OTTAWA, Ont. — The governments of Canada has announced that $1.5 million of the $14.1 million going to P.E.I. to dispose of surplus potatoes is earmarked for transport.

The agreement in principle, reached by Agriculture and Agri-Food Minister Lyle Vanclief and the province, provides federal funding to help the Island deal with a crop that went unsold due to a U.S. ban on potato imports.

Last fall, a fungus was discovered on one batch of spuds from a field in P.E.I. The U.S. government slapped an immediate and total ban, despite scientist claims that the fungus wouldn’t pose a threat to that country’s potato industry.

The agreement with the Canadian government sees $12.6 million being spent to dispose of surplus potatoes in an environmentally responsible manner and $1.5 million will go to transport surplus potatoes to food banks across Canada.

The assistance will be distributed to producers through the P.E.I. Potato Board. The Board is responsible for administering the potato disposal, and will receive additional funding to do so.

On Mar. 6, Mr. Vanclief announced the Government of Canada would provide the funds.