Funding for Farmers is Welcomed, but Will Not Cover Losses

CHARLOTTETOWN, PE - The PEI Potato Board reacted to the announcement of the Potato Disposal Compensation Program, being jointly funded by the federal and provincial governments.

"This funding is important and timely news for Island potato farmers, who have been waiting to hear about a plan," said John Visser, Chair of the PEI Potato Board. "Having to destroy the potatoes we worked so hard to grow is the last thing farmers want to do, but this crisis, which never should have happened, has put us in this situation."

The Potato Disposal Compensation Program will provide funding to PEI farmers that have to destroy products due to the loss of markets from the ban of shipments to the U.S. and the Ministerial Order, and ensure potatoes are disposed of in an environmentally responsible manner. The funding covers the cost of destruction but will not cover the full value of the product being destroyed.  

"Growers really appreciate the funding, and how hard provincial officials have worked to get this in place. Yet, it's really important to understand that this will not come close to what farmers would have received at market, or necessarily save farms," said Greg Donald, General Manager of the PEI Potato Board. "The funding will offset some costs, but farmers are still left with huge financial losses, not to mention the loss of markets and the overwhelming uncertainty in planning for next year."

The Board and its producers have been exhausting all options for getting potatoes to markets and people in need. This has included upwards of 12 million pounds going to food banks and shelters across Canada over the winter. However most high value seed potatoes, which account for 40 million pounds are not even permitted to leave the Island despite some of the fields they have been grown in being tested and found negative, making destruction the only option.

"Funding is appreciated, but what we ultimately need is for the Federal Minister to remove the suspension and permit PEI Potatoes to go across the U.S. border, just like they are going across this country. We also need the Ministerial Order amended to cover only regulated fields going forward," said Visser. "We still need trade to resume right away."

The PEI Potato Board estimates there are 590,000,000 pounds of surplus potatoes on the Island, and 300,000,000 earmarked for destruction. There has been approximately $25.5 million of destruction funding, compared to an estimated market value of  $60 million. Approximately 42% of what farmers would have received should they have been able to sell to markets.