May 16, 2007

**2007 SPRING PRODUCTION**

**[Florida]{.smallcaps}**: The spring crop potato production is forecast
at 7.73 million cwt, down 2 percent from the April 1 forecast but 20
percent above the combined winter/spring 2006 production of 6.44 million
cwt. Potato growers in the Hastings area are expected to dig about 59
percent of the total production, or 4.54 million cwt, down 195,000 cwt
or 4 percent from last year. The remainder potato production at 3.19
million cwt will be harvested by growers in other areas. Yield is
expected to average 284 cwt per acre, virtually unchanged from last
year's winter/spring combined yield at 285 cwt per acre. The Hastings
area combined yield, at 280 cwt per acre, is down 5 cwt or 2 percent
from the 2006 combined yield of 285 cwt per acre. Florida's winter
potatoes were combined with spring potatoes in 2007. Mostly dry weather
during April allowed growers to maintain proper soil moisture levels for
harvest, resulting in very good quality potatoes.

**[United States]{.smallcaps}**: Spring production in 2007 is forecast
at 20.7 million cwt, down 1 percent from the April forecast but 5
percent above last year. Area for harvest is estimated at 70,400 acres,
up 1 percent from April and 4 percent above last year. The average yield
is forecast at 294 cwt per acre, 4 cwt below last month but up 1 cwt
from a year ago. North Carolina\'s potato crop is forecast at 2.76
million cwt, down 5 percent from the April 1 forecast and 15 percent
below last year. Below average temperatures during April lowered yield
expectations but growers are still optimistic about the quality of the
potatoes. California spring production is forecast at 6.12 million cwt,
unchanged from last month\'s forecast but 1 percent above last year.
Cold weather earlier in the year put the crop behind schedule and some
growers will not begin harvest until June. Production in Texas is
forecast at 2.94 million cwt, up 3 percent from both the April 1
forecast and the 2006 production. Growing conditions have been good with
high levels of moisture available. Arizona growers expect production to
total 1.12 million cwt, up 7 percent from the April forecast but down 4
percent from 2006. An increase in acreage from the April forecast more
than offset a decrease in yield.

<table>
<colgroup>
<col style="width: 16%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 10%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 10%" />
</colgroup>
<thead>
<tr class="header">
<th colspan="10"><strong>POTATOES</strong></th>
</tr>
<tr class="odd">
<th rowspan="3"><p>Seasonal</p>
<p>Group</p>
<p>and State</p></th>
<th colspan="4">Area</th>
<th colspan="2" rowspan="2"><p>Yield</p>
<p>per acre</p></th>
<th colspan="3" rowspan="2">Production</th>
</tr>
<tr class="header">
<th colspan="2">Planted</th>
<th colspan="2">Harvested</th>
</tr>
<tr class="odd">
<th>2006</th>
<th><p>Indicated</p>
<p>2007</p></th>
<th>2006</th>
<th><p>Indicated</p>
<p>2007</p></th>
<th>2006</th>
<th><p>Indicated</p>
<p>2007</p></th>
<th>2005</th>
<th>2006</th>
<th><p>Indicated</p>
<p>2007</p></th>
</tr>
</thead>
<tbody>
<tr class="odd">
<td></td>
<td colspan="4"><em>1,000 acres</em></td>
<td colspan="2"><em>Cwt</em></td>
<td colspan="3"><em>1,000 cwt</em></td>
</tr>
<tr class="even">
<td colspan="10">Spring</td>
</tr>
<tr class="odd">
<td><blockquote>
<p>Arizona</p>
</blockquote></td>
<td>3.9</td>
<td>4.0</td>
<td>3.9</td>
<td>4.0</td>
<td>300</td>
<td>280</td>
<td>1,183</td>
<td>1,170</td>
<td>1,120</td>
</tr>
<tr class="even">
<td><blockquote>
<p>California</p>
</blockquote></td>
<td>15.3</td>
<td>15.5</td>
<td>15.3</td>
<td>15.5</td>
<td>395</td>
<td>395</td>
<td>6,116</td>
<td>6,044</td>
<td>6,123</td>
</tr>
<tr class="odd">
<td><blockquote>
<p>Florida <sup>1/</sup></p>
</blockquote></td>
<td>23.1</td>
<td>27.8</td>
<td>22.6</td>
<td>27.2</td>
<td>285</td>
<td>284</td>
<td>6,527</td>
<td>6,441</td>
<td>7,726</td>
</tr>
<tr class="even">
<td><blockquote>
<p>Hastings</p>
</blockquote></td>
<td>17.0</td>
<td>16.5</td>
<td>16.6</td>
<td>16.2</td>
<td>285</td>
<td>280</td>
<td>4,760</td>
<td>4,731</td>
<td>4,536</td>
</tr>
<tr class="odd">
<td><blockquote>
<p>Other</p>
</blockquote></td>
<td>6.1</td>
<td>11.3</td>
<td>6.0</td>
<td>11.0</td>
<td>285</td>
<td>290</td>
<td>1,767</td>
<td>1,710</td>
<td>3,190</td>
</tr>
<tr class="even">
<td><blockquote>
<p>North Carolina</p>
</blockquote></td>
<td>17.7</td>
<td>16.0</td>
<td>15.5</td>
<td>14.5</td>
<td>210</td>
<td>190</td>
<td>2,850</td>
<td>3,255</td>
<td>2,755</td>
</tr>
<tr class="odd">
<td><blockquote>
<p>Texas</p>
</blockquote></td>
<td>10.7</td>
<td>9.7</td>
<td>10.2</td>
<td>9.2</td>
<td>280</td>
<td>320</td>
<td>2,048</td>
<td>2,856</td>
<td>2,944</td>
</tr>
<tr class="even">
<td><blockquote>
<p>Total</p>
</blockquote></td>
<td>70.7</td>
<td>73.0</td>
<td>67.5</td>
<td>70.4</td>
<td>293</td>
<td>294</td>
<td>18,724</td>
<td>19,766</td>
<td>20,668</td>
</tr>
<tr class="odd">
<td colspan="10"><sup>1/</sup> Winter potatoes combined with spring
potatoes in 2007</td>
</tr>
</tbody>
</table>

