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Inside Potatoes

Growers in US get more support, but not enough

17 July 2020 - Niels van der Boom

Compared to other agricultural products, growers of consumption and seed potatoes in the US have received little financial compensation so far. USDA Secretary Sonny Perdue recently announced that potato chip growers are entitled to a higher amount of up to €5,80 per 100 kilos. They find that insufficient.

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The financial compensation measures that potato growers, like other farmers, can claim are part of the Coronavirus Food Assistance Program (CFAP), worth $1,4 billion. In turn, this program is part of the enormous CARES aid package that the US government has in March rigged. The arrangement is a lot more complicated than that in the Netherlands.

3 categories
The CFAP distinguishes between table potatoes, fries and seed potatoes. For table potatoes, a distinction is made between the Russet varieties and others. The former are rewarded considerably more. There are 3 categories that growers can claim:

  • Category 1 pays out an amount of aid when the potato price for the grower has fallen by more than 15% between January 15 and April 5.
  • Category 2 pays out an amount if the product has not been paid for in the same period, or if it has become worthless due to a decline in quality.
  • Category 3 covers the financial loss of potatoes for which no buyer was found, that were donated or potatoes in the field that could not be harvested between 15-1 and 15-4.

Not enough
The amounts vary per category, because the financial loss also varies. For French fries potatoes, the aid granted in the 3 categories amounts to €3,88, €5,82 and €1,94 per 100 kilos. For Russet table potatoes, these amounts are considerably higher, up to €17,46 per 100 kilos in category 2. French fry potatoes receive the lowest support in category 2. The National Potato Council (NPC) is therefore calling on Secretary Perdue for an integral increase in the support package. , up to a minimum of €7,76 per 100 kilos. According to them, the aid currently granted is far too low. Especially compared to other crops. It is good for the organization and growers that sweet potatoes are rewarded significantly higher.

The individual states are lobbying the USDA for more compensation. This certainly applies to the potato states of Washington and Idaho, where the cultivation is of great importance to the economy. In addition, there are advocates such as the NPC who are committed to the cause. The organization believes that 680.000 tons of potatoes (from the 2019-2020 season) have become unsellable in the US as a result of the corona crisis.

(The CFAP uses dollar cents per pound. The calculations in this article use an exchange rate of $1=€0,88).

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