Michigan potato industry tells House Agriculture Committee it produces $2.5 billion in annual economic activity

Kelly Turner, a representative of the Michigan Potato Industry Commission and the Potato Growers of Michigan, told the Michigan House Agriculture Committee that an economic-impact study conducted with Michigan State University found the potato industry contributes about $2.5 billion a year to the state economy, including roughly $1.5 billion in direct activity from growing, processing, wholesaling and retail sales.

The study, Turner said, shows Michigan is the eighth-largest potato producer by volume and sixth by sales in the United States and produces higher-value potatoes on average. "We're cooler than we thought we were," Turner said, summarizing the commission's reaction to the results.

The report and committee testimony underscored the industry's role as a statewide employer and buyer for processors. Callie Bagley, owner-operator of a kettle chip company in Waterford, said Michigan potatoes are widespread in the snack supply chain: "One in every four bags of chips across the United States contains Michigan potatoes," she said, and urged continued federal support to keep potatoes accessible in school breakfast programs.

Phil Gismano, representing Detroit-based Better Made Snack Foods, described how local processors rely on Michigan-grown varieties that can be stored for year-round production and said the company employs about 280 people in the city. "Michigan potatoes offer phenomenal opportunities," Gismano said, noting collaboration with Michigan State University to develop varieties that store longer and reduce the need to source potatoes outside the state.

Dennis Ayatt, owner of Ayatt Seed Farm in Kalkaska and president of the Potato Growers of Michigan, outlined policy priorities for growers: preserving water access and quality, securing labor (including guest-worker programs to supplement domestic labor), maintaining access to pest-management tools, and protecting farmland from large-scale conversion to solar arrays. "We oppose efforts to commoditize water," Ayatt said, and urged improvements to Michigan's Water Withdrawal Assessment Tool so it reflects local conditions.

Committee members asked about research partnerships and breeding techniques. Representative Rangas asked whether the potato organizations work with the MSU Innovation Lab; Turner said the industry works directly with Michigan State University researchers, including renowned potato breeder Dave Dauschus, and supports two full-time positions on MSU's Potato Outreach Team.

Turner and Ayatt also described the crop mix and markets. According to testimony, recent production totaled about 1.9 billion pounds across seed, frozen, dehydrated and processing categories. Turnout by end-use was presented as roughly 20% to fresh-market potatoes, about 5% to seed, about 5% to certain processing categories such as canning, and the remaining share grown for larger processors and shipping. Turners said potato chips alone generate about $246 million in annual economic activity.

Why it matters: witnesses told the committee the report quantifies potatoes as a substantial agricultural commodity for Michigan and frames the industry's requests on workforce development, research and local processing capacity as steps to retain and grow jobs statewide.

Members were invited to attend industry tours the commission organizes; presenters said those tours show storage and processing operations that photos do not fully capture.

Clarifying details from testimony: the industry cited a $2.5 billion annual economic-impact figure (about $1.5 billion direct); a recent two-year production figure of about 1.9 billion pounds; potato-chips-related sales estimated at $246 million annually; a reported crop breakdown by end use of approximately 20% fresh, 5% seed, 5% certain processing, and roughly 70% for shipping/processing contracts. The presenters identified Montcalm County as the state's largest potato-producing county and referenced the MSU Potato Outreach Team as a two-position, commission-funded research group.

Ending: Committee members thanked the presenters; the panel encouraged legislators to visit growers and processors to see storage and breeding operations firsthand. No formal action or vote on legislation resulted from the presentation at this hearing.