Idaho potato commissioners approved a budget of $15.5 million for the Sept. 1-Aug. 31 crop year, down 2.5% from $15.9 million in the current spending period.
The Idaho Potato Commission collects an assessment of 12.5 cents per hundredweight to fund marketing and research. This year’s acreage is down by about 3%, mainly because of foodservice shutdowns prompted by coronavirus concerns.
The state leads in U.S. potato production.
“There is obviously some uncertainty going into the new year,” President and CEO Frank Muir said.
Work by the commission and industry to redirect foodservice inventory to retail supports the new budget in that only potatoes sold for human consumption generate tax. And forecasting tends to be conservative, as it’s based on a five-year-average yield.
“With the magnitude of hurdles we had to jump over, to still end up in a position where the majority of our potatoes could be marketed to consumers is almost a miracle,” Muir said.
“Despite all of the challenges, the commission financial situation will come out close to where we anticipated it to be at the beginning of the year,” he said.
The new budget anticipates about $13.8 million in assessments, $300,000 in other revenue such as grants, and $1.4 million from the reserve account that now has about $4.2 million. The commission spends about 80% of its budget on marketing and research.
Muir said marketing spending could shift this year depending on what happens with college sports and large gatherings in light of ongoing concerns about COVID-19.
“We are budgeting as if the Famous Idaho Potato Bowl will take place, and University of Idaho and Boise State University (football) programs will have seasons,” he said. “We’ve also budgeted as if we are going to put the Big Idaho Potato Truck on the road for its 10th-year tour.”
Planned expenditures include the bowl game’s annual sponsorship of $450,000, BSU and UI sponsored games and in-stadium signs, and the $792,000 truck budget, which was mostly unspent after this year’s tour was cut short early in the pandemic.
But should college football not occur and large community events not resume, “we have flexibility and a backup plan to make sure we have consumer-driven, demand-driving programs,” Muir said. For example, he said, the commission could expand its national television advertising.
The new budget’s marketing expenditures include more internet advertising, such as on high-traffic recipe websites and on grocery chains’ increasingly popular online-ordering sites.
Commissioners also voted to have Brett Jensen succeed Todd Cornelison as vice chairman and Cornelison to succeed Nick Blanksma as chairman. They approved holding a virtual version of the Famous Idaho Potato Marathon, which is slated Sept. 19 and supports the Treasure Valley YMCA.
July 29, 2020 at 10:45PM
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Idaho Potato Commission shrinks next year's budget | Research Center - Capital Press
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