The March 1, 1957, total stocks of fall potatoes was estimated by the United States Department of Agriculture at about 59 million hundredweight, which compares with 49 million hundredweight held on a comparable date a year earlier. This 10 million hundredweight of late crop potatoes is certainly having an effect on the price of new 1957 crop of early potatoes. For example, when the late 1955 crop disappeared into consumption rapidly and a large part of the surplus was diverted into starch or livestock feed before March 1, 1956, potato growers in the Dade County section of Florida for the week ending April 14, 1956, averaged $5.30 per hundredweight U. S. No. 1 grade. For the comparable week of 1957 they averaged $2.04 per hundredweight. In the Hastings, Fla., section they averaged $4.50 per hundredweight a year ago and $2.50 per hundredweight for the week ended April 13, 1957. Potato growers in the red potato producing area of San Luis Valley, Colo., averaged $4.50 per hundredweight (U. S. No. 1 grade Red McClure variety) for the week ended April 14, 1956, and $1.38 per hundredweight for the week ended April 13, 1957. For the Russet Burbank variety U. S. No. 1 grade, 20-30 percent 10-oz. and larger, growers in Idaho averaged about $3.50 per hundredweight for the week ended April 14, 1956, which compares with $1.88 for the week ended April 13, 1957. In the Northeast growers in the Hartford, Conn., area averaged $2.80 per hundredweight Katahdin variety U. S. No. 1 grade 2-inch minimum unwashed, week ended April 14, 1956, which compares with $2.02 for the week ended April 13, 1957. Many more examples could be given. These are presented for the purpose of illustrating the effect of supply on prices.

It has been previously mentioned that per capita consumption of potatoes stabilized at somewhere around 104 pounds per person. This has been due largely to the big increase in potatoes used for food processing. In 1940 only about 5,400,000 bushels were used for this purpose. This is equivalent to 1.9 pounds per person, which leaves a residual of 126.1 pounds of potatoes consumed in the fresh form. For the 1955 crop the preliminary estimate is that a total of 56,746,000 bushels were used for food processing. This is equivalent to 20.7 pounds per capita, leaving a residual of 84.3 pounds consumed in the fresh form. The decline in the use of fresh potatoes has been alarming, but has been offset by the tremendous increase in the use of processed potatoes. It is in the fresh field that every effort should be made to increase consumption. The major portion of the industry believes that this drastic decline has been due to the sale of cull potatoes and that the consumer becomes disgusted with this grade of potatoes. A larger portion of cull potatoes are sold than are sold from any other fresh fruit and vegetable. This is a peculiarity of the potato industry and the producers would be much better off if they did not sell cull potatoes. Neither should cull potatoes be used for food processing. Food processors should be required to purchase a better grade of potatoes, such as the recommended 85 percent potential U. S. No. 2 grade.

The quantity of potatoes used for dehydration is increasing rapidly. The product is good and makes quickly reconstituted hot mashed potatoes in 2 minutes. The quality is dependable and a continuous supply is assured. One 6-pound can of dehydrated potatoes in granular form can make 150 servings and is equivalent to 40 pounds of raw potatoes. In other words, 15 pounds of the granules is equivalent to 100 pounds of fresh potatoes. The saving in space is appreciable. Its longtime keepability has been proven. The freight rate on the processed potato per hundredweight is not much different from that for 100 pounds of raw potatoes. Therefore, the freight advantage that producing areas near our large centers of population have enjoyed is disappearing. Growers are realizing these various competitive factors and are endeavoring to find means whereby they will be in a competitive position and increase the use of fresh potatoes by delivering to the consumer a better product.

For a long time public officials, members of the industry, and Members of the Congress have recommended that potato producers help themselves and use such tools as are available to remedy their situation. One of the instruments that has been recommended for adoption was the use of marketing agreements. The potato producers in the States of Oregon, Washington, Idaho, Colorado, Maine, and northern California are now operating under Federal marketing agreement and order programs. These programs regulate the quality and size of potatoes that can be shipped out of the area and prohibit the shipment of cull potatoes. There are other restrictions as to maturity, cleanliness, and sometimes the pack or size of the package of potatoes that may be shipped. In addition, growers in four States, Colorado, North Dakota, Minnesota, and California have adopted State marketing agreements. These States produced about 64 percent of the

total United States 1956 potato crop. In a further effort to help themselves, growers in 10 States; namely, Maine, North Carolina, Minnesota, North Dakota, Nebraska, California, Idaho, Washington, Oregon, and the winter, spring, and summer production of California adopted State legislation whereby they levy a tax on the sale of potatoes so that they will be provided with funds to advertise and stimulate the demand for their potatoes through sales promotion and other related self-help programs. The tax ranges from one-half of 1 cent to 2 cents per hundredweight. These areas produced about 66 percent of the total 1956 United States potato crop.

The proposed legislation, if made operative, would not interfere with the canring of potatoes. Testimony had been given about the inability to secure small potatoes. This is true in that a picker would rather pick 240 potatoes to fill a suhel basket for which he receives 10 cents than pick up 1,000 or more small potatoes from 1 inch to 14 inches diameter to fill the same bushel basket, for which he receives the same compensation. Where potatoes are harvested mechanically, the machinery is so constructed that dirt, debris, and the smaller stones fall throug the digger chains. Therefore, the small potatoes would also fall to the ground. Growers would like to have the small potatoes eliminated from their fields, as they may produce a volunteer crop the next season, but under our present methods of operating this is not possible. The small potatoes could be procured but at a much higher rate of compensation to encourage the picking up of such small potatoes. There is no requirement in the bills that would compel a canner to place the State of origin or the grade of potatoes used on the label pasted to the can.

