The third largest share of the supplement market, with herbs and botanicals also representing the third fastest-growing category, underscores their significant economic importance. This vital segment of the dietary supplement industry, however, is fundamentally reliant on the labor and resilience of farmers. At the recent American Herbal Products Association (AHPA) Botanical Congress held on September 15th, a panel of four dedicated herb growers from the Pacific Northwest offered candid insights into their operations, the inherent risks they undertake, and the crucial support they require from the broader supplement industry. Their collective experiences shed light on the intricate relationship between cultivation and consumption, revealing a landscape fraught with challenges but also ripe with potential for collaborative growth.
Farms Bear the Brunt of Growing Risks in the Supply Chain
The journey from seed to supplement is one where herb farmers assume a disproportionate share of the financial risk. This reality was starkly articulated by Jeff Higley, owner of Oshala Farm. "We don’t get paid to stratify the seeds. We don’t get paid to water the plants or weed. We don’t even get paid to harvest this stuff. We don’t get paid until that crop gets to our customer and it meets their specifications," Higley explained, emphasizing the precarious nature of their business model. This means farmers invest significant capital, time, and labor without guaranteed returns, a situation exacerbated by unforeseen events.
Higley’s own farm experienced a devastating setback in July of this year when a fire destroyed four of Oshala’s drying and warehousing structures, resulting in an estimated $2 million loss in inventory. This incident serves as a potent reminder of the tangible risks farmers face, from natural disasters to crop failure. The aftermath of such events highlights the urgent need for more robust financial safety nets and collaborative risk-sharing within the supply chain.
To mitigate these inherent risks, Higley strongly advocates for a shift away from the "spot-buying" or one-time purchase mentality prevalent among some brands and manufacturers. He proposed that a more sustainable approach would involve implementing contracts with upfront deposits and spreading payments over time. This not only provides farmers with essential operating capital but also offers a more predictable revenue stream, enabling better financial planning and investment in their operations. For brands and manufacturers, this payment flexibility can also contribute to their own cash flow management by spacing out expenditures.
Beyond contractual agreements, Dylan Elmer, sales manager at Oregon’s Wild Harvest, pointed to the critical need for increased financial support through grants. Herb farms often face high production costs and tight margins, a challenge amplified by broader agricultural economic pressures, according to the American Farm Bureau Foundation. The specialized nature of herb cultivation, which often requires unique equipment and extensive research into plant properties, further contributes to these financial strains. Elmer expressed a hope for more accessible grant programs specifically designed for herb growers, which could provide a vital lifeline for operations navigating these economic complexities.
Water Rights and Specialized Equipment Present Growing Concerns
While fires represent a catastrophic risk, the AHPA panel also highlighted two other significant areas of concern for herb farmers: water rights and the specialized nature of agricultural machinery.
Higley predicts that issues surrounding water rights will become increasingly contentious in the coming years. As global reservoirs and aquifers diminish due to climate change and increased demand, water scarcity will undoubtedly impact agricultural practices. The United Nations has described this growing crisis as a "water bankruptcy," a stark warning of the challenges ahead. "We are seeing floods and drought with very little in between," Higley noted, illustrating the unpredictable and often extreme weather patterns that farmers must contend with, further complicating water management and crop planning.
Danielle Kruse, west farm manager and site leader at Trout Lake Farm, owned by Amway, underscored the unique equipment challenges faced by herb growers. Unlike broad-acre crops that can often utilize standard agricultural machinery, herb cultivation frequently requires highly specialized and modified equipment. This necessitates significant investment in custom-built tools and a reliance on skilled on-site mechanics for repairs and preventive maintenance. For example, Kruse highlighted the advent of "laser weeders," sophisticated machines that employ AI and high-resolution cameras to precisely target and eliminate weeds without harming the delicate herb crops. While this technology represents a significant advancement, its specialized nature means that downtime for repairs can be particularly costly and disruptive. The reliance on such bespoke machinery underscores the need for industry-wide support in areas like specialized equipment maintenance and development.
Political and Regulatory Landscapes Impact Farming Beyond Tariffs
The challenges faced by herb farmers extend beyond the immediate concerns of cultivation and directly into the realm of political and regulatory landscapes. The labor-intensive nature of herb farming means that the well-being and livelihoods of farmworkers are intrinsically linked to policy decisions.
Recent reforms to overtime laws in West Coast states have introduced new complexities for agricultural businesses. Historically, many agricultural operations were exempt from standard overtime regulations, allowing for flexible work hours and compensation structures. However, new legislation has capped the number of hours agricultural workers can be paid standard wages, necessitating either hiring more staff or managing fewer work hours per employee. Matt Dybala, director of agriculture at Pacific Botanicals, an herb and mushroom powder supplier, views these changes as potentially antithetical to the principles of regenerative farming, which emphasizes fair treatment and adequate compensation for workers. "This means taking care of workers via living wages and limited work hours," Dybala stated, expressing concern that the legislative intent to increase workers’ take-home pay might be undermined by the practical consequences for farm operations.
The unintended consequences of these overtime reforms have, in some cases, led to farms hiring additional workers rather than paying overtime. This can increase overall labor costs and may also result in some workers seeking new employment opportunities to supplement their income. Dybala expressed surprise at the bipartisan opposition to these new laws in Oregon, suggesting a growing recognition of their complex impact on the agricultural sector.
Beyond wage and hour regulations, the broader political climate has also created a sense of unease among some farmworkers. Higley noted that even individuals with legal immigration status may be hesitant to leave their farms due to community perceptions and potential anxieties. This underscores the importance of fostering an inclusive and supportive environment for all individuals contributing to the agricultural workforce.
The panel also touched upon the impact of tariffs, with Kruse observing that the current trade climate has, in some instances, driven an increased demand for domestically sourced ingredients. This shift presents a significant opportunity for American herb farmers to capitalize on a growing market preference for local and traceable botanicals. Dybala sees this as a pivotal moment for domestic farming, stating, "If we are going to be leaders in domestic farming, it starts with the plants and the potency." This sentiment highlights the interconnectedness of agricultural policy, consumer demand, and the potential for growth within the domestic herb market.
Herb Growing is a Collective Endeavor
Underlying all the operational and regulatory challenges discussed, the herb farm panel revealed a profound sense of community and interdependence. Each panelist emphasized the critical importance of investing in the people who cultivate these valuable plants. The resilience demonstrated by Oshala Farm in the aftermath of the devastating fire serves as a powerful testament to this spirit of collaboration. Within three weeks of the fire, the farm successfully raised $300,000 to aid in its recovery. Furthermore, due to strong existing relationships with a previous farm operated by Oshala, they were able to resume drying harvested herbs within a week of the incident, showcasing the immediate and practical support that can be mobilized within the agricultural community.
Higley, deeply moved by the outpouring of support he received, is committed to "paying it forward." He articulated a vision for establishing a school for aspiring young farmers, where they could reside at Oshala Farm and receive hands-on training alongside his experienced team. This initiative reflects a broader understanding that cultivating the next generation of skilled herb farmers is crucial for the long-term sustainability and growth of the industry. Such educational endeavors, coupled with continued industry-wide collaboration and support, are essential for navigating the complex challenges and seizing the promising opportunities that lie ahead for herb farmers and the dietary supplement market they serve.
