Green peas are among the most common vegetables present in processed foods from frozen vegetable mixes to potpies to TV dinners. Consumers might not think too much about the humble pea, but the farmers who harvest peas weigh their planting decisions carefully. Every year, Washington state farmer Gary Nibler prioritizes which crops to plant. He decides which ones will generate a good income and which will not be worth much in the coming year. Washington state, traditionally a rich source of vegetables, has been shifting farmland to wheat, soybeans, and corn, but Nibler still relies on green peas for a significant portion of his income.

Rising pea imports could change this equation. Total green peas imports have been increasing steadily since the early 1990s. Fresh, processed, and frozen pea imports rose by 84 percent, from 101 million pounds in 1991 to 185 million pounds in 2006.¹

As imports have skyrocketed, green pea acreage has fallen drastically. Between 1995 and 2006, U.S. harvested pea acreage declined by a third. In Washington, the second largest green pea producing state, acreage has dropped by 44 percent.²  According to Nibler, foreign imports have been competing against domestic peas and undercutting prices. “There were imports coming in from other countries.” And, “…there was a decline in income with [few] options to offset it.” Other major pea producing states in the upper Midwest also faced declines. The third largest pea producing state, Wisconsin, lost more than half its pea acreage between 1995 and 2006. Minnesota remains the largest pea producing state, but has lost more than 5,000 acres of peas over the past decade.³

Green peas go almost exclusively to processing, rather than the fresh market. Farmers rely on a steady demand from processors to sell their crop. Unfortunately, processing companies appear to be relocating to take advantage of imported vegetable supplies. In 2003, a vegetable processing plant in Wisconsin was closed and production was moved to Arkansas and Mississippi.⁴ These plants are far from green pea fields but close to the port city of New Orleans, where many vegetable imports are unloaded.

This year, Congress is expected to vote on a free trade agreement with Peru. Peas are the third largest agricultural import from Peru and have grown by more than 4600 percent, from 41,000 pounds in 1991 to 19 million pounds in 2006.⁵ U.S. processors would gain access to inexpensive fresh pea imports as well as processed peas made where farm and factory labor is cheap. In a U.S. House of Representatives Committee on Ways and Means hearing, the Grocery Manufacturers Association, which represents many vegetable processors, supported the Peru trade deal, stating: “Many GMA members benefit from these commitments through access to duty-free imports of seasonal vegetables.” ⁶

Although many U.S. green pea farmers are benefiting from higher crop prices this year, competition from increased imports could quickly send the prices plummeting. Increasing imports, including those made available through the Peru Free Trade Agreement, “will definitely be an issue” according to Nibler, whose farm income could decrease if pea prices fall again.

Footnotes

¹  USDA, Foreign Agriculture Service data accessed September 12, 2007, available at www.fas.usda.gov/ustrade.
²  USDA, National Agricultural Statistical Service, Vegetables and Melons Situation and Outlook Yearbook, 1997 through 2007.
³  Ibid.
⁴  Stogner, Alicia. “Allen Canning to buy birds eye subsidiary.” Arkansas Business, Little Rock, June 23, 2003.
⁵  USDA, Foreign Agriculture Service data accessed September 12, 2007, available at www.fas.usda.gov/trade.
⁶  Aldrich, Robert. Grocery Manufacturers Association. Statement during the Hearing on the Implementation of the United States-Peru Trade Promotion Agreement, Committee on Ways and Means, U.S. House of     Representatives, July 12, 2006. Available at: <http://waysandmeans.house.gov/hearings.asp?formmode=view&id=5228>