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January 26, 2000Cherry growers dispute practiceMichigan farmers receive restrictions on selling due to large cropsBy CARI NOGARecord-Eagle staff writer ACME - Too many tart cherries nationwide sour the selling price, but Michigan growers say they shouldn't be barred from selling some of their crop while Wisconsin growers can sell all. That's the situation now under the cherry industry's marketing order, which attempts to stabilize prices by controlling supply. Michigan growers don't think it's fair and they're trying to change it. "We're trying to get an even playing field for everybody," said Rob Manigold, president of the Grand Traverse Area Fruit Growers Council. Wisconsin growers aren't pleased, saying their Michigan growers produce so many cherries and get more money per pound, too, from the processors. Presently, the United States is divided into nine tart cherry-growing regions in seven states. Michigan, the nation's largest producer of tart cherries, has three districts. According to the order, passed in 1996 and used for the last three growing seasons, "restrictions can be placed on the amount of cherries that can be sold if production in any one of those districts exceeds 15 million pounds. So far, only growers in Michigan and Utah, the No. 2 tart cherry state, have had to deal with restrictions. Due to huge crops, restrictions were imposed in 1997 and 1998. Producers in restricted districts like northwest Michigan were barred from selling as much as 45 percent of their product. The amendment now being pushed by Michigan farmers would remove the 15 million pound threshold, making all districts subject to restrictions. "It goes to the equity of being a cherry farmer," said Perry Hedin, executive director of the Lansing-based Cherry Industry Administrative Board. He said the amendment would remove "artificial distinctions" based on geography. Besides Michigan and Utah, tart cherries districts exist in Washington state, Oregon, Wisconsin, New York and Pennsylvania. Growers in those states have not been restricted, and Hedin said fairness demands that change. "They contribute to the surplus, but they don't get restricted, or contribute to the resolution of that," he said. Hedin gave an update on the amendment process at the Northwest Michigan Orchard Show Tuesday at the Grand Traverse Resort. The Cherry Industry Administrative Board oversees the marketing order and imposes restrictions when it determines that farmers will harvest more cherries than the market demands. Meanwhile, the area fruit growers council is trying to arrange transportation for local growers to go to Grand Rapids in March or April, when the U.S. Department of Agriculture will hold a hearing on the proposed amendment. "We feel it's important to get there in person," Manigold said. Hearings also will be held in Utah, New York and Washington. The USDA will then make a recommendation, and cherry growers and processors will then vote on it. One who plans to vote against the amendment is John Zettle, who grows 75 acres of cherries in Wisconsin's Door County. He is also president of the Wisconsin Red Cherry Growers Association. He said he favors regulation and understands that all growers cause the problem and should be part of the solution. But Wisconsin producers already are struggling, he said, because they don't grow nearly the pounds per acre that Michigan does - meaning their income per acre is less. Also, Wisconsin processors pay 3-4 cents less per pound than the Michigan rate. "Now you're going to take some more production away from us. We're going to get hit the third time," if the amendment passes, Zettle said. Also, when the industry was working to establish the order a few years ago, Wisconsin growers were sold on the fact they wouldn't be regulated. Zettle believes a hearing should be held in Wisconsin. If held in Michigan, the outcome is obvious, he said. The arguments Zettle makes will likely have a significant impact on the USDA, Leelanau County grower Gary Bardenhagen admitted. "USDA doesn't like to see any of the so-called underlings being squashed," he said. Hedin agreed that the department is concerned about the "800 pound gorilla of Michigan" forcing its will on the rest of the growers. Due to the controversy, any change probably won't happen before the 2002 growing season, Hedin said. Methods of restricting include setting aside cherries in "reserve" pools, which are then tapped in short crop years; exporting them to non-primary markets; dedicating them to new product development; or not harvesting them. All of Michigan's districts exceed 15 million pounds. In 1998, a huge crop year, the northwest district alone grew 186 million pounds, according to the Michigan Agricultural Statistics Service. The west-central district grew 59 million pounds, and the southwest grew 18 million. The Cherry Board said that Michigan growers produced 259.7 million pounds of fruit in 1998. Of that, 31.2 million pounds were left in orchards due to restrictions. Some of the 228.5 million pounds that were processed were also subject to the other diversion methods. Last year, Michigan grew 183.5 million pounds of cherries, and no restrictions were imposed. |
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