Ballarat region potato farmers have slashed the amount of seed they will sow this week because of a drop in demand.
McCain Foods (Australia) has reduced the quota it will take from growers after next year's harvest and will pay them about $35 less per tonne.
The chairman of the McCain Growers Group, Dominic Prendergast, says farmers hope to start sowing later this week if the weather remains fine.
But he says they will sow about 20 per cent less seed.