New report shows potatoes are a ‘driving force of America’s prosperity’

On the eve of its 2023 Washington Summit, the National Potato Council held a virtual press conference to release the results of a new “Spud Nation” report, which finds the potato supply chain drove $100.9 billion in U.S. economic activity, supported more than 714,000 jobs and contributed $34 billion in wages in 2021. 

“This report highlights the positive impact that potatoes have on society such as creating or supporting jobs in every part of the country,” NPC CEO Kam Quarles said during the press conference. “The potato sector is a driving force of America's economic prosperity.”

NPC says the Spud Nation, or "Measuring the Economic Significance of the U.S. Potato Industry," report provides a comprehensive analysis on the domestic economic impact of potatoes. The analysis, authored by economists from Michigan State University, marks a “groundbreaking comprehensive assessment on the national economic contribution of America’s favorite vegetable,” according to a news release.

As NPC prepares to take its message to Capitol Hill for its Washington Summit, Feb. 28-March 3, the economic report is well timed.

“We believe [the findings of this analysis are] going to serve as a very important resource for policymakers and stakeholders on understanding the role that the potato industry and potatoes in general play in the nation's economy,” Quarles said at the Feb. 27 press conference. “It's the most rigorous [analysis] we have conducted at the national and international level in terms of the impact that the potato sector delivers.”

According to the report, the U.S. potato sector contributed an estimated $100.9 billion to the economy in 2021. This contribution stems from the following direct and indirect economic activity:

• $10.8 billion in agriculture production and agribusiness services.
• $49.1 billion in processing, wholesaling and retail.
• $41 billion in foodservice industries and household consumption.

According to the analysis, the U.S. potato sector is responsible for generating an estimated 714,000 domestic jobs and providing wages of $34.1 billion annually to those employed along its supply chain. The report further found that 0.4% of the entire U.S. workforce relies on the potato industry for their livelihoods, contributing $53 million towards annual GDP growth.

Notably, farm production itself makes up approximately 10%, or $10.8 billion, of the total economic contribution of the potato supply chain, underscoring the significance of largely family-owned potato farms as rural job creators and wealth generators throughout the U.S. economy. 

“Not only are potatoes an essential and healthy component in our diet, but now we can say unequivocally that they are vital to the American economy,” said RJ Andrus of Idaho’s TBR Farm and incoming president of the National Potato Council in a release. “Potatoes are an essential component to our prosperity as a nation, built and sustained by America’s potato growers, who put people to work in every city and town across our great country. Today’s report cements the fact that potatoes are America’s favorite vegetable with value.”

This report, says NPC, demonstrates that potatoes not only provide high-quality nutrients but are a driver of America's economic prosperity, including direct economic activity — growing, processing and retail — and the creation of jobs throughout the country. 

The U.S. potato supply chain entails a wide spectrum of activity, from agricultural production, through wholesaling and processing and distribution ending with consumer purchases of final products through retail channels or through food service providers. 

The U.S. is the world’s fifth-largest producer of potatoes. A critical export product, approximately 20% of all potatoes grown or processed in the U.S. are exported to Canada, Mexico, Japan, South Korea and other trading partners. In 2021 alone, the value of all potato-related exports, including fresh, processed and dehydrated, topped $1.88 billion in sales, according to NPC.

“This report should convince policymakers of the importance of retaining trade pacts and expanding opportunities for potato exports in new marketplaces,” Jared Balcom, NPC outgoing president and former vice president of the trade affairs committee, said at the press conference.

Potatoes are the most consumed vegetable by U.S. consumers annually, the release said. The vegetable is also an inexpensive source of nutrition. It provides:

• An excellent source of vitamin C.
• A good source of potassium (more than a banana).
• A good source of vitamin B6.
• And contain only 110 calories per 5.3-ounce serving. 

As part of its Washington Summit, NPC will take the report’s results to members of Congress and the Biden-Harris administration to advocate for issues such as keeping potatoes in federal nutrition programs, promoting free and fair trade agreements, and protecting tax policies that support the long-term health of family-owned farming operations, the release said.