Potato Country May-June 2022

PotatoCountry.com • May/June 2022 Western focus. National impact.

Maximizing Efficiency

Advertiser Index

Ag World ................ 27 Bayer ....................... 2 Colorado Seed....... 25 Corteva Delegate... 13 Corteva Vydate ...... 33 Crary Lockwood..... 20 Ferticell .................... 9 IPC......................... 15 Kerian .................... 26 Koch ...................... 30 Micro-Trak ............. 21 Milestone ............... 23 Montana Seed ....... 24 Omex ....................... 8 Oro-Agri ................. 34 PVMI ...................... 17 Rietveld.................. 19 Skone Irrigation ..... 28 SpudEquip.com ..... 25 Stukenholtz ............ 29 The Potato Podcast Sponsored by Miller Chemical ...... 17 Verbruggen ............ 31

A

Force in the

Field

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Bayer and Bayer Cross are registered trademarks of Bayer Group. ©2022 Bayer Group. All rights reserved.

Po t a t o Co u n t r y . c o m

Vol. 38 No. 4

PO Box 333 Roberts, Idaho 83444 Phone: (208) 520-6461

Contacts

Country Table of Contents

Western focus. National impact.

Dave Alexander ...........................dave@ColumbiaMediaGroup.com Publisher, Advertising

Denise Keller ..............................editor@ColumbiaMediaGroup.com Editor

Andy Jensen.......................................... www.nwpotatoresearch.com Insect Identification

Jeff Miller .....................................................jeff@millerresearch.com

May/June 2022

Disease Identification

Ben Eborn ........................................................ napmn@napmn.com Market Report

Dale Lathim ............................................................... dale@pgw.net

6 Maximizing Efficiency

Potato Growers of Washington

Brian Feist ...................................brian@ColumbiaMediaGroup.com

Terra Gold Farms

Operations Manager, Advertising

10 Piece Out

How to Buy Better Seed

14 Fresh Potato Merchandising Best Practices Potatoes USA

16 Harvest Essentials Buyers' Guide

20 Potato Growers Focus on the Future With 2022 Policy Agenda National Potato Council

EDITORIAL INFORMATION Potato Country is interested in newsworthy material related to potato production and marketing. Contributions from all segments of the industry are welcome. Submit news releases, new product submissions, stories and photos via email to: editor@ColumbiaMediaGroup.com.

ADVERTISING For information about advertising rates, mechanics, deadlines, copy submission, mailing, contract conditions and other information, call Dave Alexander at (208) 520-6461 or email dave@PotatoCountry.com.

SUBSCRIPTION INFORMATION U.S. $24 per year / Canada $40 per year / Foreign $80 per year Subscriptions can be entered online at www.potatocountry.com or call (503) 724-3581.

Email address changes/corrections to brian@ColumbiaMediaGroup.com or send to Potato Country, PO Box 333, Roberts, ID 83444.

Potato Country magazine (ISSN 0886-4780), is published eight times per year and mailed under a standard rate mailing permit at Idaho Falls, Idaho and at additional mailing offices.

It is produced by Columbia Media Group, PO Box 333, Roberts, ID 83444 Copyright 2022. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose without the express written permission of Columbia Media Group.

For information on reprints call (208) 520-6461.

22 Say No to Pink

Keeping Pink Rot Out of Potatoes

28 Production Costs, Food Inflation, Potato Prices

Editorial Board

Market Report

Gary Roth

Chris Voigt

Attendees of the National Potato Council’s 2022 Washington Summit gather outside the U.S. Capitol Building. Read about their policy priorities on page 18.

On The Cover Austin Ochoa with Terra Gold Farms in Othello, Wash., is utilizing technology to compensate for a lack of available manpower.

Read the story on page 4.

Executive Director

Executive Director

Washington State Potato Commission

Oregon Potato Commission

(509) 765-8845

(503) 239-4763

Departments 12 Disease Quiz 24 Insect Quiz 26 Calendar

Nina Zidack

Jamey Higham

Jim Ehrlich

Montana Seed Potato Certification

Idaho Potato Commission

Colorado Potato Administrative Committee

Director

President/CEO

President/CEO

30 In the News 30 Advertiser Index 32 PGW Column (406) 994-3150

(208) 334-2350

(719) 852-3322

Maximizing Efficiency at Terra Gold Farms Story and photos by Denise Keller, Editor

W

ith high input costs and a short labor supply, efficiency is more essential than ever for potato growers like Austin Ochoa. As chief operating officer at Terra Gold Farms in Othello, Washington, Ochoa is utilizing technology to compensate for the current lack of available manpower.

