BusinessMarkets & PricingPotato Production Costs on the Rise

    Potato Production Costs on the Rise


    Potato production prices have been rapidly increasing this year which may have growers considering last minute acreage adjustments, the March 17 issue of North American Potato Market News (NAPM) says.

    Prices for fuel, fertilizer, chemicals, machinery, and labour have skyrocketed, the report says. Diesel prices are up 24 per cent since Jan. 1, while nitrogen prices have increased between eight to 20 per cent since last year. The biggest jump has been with phosphate fertilizer which is up 49 to 56 per cent from a year ago, while potash prices are up 13 per cent.

    All of these costs are equating to an increase of about US$100 per cent or US$0.25 per cwt since Jan. 1 for potato production. Strong alternative crop prices could make growers reluctant to plant more contract potatoes than they had planned, NAPM notes. Corn, soybeans, wheat and other crops are seeing their largest prices in seven to eight years which has many convinced this could be the largest acreage since the 2011/13 commodity boom.

    “Increased planted acres, coupled with profitable crop prices, record government program payments, forgivable PPP loans, and newfound optimism have spiked demand for production inputs. Fuel and fertilizer costs have risen since January, and chemical, machinery, and labor costs are certain to follow,” the report says.

    Some growers have been asked plant more contract potatoes than they had planned, NAPM notes. Contract prices are down three per cent from last year, making increased potato acres not as attractive as planting other crops. This may cause processors to not receive as many contract potatoes as they have planned for.

    Trending This Week

    Potato field at Borden-Carleton, P.E.I.

    The P.E.I. Potato Industry is Edging Back to Normal

    After a year of upheaval following a potato wart discovery, P.E.I. has worked hard to regain their spud status. More than a year after potato...
    Centre pivot in P.E.I.

    P.E.I. Potato Board Calls on Feds to Listen to International Experts Report

    The Prince Edward Island Potato Board is calling on the federal government to listen to the findings from an international panel of experts who...
    Manitoba Potato Production Days 2023 stage

    MPPD Celebrates 50 Years of Potato Memories

    Manitoba Potato Production Days (MPPD) kicked off its 50th anniversary celebration with an opening night reception followed by a full day of presentations, demonstrations...
    Freshly emerged potato field

    Fortified Stimulate Yield Enhancer’s (aka Stimulate) Offers 40.4 cwt/acre Marketable Yield and Consistent Benefits

    Drumroll please…. The results are in from this year’s trials and – at a whopping 12.6 to 1 (!!) return on investment – Stimulate’s results...
    Potato field being sprayed

    PMRA Potato Products Review Refresher

    With the PMRA having reviewed numerous potato products, it’s important to keep track of what you can and can’t use anymore. Over the past few...