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The National Potato Council (NPC) recently released its “Spud Nation” report, which reveals the significant economic impact of the potato supply chain in the U.S. According to the report, the potato sector contributed $100.9 billion in economic activity, supported over 714,000 jobs, and provided $34 billion in wages in 2021.
Comprehensive Economic Analysis by Michigan State Economists
The report titled “Measuring the Economic Significance of the U.S. Potato Industry” was authored by economists from Michigan State University and provides a comprehensive analysis of the domestic economic impact of potatoes. The NPC describes the report as a groundbreaking assessment on the national economic contribution of America’s favorite vegetable.
Direct and Indirect Economic Activity
The report highlights that the $100.9 billion contribution to the economy came from direct and indirect economic activity. The agricultural production and agribusiness services accounted for $10.8 billion, processing, wholesaling, and retail for $49.1 billion, while foodservice industries and household consumption made up $41 billion.
Potato Industry and Jobs in the U.S.
The potato industry generated an estimated 714,000 domestic jobs and provided wages of $34.1 billion annually to those employed along its supply chain. Furthermore, the report found that 0.4% of the entire U.S. workforce relies on the potato industry for their livelihoods, contributing $53 million towards annual GDP growth.
Potato Farms as Rural Job Creators and Wealth Generators
Notably, farm production itself accounted for approximately 10%, or $10.8 billion, of the total economic contribution of the potato supply chain. This underscores the significance of largely family-owned potato farms as rural job creators and wealth generators throughout the U.S. economy.
Potatoes for Health and Economy
According to the NPC, this report shows that potatoes are not only a healthy component of our diet but also a driver of America’s economic prosperity. Potatoes provide high-quality nutrients and create jobs throughout the country. Potatoes are the most consumed vegetable by U.S. consumers annually, and the vegetable is also an inexpensive source of nutrition. It provides an excellent source of vitamin C, a good source of potassium, a good source of vitamin B6, and contains only 110 calories per 5.3-ounce serving.
Trade Pacts and Opportunities for Potato Exports
The U.S. is the world’s fifth-largest producer of potatoes, and approximately 20% of all potatoes grown or processed in the U.S. are exported to Canada, Mexico, Japan, South Korea, and other trading partners. In 2021, the value of all potato-related exports, including fresh, processed, and dehydrated, topped $1.88 billion in sales, according to the NPC. The report suggests that policymakers should retain trade pacts and expand opportunities for potato exports in new marketplaces.
Advocacy Efforts by NPC
As part of its Washington Summit, the NPC will take the report’s results to members of Congress and the Biden-Harris administration to advocate for issues such as keeping potatoes in federal nutrition programs, promoting free and fair trade agreements, and protecting tax policies that support the long-term health of family-owned farming operations.
In conclusion, this report cements the fact that potatoes are a vital component of the American economy and reinforces the importance of the potato industry as a significant contributor to the nation’s economic prosperity.