During the last two growing seasons, Ochoa has been unable to find the people needed to operate the family farm the way it needs to be run, he says. The potato industry is competing for workers with other industries in the Columbia Basin, where companies including Amazon, Reser’s and Darigold are growing. As a result, the farm is operating with 75 percent of a crew.

In spite of a smaller labor pool, the farm’s payroll continues to become larger. This year, the minimum wage in Washington state increased to $14.49 and agricultural workers became eligible for overtime wages. As the farm’s expenses are increasing, margins are getting slimmer. And while Ochoa wants to provide a living wage for members of his community, he also needs to run a profitable business.

“What all these extra expenses are coming down to are us finding new ways to grow and harvest a crop with the same number of people in a shorter amount of time or fewer people for the same amount of time,” Ochoa says. “That’s what we’re looking at. What can we do to still provide for these people but still make sure our business isn’t suffering?”

Constant Improvement

It has been a learning experience for Ochoa to hire key players who share his goals and vision for the farm. As a fifthgeneration farmer, Ochoa says the family strives to streamline operations each year and keep an open mind to trying new

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May/June 2022

Austin Ochoa, chief operating officer at Terra Gold Farms, also serves as a member of the Potatoes USA board and the Washington State Potato Commission’s research and outreach committee.

products or practices, with crop quality remaining the primary focus.

“We’re always trying to expand on our technology because we want to be able to utilize as much as we can. If we can’t, we might be creating extra work somewhere else where we could bring in some new technology to take away some extra tasks to allow people to be more productive elsewhere,” the grower explains.

In light of the recent shortage of labor, Ochoa has been working to make operations particularly efficient and to reduce labor expenses with new equipment. In 2021, the farm purchased new planters, windrowers and a harvester.

Utilizing two windrowers allowed crews to dig 60 percent more potatoes in each pass through the field. In addition, the new digger equipped with an airseparation table left more dirt, rocks and debris in the field instead of hauling it to the storage, saving transportation costs and requiring fewer employees to clean spuds going into storage. With the new equipment, the crew dug 4,000 tons of potatoes per day in 2021 compared to Extreme heat last summer resulted in quality issues including misshapen tubers.

Employees sort out debris as freshly harvested potatoes make their way into storage.

3,500 tons per day in previous years, and the investments reduced harvest time by 30 percent.

“I think the future of the potato industry is learning to be the most efficient you can be. And I think you’re always going to have to have quality in mind, especially with the exports we do out of Washington state,” Ochoa says.

“You have to have good quality, you have to be efficient, and you have to keep growing and raising a good quality product.”

Aside from harvest, Terra Gold Farms continuously evaluates its in-season processes and looks for opportunities to improve, from the use of soil sampling to telemetry on pivots, as well as variable rate fertilizer and chemical applications.

The farm also began using aerial imagery within the last few years to better monitor water stress and disease and weed pressure.

PotatoCountry.com

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Terra Gold Farms “I’m the type of person who likes to gather all the data and make an informed decision on all that data. So I think we’re able to make better decisions with all this technology,” Ochoa says. “We’re really saving costs and we’re able to have a better product by making those types of informed decisions.”

Family Farm

As Terra Gold Farms continues to embrace technology and expand, it remains a family-owned and operated business. Austin’s parents, AJ and Jodi Ochoa, own the farm, and his sister, Callie, works in the office.

Terra Gold Farms grows Russet Burbank, Clearwater Russet, Ranger Russet, Shepody and Alturas, mainly for processing, with approximately 20 percent of the crop grown for the fresh market. The farm also grows onions, corn, hay, grass seed, beans, peas and wheat.

Potatoes have been in the Ochoa family’s rotation for five generations.

Austin’s great-great grandfather moved from Mexico to farm in Sunnyside, Washington, and then in the Othello area.

AJ farmed with his father and brothers before he started Terra Gold Farms.

Austin grew up on the farm and returned to join the operation after college in 2017.