**May Potato Stocks Down 4 Percent from Last Year**

The 13 major potato States held 73.2 million cwt of potatoes in storage
May 1, 2007, down 4 percent from last year and 17 percent below May 1,
2005, for comparable States. Ohio and Pennsylvania were dropped from the
potato stocks program starting with the 2005 storage season. Potatoes in
storage account for 19 percent of the 2006 fall storage States\'
production, down 1 percentage point from last year. Klamath Basin stocks
were added to the potato stocks program starting with December 2006 and
totaled 600,000 cwt on May 1, 2007. Klamath Basin includes California
and Klamath County, Oregon potato stocks.

Disappearance of 309 million cwt from the start of harvest to May 1, is
up 4 percent from last year. Shrink and loss, at 23.7 million cwt, is up
8 percent from the previous year.

Processors have used 162 million cwt of 2006 crop potatoes so far this
season, up 8 percent from a year ago and 5 percent below 2 years ago.
Idaho and Malheur County, Oregon total processing increased 8 percent
from a year ago, Maine\'s total processing was 8 percent above the same
date in 2006, and Washington and the rest of Oregon total processing was
up 2 percent from last season. Dehydrating usage accounts for 34.6
million cwt of the total processing, up 15 percent from last year and 3
percent above the same date in 2005.

Idaho\'s potato stocks are down 11 percent from last year, while sheds
in Washington held 20 percent less than last year, and Oregon\'s stocks
dropped 4 percent from last season. Stocks in Wisconsin decreased 10
percent from 2006. Maine\'s potato stocks increased 26 percent from last
year, North Dakota\'s sheds held 50 percent more, and stocks in
Minnesota are up 52 percent. Potato sheds in Nebraska held 17 percent
more than last season, while potato stocks in Michigan increased 80
percent, and California\'s stocks are up 13 percent from last year.
Montana and New York\'s potato sheds combined held 30 percent more than
on the same date in 2006. Colorado\'s potato stocks are unchanged from
last year. Comparisons by region are not made in this narrative to avoid
disclosure of individual operations.

