PRINCE EDWARD ISLAND PRINCE EDWARD ISLAND. POTATO BOARD

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1 PRINCE EDWARD ISLAND PRINCE EDWARD ISLAND POTATO BOARD

2 GOAL: The highest performance of the potato industry on Prince Edward Island: = Farm profitability/sustainability = Potato Industry profitability/sustainability

3 - The major industries on PEI are agriculture, tourism and fisheries. - PEI has 1.4 million acres of land with approximately 620,000 acres cleared for farm use.

4 Potatoes are the #1 cash crop grown in PEI. Potatoes are the #1 cash crop grown in PEI. Potatoes account for close to half of the total farm cash receipts in the province.

5 ,778 growers 37,000 ac 3.4 ac/grower ,500 growers 44,000 ac 6.8 ac/grower growers 75,000 ac 115 ac/grower growers 92,500 ac 255 ac/grower

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7 Seed 15% Seed 15% Processing 60% Table 25%

8 - PEI is Canada s s largest potato producing province with approximately 25 % of the total Canadian production and approximately 30% of total seed potato production. - Potatoes are the most important agricultural commodity of PEI with farm cash receipts of over $200 million in This represents over 50% of total farm cash receipts for our province on average over the past few years.

9 2008 crop losses Weak economy Financial burdens Escalating costs Increasing regulation Food safety Environmental issues Competition Public education Etc.

10 Successful international processing companies Increasing population that needs to eat Need for high quality seed Product development opportunities

11 Environmental Farm Plan Buffer Zones Cover Crops after Early Harvest Nutrient Management Plans/IPM Soil Conservation Methods such as Berms and Grassed Waterways

12 1. Threats to Profitability: - Land holding limits are outdated and need to be reviewed and updated to meet the needs of today s farmer and society. - Non-arable land should be excluded from the land holdings limit

13 - Flexibility is required to use the rotation that will fit individual field conditions and contribute to minimizing soil erosion, minimizing nitrate leaching, building organic matter, suppressing disease and insect populations etc. - We have many new crops to include in rotations and there is no one size fits all. - Growers need flexibility and science based regulations to stay economically and environmentally sustainable.

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15 - Inadequate compensation for land removed from production to meet new environmental regulations that may not be scientifically based, for example, expansion from a 10 M to a 15 M buffer zone.

16 - Continuation and expansion of programs that provide financial support for landowners who follow practices that are for the Public Good such as ALUS, which is currently underfunded.

17 2. Land Use Planning: 2. Land Use Planning: - If municipal boundaries expand to include actively farmed land, the landowner should not be subject to another layer of regulation (i.e. provincial and municipal) on the land being farmed.

18 - Right to farm provisions are required to protect farmers from complaints or legal action regarding practices they are following that can be considered normal farm practices.

19 - Recognition of some of the initiatives that potato growers and the industry have taken to address land and water issues such as land management/erosion control measures, IPM, nutrient management plans, new varieties, and the CF Nitrate Working Group that is conducting nitrate research and extension projects.

20 - Farmers are selling land along highways and shore frontage properties, to meet the cash flow requirements of the farm operation. Reaching the goal of having farms in a profitable position would eliminate this problem.

21 - The land is being sold off for development which in the short-term term is a help to the farmer but in the long-term can contribute to potential conflicts between farmers and non-farmers. If land needs to be sold, covenants should be in place so that the buyer is aware he is purchasing land surrounded by land being actively farmed.

22 - Land Holdings review - Expansion of ALUS - Science based regulations - Encourage policies that will help improve the profitability of our farms. - Avoid subjecting farmland to more layers of regulation (e.g.. municipal)

23 The Prince Edward Island Potato Board sees the stress that PEI growers are under every year as seemingly more and more regulations are added and turning a once profitable industry into an everyday struggle for most farms. Farm land values have dropped and have given way to development land forcing growers to liquidate their land for cash flow.

24 We believe that we are in a position to help and support the staple of our economy not only in down times but in prosperous times as well. Potato farmers not only feed the population but inject a significant amount of money into our local economy. We must preserve this cycle and know that farmers care about this land.

25 Thank you Thank you from the PEI Potato Board