Agriculture a vital part of borough economy

May 1, 2005

DARRELL L. BREESE/Frontiersman reporter

PALMER - Agriculture has strongly influenced the Mat-Su since the 1935 arrival of the New Deal Colonists in Palmer.

As an economic influence, agriculture, while appearing diminished on the surface, continues to thrive in the community.

The most recent statistics from the U.S. Department of Agriculture's Alaska Agricultural Statistics Service shows that total value of on-farm production (crops and livestock) has increased consistently since 1965.

Despite pressures from development, the industry remains a vital part of the Valley's economy, grossing $12,643,500 in 2003.

Larry DeVilbiss, director of the Division of Agriculture, grew up on a dairy and potato farm in the Valley and has seen things change over the years.

He pointed out two factors affecting the Valley's agricultural industry - population and a solid marketing program.

"The change has been huge over the years, and it is still changing," DeVilbiss said. "The biggest change is in the population. It used to be that a half-dozen farmers could provide enough potatoes for the entire population of the state.

Now there are so many people that the demand for locally grown produce has skyrocketed."

He said the Alaska Grown marketing program, started in 1986 by the Division of Agriculture, has come to stand for a quality product and helped increase demand for local products.

Doug Warren, developmental specialist with the Division of Agriculture, described the Alaska Grown marketing plan as a win-win for everyone.

"The main idea is to help the consumer identify Alaskan products," Warren said. "In turn, it is also helping the local farmers market their product. Truly the whole mission is to help move more local products."

The on-farm value production from Valley farmers has increased nearly $4 million since the Alaska Grown program began.

The increased demand has led large grocery stores such as Carrs and Fred Meyer, which normally buy produce nationally and in bulk, to purchase more locally grown vegetables.

"We have found through some recent studies that the consumer is willing to pay up to 13 percent more for an Alaskan product," Warren said.

Crop (vegetables and hay) harvests saw the most substantial growth over the last 10 years, with the wholesale value increasing from $5.6 million in 1995 to the 2004 total of $8.6 million.

According to DeVilbiss, the cash crop in the Valley is hay, followed by potatoes.

"The vegetable industry is doing really well right now," DeVilbiss said. "Potatoes, lettuce, broccoli and carrots are in demand. But the potato remains king among the Valley produce. The popularity of the Yukon Gold potato among the culinary community has not translated into success in the retail market. Everyone wants a good russet. That is where the potato market is right now."

The 540 harvested acres produced nearly $2.6 million worth of potatoes.

Grass and hay harvests have shown the largest increase of total acreage harvested over the last 10 years, increasing from 4,080 acres in 1965 to 13,400 acres in 2004.

Development is pushing hay farmers away from their original sites in the immediate Palmer and Wasilla area to land in Knik and north toward Big Lake, but according to DeVilbiss, they have developed a solid market.

"In the past, 90 percent of the locally grown hay would go to dairy farms. Now about 80 percent goes to people with horses."

Dairy and livestock industries have seen the biggest increase over the last 10 years, nearly doubling in value to just over $4 million.

"The number of dairy farms has decreased," DeVilbiss said. "The production of milk has increased."

He credited the increase to a good breeding program, which has developed dairy cows that produce nearly 70 pounds of milk a day.

Science and improved technology have also led to higher yields on the farm.

"There has been a real growth in controlled environment agriculture," DeVilbiss said. "Aquaculture and greenhouse projects are a growing part of the industry."

Estimates show that nearly $15 million in controlled agriculture was done in Alaska over the last year.

Whether growing in greenhouses or raising dairy cows, the agriculture industry remains a viable part of the Valley community. DeVilbiss is optimistic about the future.

"Farmers are selling whatever produce they grow, more so now than before," he said. "The market for local product is good. There is a loyal market for Alaskan-grown products but the world is beginning to open up to allow the local farmer to begin exporting their products globally.

Currently we are shipping potatoes to Taiwan and will possible be shipping to China in the near future."

Contact Darrell Breese at 352-2267.