In a significant move to stabilize the potato market, the USDA Agricultural Marketing Service (AMS) has declared a $50 million purchase of surplus potatoes. This initiative follows a formal request by the National Potato Council (NPC), backed by the Washington State Potato Commission and the Idaho Potato Commission, to mitigate the effects of an unprecedented oversupply from the 2023 growing season.
The Request and Response
The announcement was a response to a coordinated effort led by the NPC. Dean Gibson, NPC Vice President of Legislative Affairs, expressed gratitude for the USDA’s swift action, highlighting the essential roles played by Randy Russell and his team at The Russell Group and Mark Klompien, President and CEO of United Potato Growers of America. Their comprehensive data on the economic impact of the surplus was crucial in justifying the request.
During the NPC Washington Summit in February, leaders from the Washington State and Idaho Potato Commissions urged the NPC to request USDA’s intervention through its surplus commodity purchasing authority (Section 32). After two months of discussions with various state potato organizations to ensure unanimous support, NPC formally made the request on April 25.
Economic Impact of the Surplus
The oversupply situation posed a significant threat to growers, with potential repercussions extending over several years. According to the NPC’s letter to the USDA, a surplus purchase of $50 million was deemed necessary to provide immediate relief. The surplus, if left unaddressed, could lead to depressed prices, financial losses, and long-term instability in the potato market.
USDA’s Surplus Commodity Program
The USDA’s Section 32 program is designed to support agricultural producers during times of surplus by purchasing excess commodities and redistributing them through various channels, including food banks and school meal programs. This mechanism not only helps stabilize market prices but also ensures that the surplus food benefits communities in need.
Stakeholder Reactions
Industry stakeholders have widely welcomed the USDA’s decision. The financial support will alleviate some of the immediate pressures on growers and help maintain market stability. Mark Klompien emphasized the importance of the data-driven approach used to secure this assistance, noting that accurate economic forecasting was pivotal in making a compelling case to the USDA.
The USDA’s $50 million surplus potato purchase represents a critical intervention to support growers facing an oversupply crisis. This action underscores the importance of strategic advocacy and data-driven decision-making in agricultural policy. By addressing the surplus issue, the USDA is helping to stabilize the market and protect the livelihoods of potato growers in Washington and Idaho.
