After years of surplus, potato markets begin to rebalance.
After several years of abundant production and weaker demand, Pacific Northwest potato growers are finally seeing signs of a smaller crop in 2026. Weather-related production challenges, including water shortages, heat stress, and localized frost concerns, are reducing yields and helping bring supply closer in line with demand. While lower production presents challenges for growers, many producers view the smaller crop as a welcome development that could improve market balance and support stronger pricing throughout the marketing year.
In Idaho, the Snake River reservoir system was reported at just 19% of capacity, resulting in significant use of prevented planting insurance and reduced irrigation availability across parts of the state. Water shortages, combined with heat and wind stress, have reduced yield potential, with growers noting that some Norkotah potatoes died early in the season due to poor weather conditions. Burbank yields have also come below expectations. Despite lower production, potato quality remains favorable, particularly for Clearwater and Ivory varieties.
In Washington, potato market fundamentals continue to improve as stronger fresh demand and a smaller crop help bring supply and demand into better balance. Fresh potato prices have strengthened, with growers reporting returns of approximately $10 to $11 per cwt. While early-planted potatoes generally produced favorable results, some later-planted fields experienced stress and declining yield potential by late August. Even with these localized production challenges, processors continue moving aggressively through contracted acreage, and growers do not expect the surplus potato conditions that have pressured markets in recent years.
In Oregon’s Klamath Basin, market conditions remain relatively stable. Water availability remains a concern in the region, with some acreage taken out of production earlier this year due to water concerns.
SOURCE: AGWEST