Dec 13, 2007

Senate Takes Major Step To Provide Relief To Asparagus Industry

In a close vote, the U.S. Senate defeated an amendment offered by Sen. Judd Gregg, R-N.H., that would have eliminated $15 million in funding for the Asparagus Market Loss Program contained in the Senate Farm Bill.

Sen. Debbie Stabenow, D-Mich., said Judd’s amendment would have stripped out her provision to provide aid to asparagus farmers who have been adversely affected by unfair trade agreements. Judd’s proposal needed 60 votes. It got 56 – and 39 voted to keep the Stabenow provision.

John Bakker, president of the National Asparagus Council and executive director of the Michigan Asparagus Advisory Board, said “I greatly appreciate the leadership and hard work of Senator Stabenow and Senator (Carl) Levin of Michigan, as well as their colleagues from California and Washington state, in defeating this amendment.

Both of our senators have been tireless leaders and advocates in trying to provide relief to Michigan asparagus growers in response to the impacts on the industry imposed by Andean Trade Preferences Act (ATPA) and other trade agreements, but I would especially like to acknowledge the extraordinary efforts of Senator Stabenow in leading the charge on the Senate Farm Bill.”

Since the enactment of ATPA in 1990, domestic asparagus growers have been forced to compete with cheaper Peruvian imports. Since then, domestic asparagus acreage has dropped 54 percent and will continue to decline due to the recent adoption of the Peruvian Free Trade agreement, Stabenow said.

The $15 million was provided in the Senate Farm Bill Reauthorization for the Asparagus Market Loss Program to compensate domestic asparagus growers in Washington, Michigan and California for the loss to their industry caused by ATPA. Market loss funds will be used to offset costs to domestic asparagus producers to plant new acreage and invest in more efficient planting and harvesting equipment.

In 1991, when ATPA extended duty-free status to imports of fresh Peruvian asparagus, such imports accounted for slightly more than 4 million pounds. In the absence of a tariff, Bakker said, one of the world’s largest asparagus industries was created, and U.S. asparagus growers found themselves – without any period for planning or adjustment – competing against lower-priced, duty-free asparagus imports.

In 2006, asparagus imports from Peru exceeded 87 million pounds, surpassing total U.S. production. Imports of frozen and canned Peruvian asparagus last year exceeded 28.8 million pounds, a 62-fold increase from 1991.