Negotiations between growers and Idaho processors have resulted in an average 3% reduction in the contract price, said Dan Hargraves, Southern Idaho Potato Cooperative executive director.

That means prices are down 20-40 cents per hundredweight, depending on the processor and grower, he said.

Hargraves said the net impact of the price reduction from 2020 to this year is about 7% because growers’ input costs have increased. Spring fertilizer costs are up 28%, labor is up 6.8% and equipment and fuel prices are up.

“Conservatively, we think our costs are up 4% for crop year 2021” overall, he said.

“And at the same time, we’re operating at less than full capacity, so it’s a difficult environment for these commercial potato farms,” he said.

Processors in the annual contract last year paid growers a price that was about 2% higher than that of 2019 in response to growers’ higher labor and machinery costs, but they contracted for fewer acres.

Compared to 2019, processors contracted for 10-50% fewer acres last year, depending on processor and grower.

Compared to last year, processors contracted for 5-38% more acres this year, Hargraves said.

Despite the increase in acreage from 2020 to 2021, growers will still be running at around 90% of their capitalized capacity, he said.

“I’m happy that all of Idaho’s other agricultural crops are increasing in value back to the growers in the communities, but disappointed that potato contracts are not keeping up with other crops,” said Nick Blanksma, a farmer in Hammett.

Idaho leads the nation in potato production. More than one-third of the state’s crop is grown for processing.