YAKIMA, WASH. (RFD-TV) — Washington’s tree fruit growers are facing mounting financial pressure after multiple years of low returns and rising production costs.
While artificial intelligence and other technologies offer potential ways to improve efficiency, the investments required remain out of reach for some producers.
Jon DeVaney, president of the Washington State Tree Fruit Association (WSTFA), joined Market Day Report to discuss the financial challenges facing growers, the role of technology, and how the industry may change in the years ahead.
Growers Struggle with Low Returns and Rising Costs
In his interview with RFD-TV, DeVaney said growers have experienced multiple years of low to flat returns while production costs continue to rise. Unlike businesses that can pass higher costs along to customers, growers have limited ability to increase what they receive for their crops.
As a result, more producers are depleting their financial reserves, and some have been forced to sell their orchards and farms.
“It’s really a challenging situation,” DeVaney said.
He said growers are looking for ways to become more efficient and return to profitable production, but adopting new technology requires careful consideration.
Technology Offers Potential Savings, but Costs Remain a Barrier
Artificial intelligence, weather sensors and automated equipment could help growers improve productivity and make more informed management decisions. However, DeVaney said investing in these tools can be a significant financial risk.
Producers need confidence that a technology will work before spending money to implement it. Land-grant universities and other research partners can help growers validate new tools and determine whether they will deliver the expected benefits.
But even when a technology proves effective, the upfront investment can be difficult for farms that have endured years of losses.
“If you’ve gone through multiple years of losses and just say that your problem can be solved by spending even more money, that just may not be doable for a lot of producers,” DeVaney said.
University Research Helps Connect Growers with AI
DeVaney pointed to Washington State University researchers as an important resource for developing technology growers can use without building their own tools.
Those efforts include AI applications designed to improve weather predictions, provide crop recommendations, guide pesticide and other treatment decisions, and help growers anticipate heat damage to fruit.
University-developed tools may also help producers maintain greater control over their farm data, rather than relying entirely on outside technology vendors.
DeVaney said continued collaboration between growers and research institutions could provide a practical pathway to adopting new technology without requiring every producer to become an expert in evaluating individual vendors.
Outside Investors Changing Industry Landscape
Financial pressure can also accelerate consolidation, DeVaney said, as agricultural businesses look for ways to spread costs and survive on narrow margins.
He said outside investors, including private equity, are becoming more involved in the tree fruit industry. That investment can create opportunities, but it can also introduce new expectations for growers.
Some investors may be less familiar with the variability of agricultural production, while others may expect more detailed data and analytics to evaluate business performance.
For growers working with investment partners, the ability to produce and interpret that information can become increasingly important.
Making Technology Accessible to More Farms
Looking five to 10 years ahead, DeVaney said the availability of technology across operations of different sizes will be an important factor in determining which growers remain competitive.
He said the industry needs ways to make effective tools accessible beyond farms with the greatest financial resources.
Recent interest in agricultural technology offers some reason for optimism.
DeVaney pointed to the FIRA USA conference, held October 20-22 in Yakima, which brought together about 2,500 attendees from across agriculture and the technology sector.
He said the event demonstrated significant interest in technology from both public and private partners.
“I think those tools are going to be available, and that gives some hope to growers who have been experiencing several years of really frustrating economic times,” DeVaney said.
