 In 1860, the association merged with other county groups and became the Oregon State Agricultural Society, who held the first official fair in 1861 in the Gladstone/Oregon City area.It was felt a larger area was needed and following a proposal by the Marion County Agriculture Society, the second official state fair was held in Salem in 1862 on the grounds of the Marion County Fair, where it has remained ever since.Homesteader John Savage donated of his land, which was three miles (5 km) outside of Salem at the time, while pioneer John Minto contributed $1,200 to build a wooden fence around the grounds.