The Government of Canada is providing $28 million in funding to support Prince Edward Island (PEI) potato farmers affected by trade disruptions. Minister of Agriculture and Agri-Food Marie-Claude Bibeau made the announcement on Monday.
The Government of Canada says it is taking a Team Canada approach and working collaboratively with the Province of PEI and the industry to support potato growers and resume full market access for PEI fresh potatoes.
“Our government understands the importance of potatoes for Prince Edward Island’s economy. Many families’ livelihoods depend on this industry. Islanders are proud of their high quality potatoes, so much so that it is a part of their identity. We share that pride, and with our Team Canada partners, we are doing all that is in our power to re-open the American market and support producers," said Bibeau.
This funding of up to $28 million will be used to support the diversion of surplus potatoes, including help to redirect surplus potatoes to organizations addressing food insecurity and support for the environmentally-sound disposal of surplus potatoes. It will also support marketing activities and will help industry to develop long-term strategies to manage future challenges. Agriculture and Agri-Food Canada will work with the Government of PEI, the PEI Potato Board, national food bank organizations and other stakeholder groups to deliver the funding. Details on how producers can access support will be available through the coming weeks.
"...today’s announcement is a vital step in supporting our potato growers through this difficult time," added, Lawrence MacAulay, Minister of Veterans Affairs and Associate Minister of National Defence, Member of Parliament for Cardigan.
Producers also have access to a suite of other Business Risk Management (BRM) programs to help them manage issues. The Governments of Canada and PEI recently made adjustments to the AgriStability program, which protects producers against large declines in farming income, so that producers who did not enroll for the 2021 program year can sign-up now and still access this important income support. Furthermore, AgriStability interim payments have increased, so that producers can now apply for up to 75% of their anticipated payment, up from 50%.
In a news release, The Government of Canada said it stands firmly on the science that indicates that the risks associated with the transmission of potato wart from fresh potatoes remains negligible when appropriate risk mitigation measures are in place. The Canadian Food Inspection Agency (CFIA) will continue to make science-based data and details of its investigation into the October 2021 detections available to the United States Department of Agriculture Animal and Plant Health Inspection Service (APHIS) to highlight the strengths of Canada’s Potato Wart Domestic Long Term Management Plan. Soil sampling and soil testing processes are taking place as quickly as possible.
While this work is underway, collaboration continues through the Government-Industry Potato Working Group. It brings together key stakeholders of the PEI potato sector to exchange information, help mitigate impacts of potato wart on the sector, and identify potential short and longterm solutions to current trade disruptions. Fred Gorrell has been asked to be the new co-chair of the Potato Working Group. Well known within the sector, Mr. Gorrell comes with years of experience as a former Assistant Deputy Minister of Agriculture and Agri-Food Canada, and leader of the Market Access Secretariat.
The US is a major destination for PEI potatoes, with approximately $103.4 million of total PEI table stock and processing potato exports in 2020.
Trade of processed potatoes is not affected by the suspension of export certification. In 2020, PEI’s processed potato exports (such as frozen fries or chips) to the United States were valued at $370.8 Million.
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