“I’ve been on the farm ever since I can

A new harvester follows a new windrower through a field at Terra Gold Farms, where an investment in new equipment reduced harvest time by 30 percent last year.

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remember. My dad packed me around in the pickup, taking me to meetings, digging fields, talking to anybody and everybody, so I’ve started from the bottom and worked my way up,” Ochoa recalls. “So I understand what it all takes to get a crop out of the ground, from weeding to the water, from the fertilizer to the chemicals, from planting to harvest.

I understand the whole operation, so that’s why I’m in the position I’m in now.”

In addition to his duties on the farm, Ochoa is beginning to take on leadership roles within the industry. After attending the Potato Industry Leadership Institute in 2020, he joined the Potatoes USA board and the Washington State Potato Commission’s research and outreach committee.

“The Potato Industry Leadership Institute opened my eyes to how much more of a difference you can make just by going out and talking to people and being an advocate for agriculture,” Ochoa says.

“I could go out and promote potatoes and promote what I do and try to get more people to understand what we do for the entire world.”

It’s an industry he is proud to promote and a livelihood he’s grateful to have.

“What I love about farming is waking up every morning and not knowing what challenge you’re going to be faced with.

It’s a different day every day, and you don’t know what’s going to happen,” Ochoa says. “I really enjoy working with the people I work with every day. I like seeing other people succeed and create better lives for themselves and their families. I love the fact that we farm this many acres and we can feed so many people off of what we do.”

Austin Ochoa watches as Clearwater Russets come off the truck.

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Piece Out

How to Buy Better Seed Story and photos by Dave Alexander, Publisher

M

iller Research’s annual potato pest management meeting resumed this February after a pandemic-break in 2021. Held in the historic Wilson Theatre in Rupert, Idaho, the meeting featured speakers Jeff Miller and Trent Taysom from Miller Research and Jonathan Whitworth from USDA. Whitworth, appearing remotely, gave a presentation on seed health to in-person and online attendees. He shared ideas on how to buy better seed, reported on new varieties being bred with disease resistance and spoke of the dangers of Potato virus Y (PVY).

PVY can be identified by mosaic leaves, meaning leaves turned green and yellow in a mosaic pattern.

“We know PVY causes yield loss and quality loss, but risk can be reduced by buying seed with low virus readings,” Whitworth said.

Tags vs. Certificates

Buying blue- or yellow-tagged seed does not guarantee a virus-free crop. Colored tags on seed lots do not indicate disease status. Tags are used to indicate size and grade, along with a few restrictions on appearance that can be caused by diseases.

Instead, growers should ask for inspection reports or plant health certificates to help inform their certified seed supplier decision. Certificates typically give summer field and winter

From right, Jeff Miller and Trent Taysom with Miller Research visit with growers.

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grow-out readings. The summer results tell about tuber-borne virus, but the winter readings tell about the currentseason spread of virus. Whitworth said, therefore, the winter inspection gives a better indication of virus level. Valuable information on plant health certificates is often in the “comments” section, which may list all the laboratory tests performed on the seed lot.

“It’s okay to ask multiple growers for plant health certificates when you are making your decisions,” Whitworth suggested.

See For Yourself

In their inspections, seed certification agencies make sure there is good

separation between lots in the field during summer inspections and also in storage during post-harvest inspections.

These inspections help to maintain identity of seed lots along with the in-field inspections in which inspectors are looking for disease and variety mix issues.

Whitworth recommended that commercial growers visit their seed growers. Many commercial growers use the same seed providers year in and year out. But if a grower is buying seed from a new supplier, it helps to see what their operation is like. Attention to detail on seed farms translates into what they supply.

As a final thought on seed choice, Whitworth recommended slowing down when making choices and making sure you have all the information available.

Kelly Trahant with Tessenderlo Kerley and Britt Beane with Corteva visit during a break in Rupert.

This poster displaying PVY symptoms in varieties is available by emailing Jonathan.Whitworth@usda.gov.

Miller’s Thoughts

Jeff Miller gave these recommendations on preventing seed piece decay: •Purchase seed with as little dry rot as possible.

•Plant uncut seed, if possible.

•Sterilize seed-cutting equipment.

•Sharpen seed-cutting knives.

•Ensure pre-cut seed is suberized properly or reduce time between cutting and planting.

•Use an effective seed treatment.

•Avoid planting into cold, wet soil.

