A story composed by KNKX radio reports that three of the largest agribusinesses that produce much of the world’s frozen potato products are going to pay local potato farmers less this year.
The companies the report referred to are Lamb Weston, McCain Foods, and J.R. Simplot Company; all make products like French fries, hash browns, and tater tots. In 2021, the radio station reports that farmers like Adam Weber of Weber Farms in Quincy will be paid 3% less for their spuds.
“It really is a punch in the gut,” Weber told KNKX Radio. “If you look at the processors’ returns — because they are a publicly traded company, and particularly Lamb Weston — we only dream of returns that high,” Weber explained.
Dale Lathim of the Potato Growers of Washington negotiates the potato contracts for the growers in Washington and Oregon.
“Growers don’t have a lot of margin to give up,” Lathim stated. “And so, to have a 7% swing [contrats going down 3%, and farmers’ costs going up 4%] is the biggest hit that the processing industry has asked growers to take on in decades.”
The cost of fertilizer is reportedly way up right now. KNKX Radio reports that winter storms throughout the American south, shipping issues from China and tariffs on imported fertilizers are driving up prices.
Weber told the radio station about the increasing land, equipment, and fertilizer costs that are driving small family farms out of business. He also says land prices are going up as large farming corporations move in from places like California.
“We have great weather and great access to water,” Weber explained. “That just drives a lot of crops and commodities and farms to our area. With that, the price of land has continued to rise pretty steadily.”
Weber says the lower contract prices compound an already though situation. In 2020, Weber says his sheds were filled to the brim with spuds when processors didn’t buy them due to the pandemic. However, processors did end up buying most of his spuds.
“I just think people should think about it: A lot of potatoes came from right here in Washington state,” Weber says. “I think everyone is better off having smaller, more diverse farms. I fear for family farms throughout the country.”
April 03, 2021 at 01:33AM
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Report: Food processors to pay less for potatoes in 2021 as farming costs climb - iFIBER One News
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