CONGRESSIONAL RECORD -- SENATE
October 16, 1969
Page 30374
POTATO RESEARCH AND PROMOTION ACT
The Senate resumed the consideration of the bill (S. 1181) to enable potato growers to finance a nationally coordinated research and promotion program to improve their competitive position and expand their markets for potatoes by increasing consumer acceptance of such potatoes and potato products and by improving the quality of potatoes and potato products that are made available to the consumer.
The PRESIDING OFFICER. The Chair recognizes the Senator from Florida.
Mr. HOLLAND. Mr. President, a parliamentary inquiry.
The PRESIDING OFFICER. The Senator will state it.
Mr. HOLLAND. Mr. President, what is the pending business?
The PRESIDING OFFICER (Mr. CHURCH in the chair). The pending business is S. 1181, a bill to enable potato growers to finance a nationally coordinated research and promotion program to improve their competitive position and expand their markets for potatoes by increasing consumer acceptance of such potatoes and potato products and by improving the quality of potatoes and potato products that are made available to the consumer.
Mr. HOLLAND. I thank the Presiding Officer.
Mr. President, the purpose of title I of S. 1181 is to permit potato growers to finance a nationally coordinated research and promotion program. Title II of the bill would add tomatoes to the list of commodities for which paid advertising can be provided under marketing orders.
Title I of the bill provides for authority to establish a plan to collect assessments on potatoes produced in the 48 contiguous States of the United States. Producers with less than 5 acres will be exempt from assessments. The assessments will be used for promotion of potatoes including paid advertising. In addition, assessments can be used for research and development projects. The costs incurred by the potato industry in administering the program will also be paid from assessments. Prior approval by the Secretary of Agriculture for all projects and expenditures is provided for as a safeguard against improper use of funds.
The bill provides for a maximum assessment rate of 1 cent per hundredweight. Handlers are responsible for payment of the assessments, and they may deduct them from their settlement with the producers. Producers will be able to obtain a refund on the assessments paid by them, if they request it in the time and manner prescribed. The bill provides that hearings with respect to a proposed plan be held when requested by potato producers. A favorable referendum vote, by two-thirds of the potato producers voting in such referendum, or two-thirds of their production and not less than a majority of those voting, is required to approve any plan issued pursuant to this bill. If such a plan is favored by producers, a board will be appointed by the Secretary of Agriculture from industry nominations of eligible producers. Such board will administer the plan under the supervision of the Secretary of Agriculture.
Provisions in this bill are similar to those in a bill enacted by the 89th Congress, and cited as the Cotton Research and Promotion Act. Promulgation and referendum proceedings for any "plan" issued pursuant to this bill are similar to those in marketing orders authorized by the Agricultural Marketing Agreement Act of 1937, as amended. Administrative provisions are also similar to those in marketing orders. There are no provisions for quality control or compulsory inspection in this bill.
Several potato producing areas have State orders or commissions to promote potatoes produced in their specific areas. This bill is intended to supplement these existing programs with a nationally coordinated program.
Title II of the bill authorizes paid advertising for tomatoes under marketing orders. At present such advertising is authorized for cherries, carrots, citrus fruits, onions, Tokay grapes, fresh pears, dates, plums, nectarines, celery, sweet corn, limes, olives, pecans, and avocados.
Mr. President, title II would merely add tomatoes to that list so that marketing orders covering tomatoes could, if those affected so desired, cover paid advertising assessments, as well as their other assessments.
Mr. President, I note in the Chamber the distinguished leading sponsor of the bill, the Senator from North Dakota (Mr. YOUNG). He may have a statement and I shall be glad to yield to him for that purpose, if he wishes.
Mr. YOUNG of North Dakota. Will the Senator yield for a short statement?
Mr. HOLLAND. I am glad to yield.
Mr. YOUNG of North Dakota. I made a statement explaining the bill at some length yesterday when it was called up. This bill is sponsored by practically all the Senators from the principal potato producing areas. There is great need for this legislation.