The historic Wilson Theatre in Rupert, Idaho, hosts the Miller Research Potato Pest Management Meeting.

PotatoCountry.com

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Know Your Potato Diseases

Disease Identification Quiz Dr. Jeff Miller Dr. Jeff Miller, a plant pathologist, is the president and CEO of Miller Research, Rupert, Idaho.

He can be contacted by phone: (208) 531-5124; cell: (208) 431-4420; jeff@millerresearch.com

Fusarium dry rot is a disease of stored potatoes and also causes seed piece decay in the field.

Recent research by Christy Christian and Dr. Kasia Duellman at the University of Idaho has investigated which species of the fungus are responsible for causing dry rot in the Pacific Northwest. The species Fusarium sambucinum, F. oxysporum, F. redolens and F. culmorum were all found to cause dry rot to some degree.

This quiz shows symptoms of the four fungal species on both Russet Burbank and Umatilla Russet.

Can you determine which species is responsible for the dry rot in the photos below?

Photos courtesy Christy Christian, University of Idaho

Russet Burbank

Umatilla Russet

1

2

3

4 12

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Answers Page 26

One Lap Around.

Four Pests Go Down. n n n n

Colorado potato beetle Potato psyllid Worms (loopers, armyworms) Thrips

Insecticide applications may target a single pest, but other pests likely reside in your fields. With Delegate® WG insecticide, you can control multiple pests at once, including Colorado potato beetle, potato psyllid, worms (loopers, armyworms) and thrips.

As a member of the spinosyn class of chemistry (IRAC Group 5), Delegate WG controls pests like no other class of chemistry used in potatoes. Yet, Delegate has low impact on populations of key beneficial insects and will not lead to secondary pest outbreaks.

Visit us at corteva.us ™Trademarks of Corteva Agriscience and its affiliated companies.

Always read and follow label directions. ©2021 Corteva

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Potatoes USA

Fresh Potato Merchandising Best Practices

By Kayla Dome, Global Marketing Manager for Retail, Potatoes USA

D

id you know retailers with diverse potatoes sell more potatoes and get a higher everyday price for potatoes? Market research company IRI completed a merchandising best practices study, commissioned by Potatoes USA, to help grocery decision-makers across the country optimize their in-store displays for potatoes. The merchandising study revealed top grocery retailers’ key tactics to optimize their assortment, displays and promotions for continued sales growth post-2020.

Assortment

Having the right types of potatoes and pack sizes on the shelf is the building block for any robust potato set. Consumers commonly know russet, red, yellow and white potatoes. When someone buys one of these four types of potatoes, they already know what to do with them. Russet potatoes make up the

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largest share of potato volume sales and are the base of a potato category. Red, yellow and white potatoes are important categories to be on the shelf. Having these four as a base gives consumers what they are looking for and brings them into the potato category.

Petite, medley and purple potatoes drive trial and diversity for consumers and higher sales for retailers. Even though these make up a much smaller share, they are key for growth in any potato set.

As for pack sizes, the study identified recommendations based on the assortment of top-performing retailers.

About two-thirds of fresh potatoes should be made up of bags under 10 pounds, and only 8 percent should be 10-pound bags or greater. The bulk category should make up 24 percent.

Display

Fresh potato shelving comes in four different types: bins, cardboard boxes, vertical shelving and tables. Topperforming retailers are using various types of shelving and are creating unique and interesting potato displays for their consumers.

Signage for potatoes is also very important and consists of marketing and price signs. Marketing signs hang above the potato displays, marking the category and helping consumers easily find what they are looking for. The second type of sign is price tags. Consumers will not buy fresh potatoes if they do not know the cost, whether full price or discounted.

Utilizing both types of signage, with an even split, leads to growth for topperforming retailers. Too many price signs have the opposite effect on sales.

Promotions

Promotion means more than just discounting a product; it also entails highlighting potato types to attract more consumers. With 76 percent of consumers purchasing full-priced potatoes, promotional dollars can be used more strategically to add growth.

Top-performing retailers are using

their promotional discount dollars by highlighting lesser-known potatoes. For example, they are discounting a petite potato slightly, which is drawing in more consumers. When consumers come in for the growth drivers, they also pick up one commonly known potato: russet, red, yellow or white.

Thinking about the time of year consumers increase potato purchases also helps better plan discount dollars.

