Study tallies cost of removing planting restrictions

A study sponsored conducted by Informa Economics, McLean, Va., and prepared on behalf of this list of produce associations (and Sunkist) was circulated in Washington this week.

These were the groups listed on the report:

Georgia Fruit and Vegetable Growers Association
Idaho Potato Commission/Idaho Grower Shippers Association
National Potato Council
Washington State Potato Commission
Colorado Potato Commission
Empire State Potato Growers
Maine Potato Board
Texas Produce Association
Western Growers Association
Florida Fruit and Vegetable Association
Sunkist, Inc
Florida Tomato Exchange
United Fresh Produce Association



From the report's executive summary:

This research attempts to quantify effect on the specialty if the planting restrictions are eliminated. It considers the two factors identified above: the potential for cross-subsidization of new specialty crop acreage if the restrictions are lifted (i.e., the primary effect that the restrictions are intended address) and the market impact (in terms of reduced prices and revenues) that existing specialty crop producers would likely face as a result of the increase in supply expected following the elimination of the planting restrictions (i.e. the secondary effect of decades-long policies that have discouraged program crop farmers from entering the specialty crop market). The costs to the specialty crop sector from these two factors combined are estimated at nearly $4 billion.


TK: Congress needs to account for this potential damage to the industry early on in farm bill discussions. Either fully compensate for the loss of the provision or take it off the table. Any 11th hour handling of this issue is bad news for the industry.


For the complete executive summary, use this link.