Apple Grower Assistance Begins

June 14, 2001

USDA has begun issuing payments totaling almost $95 million to about 7,500 apple growers beginning this week. The Apple Market Loss Assistance Program helps eligible apple growers offset low 1998- and 1999-crop market prices for nearly 5.4 billion pounds of apples. Under the AMLAP, eligible growers can receive a payment of 1.768 cents per pound for the higher of either 1998 or 1999 apple production, and they will be paid on a maximum of 1.6 million pounds for each separate apple operation.

However the American Farm Bureau Federation and U.S. Apple Association want Congress to do more, specifically provide $250 million in emergency assistance to the nation's apple growers. In letters to Senate Majority Leader Tom Daschle (D-SD) and House Speaker Dennis Hastert (R-IL), they said, "America's apple growers are experiencing (their) worst economic losses in more than 70 years. Apple growers have lost $1.5 billion since 1996 including an estimated $500 million during the past year alone."

Late Wednesday, the House Appropriation Committee approved $150 million in new assistance to apple growers.

A number of factors have led to this emergency situation, including unfairly priced imports, excessive regulatory costs, stagnant domestic consumption, food retail consolidation, subsidized foreign competition, diminished exports and global overproduction, according to the groups.

"Current apple prices, which are as low as 40% below the cost of production, are pushing apple growers deeper into financial crisis and driving many family farms out of existence," the groups stated. "While we greatly appreciate the roughly $100 million in assistance provided by Congress last year, without additional assistance the upcoming fall harvest may be the last for as many as 30% of America's apple growers."

The groups pointed out that U.S. apple growers have invested heavily in efforts to reverse the factors contributing to their economic plight. As losses continue to mount, however, most growers would rather "seek renewed assistance than lose a farm that has been in the family for generations," the groups stated.