Top-performing retailers use discount dollars during months like July when potato sales are lower and highlight them in circulars during the holidays.

This reminds consumers about potatoes during the holidays and brings new sales when generally lower. Not only are topperforming retailers selling more potatoes by using promotions in this way, but they are also getting higher average everyday prices.

Incrementality

Incrementality refers to new fresh potato items in various pack sizes that add additional sales to an already highperforming category. The top 10 SKUs adding incremental value to the fresh potato category are all 5-pound bags or less, including petite, red, yellow and russet potatoes. Value-added items are also adding incremental value. Valueadded means potato SKUs that eliminate a step for the end consumer. They are either already seasoned, come in a container that can be cooked in, or do not require additional steps such as chopping.

This shows that consumers are looking for diversity with their potatoes and their dishes in home kitchens.

Variety and diversity are vital to being a top-performing potato grocery retailer.

Knowing how to set up a proper display of potatoes and how to promote them can add additional value to the end consumer and additional sales for retailers.

Find more insights in Potatoes USA’s Fresh Potato Merchandising Best Practices Guide at www.potatoretailer. com or reach out to retail@potatoesusa.com.

PotatoCountry.com

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Harvest Essentials Buyers' Guide Agri-Stor Company

www.agri-stor.com/crop-protection/ Disinfecting and Crop Protection

Agri-Stor Company’s storage disinfecting and crop protection solutions address seed, process and fresh market growers’ needs for superior product quality. Multiple modes of application are available, including cold and thermal fogging, AANE and misting.

Solutions include peracetic acid (PAA), chlorine dioxide and other effective options to protect storage and crops against various diseases and micro-organisms.

Disinfecting Services, Inc. www.disinfectingservices.net Harvest 6.0

Harvest 6.0 serves as a versatile sanitizer and disinfectant for potatoes going into storage or already in storage. The product is one of the strongest disinfectants labeled for potatoes on the market. Harvest 6.0 utilizes hydrogen peroxide and peracetic acid to protect against fungi, algae and bacteria. The combination of these two ingredients is effective and environmentally friendly.

Harvest 6.0 has proven to be an effective disinfectant on equipment and cleaning storage facilities.

Greentronics

www.greentronics.com RiteWeight In-line Conveyor Scale

Greentronics offers an easy and accurate method for tracking loads and weights by date, field, variety, temperature and cellar. New features added to Greentronics’ RiteWeight in-line conveyor scale are designed to automate harvest and storage data recording. Data are uploaded via an Android phone or tablet to the Greentronics cloud server for processing and reporting in near realtime. Maps and reports can be viewed, downloaded, shared or printed from anywhere. A range of reports detail how much crop is stored and where it was grown. 2-D maps show where crop is stored by date, field and variety. By including a crop temperature sensor with the scale, maps will provide a temperature profile for each cellar. Maps allow growers to easily complete traceability reports. Harvest and storage progress can be monitored remotely. Reports show inventory levels.

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Lockwood Manufacturing www.lockwoodmfg.com Windrowers

Lockwood Manufacturing knows harvest is all about timing. Make the most of field time with a Lockwood windrower. Operator-friendly controls and adaptable hydraulics mean users can maximize efficiency during harvest.

Lockwood’s 656 Windrower is constantly improving and has added new features recently. In 2021, the company added the option for tridischarge capabilities to the dual discharge model. New for 2022 is an optional vine chopper that can be added. Combine these new features with the patented single telescoping rear cross, larger tires for improved floatation and superior visibility to customize the 656 Windrower to meet the user’s needs and conditions.

Plus, stay tuned for the limited release of the new 774 Harvester coming in the fall of 2022.

PVMI is Seeking Applicants for its Executive Director

Sponsored by:

Listen on: ThePotatoPodcast.com

The successful applicant will oversee day to day operations including variety promotion, royalty collection, website maintenance, customer service and board coordination.

Financial management and accounting responsibilities are also among the Executive Director’s responsibilities.

Applications can be submitted from April 15 to May 15, 2022 Desired Start Date is Oct. 3, 2022 Application must include resume, cover letter and 3 references with contact details.

For a more detailed job description and required qualifications, see www.pvmi.org.

