The number of small family farms continues to decline, as it has since World War II, and profits for commodity crops aren't keeping up with inflation or costs, Oregon Extension Agricultural Economist Bart Eleveld said. Straight from the harvest it might sell for 45 cents. If you clean, dry and size the nuts, you can sell that same pound for 80 cents. Those economics have made vertical integration a pillar of Pamplin's investments at Columbia Empire Farms. In the past several years, the farm added equipment to wash, dry, sort, crack and roast the farm's hazelnuts.
Candy machines coat other nuts in chocolate.
The finished jam sells for 50 percent more than the processed fruit the farms used to sell, Aylor said. The new jam plant also holds the headquarters of Pamplin's latest venture to boost his farm profits, the Your Northwest retail chain, which sells foods and housewares made in Northwest states. By owning a store that sells his goods, Pamplin keeps the retailer's profit margin. Up to a quarter of Your Northwest's sales come from Columbia Empire's foods. Pamplin owns 57.3 percent of the chain, according to an August filing with the state liquor board.