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Across AgWest’s territory, the 2025 potato harvest delivered exceptional yields and quality, yet market dynamics continue to limit grower returns. USDA estimates the 2025 U.S. potato crop at 412.06 million cwt, down 2.2% from 2024, with Idaho production up 2.3% and Washington down 10.4%.
Idaho’s harvest wrapped up under near-perfect conditions, and yields have generally exceeded expectations. In Southern Idaho, growers report above-trend yields and strong quality, which has required additional storage. Anecdotally, a few growers chose not to finish harvesting once their storage was full to avoid additional harvest and storage costs for potatoes without a market outlet. Returns remain low at $3–$4 per cwt but are better than expected, as the crop has exceeded early-season expectations for lower quality. Oversupply is evident, and some excess will be diverted to cattle feed.
Eastern Idaho shows similar trends with strong yields and stable storage. Anecdotal reports suggest processors purchased overages (production over contracted levels) at $2–$3 per cwt, a notable improvement from last year when excess supply was often dumped. Irrigation water availability under current contracts appears to be on track, though below-average snowpack raises late-season irrigation concerns for 2026. Packing sheds confirm returns in the $3–$4 range, and land sales remain strong despite weak commodity pricing. Seed growers face potential overproduction for 2026, but so far prices have held steady.
In Washington, yields and quality were above average despite acreage reductions. Contracted potatoes are performing well. Processors are taking overages at $2.00–$2.50 per cwt, which is better than selling potatoes for cattle feed but still below breakeven for fresh and processed production.
Despite exceptional yields and quality across AgWest’s territory, persistent oversupply and weak pricing continue to challenge grower profitability, underscoring the need for strategic planning ahead of 2026.
Profitability
December 10, 2025
Potatoes (contracted): Slightly profitable – Neutral 12-month outlook
Potatoes (uncontracted): Slightly unprofitable – Bearish 12-month outlook
Contracted potatoes are supported by stable agreements and processor purchases of overages at $2–$3 per cwt, though margins remain thin.
Uncontracted potatoes remain under significant pressure, with oversupply leaving most growers below breakeven despite exceptional yields and quality.
SOURCE: AGWEST