To apply: email Jeanne Debons at jeannedebons@msn.com PotatoCountry.com

17

Harvest Essentials Logan Farm Equipment

www.loganpotato.com/listing/load-pro Load Pro Truck Bed

Logan’s Load Pro Truck Bed is designed for years of excellent performance. With its 100-inch-wide body, providing the largest capacity from 20 to 30 feet in length, and its construction of standard carbon steel and complete stainless steel, the Logan Load Pro Truck Bed is capable of meeting all of a grower’s needs.

Main components such as the side door, non-door and main frame rails are one piece, providing strength and longevity. Important structural members are bolted into place, allowing twisting and torsion to happen without cracking.

The beds are feature rich and have unique advantages such as large 3-inch carry up rollers, heavy side support ribs spaced close together, upper rear hydraulic doors and turnbuckle ratchet take-ups. All Logan Equipment is sandblasted, primed and painted with a high gloss polyester paint that is very durable, providing years of attractive quality.

Mayo Manufacturing www.mayomfg.com Conveyors

Mayo provides high quality conveyors for all of a grower’s harvest needs. In addition to pilers and loaders, Mayo offers high-capacity single and telescoping conveyors, durable dirt and tare elevating conveyors, and unloading conveyors for belt and hopper trailers.

Rietveld Equipment

www.rietveldequipment.com Polisher

The Allround Polisher TD 350-18 has 18 rolls of brushes with an estimated capacity of 25 tons per hour. Three smaller models are also available. The polishers are available in stainless steel and feature a hydraulic lift for easy cleanout, variable speed control, a water recirculation system and water cleaning system. The machine also offers easy brush removal for changing the brushes, as well as several different types of brushes for each application.

Allround builds all of the machines required in a washing/grading line, and the machines are running in over 80 countries worldwide.

Rietveld Equipment offers free 2D and 3D drawings of full lines, or drawings of the available machines in users’ existing lines.

Parts and machines are in stock at the company’s Midwest facility, and service and support from certified technicians is available 24 hours a day, seven days a week.

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National Potato Council

Potato Growers Focus on the Future With 2022 Policy Agenda

By Kam Quarles, CEO, National Potato Council

D

uring this year’s Washington Summit, held Feb. 28-March 3, potato growers from across the country joined the National Potato Council (NPC) in Washington D.C. during a tumultuous time for our industry and our country. The impact of inflation on consumer goods and ag inputs, trade disputes with important industry partners, and the war in Ukraine were all on our minds as we sat down to set our policy agenda for 2022.

Even with this challenging backdrop, the group focused on a number of proactive policy goals that deliver longterm benefits for our potato farms and the families and communities they support.

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Easing Supply Chain Challenges The U.S. potato industry is dependent upon an efficient transportation system in moving product from the farm through the supply chain to the end consumer.

Unfortunately, current supply chain disruptions are creating severe shortages of vital inputs for potato production and inflating prices for those fortunate producers who can secure supply.

During the Summit, NPC identified several specific regulatory and legislative actions that could assist in relieving some of the current bottlenecks that are severely impacting producers, including removing burdens on truck drivers and easing the regulatory load of shippers.

The U.S. is suffering from a severe lack of qualified commercial truck drivers, which has a disproportionate impact on U.S. agriculture. Exacerbating

this problem are new Biden administration mandates that greatly increase the hourly burden on new drivers to obtain commercial driver’s licenses (CDL). In 2022, NPC will continue to urge the administration to reconsider the unintended consequences of these new regulatory mandates and seek to address safety through less obstructive means.

A related effort involves easing restrictions of truck drivers’ Hours-ofService (HOS) regulations, particularly during planting and harvest seasons. NPC is advocating for enhancing HOS rules to acknowledge the unique challenges for transporting perishable commodities and expanding the current 150-mile loading exemption to cover both loading and unloading activities. Truck drivers should not be penalized for encountering delays at loading points or congestion at

distribution warehouses or port facilities.

NPC believes that time spent idling in a marshalling yard should not count against HOS mandates.

U.S. potato growers are also pushing for Congress to pass the Ocean Shipping Reform Act (OSRA), which is intended to ease the supply chain bottleneck at the ports. The legislation is designed to reduce the burden on shippers who are suffering from supply chain disruptions impacting intermodal freight transiting through commercial seaports. Currently, shippers have to pay daily demurrage charges (or monetary penalties) for containers that are stuck in seaports through no fault of the shipper. This is costing thousands of unnecessary dollars and keeping valuable equipment idle, thereby driving up freight rates due to lowered supply. The NPC-backed OSRA would prohibit these types of burdens and utilize data to avoid future bottlenecks.