<table style="width:100%;">
<colgroup>
<col style="width: 20%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><strong>POTATOES</strong>: Quantity used for
processing, nine States, 2004-2006<sup>1/</sup></td>
</tr>
<tr class="even">
<td>State</td>
<td><p>Crop</p>
<p>year</p></td>
<td><p>To</p>
<p>Dec 1</p></td>
<td><p>To</p>
<p>Jan 1</p></td>
<td><p>To</p>
<p>Feb 1</p></td>
<td><p>To</p>
<p>Mar 1</p></td>
<td><p>To</p>
<p>Apr 1</p></td>
<td><p>To</p>
<p>May 1</p></td>
<td><p>To</p>
<p>Jun 1</p></td>
<td><p>Entire</p>
<p>season</p></td>
</tr>
<tr class="odd">
<td colspan="2"> </td>
<td colspan="8"><em>1,000 cwt</em></td>
</tr>
<tr class="even">
<td rowspan="3"><p>Idaho &amp; Malheur</p>
<p>County, Oregon</p></td>
<td>2004</td>
<td>24,360</td>
<td>30,840</td>
<td>36,820</td>
<td>44,610</td>
<td>51,000</td>
<td>58,090</td>
<td>65,800</td>
<td>84,600</td>
</tr>
<tr class="odd">
<td>2005</td>
<td>22,840</td>
<td>29,300</td>
<td>35,970</td>
<td>43,300</td>
<td>50,820</td>
<td>57,830</td>
<td>65,030</td>
<td>77,360</td>
</tr>
<tr class="even">
<td>2006</td>
<td>26,130</td>
<td>32,810</td>
<td>40,100</td>
<td>47,730</td>
<td>55,380</td>
<td>62,470</td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td rowspan="3"> Maine <sup>2/</sup></td>
<td>2004</td>
<td>1,540</td>
<td>1,970</td>
<td>2,600</td>
<td>3,135</td>
<td>3,700</td>
<td>4,340</td>
<td>4,910</td>
<td>6,590</td>
</tr>
<tr class="even">
<td>2005</td>
<td>1,365</td>
<td>1,880</td>
<td>2,485</td>
<td>3,090</td>
<td>3,800</td>
<td>4,450</td>
<td>5,130</td>
<td>6,825</td>
</tr>
<tr class="odd">
<td><sup>3/</sup> 2006</td>
<td>1,755</td>
<td>2,360</td>
<td>2,910</td>
<td>3,465</td>
<td>4,190</td>
<td>4,820</td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td rowspan="3"><p>Washington and Other</p>
<p>   areas, Oregon</p></td>
<td>2004</td>
<td>32,305</td>
<td>38,130</td>
<td>43,570</td>
<td>50,730</td>
<td>57,140</td>
<td>63,855</td>
<td>71,355</td>
<td>78,680</td>
</tr>
<tr class="odd">
<td>2005</td>
<td>30,310</td>
<td>35,895</td>
<td>40,545</td>
<td>48,290</td>
<td>55,320</td>
<td>61,885</td>
<td>69,360</td>
<td>78,550</td>
</tr>
<tr class="even">
<td>2006</td>
<td>30,980</td>
<td>37,060</td>
<td>42,190</td>
<td>49,930</td>
<td>56,690</td>
<td>63,220</td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td rowspan="3">Other States <sup>4/</sup></td>
<td>2004</td>
<td>12,490</td>
<td>15,000</td>
<td>17,965</td>
<td>20,910</td>
<td>24,150</td>
<td>27,480</td>
<td>30,945</td>
<td>41,175</td>
</tr>
<tr class="even">
<td>2005</td>
<td>11,055</td>
<td>14,070</td>
<td>17,005</td>
<td>19,895</td>
<td>22, 520</td>
<td>25,270</td>
<td>27,740</td>
<td>35,535</td>
</tr>
<tr class="odd">
<td>2006</td>
<td>13,465</td>
<td>16,905</td>
<td>20,450</td>
<td>23,820</td>
<td>27,815</td>
<td>31,165</td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td rowspan="3">Total</td>
<td>2004</td>
<td>70,695</td>
<td>85,940</td>
<td>100,955</td>
<td>119,385</td>
<td>135,990</td>
<td>153,765</td>
<td>173,010</td>
<td>211,045</td>
</tr>
<tr class="odd">
<td>2005</td>
<td>65,570</td>
<td>81,145</td>
<td>96,005</td>
<td>114,575</td>
<td>132,460</td>
<td>149,405</td>
<td>167,260</td>
<td>198,270</td>
</tr>
<tr class="even">
<td><sup>3/</sup> 2006</td>
<td>72,330</td>
<td>89,135</td>
<td>105,650</td>
<td>124,945</td>
<td>144,075</td>
<td>161,675</td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td rowspan="3">Dehydrated <sup>5/</sup></td>
<td>2004</td>
<td>14,525</td>
<td>18,540</td>
<td>21,875</td>
<td>25,970</td>
