PVYn and Potato Wart Disease Outbreaks in Prince Edward Island: Policy Response and Analysis

"This study analyzed the impact of PVYn and potato wart disease outbreaks in PEI on the potato industry. The two disease outbreaks resulted in loss of the U.S. seed export market to PEI producers. The effects of the disease outbreaks were mitigated through value-added processing. Price premiums for processed potatoes allowed PEI potato farmers to abandon seed export and helped to sustain financial viability potato production. Policy responses to the two disease outbreaks include (i) development of zones policies, which helped to reopen markets into the United States, and (ii) compensation to producers above the minimum levels required under the federal Seeds Act and Regulations. Implementation of the zones policy had beneficial impacts on the potato industry. In contrast, compensation above minimum requirements may set a costly precedent for future disease outbreaks." Copyright 2007 Canadian Agricultural Economics Society.