Potato chippers have consistently operated and purchased potatoes in the areas operating under marketing agreements. There has been no serious difficulty in procuring potatoes in these areas that require inspection, limit the grades and varieties that can be marketed, and that prohibit the shipment of culls outside of the area. There is no limitation on the size of the sprouts in the U. S. No. 2 grade or on the quantity of potatoes that may be sprouted in the U. S. No. 2 grade, as outlined in the United States Standards for Potatoes, effective June 1, 1949. There is, however, a limitation on shriveled potatoes in that those that are excessively shriveled, spongy, or flabby are defective. Potato-chip processors try to avoid excessively shriveled potatoes because their softness has a tendency to break the slicing knives. I believe that it would be possible to work out some method whereby potatoes that have been conditioned for potato-chip processing and that may possibly show some shriveling could be used, provided they met the requirements of the act before they were conditioned.

There is no clause in this proposed act that would prohibit the sale of No. 2 potatoes. About 25 years ago, when several of the potato-producing States adopted measures requiring the marking of the grade on the packages shipped from those areas, there was considerable agitation against such regulations. However, growers in all of these States have learned to abide by them, and now it is not considered a difficult problem to properly mark the grade and area of origin, together with the packer's name and address, on the shipments. There is nothing in this act which would prohibit the shipment of potatoes in pallet boxes or bulk in railroad cars or trucks out of any area providing the potatoes were inspected and marked as to a minimum grade.

In a further effort to help themselves, growers made a strenuous effort to adjust their plantings so that they will not overproduce their commodity. However, yields rose faster than the reduction in acreage. Since 1942 the Department of Agriculture has established potato guides. During this 15-year period, potato growers only overplanted their guide in 5 years and show signs of overplanting their guide again in 1957. However, they made such strenuous efforts to reduce their acreage that in 1956 they planted the second smallest acreage of record, which was only 38,500 acres larger than the smallest acreage of record, which was planted in 1951. The records go back to 1862. The National Potato Council, with its cooperating organizations in the many States, is making a strenuous effort to convince growers to plant an acreage not in excess of their 1957 guide. I believe that no other major crop can show the tremendous adjustments and percentage reductions that have been made by potato producers in their endeavor to reduce their acreage with or without a Government subsidy. The 1956 potato acreage was 42 percent of the 1943 acreage.

Potato producers are feeling the cost-price squeeze, as the estimated value of their 1956 crop is $517,862,000, or 37.5 percent of the National Potato Council's estimate of the $1,383,600,000 retail value of potatoes or potato products. If retailers are furnished a reliable pack of potatoes that would be of a grade of 91777-57

not less than U. S. No. 2 quality, they would have greater confidence in the product; and as the dependability of the continuity of supply of well-graded potatoes is established and available there will be a tendency to narrow the margins between the farm price and retail price for fresh potatoes.

The National Potato Council recommended section 12. The United States Department of Agriculture has been always considerate of calling in producers to consult with them in connection with policy decisions. Those called for consultation did so at their own expense. There are many sinall capable farm operators that could not afford the expense of such trips and the hiring of a person to take over the farm chores when they are away from their farm. Section 12 would provide for reimbursements of expenses and a per diem compensation which would permit such small operators to participate in policy discussions at the designated meeting places.

The National Potato Council recommends that the following be inserted in section 3, clause (b), following the words "food product", "within the area of production."

The National Potato Council recommends that the legislation be approved. POTATOES USED IN PROCESSED FOODS HAVE GONE UP 12 TIMES SINCE 1940 1940-100

1300

1200

1100

1000

900

INDEX

far
How
Will they Go?

United States production utilization, and use of designated potato crop

[1,000 bushels]

1

Civilian population, July 1, (millions)

Per capita consumption crop year.

Per capita consumption calendar year-pounds.

Per capita pounds processed used as food-pounds.

1 Source: Agricultural Marketing Service except as noted.

2 December 1956 USDA Crop Report.

3 Includes quantities processed or fed under the diversion program of 1949, 1950, 1954,

1955, and 1956.

♦ Includes an estimated 70,000,000 bushels packed in consumer size packages of 25 pounds and smaller.

153,896

142, 674

4 146, 200

152.3

106.8

102.0

153.2
100. 1
108. 0

155, 5

158.3

161.3

164 5

167.5

103.0

111.7

104.9

104.0

106. 2

99.0

103.0

106.0

103.0

11.4

11.8

12. 2

14.8

15.9

20.7

101.0
23.4

Estimate of the retail value of the 1956 potato crop sold for food

1 Estimated 228 million bushels sold fresh at an average price of 6.5 cents per pound. 2 Estimated 45 million bushels to be used for the processing of 675,000,000 pounds of potato chips at 70 cents per pound.

3 Estimated 9 million bushels used to process 243 million pounds valued at 30 cents per pound.

430 million pounds at 10 cents per pound.

560 million pounds, 11⁄2 at 30 cents per pound, 1⁄2 at 20 cents per pound.

1.400,000 bushels 11⁄2 pounds equals 1 pound canned drained weight at 10 cents per

pound.

800,000 bushels same basis as canned.

NOTE. December 1956 USDA estimate of the farm value of the crop is $517,862,000 or 37.5 percent of the NPC estimate of the retail value.

Potatoes: Acreage recommended by the USDA goals and guide programs
compared with planted acreage1

1 Source: USDA Statistical Bulletins Nos. 122 and 190 and various USDA goals and guide and other releases.

2 A special payment of 50 cents per bushel was paid in the calculated normal yield for the area, for the acreage planted between 90 and 110 percent of the goal acreage to encourage increased production. The incentive payments amounted to $25.593,000 or 512 cents per bushel on the 1943 production.

3 Acreage guide announced at 1,137,800 commercial acres, did not include an estimated 679,600 acres for noncommercial farms.

4 Mar. 1, 1957, growers intentions to plant.