Poor prices for alternative crops could encourage growers to plant too many potatoes in 2025. The Idaho Russet Burbank grower returns index (GRI) is down 4.1% from a year ago. GRIs for the San Luis Valley and the Columbia Basin also are down from last year, while Wisconsin’s GRI is up slightly. However, prices for competing crops (wheat, barley, corn, alfalfa, and soybeans) are down 15%-23% from year-earlier levels. There are several other factors, besides alternative crop prices, that could influence planting decisions including the current market conditions, contract volumes, crop rotations, and production costs. Growers also might want to consider past scenarios when making planting decisions. Before the estimated 5.1% year-over-year production downturn in 2024, U.S. potato production had declined by 5%, or more, 17 times during the 75 years since 1950. Fifteen of those 17 years were followed by an increase in the total U.S. planted area. The percentage increase ranged between 0.9% and 10.1% − with a median acreage increase of 4.8%. Growers are making planting decisions, as we begin the new year. Several factors could lead to an increase in potato production during 2025, which could hold open-market prices at, or below, breakeven levels for another year.
U.S. packers shipped 1.130 million cwt of table potatoes during the holiday-shortened week ending December 28, 2024. That is down from 1.164 million cwt shipped a year earlier. Michigan packers shipped 38,979 cwt during the week ending December 28, 2024. That is down from 54,972 cwt shipped during the same week in 2023. Last week’s Michigan shipments were 97.8% russets, 1.2% round white potatoes, and 1.0% yellow potatoes.
Michigan packers are selling size A russets in 10-pound bags for $10-$11 per 50-pound bale, unchanged from last week. They are selling size A russets in 5-pound bags for $11-$12 per 50-pound bale, also unchanged. Wisconsin packers are selling size A russet potatoes in 10-pound bags for $9-$10 per 50-pound bale, unchanged from a week ago. They are selling russet 40-70 count cartons for mostly $12-$13 per 50-pound box, also unchanged. The weighted average shipping point price for Idaho Russet Norkotahs is $16.84 per cwt, unchanged from the previous week.
Wisconsin packers are selling 10/5-pound bales of size A yellow potatoes for mostly $15-$16 per bale, unchanged from last week. They are selling 50-pound cartons of size A yellow potatoes for mostly $16 per 50-pound box, also unchanged. Red River Valley packers are selling size A yellow potatoes in 2,000-pound tote bags for mostly $18-$20 per cwt, unchanged from a week ago.
Report by North American Potato Market News