The provincial government has announced support for another important building block in the potato industry's strategy to reestablish Prince Edward Island's position as a supplier of high quality seed potatoes. Agriculture and Forestry Minister Eric Hammill said today the Province will implement a new Seed Potato Incentive Program to maximize the production of high quality seed of Russet Burbank and Shepody varieties in 2000.
"These are the varieties where we are short, and we need to grow as much good quality material to seed standards as possible in 2000," said Mr. Hammill. "Without the incentive, high quality seed will end up producing table or processing crops, rather than future seed stocks which will be needed by all sectors."
The incentive will be $750 an acre for seed planted at the two percent virus level or less, and $550 an acre for seed planted at five percent virus level or less. Mr. Hammill said this incentive for local seed production, combined with imports for 2001, will allow tighter virus standards to be in place for next year. He said the program, with an estimated cost of $3.0 million, will support the production of 500,000 hundredweight of seed which would otherwise have to be imported. All participating acres must be insured under the recently announced Seed Potato Crop Insurance Plan and grown to strict quality and production standards.
This new incentive program is the fourth element of the Industry Seed Strategy which the provincial government is supporting, including the Seed Potato Crop Insurance Program, the High Generation Seed Multiplication Plan and increased importation of high quality seed.
"The Potato Industry Seed Strategy Committee requested this program as an essential element in rebuilding the seed sector," said Mr. Hammill. "I am very pleased that government has been able to provide this support at a critical time for the industry."
BACKGROUNDER
SEED POTATO INCENTIVE PROGRAM
1.0 PURPOSE
The purpose of this program is to maximize the amount of high quality PEI seed of Russet Burbank and Shepody varieties planted in PEI in 2000 and grown to seed standards.
2.0 RATIONALE
2.1 Russet Burbank and Shepody variety seed stocks of acceptable quality are in a serious deficit situation for planting in 2000. Seed is available for other varieties.
2.2 There are seed lots available on PEI, sufficient to plant several thousand acres, which could be grown in 2000 to meet 2001 seed standards. However, it is not economically feasible to grow this material to the recommended seed production protocol standard at current market prices.
2.3 By providing an incentive to maximize the quantity of Russet Burbank and Shepody seed grown to seed standards in 2000, the goal of maintaining virus standards on all seed planted on PEI in 2001 will be achievable.
2.4 Without those standards, the high virus levels will not be reduced and the reestablishment of self-reliance in high quality seed will be delayed.
3.0 TERMS AND CONDITIONS
3.1 This Program will be in effect for the 2000 planting season.
3.2 The Department will provide a financial incentive to growers planting potato seed meeting the following requirements:
(a) The seed must be of PEI origin (1999 crop).
(b) The seed must be of Russet Burbank and Shepody varieties.
(c) The seed must be of Classes EII, EIII, or EIV when planted.
3.3 The financial incentive will be $750 per acre if total virus levels of the seedlot planted is less than or equal to 2%, or $550 per acre if total virus level is less than or equal to 5%. Virus readings must have been obtained through post harvest laboratory virus testing in accordance with the requirements of the provincial Plant Health Act.
3.4 The seed crop must be insured under the Seed Potato Crop Insurance Program for 2000 and retain seed status as determined by CFIA and be dead by August 10, 2000.
3.5 The incentive paid will be reduced by the amount by which production on the participating acreage exceeds the grower's guarantee as per the Seed Crop Insurance Program, times the unit value of that production ($17.50 per cwt).
3.6 Seed produced under the program which meets 2001 planting standards must be replanted on PEI in 2001, or the participating grower will be required to repay any incentive paid to that grower. Repayment will not be required if the crop is down-classed to Tablestock or fails the post harvest virus test.
4.0 IMPLICATIONS
4.1 It is estimated that this program could increase PEI source high quality seed production by 500,000 cwt. and thus reduce imports by that amount in 2001.
4.2 The program cost is estimated at $3 million.
5.0 ADMINISTRATION
5.1 This program will be administered by the Farm Income Risk Management Section of the Department of Agriculture & Forestry, with assistance from the Plant Health Section of the Department.