Potatoes

Potato updates

Steep acre cutbacks for potatoes.

Potato growers are grappling with widespread challenges as processors implement substantial cuts to contracted acres. Across the Northwest, reductions average around 10%, with some producers facing cuts as steep as 40% or greater. Contracted organic potato acreage has also seen sharp declines. Contract prices are down by an average of 5% compared to last year. While some growers are looking for alternative uses for their unallocated land, options remain limited. The reduction in contract acres could lead to an increase in open market potatoes in 2025. This could drive open market prices even lower. Against this backdrop, many producers are bracing for ongoing market challenges and striving to maintain stability in an unpredictable environment.

Profitability

March 12, 2025

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

Stable pricing agreements benefit contracted potatoes, but many producers face reductions in contracted acres.

Recent surpluses of open market potatoes have driven prices down and will keep them below breakeven levels in the near term.