Oregon lawmakers ask USDA to buy surplus hazelnuts as grower prices fall
Oregon's members of Congress are asking the U.S. Department of Agriculture to buy up surplus Oregon hazelnuts, a request that matters most to the family orchards stretching across Marion, Polk, Yamhill and the rest of the Willamette Valley.
In a letter dated Oct. 13 to Agriculture Secretary Brooke Rollins, Sen. Jeff Merkley and six other Oregon Democrats backed an industry request that USDA's Agricultural Marketing Service make Section 32 purchases of U.S.-grown hazelnut kernels for fiscal years 2026 and 2027. The Statesman Journal reported on the request Thursday.
What lawmakers asked for
Section 32 lets USDA buy farm products when markets are out of balance and send them to food banks, schools and other federal nutrition programs. The letter asks the department to do that for hazelnuts again, noting USDA "has successfully purchased Oregon hazelnuts through Section 32 in prior years."
The lawmakers wrote that export market disruptions have hit certain kernel sizes and grades especially hard. Those nuts are good food products, they said, but have "fewer commercial outlets," and unsold product can pile up from one year to the next.
Besides Merkley, the letter was signed by Sen. Ron Wyden and Reps. Suzanne Bonamici, Andrea Salinas, Maxine Dexter, Janelle Bynum and Val Hoyle, according to Merkley's office. Rep. Cliff Bentz did not sign the letter.
Why growers need help now
The request comes as prices for this year's crop have dropped. Oregon growers will be paid at least 75 to 90 cents a pound for 2026 hazelnuts, depending on variety, down from $1.05 to $1.30 a pound last year, Capital Press reported Sept. 29. That is a guaranteed starting price, and a major processor told the paper growers have historically been paid more once the season's sales settle.
Larry George, whose processing companies buy roughly two-thirds of the state's crop, described the global market to Capital Press as being in "complete chaos." He pointed to a large crop in Turkey, the world's top producer, and quality questions after harvest rains there. He said real prices may not be set until spring.
Oregon is also growing more hazelnuts than ever. A USDA economist told the PNW Ag Network that the state produced a record 121,500 tons in 2025, up 26% from the year before, and that the Hazelnut Marketing Board's survey forecasts about 144,000 tons for 2026, which would be another record.
Retaliatory tariffs from China and other countries have also weighed on the industry, Your Oregon News reported, citing industry reports. The lawmakers' letter refers more broadly to tariffs, foreign government support for competing growers and other trade actions.
How Section 32 works
The program dates to the 1930s and is funded with customs revenue, according to Your Oregon News. Earlier this year USDA announced up to $80 million in Section 32 purchases of pistachios, almonds, grape juice and raisins for food banks, National Nut Grower reported.
USDA's list of purchase announcements shows hazelnut buys have happened before, including Section 32 pre-solicitations in late 2021 and October 2022 and a hazelnut purchase announcement in January 2025. Hazelnuts do not appear in the 2026 Section 32 purchase notices posted there so far.
What it means in the Mid-Valley
Lawmakers say Oregon grows 99% of the hazelnuts produced in the United States. Nearly all of the state's roughly 93,000 acres of orchards are in eight Willamette Valley counties, including Marion, Polk, Yamhill, Linn and Benton, according to Oregon Employment Department figures reported by Here is Oregon in 2024.
The letter describes the crop as grown mostly by family farms and processed in local communities, with roots going back to the first tree planted in Oregon in 1858. A federal purchase would not set grower prices directly, but it could help clear out hard-to-sell kernels that otherwise sit in storage.
What happens next
The decision is up to USDA. As of Saturday morning, we found no public response from the department to the letter. Grower prices for the 2026 crop are not expected to be final until the market settles, which a major processor told Capital Press could take until spring.
Sources
Oregon congressional delegation letter to USDA (PDF, Oct. 13, 2026)
Sen. Jeff Merkley's office: press release (Oct. 13, 2026)
Statesman Journal: Oregon asks USDA to buy surplus hazelnuts (Oct. 15, 2026)
Capital Press: 2026 Oregon hazelnut initial prices drop amid market chaos (Sept. 29, 2026)
PNW Ag Network: 2026 hazelnut crop expected to set another record (Oct. 16, 2026)
Your Oregon News: Oregon legislators call on USDA to aid hazelnut industry (Oct. 16, 2026)
USDA Agricultural Marketing Service: purchase announcements
National Nut Grower: USDA announces $80 million Section 32 purchases (Jan. 16, 2026)
Here is Oregon: 99% of U.S. hazelnuts are grown in these eight Oregon counties (2024)
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