Report Demonstrates Economic Benefits to Potato Trade
May 10, 2024 As U.S. potato growers and industry allies flew into Washington, DC, in late February to attend National Potato Council’s (NPC) annual Washington Summit, they had a new tool in their toolbox as they advocated for a long-standing policy priority: expanded foreign market access for U.S. potatoes.
Last year, NPC released a study that calculated for the first time the total economic contribution of the entire U.S. potato value chain. That analysis, conducted by economists at Michigan State University (MSU), concluded that the U.S. potato industry generated an estimated $100.9 billion of domestic economic activity in 2021 alone. While doing so, it supported more than 714,000 American jobs in every corner of the country.
In 2023, growers were able to take those facts to their lawmakers in support for pro-potato and pro-farming policies. The economic data clearly displayed the value for lawmakers and the Administration in enhancing the competitiveness of such an incredibly important crop for America’s rural communities and the country as a whole.
During the 2024 Washington Summit, this data was sharpened and focused on the benefits of exports to the U.S. potato industry and the value of our industry’s international trade agenda.
We all know that today approximately 20% of all potatoes grown in the U.S. are destined to be exported, in either fresh or processed form. That makes trade a significant component of the $100.9 billion U.S. potato industry.
What the Report Shows
The new MSU analysis assessed the current economic contribution of exports of potatoes and potato products on the U.S. economy. Then it took the data a step further and analyzed the role that expanded trade opportunities would have on U.S. economic activity and jobs.
The results of the study are powerful.
They show that, from July 2022 through June 2023, the U.S. exported $2.2 billion in potatoes and potato products, generating around $4.78 billion in economic activity. And it supported approximately 34,000 U.S. jobs throughout the value chain. Farm laborers, processor workers, truck drivers, and longshoremen (and all the support positions along the way) all benefited from federal policies that supported the trade of U.S. potatoes.
The study also looked at how the U.S. economy and its workers could benefit from even more market access in the future.
Based upon a conservative and achievable expansion in foreign market access and maturity in places like Canada, Japan, Mexico, South Korea, and other East Asian and Middle Eastern markets, we found that the U.S. Gross Domestic Product would increase by another $1 billion and more than 5,600 domestic jobs would be supported.
Potatoes are not only America’s favorite vegetable, they hold the key to unlock further job growth and economic development in the future. Whenever growers and our allied industry partners talk to Members of Congress or any elected leader, they need to remind them that potatoes will help drive even more U.S. economic prosperity with increased market access and expanded trade opportunities.
America is truly a Spud Nation!
For the full details, visit NationalPotatoCouncil.org/SpudNation.
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