A Year for Disciplined Decisions

Seed cutting. Photo by Allen Petersen
Click to listen to this article

By Dale Lathim, Potato Growers of Washington

As the 2026 planting season approaches, growers in the Columbia Basin face a landscape marked by challenging decisions and shifting market dynamics. Crop prices – including those for fresh potatoes – remain at historically low levels relative to production costs, leaving limited options for profitable crop rotation. While potato contracts have demonstrated remarkable stability over the past several decades and continue to offer reasonable profit margins, the current environment demands a disciplined approach to crop selection and rotation.

In an ideal scenario, growers would focus exclusively on contracted potato acreage, maximizing returns without concern for alternative crops. However, agricultural realities dictate otherwise. Potatoes require careful rotation with other crops to manage disease, pests and foreign material. Although contract pricing for potatoes remains stable, it is insufficient to offset significant losses incurred from poorly chosen rotational crops. Selecting a rotation crop without market upside or with high production costs can erode profits from even the most successful potato harvest.

Growers must prioritize gathering comprehensive market intelligence before finalizing planting decisions. The absence of a clear forecast for profitable crops in 2026 underscores the importance of informed decision-making. Historical trends reveal that open-market potatoes rarely achieve contract prices, and periods of high open-market prices are typically characterized by supply shortages. Conversely, when supply exceeds demand, open-market prices fall, resulting in diminished returns for growers. Over time, open potatoes have consistently underperformed for the grower community.

Beyond crop selection, growers should critically evaluate their production strategies. With contract maximums often set at 103% of historical averages, the pursuit of maximum yields may not align with profitability. Excess production can lead to financial losses, especially when surplus potatoes are sold at steep discounts or must be disposed of at the grower’s expense. Historical data suggests that yield fluctuations due to weather in the Columbia Basin are minimal, reinforcing the value of optimizing input costs rather than maximizing output. Ultimately, sustainable profitability outweighs the pursuit of record yields.

Contract potato growers have experienced relatively stable returns in recent years, and projections for 2026 indicate another satisfactory – if not exceptional – year. Profit margins are expected to mirror those of the 2020 contract season, a period marked by resilience rather than prosperity. The key difference in 2026 is the surplus production across all rotational crops, which may complicate navigation for growers. Strategic planning, market awareness and disciplined crop management will be essential for success in the coming season.

I wish all Columbia Basin potato growers a successful and well-informed planting season.