<td>30,020</td>
<td>33,685</td>
<td>38,505</td>
<td>47,810</td>
</tr>
<tr class="even">
<td>2005</td>
<td>11,920</td>
<td>15,655</td>
<td>19,225</td>
<td>22,765</td>
<td>26,605</td>
<td>30,065</td>
<td>34,130</td>
<td>41,625</td>
</tr>
<tr class="odd">
<td>2006</td>
<td>12,860</td>
<td>17,130</td>
<td>21,270</td>
<td>25,550</td>
<td>30,180</td>
<td>34,625</td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td colspan="10"><p><sup>1/</sup> Total quantity received and used for
processing regardless of the State in which the potatoes were produced.
Amount excludes quantities used for potato chips in ME and WI.</p>
<p><sup>2/</sup> Includes Maine grown potatoes only.</p>
<p><sup>3/</sup> April revised.</p>
<p><sup>4/</sup> CO, MN, NV, ND, and WI.</p>
<p><sup>5/</sup> Dehydrated products except starch and flour. Included
in above totals. Includes CO, ID, NV, ND, OR, WA, and WI.</p>
<table>
<colgroup>
<col style="width: 8%" />
<col style="width: 11%" />
<col style="width: 11%" />
<col style="width: 11%" />
<col style="width: 11%" />
<col style="width: 12%" />
<col style="width: 11%" />
<col style="width: 11%" />
<col style="width: 10%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="9"><strong>FALL POTATOES</strong>: Production and Stocks,
15 Major States, 1997 through 2006</td>
</tr>
<tr class="even">
<td><p>Crop</p>
<p>Year</p></td>
<td>Production</td>
<td>Dec 1</td>
<td>Jan 1</td>
<td>Feb 1</td>
<td>Mar 1</td>
<td>Apr 1</td>
<td>May 1</td>
<td>Jun 1 <sup>1/</sup></td>
</tr>
<tr class="odd">
<td> </td>
<td colspan="8"><em>1,000 Cwt</em></td>
</tr>
<tr class="even">
<td>1997</td>
<td>413,513</td>
<td>278,830</td>
<td>246,550</td>
<td>212,562</td>
<td>175,870</td>
<td>134,190</td>
<td>92,840</td>
<td> </td>
</tr>
<tr class="odd">
<td>1998</td>
<td>423,170</td>
<td>280,910</td>
<td>246,230</td>
<td>209,640</td>
<td>173,650</td>
<td>131,220</td>
<td>87,895</td>
<td>50,270</td>
</tr>
<tr class="even">
<td>1999</td>
<td>420,567</td>
<td>275,100</td>
<td>239,910</td>
<td>207,150</td>
<td>169,620</td>
<td>128,410</td>
<td>86,915</td>
<td>47,220</td>
</tr>
<tr class="odd">
<td>2000</td>
<td>458,827</td>
<td>310,300</td>
<td>275,270</td>
<td>234,260</td>
<td>197,670</td>
<td>153,520</td>
<td>109,160</td>
<td>61,270</td>
</tr>
<tr class="even">
<td>2001</td>
<td>387,033</td>
<td>258,750</td>
<td>224,680</td>
<td>192,090</td>
<td>158,590</td>
<td>119,950</td>
<td>81,200</td>
<td>42,990</td>
</tr>
<tr class="odd">
<td>2002</td>
<td>407,085</td>
<td>264,485</td>
<td>231,490</td>
<td>199,020</td>
<td>165,210</td>
<td>125,770</td>
<td>83,040</td>
<td>45,880</td>
</tr>
<tr class="even">
<td>2003</td>
<td>403,181</td>
<td>267,900</td>
<td>233,590</td>
<td>200,230</td>
<td>166,280</td>
<td>126,110</td>
<td>85,000</td>
<td>46,020</td>
</tr>
<tr class="odd">
<td>2004</td>
<td>403,587</td>
<td>271,100</td>
<td>236,700</td>
<td>203,490</td>
<td>168,020</td>
<td>128,900</td>
<td>88,550</td>
<td>51,700</td>
</tr>
<tr class="even">
<td>2005 <sup>2/</sup></td>
<td>374,298</td>
<td>253,800</td>
<td>220,500</td>
<td>189,100</td>
<td>155,500</td>
<td>115,700</td>
<td>75,900</td>
<td>41,560</td>
</tr>
<tr class="odd">
<td>2006 <sup>2/</sup></td>
<td>382,283</td>
<td>252,200</td>
<td>220,000</td>
<td>187,800</td>
<td>153,200</td>
<td>113,600</td>
<td>73,200</td>
<td></td>
</tr>
<tr class="even">
<td colspan="9"><p><sup>1/</sup> Data not available prior to 1998.</p>
<p><sup>2/</sup> Thirteen major States.</p></td>
</tr>
</tbody>
</table></td>
</tr>
</tbody>
</table>