b'Trade Issues, Inflation and Future Farm Bill Weigh on U.S. GrowersNational Potato Council Summer Meeting reveals issues facing the American potato industry.Ally RodenGEOPOLITICAL TURMOIL,global changes, trade issuestrade, is the upcoming farm bill. The bill is up for reauthorization and politics have all impacted the American potato industrynext year and includes all the U.S. Department of Agricultures over the past year. Growers from across the United States gath- major programs such as nutrition, farm programs, conservation, ered in Nashville, Tenn., for the National Potato Council (NPC)trade and research. The last farm bill cost $867 billion.Summer Meeting on June 16, 2022, to discuss public policy andWhile funding from the bill is essential to reach goals in the organizational updates. potato industry, oftentimes it is difficult to convince officials in Washington D.C. that American growers need the money.Trade Issues and Inflation Its all about the math, trying to engage a huge number of The 25-year-long trade dispute with Mexico has dragged on dueHouse districts that have no relation to production agriculture or to circumstances out of the U.S. control, such as the Mexicanmaybe just a tiny passing relationship to production agriculture. legal system. While the border has successfully opened for theIts really hard to convince those members sitting in the middle of U.S. potato market, the process was anything but simple.cities why they need to spend time and a significant amount of We had to generate leverage within Mexico to accelerate thatmoney funding production agriculture, shares Quarles.process. We also needed to have significant political pressureThere has been a massive turnover on the House of from the U.S. government going on to Mexico. So, it was a two- Agriculture Committee since the 2014 Farm Bill, with 37 of the 49 fold deal, explains Kam Quarles, CEO of the NPC. We wrappedCommittee members new. ourselves up with the Mexican avocado industry. We got veryTheres an opportunity to educate and get in early and make public, very aggressive, very fast. We said, You are going to sinksure that they hear about your issues first. But its also a little bit or swim with us. You want expanded access to the United States?of a risky proposition, especially when you consider that change You will not get it. We will fight you as hard as we possibly can tobetween urban and rural districts and what the make-up of the make sure you never have that until our issue is solved.committee is and how many people come from places that dont Despite the previous restriction to the 26 km border region,necessarily represent farm country, Schulken explains.Mexico was the second-largest market for fresh potato exports in 2021, accounting for 124,449 metric tons valued at US$60What Does this Mean for the Potato Industry?million last year. The U.S. potato industry estimates that accessThe new farm bill and potential future funds will directly impact to the entire country for fresh U.S. potatoes will provide a marketthe trade dispute between the U.S. and Mexico, believes Quarles.potential of US$250 million per year, in five years. We have a great legal and regulatory team in Mexico. They In addition to trade issues, farm production expenses haveare paid for substantially by multiple grants from the Foreign increased 6% in 2022, following a 12% increase in 2021, accordingAgricultural Service. That grant is authorized by the farm bill, he to the American Farm Bureau Federation and Jessica Schulken,says. Back in 2018, the farm bill language said those grants can principal at the Russell Group. The rate of inflation has made itonly go on for five years. So, we went in and changed the law in increasingly difficult for growers to budget accordingly.the 2018 Farm Bill to allow the grants to go beyond that. Why In the past, weve always been able to budget and be fairlydoes it matter? Our fifth year of using that grant was in 2019. Its close on what those input costs are. But in todays environment,2022. We still have a legal and regulatory team pushing career with the rate of inflation going at such an astronomical rate, it isinterests to get into Mexico. We would have none of that money difficult. We are getting caught off guard a lot of times on thingsif we hadnt changed the farm bill.that we think are going to cost a certain thing, and really costsThe trade dispute with Mexico is far from over, and represent-a lot more than that, Jared Balcom, president of NPC. Wereatives in the industry are prepared to stand their grand to con-having to be very nimble and adjust how we grow crops andtinue exporting potatoes. I dont think the question is whether how we do different things. Its not just inputs on crops. or not there are some games that are going to get played in the future. Its how the Mexican government reacts to those games. The New Farm Bill And then in turn, if its a poor reaction, how the Department of One component that impacts the U.S. industry, specifically withAgriculture will respond to Mexico, concludes Quarles.SW10/ SEEDWORLD.COMOCTOBER 2022'