Potatoes

Potato updates

Producers face limited planting options with falling commodity prices.

In 2024, potato acreage and open market prices in the Northwest decreased due to fewer contracted acres and excess potato supply. Potato processors continue to post lower earnings citing weak restaurant traffic and growing global supply imbalances. Given stress in the processing sector and continued excess potato supplies, contracted acres are likely to decline in 2025.

Despite challenging conditions, potatoes remain a contender for 2025 planting decisions. Prices for many rotation crops fell by 15%-25% in 2024, so producers have few viable alternatives.

Profitability will be a challenge in 2025. The prospect of lower input costs will likely not be enough to offset lower commodity prices.

Profitability

December 11, 2024

Potatoes (Contracted): Slightly profitable - Neutral 12-month outlook
Potatoes (Uncontracted): Breakeven profitability - Neutral 12-month outlook

Stable pricing agreements benefit contracted potatoes, and decreases in input costs are expected to support profitability over the next 12 months.

Tight profit margins and weaker consumer demand may discourage potato planting in 2025, potentially supporting uncontracted prices.