Addressing Workforce Challenges

The potato industry is acutely aware of the challenges faced by agriculture to find labor to plant and harvest crops. To address the crisis, last year the House of Representatives passed the NPCsupported bipartisan Farm Workforce Modernization Act – the second time it has passed the bill in consecutive sessions of Congress. NPC and our partners in the Agriculture Workforce Coalition are now encouraging the Senate to improve upon that bill and create the opportunity to secure a long-term fix to this crisis.

We believe these improvements should focus on providing U.S. agriculture access to a guest-worker program with the flexibility to meet the current and future demands of American agriculture that includes: (1) a predictable marketbased wage rate, (2) responsive visa terms and no “hard caps” on participation,

and (3) reducing the costs of program participation, among other priorities.

Additionally, the Senate should act to stabilize the current improperly documented workforce through a program that incentivizes foreign-born workers to remain in American agriculture. We believe these pieces must be in place before any additional enforcement measures can be implemented. Mandatory E-Verify (alone or with an “agriculture exemption”) would be extremely destructive to our industry and cannot move forward without an ag labor solution.

These are just a few of the policy priorities being supported by U.S. potato growers this year. To find out more about how the grower-led National Potato Council is fighting for policies that protect the long-term health of our industry, visit www.nationalpotatocouncil.org/advocacy.

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Say No to Pink Keeping Pink Rot Out of Potatoes

By Jeff Miller, Trent Taysom, Terry Miller, Cheryn Clayton and Scott Anderson; Miller Research Nora Olsen, Lynn Woodell and Rabecka Hendricks; University of Idaho

P

ink rot, caused by the oomycete pathogen Phytophthora erythroseptica, can cause significant problems in potato production. Pink rot is typically more severe with short rotations and the use of susceptible varieties such as Russet Norkotah and Clearwater Russet. The pink rot pathogen normally infects the potato roots and stolons and then grows into the tuber. Most infections in tubers will originate at the stem end (Fig. 1).

This is different from Pythium leak, another disease which can appear similar to pink rot, which usually develops through eyes, lenticels or damaged tissue (like pink eye) in the field (Fig. 1).

Pythium infection can occur during the growing season but is more common in storage when infections develop from wounds that occur at harvest.

against MR isolates. Phosphite fungicides are relatively weak and require high rates.

In some areas, phytotoxicity results from the use of these products. Oxathiapiprolin has shown high efficacy as an in-furrow application, but maximum residue limit (MRL) issues currently prevent its use on

potatoes destined for export. Cyazofamid and ethaboxam have been more inconsistent in performance compared to the first three fungicides on the list.

Phosphite fungicides are relatively weak with respect to the amount of active ingredient needed for disease control.

Table 1. Effect of irrigation frequency on fungicide performance for pink rot control. The same amount of water was applied in each treatment. All plots were treated with MetaStar 2E (metalaxyl).

Irrigation Frequency/Week Once (2.25 inches) Twice (1.125 x 2 inches) Three Times (0.75 x 3 inches)

% Pink Rot 12 a 8a 2b

Management Options

22

Potato Country

May/June 2022

Figure 1. The tuber on the left exhibits symptoms of pink rot. The pathogen has entered through the stolon end of the tuber. The infected tissue in cross-section has a creamy, off-white color with some dark tissue on the edge of the infected area. The tuber on the right shows symptoms of Pythium leak. The infection occurred on the side of the tuber. The infected tissue in cross-section is light to dark gray and is wetter and darker than pink rot.

80

a

a

70 60 % Tubers Infected

One of the most effective methods of managing pink rot is to avoid overwatering. The pink rot pathogen infects plant tissue through the production of spores that swim in water. Thus, the longer the soil is wet, the greater the chance for the pathogen to infect. Our research has shown that fungicides are not as effective when a crop is overwatered (Table 1).

