Potato Production costs increase in Idaho in 2013 expected to be modest

Idaho potato farmers should see more moderate increases in production costs in 2013 than they've experienced in recent years, University of Idaho Extension economist Paul Patterson predicts.

Patterson said potato growers' input costs should increase 2 to 4 percent per acre this season, and fertilizer, seed and fuel costs will likely decrease.

Inputs rose 5 to 8 percent per acre last season and 14 to 16 percent per acre in 2011.

Fertilizer prices posted steep gains in 2012, with urea up 14 percent, liquid nitrogen up 8 percent, phosphate up 6.6 percent and potash up 10.7 percent. He predicts in 2013 average urea prices will decrease by 1.5 percent, liquid nitrogen will be down 3 percent, phosphate will drop by 3 percent and potash will drop by 4.5 percent.

Patterson said fertilizer suppliers have increased production capacity. He also believes demand may drop if commodity prices dip. He suspects phosphorus carry-over in soil due to a low-yielding 2012 corn crop should also reduce demand.

Nitrogen, which is derived from natural gas, is cheaper because of sharp decreases in natural gas prices and increased domestic production.

Potato seed could decline by as much as 4 percent, Patterson said. Farm diesel, which averaged $3.50 per gallon in southcentral Idaho in 2012, should average $3.40 this season, down 3 percent, because of adequate supplies and reduced demand in the U.S., he said.