture's viability. To be clear, non-economic arguments could be made for preserving agriculture's presence in Oregon, like maintaining rural heritage, preserving open space, and others. However, these arguments will not be made here. Agriculture's position as one of the top industries in the state alone warrants policies, including sensible statewide land-use planning, that will enhance its position in the state's economy for years to come.

   In spite of growing conventional wisdom that agriculture is part of some bygone era in Oregon and is fading as a presence in the state's economic picture, a few key statistics show this is simply not the case. Agriculture is the second largest industry in Oregon behind technology, accounting for over $4 billion dollars annually in direct farm input (1) and over $11 billion dollars in total economic activity to the state. (2) Nine percent of Oregon's jobs are connected to agriculture. (3) Approximately 9.5 % of Oregon's gross state product (GSP) is attributable to agriculture. (4) Agriculture is not just a major component of Oregon's rural economy. The majority of the Port of Portland's total tonnage of exports, about sixty percent, is agriculture sourced from Oregon and other states. (5)

   On any given day, one could peruse the major daily newspapers in Oregon and find stories about efforts underway to build upon the state's high-tech sector. (6) Given its position as the top industry in the state, this is both understandable and appropriate. Agriculture too, as the second-largest player on the state's economic stage, warrants increased initiatives to maintain and strengthen its position. As will be discussed more fully below, sensible land-use planning policies that preserve and protect land for agricultural production are a vital component of, and must be a part of, any strategy to maintain a strong agricultural sector.

3. AGRICULTURAL LAND AVAILABILITY IS CRITICAL TO SUSTAINING AGRICULTURE INFRASTRUCTURE

   As discussed above, agriculture is a major component of Oregon's economy. For the agricultural sector to survive, there must be land available upon which agricultural products can be produced. Some agricultural sectors require large blocks of land relative to economic output, like wheat, grass seed, and livestock, while other sectors require less land relative to economic output, like nursery stock. However, taken as a whole, the agriculture segment of the economy requires unhindered blocks of land designated for agricultural production to survive and thrive. (7)

   Land-use planning, done properly, will recognize this need for large blocks of land designated for agricultural production. Why is it that agriculture requires these large zones for its survival? Perhaps one of the best ways to illustrate this need in agriculture is to compare it to what is happening in one of the other major sectors in Oregon's economy.

   Much has been made lately of economic "clusters," particularly in support of Oregon's growing high-tech sector. The argument is that, to attract and maintain a base of high-tech companies, clusters of similar companies and support structures are required. (8) Support institutions like engineering programs are necessary to educate a local workforce to fill the jobs required to fuel this sector. (9) "Shovel ready" land has been called for to allow companies that make up these clusters to easily locate and develop. (10)

   The clustering concept is also vital in the agricultural sector. Admittedly less glamorous than its high-tech counterparts, clusters of agricultural operations are required to develop the infrastructure necessary to maintain itself and grow. For example, grass seed growers clustered in the southern Willamette Valley attract seed cleaners, where seed is cleaned and stored. (11) Farm implement dealers will locate to service those agricultural producers in the area. (12) Land zoned exclusively for these farm uses is necessary to allow these clusters to develop.

   When non-farm uses invade these clusters or farm zones, the agricultural infrastructure is weakened. Just like "blight and decay" erode urban commercial and residential areas, "sprawl" erodes agricultural areas. (13) When farmland is replaced with homes and non-farm businesses, conflicts increase and costs of production increase for agricultural producers. (14) Once farmland is lost, it rarely, if ever, reverts back to agricultural production. (15) Returning to the above example of the grass seed cluster in the southern Willamette Valley, if sprawl is allowed to invade these zones, the economies of scale associated with large blocks of grass seed fields are reduced. As less and less land is producing grass seed, seed cleaners go out of business or consolidate. Fewer cleaners require producers to travel farther to deliver their seed, increasing both transportation costs and traffic congestion. As overall production becomes more costly, the increased competitive disadvantage creates a spiral toward more inefficient production.

   While the above example may be a bit simplistic, it is...