News Release

PGI's position on reducing acreage

BLACKFOOT, ID — An article that ran in several Idaho newspapers this week has apparently caused confusion regarding PGI's position on reducing acreage. It appears the confusion is connected with traditional definitions of open and contracted potatoes.

PGI's position is that we strongly support at least a 10 percent acreage reduction in Idaho and we will continue to encourage our members to reduce their acreage accordingly. We also strongly encourage growers to plant only potatoes that have a known market.

Traditionally about half of Idaho's commercial production, those potatoes destined for fresh and dehydration markets, have been considered open potatoes because they are not forward-priced the same as french fry processing contracts. Grower-shippers as well as independent growers have traditionally farmed this acreage. In addition some growers with processing contracts have also grown open potatoes. Another common source of open potatoes are contract overages - or potatoes produced by contract growers that exceeded the agreed upon volume.

In recent years many growers have aligned themselves with shippers in order to have a known home for their potatoes. These agreements often contain volume and or acreage commitments. Some include minimum prices for the grower.

In large production years such as this there is no longer a large market for open, uncommitted potatoes. That is why PGI encourages growers to cut acreage by at least 10 percent and plant only potatoes that have a known market.