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Potato producers remain under pressure as elevated production costs persist across major growing regions. Total costs per acre continue to trend higher, keeping breakevens historically elevated and limiting growers’ ability to withstand ongoing price weakness.
Fresh potato shipments continue at a robust pace, though strong movement is coming at the expense of unfavorable pricing for growers. U.S. packers shipped 7.7 million cwt of table potatoes in January, modestly exceeding last year’s volume, and—after adjusting for business days—daily shipping rates were notably stronger (+5.5%). However, fresh prices remain well below grower breakevens, with reported spot prices near $2/cwt compared to estimated breakeven levels closer to $8–10/cwt. While movement has helped reduce inventory, it has resulted in substantial financial losses for growers, underscoring the disconnect between shipment volumes and grower profitability.
Looking ahead, contracted acres are reportedly down at least 10% for 2026, with prices slightly down to flat. National potato acreage is expected to decline, but low prices for alternative crops could lead to an oversupply of potatoes again this year.
Profitability – March 11, 2026
Potatoes (contracted): Slightly profitable – Bearish 12-month outlook
Potatoes (uncontracted): Unprofitable – Neutral 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 operating below breakeven despite exceptional yields and quality.