There are only about one-half as many potato producers in this country as there were 10 years ago. Producing potatoes presents a greater risk than any other kind of farming. There are no price supports for potatoes, but through self-help programs, such as the one authorized by the pending bill, producers are attempting to improve their product and promote increased consumption of potatoes. It could go a long way toward increasing the sale of potatoes and keeping the potato farmers from going broke.
Mr. President, there are many misunderstandings about potatoes as a food. For example, many people think that potatoes are a fattening food high in calories. The fact is, the potato is not a high-caloried food. This is the sort of thing that the potato producers hope to bring before the public by intelligent advertising. This will help the sale of potatoes.
Mr. MONDALE. Mr. President, will the Senator from Florida yield?
Mr. HOLLAND. I am happy to yield to the Senator from Minnesota who is one of the cosponsors of the bill.
Mr. MONDALE. First, I wish to thank the distinguished Senator from Florida for his excellent work on this bill. As chairman of the subcommittee, I know that he has held extensive hearings and heard from all of us who are most concerned about this legislation. He has brought a bill to the floor of the Senate today which is, I believe, in excellent condition.
The distinguished Senator from North Dakota (Mr. YOUNG) and I represent neighboring States which have an important potato industry. Indeed the Minnesota Valley Growers Association, which supports this measure, is the largest grower organization in my State. It is an industry that involves nearly $17 million worth of income to the farmers in my State alone.
This is a long overdue measure which will permit them to deal with some of the problems which the Senator from North Dakota (Mr. YOUNG) has already made reference.
Under this act, the people of my state would be able to supply a better product to the consumer. They could develop new and better methods of handling the product. New products from potatoes could be developed.
Last, but not least, the true story about potatoes can be presented to the consumer.
This does not carry any price tag. The farmers themselves contribute to the fund. I believe I am correct in saying that any farmer who wishes can have his money returned so that any farmer that does not wish to participate in this program can do so.
This is long overdue legislation, and I compliment the Senator from Florida for his leadership in this field.
Mr. HOLLAND. I thank my distinguished friend. It has been a pleasure to conduct the hearings and to handle this matter in the full committee and the subcommittee. I am glad that we have finally been able to get it to the floor of the Senate.
Mr. MUSKIE. Mr. President, will the Senator from Florida yield?
Mr. HOLLAND. I am particularly glad to yield to the distinguished Senator from Maine. I am happy that we have been able to get this bill to the floor and to see my good friend from Maine here today.
Mr. MUSKIE. I thank the Senator from Florida. Let me say how very much I appreciate the courtesy which the distinguished Senator from Florida has shown to me all week in holding this bill for consideration until today. Any delay that I have caused was inadvertent and certainly not intended, but the Senator from Florida with his usual courtesy and cooperation, nevertheless, has been of great assistance to me. I compliment him on bringing this bill to the floor.
Mr. President, today we are going to vote on two bills that will have a profound effect on the producers of potatoes.
The first, S. 1181, will enable potato growers to finance a nationally coordinated research and promotion program to improve their competitive position and expand their market for potatoes and potato products. The general public does not fully appreciate the nutritional value of the potato, and in fact has serious misconceptions about the role of the potato in the American diet.
This legislation will provide an opportunity for potato growers to improve the quality of their product and improve consumer acceptance of potatoes.
The bill provides for authority to establish a "plan" to collect assessments on potatoes produced in the 48 contiguous States of the United States. Producers with less than 5 acres will be exempt from assessments. The assessments will be used for promotion of potatoes including paid advertising. In addition, assessment can be used for research and development projects. The costs incurred by the potato industry in administering the program will also be paid from assessments.
The potato producers have been confronted, in recent years, with increased competition from other products marketed as easily prepared convenience foods. Some of these products are promoted on a national basis. Potato producers have not been able effectively to match this competition because production and marketing of potatoes is performed by numerous individual farmers in every State in the United States. This has made it difficult for them to finance and carry out adequate research and promotion projects to maintain a competitive position in the markets. This bill would give potato producers authority to help themselves by financing such projects.
Not only will S. 1181 benefit the potato grower but the kinds of programs envisioned would also work toward improved marketing and merchandising to the benefit of the American consumer.
