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In their July 2026 potato update, AgWest Farm Credit reports that the potato industry is grappling with significant challenges balancing supply and demand.
According to the report, Potato supplies have tightened considerably, but weak demand continues to limit price recovery. Despite tighter supplies, open-market potato prices remain depressed. The disconnect between lower inventories and weaker prices suggests demand remains softer than expected, although there is speculation that Pacific Northwest inventories may be understated.
Potato acreage continues to decline as growers adjust to weaker market conditions and ongoing profitability concerns. While acreage reductions could help improve market balance over time, producers remain focused on managing margins amid continued uncertainty surrounding prices, input costs, and demand trends.
Producer profitability remains under pressure despite tighter potato supplies and favorable growing conditions. Open-market russet potato prices remain well below year-ago levels and below breakeven for many operations. Until demand improves or pricing strengthens, profitability is expected to remain a key concern across the industry.
SOURCE: AgWest Farm Credit