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According to the AgWest Monthly Market Update, potato markets remain under pressure as open market prices weaken across all major growing regions.
Acreage reductions for the 2026/27 crop have continued including late cuts by major processors. Planting is underway with favorable weather. Water availability is not a concern in the Columbia Basin. In Idaho, water risk is heightened (reservoir levels and snowpack are well below average) and prevent plant insurance could help reduce potato acreage if widely adopted. Potato seed quality is strong, with shipments halfway complete. Seed acreage in Montana is expected to have scaled back this year as a result of uncertainty and unfavorable market conditions; initial grower sentiment suggests acreage cuts of up to 10% in certain regions.
Open market potato prices are now as low as $1/cwt. With most regions needing roughly $10/cwt to break even, current open market pricing implies significant losses for many growers.
Looking ahead, input cost inflation is emerging as a major risk for the 2026 crop. Fertilizer and fuel costs have reportedly risen 30-33% in recent weeks. The war in Iran and its impact on global oil supplies could further drive up fuel, fertilizer and chemical costs, adding uncertainty to profitability for the coming year. Some growers are front-loading fertilizer applications to lock in pricing ahead of anticipated increases.
Contracted potatoes continue to provide margin stability, but prices are down and inputs are rising. Looking ahead, the key swing factor will be whether acreage reductions are sufficient to rebalance supply; until then, grower margins are likely to remain under pressure into 2026.