In the first week of June, a grower could expect to receive between $7.75 and $8.25 for 100 pounds of potatoes, depending on quality, according to data. In the first week of July, prices had fallen to between $4.25 and $4.75.
Growers are facing substantial losses because the price of a potato, even during the June price peak, has been less than the cost of producing it, said Paul Patterson, an agricultural economist with the University of Idaho Extension.
He estimates the current cost of production, including shipping and storage, at between $8.50 and $9 per hundred pounds.
Kevin Stanger is vice president of sales and marketing with Wada Farms, which produces potatoes on about 10,000 acres of land in Idaho.
"It doesn't take a brain surgeon to realize when prices get this low it's a negative return for growers," he said.
Excess Supply
Tony Sorenson, market reporter with the U.S. Department of Agriculture, said this year's growing season will put a new crop of Idaho potatoes on the market one or two weeks sooner than usual.
"For the most part, this season has had ideal growing conditions, and not only is the new crop of good quality … but it is way, way early," he said.
Sorenson said this could be driving down demand for leftover stock from the last growing season, since buyers prefer new potatoes.
Stanger said this could be causing growers to dump their remaining spuds.
"I think a lot of guys just all of a sudden increased their (sales to shipping companies) and put a little too much supply on the market," he said.
Idaho potato prices down more than 40%
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