Potato growers to get increased CFAP relief

Published 10:30 am Friday, July 10, 2020

Potatoes are among the commodities that will  receive higher reimbursement for losses under the Coronavirus Food Assistance Program.

USDA on July 9 announced it will cover some commodities not included in the original program and boost coverage for some that are already eligible.

Potatoes originally did not qualify for relief on price declines from mid-January to mid-April, or on sales losses. Potatoes that were shipped, but spoiled or went unpaid, were reimbursed at 4 cents a pound. Potatoes that never left the field were covered at 1 cent a pound.

USDA said it found potatoes and the six other commodities met the qualifying loss threshold, a 5% or greater price decline from mid-January to mid-April.

Starting July 13, CFAP will cover sales losses at 7 cents per pound for fresh Russet potatoes, 1 cent for other fresh potatoes, and 2 cents each for processing and seed potatoes.

Spoiled or unpaid potatoes now will be covered at 9 cents a pound for fresh Russets, 4 cents for other fresh, 3 cents for processing and 4 cents for seed potatoes.

“This really helps growers who have lost their customers due to the foodservice shutdown, and that could be growers who were told immediately that their potatoes were not necessary by a foodservice customer,” National Potato Council CEO Kam Quarles said. “It will also help growers who have had their contracts substantially reduced or invalidated for the (stored) 2019 crop.”

The National Potato Council in late June filed comments with USDA stating the industry easily meets the minimum loss level required for greater coverage — and that growers face a 1.5 billion-pound oversupply of fresh potatoes for processing and potato products. NPC values U.S. potato production at more than $4 billion annually.

Quarles said the council and state potato groups sought a meaningful direct-payment program “and for USDA to do substantial surplus-commodity purchases.”

He said more surplus buying is needed, on top of the record-high $50 million purchase about two months ago, to balance supply and demand. Language in the fiscal 2021 agriculture appropriations bill recommends USDA buy more surplus commodities.

NPC in a July 9 statement welcomed USDA’s reimbursement changes and advocated for an additional increase.

“The potato industry appreciates the rapid work of USDA in considering these changes and making potatoes eligible for all three categories of payments,” board President Britt Raybould, an Idaho legislator and potato grower, said in the statement.

“Looking forward, we want to work with USDA to ensure that all injured potato growers have an equal opportunity to apply and seek relief,” she said. “Our industry continues to believe that our recommendations of making all potatoes equally eligible and with a meaningful payment level of at least 4 cents per pound is a simple, balanced approach that ensures relief flows to growers who need support.”

The USDA Farm Service Agency is accepting applications through Aug. 28.

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