Aroostook County potato-related businesses get a boost with new tax credits

PROVIDED PHOTO The Penobscot McCrum potato processing plant was built in Washburn in 2020 and now employs 145.

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Gov. Janet Mills has signed legislation that will support economic investments and job growth for manufacturing businesses, including two potato processing facilities in Aroostook County.

LD 1951, An Act to Promote Food Processing and Manufacturing Facility Expansion and Create Jobs, extends tax credits to the family-owned Penobscot McCrum potato processing facility in Washburn as well as for a 96,000-square-foot Taste of Maine potato chip factory under construction at the Loring Commerce Centre.

The bill modernizes Maine's income tax credit for major food processing or manufacturing facilities to make Maine more competitive for these large-scale food industry investments, especially in rural areas, the governor's office said.

The McCrum facility employs 145 people and the Taste of Maine chip factory is expected to create 100 jobs in Limestone when it opens in 2026.

The legislation received strong bipartisan support in the Maine House and Senate.

"The passage of LD 1951 is a major win for Maine's potato industry and for rural communities across our state," said Jeannie Tapley, executive director of the Maine Potato Board. "This bill builds on prior efforts to strengthen our processing sector, helping us keep more of our product in Maine, add value here at home, and create good-paying jobs in Aroostook County and beyond.

“Maine has a well-earned reputation for high-quality agricultural products, and this updated investment will allow us to expand markets, increase acreage, and support local economies for generations to come.”

Washburn Town Manager Donna Turner said the McCrum facility has given the town a shot in the arm.

"Six years ago, our town of just under 1,700 people was struggling," she said. "Our main street was lined with real estate signs. We were losing population. Our high school and recreation department were at risk of closing. We had one of the highest, if not the highest, property tax [mil] rates in the entire state.

"Today, everything has changed. The McCrum family built a state-of-the-art potato processing facility, and what it has done for Washburn is nothing short of remarkable. Our tax mil rate has stabilized and is now comparable to some of the more prosperous towns in the state."

"One of the most promising impacts of this bill is the economic revitalization it will bring to Aroostook County, particularly at Loring Commerce Centre,” said Mike Duguay, commissioner of the Maine Department of Economic and Community Development.

"This is exactly the right kind of economic development that meets all the qualifications for a private public partnership in Maine,” Duguay said. “Taking our heritage industries, revitalizing them for the current market, and partnering with the businesses, either taking a chance or upgrading their efforts, is exactly what Maine needs now."

Maine's $1.3 billion potato industry is rooted in Aroostook County, with 90% of its 54,000 farmed acres located there, according to the Maine Potato Board.

The McCrum family has been growing and processing potatoes in the state since 1886. In 2004 the company merged with Penobscot Frozen Foods and in 2020 opened the plant in Washburn, which specializes in a range of frozen French fry products.