S. 1181 is supported by all segments of the potato industry.
I urge the Senate to vote for passage of the bill.
Mr. President, I am happy, of course, to support the bill, and to again compliment the distinguished Senator from Florida (Mr. HOLLAND) and the distinguished Senator from North Dakota (Mr. YOUNG), for sponsoring and bringing the bill to the floor of the Senate.
Mr. HOLLAND. I thank my distinguished friend from Maine. Before I yield to the Senator from Idaho (Mr. JORDAN), there are two things about this bill that I wish to mention at this time.
First, this is the first effort of the national potato growers’ organization in which the potato growers of the State of Florida have been willing to join. Thus, it must have merit beyond all the efforts heretofore of the National Potato Council.
Second, if it becomes effective and is followed by a marketing order as proposed, this bill will be the first effort in the field of perishable commodities to set up a national advertising, sales promotion, and research program; and I am sure, we will all be watching with a great deal of interest.
I thank the Senator from Maine for his comments and I am glad now to yield to the Senator from Idaho (Mr. JORDAN).
Mr. JORDAN of Idaho. Mr. President, I thank my distinguished colleague from Florida. I commend him and the Senator from North Dakota (Mr. YOUNG) for bringing to the floor this fine piece of legislation. I am pleased to be a cosponsor of the bill. I believe it will do a tremendous amount of good for the potato producing industry.
I believe it is well known that Idaho's fertile acres produce about one-fifth the total U.S. potato crop. The State now harvests about 300,000 acres of high quality potatoes, which, in an average year, yield about 64 million hundredweights. Potato acreage in Idaho has doubled since the mid-1950's.
In achieving this leadership in potato production, the State of Idaho has demonstrated the value of promotion. It is not enough merely to grow the finest potatoes in the world; they must be promoted and sold.
To this end, the State of Idaho has established the Idaho Potato and Onion Commission which has done an excellent job in promoting the use of Idaho potatoes nationally and internationally.
To support this program, Idaho growers and processors pay 2¼ cents per hundredweight for promotion and research, an assessment higher than the rate applied in any other potato-producing State. This industry financed promotional program has helped make Idaho potatoes synonymous with potatoes of the highest quality. Moreover, the growers who pay the bill are enthusiastic about the program and a representative of the 4,400 Idaho growers supported this legislation in committee hearings. The State's promotional program not only has aided producers in the State but also has aided the entire potato industry, the congressional committees were told by Idaho potato grower Clarence Parr, of Burley.
The efforts of such local and State promotion programs will be supplemented and coordinated nationally by this legislation. This would be done by authorizing the growers to establish a National Potato Promotion Board, and to operate a grower-financed promotion and research program. This program would be similar to that provided under the Cotton Research and Promotion Act of 1966.
Assessments on growers would be limited to a maximum of 1 cent per hundred pounds of potatoes handled. Potatoes grown by producers with less than 5 acres of potatoes would be exempt from assessment, which means that the program would be financed by about 17,000 of the 310,000 potato producers in the United States.
Promotion plans would have to be approved by the Secretary of Agriculture after public hearings and then ratified by at least two-thirds of the growers under a referendum to be conducted by the Secretary. Furthermore, any grower not in sympathy with a plan adopted could apply for and receive a refund of assessments paid. I am informed that refunds under the cotton promotion program have been less than 5 percent.
Potatoes are one of our most important crops, bringing into the farm economy an average of about $561 million a year in sales revenues. However, the per capita consumption of potatoes has declined during the last 30 years from 122 pounds to 110 pounds per person, and potatoes have been meeting increased competition from other products marketed as easily prepared convenience foods. These factors, coupled with more efficient production techniques, have contributed to crop surpluses and resulting surplus removal programs in most crop years since 1953.
It is hoped that this national marketing and research program, in concert with the program on the State level, will help correct the imbalance between supply and demand for potatoes and improve returns to producers.
On behalf of the potato growers of Idaho, who have supported this legislation by formal resolution, I urge its passage.