Specialty Crop Farm Bill Alliance
Working to Make American Agriculture Stronger
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News Release
FOR IMMEDIATE RELEASE: March 2, 2007
Contact: Robert Guenther at 202-303-3400
Specialty Crop Coalition Releases Comprehensive Planting Flexibility Study
Washington, DC – At a congressional briefing today, the Specialty Crop Farm Bill Alliance unveiled a report prepared by Informa Economics, Inc. which analyzed the impact on specialty crop producers of removing the planting restrictions on program crop base acreage. The report, which looks at a wide range of states and specialty crop commodities, concludes that removing the planting restrictions would result in a realignment of market forces that have long influenced the total supply of specialty crops. That realignment would increase the supply of fruits and vegetables and result in a reduction of income to those growers in excess of $3 billion. “It is clear that a larger supply without a corresponding increase in demand will lead to dramatically lower prices—and a direct reduction in revenues of existing specialty crop producers,” stated John Keeling, Executive Vice President & CEO, National Potato Council and Co-Chair of the Specialty Crop Farm Bill Alliance.
According to the report, removing the planting restrictions will result in a shift of 1.03 million acres into production of specialty crops. This is a small shift in the more than 220 million acres of program crops but represents a 10% increase in total specialty crop acreage. The 15 states where the greatest expansion of acreage is expected alone account for about 88% of the new specialty crop acreage. Other Key observations include:
- The biggest jump in acreage would occur in California, which already has a large, diverse specialty crop industry. More than 230,000 acres – mainly from cotton and rice – are likely to shift to specialty crops.
- Idaho and Colorado would see the largest percentage increase in specialty crop acreage. Potatoes are likely to dominate the acreage shifts in Idaho, Washington and North Dakota.
- Relatively little expansion of specialty crop acreage is expected in most Corn Belt states, reflecting the competitive dominance of program crops and limited existing specialty crop acreage and infrastructure.
- Along with potatoes, crops that could increase 10 percent or more in acreage include peas, pears, sweet corn, apples, onions, cabbage, snap beans, berries, cherries, pumpkins, asparagus, cucumbers and squash.
“The planting flexibility policy has critical implications for existing fruit and vegetable producers, and the entire specialty crop industry,” said Keeling. “The entry of new acres of specialty crop production on program acres receiving a federal payment will undermine the supply demand balance for specialty crops where growers receive no support and are unable to store their products for extended time periods,” stated Keeling.
The Specialty Crop Farm Bill Alliance, a national coalition of more than 80 specialty crop grower organizations, has developed a comprehensive set of policies for inclusion in the 2007 Farm Bill. Over the last 18 months the coalition has participated in numerous congressional and USDA hearings to discuss key policy priorities of the coalition.
“Since fruits, vegetables and other specialty crops include hundreds of unique crops many of which are currently grown on relatively small acreage, even a modest increase in the acreage of many of these crops could have an enormous impact on supply and price and greatly increase volatility in these markets,” Keeling concluded.
Informa Economics is a private food and agriculture consulting firm and a world leader in the collection, analysis, and dissemination of agriculture and food information.
For a copy of the full report and additional information about the Specialty Crop Farm Bill Alliance, please click the link below.
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