Lobbyist says potato farms could benefit from bill

ELIZABETH CITY, N.C.

The agricultural industry will have a new farm bill by mid-June, John Keeling, executive vice president and CEO of the National Potato Council, said Monday.

But few will see a difference between the new bill and the 2002 Farm Bill, Keeling said. President Bush has said he will veto the bill.

"The Bush organization found tax increases he didn't like," said Keeling, who was at the 80th annual meeting of the North Carolina Potato Association. "His current objections are based on political issues, but there are certainly enough votes in both the House and the Senate to override his veto."

If the bill eventually becomes law, Keeling said, the potato industry could get about $3 billion of the $270 billion provided by the bill.

"We're hoping it could provide some block grants to meet local needs," Keeling said. "There may be some additional funding for speciality crops."

Potatoes are classified as speciality crops in the new bill, a designation that the farmers gathered in Elizabeth City on Monday agreed with.

Because grain prices are high, potato acreage may decrease somewhat this spring in the Tarheel state, said Brett Richardson, of Virginia Market News Services.

Yields, however, are expected to rise.

"Production in the U.S. and Canada is up, but by less than 1 percent," Richardson said.

Meanwhile, exports are also higher - the potato industry is now exporting to Asia as well as Europe.

Exports of frozen potatoes grew by about 11 percent in 2007, said Larry Alsum, chairman of the U.S. Potato Board.

A series of potato cooking classes were held in shopping malls in Malaysia, he said. American potato samples were sent to Malaysia and Thailand.

Instant soups with dehydrated potatoes were introduced in Mexico. U.S.-grown potatoes are becoming a popular ingredient for Chinese chefs, Alsum said. And seed potatoes were sent for the first time to Brazil and Sri Lanka in 2007.

"Nationally, in 2007, we shipped 2.5 million more hundred-weight than we thought we'd ship," he said. "In the best possible way, marketwise, this year could be the best year ever."

North Carolina farmers raise about 14,500 acres of potatoes, mostly in the northeastern region.

Linda McNatt, (757) 222-5561, linda.mcnatt@pilotonline.com