News Release

Potato growers meet with USDA to support Diversion Program - Washington Potato Commission Opposes

BLACKFOOT, ID — A group of potato growers and industry representatives from across the country traveled to Washington D.C. Monday to meet with USDA officials and discuss diverting surplus potatoes.

The group, including PGI President Keith Esplin and Gary Ball from Rexburg, met with Mike Dunn, USDA Assistant Secretary of Marketing and Regulatory Programs and several other USDA officials. Growers or representatives from Oregon, Colorado, Wisconsin, California and Maine took part in the meeting and support a diversion program. The group left Washington optimistic that if the industry is united, a diversion program could be accomplished.

However, the Washington State Potato Commission issued a press release Wednesday afternoon stating opposition to a diversion program. Washington is the second leading potato production state. Their opposition could be enough to block the other states' effort. During the meeting Monday in Washington D.C. Undersecretary Dunn stated that several questions need to be answered before USDA will put together a diversion program.

1. First the potato industry needs to present a united proposal to USDA for consideration.
2. Second, the volume and price of potatoes to be diverted needs to be determined.
3. Third, whether it be limited by variety or open to all potatoes.
4. Fourth is to determine the disposition of potatoes to be diverted, and last is what can be done to assure USDA that production will be reduced for 2001 and beyond.

The Washington press release states that their opposition is aimed at helping next year's potato market. They believe a diversion will distort market signals to cut acreage next year and that it will open the door to more frequent government intervention in potato markets. Reading between the lines, it's evident that the Washington growers are hoping that without government intervention, Idaho growers will go out of business. They fail to understand that diverting potatoes out of the market could prevent a major carryover from distorting next year's market. In addition, a diversion program could help prevent the major processing companies from taking a lighter contract volume position next year.

PGI believes the Washington position is both shortsighted and self-serving. PGI will continue to work on keeping growers informed and developing a diversion plan. Growers are encouraged to contact their congressional representatives and Undersecretary Mike Dunn at michael.dunn@usda.gov, or write to him at USDA Attn: Mike Dunn, 14th and Jefferson Drive SW Room 228 W, Washington D.C. 20250. His telephone number is 202-720-4256.

USDA indicated willingness to purchase dehydrated potato flakes and possibly other potato products for charitable causes and domestic feeding programs. That effort could also be damaged by Washington's position. PGI wishes to thank USDA for their efforts regarding this important matter.