At first glance, the planned 9% increase in the potato levy over the next three years seems hard to justify.
For a start, it is coming in a year in which UK potato prices have been under considerable pressure. The last thing any grower needs is another cost increase.
Potatoes are also the only sector to face any levy increase for 2010. Beef, sheep, pigs, dairy, cereals, oilseeds and horticulture are all set for a levy rate freeze.
But what makes it harder to understand is that the amalgamation of all six levy bodies under the one roof of the Agriculture and Horticulture Development Board was supposed to generate cost savings.
In an interview with Farmers Weekly in 2006, AHDB chairman John Bridge was hinting that levy rates could fall as a result of efficiency gains. Earlier this year he was quantifying those savings at about £4m a year following the AHDB's move to Stoneleigh...
It is understood that the savings to the Potato Council following amalgamation is in the region of £400,000 a year - quite a significant sum for an organisation with a turnover of just £6m.
So why the levy rate increase?
For a start, there is a degree of "catch-up" going on, as there has been no change in the levy rate for potato growers for eight years. Had the levy kept pace with inflation, it would stand at almost £50/ha instead of the current £39/ha.
Secondly, it is no secret that the Potato Council has been living beyond its means. Figures in its corporate plan reveal that, last year, total expenditure came to £6.3m compared with an income of £6.1m. And this year it is budgeted to spend £6.7m from an income of £6m, cutting further into reserves.
Thirdly, while the £400,000 cost savings now coming through will help to contain this financial deficit, the Potato Council wants to increase expenditure in certain key areas.
In particular, it is planning to boost its marketing spend, with a range of activities designed to attract new, younger customers to potatoes.
The other big commitment is to research and development, where the focus is on improving efficiency and minimising crop losses. A £600,000 investment is planned for the Sutton Bridge research centre next year.
And then there are all the other activities that the Potato Council engages in, including market intelligence, seed potato schemes and knowledge transfer events.
The potato sector faces numerous challenges in the coming years, including climate change, disease risk, environmental restraints, competition from other products and an ageing customer base.
But it also has a popular and versatile product. Even after the levy rise, it will still be costing growers less than £1/t to fund the Potato Council. It seems like a small price to pay for all the work it undertakes on the industry's behalf.
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