2016 Potato Production Increased, But Prices Capped

2016 was a successful year for Northwest potato growers.  Total U.S. Potato Production was up 1.7% last year, and the largest increases took place in Idaho, up 6.8% year over year and Washington, up 6.2%.  Northwest Farm Credit Service’s Michael Stolp said high northwest potato yields are oversupplying markets and are limiting open potato upsides.

“Canadian imports add to ample U.S. supplies, incentive by the strong U.S. dollar, notwithstanding these challenges, contact potato growers remain profitable.  However, returns to uncontracted growers are generally below the cost of production.”

Stolp added the outlook for fresh market potatoes is bleak for the remainder of the 2016-17 season, with price support capped, again, by ample supplies.  Export conditions are expected to be a continual challenge for producers into the future.

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