Potato Commission Researches Economic Contribution of the Potato Industry

No matter which part of the state you call home, the impact of Washington’s potato industry is one that is felt throughout every community within the Evergreen State. This information is based on the recent findings that the Washington State Potato Commission (WSPC) received regarding the economic contribution of potato farming, processing and other related activities to the State of Washington.

The WSPC asked the IMPACT Center of the School of Economic Sciences at Washington State University to review the connection between potato farming activities and various processing sectors in the State to determine the crop’s economic value to Washington.  The report looked at the economic output from five key sectors in the industry including potato farming, frozen potato processing, fresh packed potatoes, dehydrated potato products and potato chip manufacturing. The findings indicate the Washington State potato industry can remain sustainable and continue to help grow the State’s economy if allowed to continue without domestic disruptions in regulation, transportation, and trade.

“We found this report to be very beneficial to quantify the economic contribution of the State’s potato economy,” said Matt Harris, Director of Governmental Affairs for the Potato Commission. “It provides key statistics that show just how important potatoes are to our state’s economy and that the value they bring goes far beyond each individual farm.”

Results were calculated by estimating the economic contribution of the potato industry using USDA statics and economic models (IMPLAN input-output model) to calculate the value of each sector of the potato industry based on their various linkages to suppliers throughout the value chain.  Key elements from the findings include:

• The total annual economic output for Washington State’s potato industry is $7.42 billion
• The Washington potato industry is responsible for the creation of 35,860 jobs located throughout the state
• Every direct job in the potato industry supports an additional 5.1 jobs in the state’s economy
• The potato industry contributes $1.83 billion of labor income to the State
• For every dollar of raw potato production and processing, $2.40 is generated in the local economy
• Not one sector in the state’s potato economy drives the potato industry; all are essential and connected

Harris says maintaining a vibrant potato economy is critical to the state’s health. Any dramatic regulatory change or disruption in trade and transportation will have a damaging effect to current jobs and local communities within the state.