Research in the Pacific Northwest has shown five classes of fungicides to have some degree of activity against pink rot: •Mefenoxam/metalaxyl (e.g., Ridomil Gold products) •Phosphite (phosphorous acid, phosphonates, e.g., Resist 57, Phostrol) •Oxathiapiprolin (e.g., Orondis Gold) •Cyazofamid (e.g., Ranman) •Ethaboxam (e.g., Elumin) Mefenoxam/metalaxyl products have a long history of efficacy against pink rot. However, isolates resistant to those fungicides (MR isolates) have been found in many areas. Phosphite-based fungicides have proven to be effective

a b

50 40

UTC 6 c

30

c

12

c b

20

b

24 b

10 0

2019

2020

Figure 2. Effect of interval phosphite fungicide application and irrigation on pink rot incidence Figure 2. Effect of between interval between phosphite fungicide application and irrigation on pink rot incidence

48

Multiple applications of relatively high rates are required for phosphite fungicides to control pink rot infections in potato roots and tubers. Currently, growers are advised to apply up to a total of 30 pints per acre in a season over three to six applications. This has been the most effective approach for varieties that are highly susceptible to pink rot such as Russet Norkotah. The fungicide is taken up by the plant and translocated to the tubers, where it provides protection against pathogen infection.

Field Trials

Field trials were conducted from 2019 to 2020 on Russet Norkotah to evaluate the effect of interval between phosphite fungicide application and irrigation.

Treatments included: •Untreated check (no fungicide) •48-hour interval between fungicide application and irrigation •24-hour interval •12-hour interval •6-hour interval Phosphite fungicide (Resist 57, Actagro; 10 pints/A) was applied when

the largest tubers were dime-size (about 15 mm in diameter) and again two more times using a two-week interval between sprays for three total applications.

Phosphite fungicide applications significantly reduced pink rot incidence at harvest if the application was made at least 12 hours prior to irrigation.

Fungicide applications made only six hours before irrigation offered some protection in 2019 but were not effective in 2020. Application intervals of 24 and 48 hours were no more effective than applications made at 12 hours preirrigation.

Other Considerations

Some consultants indicated that the relatively high temperatures experienced in 2021 in the Pacific Northwest caused growers to increase irrigation.

In some cases, portions of potato fields were irrigated less than 12 hours after phosphite application. This may have compromised the performance of the phosphite fungicides.

Some growers have used chemigation to apply phosphite fungicides, and

on-farm field trials have shown that chemigation can be effective.

Chemigation is typically done using the lowest water volume possible, usually close to 0.15 inches of water. The irrigation amounts after applications in these trials were between 0.57 and 0.76 inches of water. The low volume of water in the chemigation application may be low enough to allow phosphite to be taken up by the plant. Growers have reported that chemigating phosphites does not appear to be as effective as applying by airplane, however. More work needs to be done in this area.

When pulp temperatures are above 65 degrees Fahrenheit at harvest, pink rot development increases. Harvesting below 65 degrees will help reduce pink rot in storage. Additionally, post-harvest application of phosphite fungicides is effective in reducing disease development in storage that results from infected and healthy tubers coming in contact with each other.

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PotatoCountry.com

23

Insect Biology Quiz

This material is provided courtesy of Andy Jensen, Ph.D., Manager of the Northwest Potato Research Consortium. For more information, visit www.nwpotatoresearch.com.

Dr. Andy Jensen

Most potato fields are full of a wide variety of small winged insects. Some of these are serious plant-feeding pests, some are serious disease vectors, others rarely – if ever – cause damage, and some are either beneficial predators or incidental scavengers.

Here are photos of three insects that can be found in potato fields. Only one of them is a pest.

Questions: 1. Which photo represents a common pest insect, and what is it?

2. What are the other insects?

A

24

Potato Country

Answers Page 26

B

May/June 2022

C

Colorado Certified Potato Growers Association “Quality as High as our Mountains” RUSSET VARIETIES: Russet Norkotah S3 Russet Norkotah S8 Rocky Mountain Russet Silverton Russet Rio Grande Russet Canela Russet Mesa Russet Mercury Russet Fortress Russet Crimson King COLORED VARIETIES: Columbine Gold Colorado Rose Rio Colorado Red Luna Purple Majesty Masquerade Mountain Rose Vista Gold

CROSSOVERS/WINDROWERS 2019 DL 6540 High Capacity 4 row 2009 Spudnik 6140 RH HYD Shakers 1997 Double L 851 1982 Logan 2 row 2021 Allan 6 row rebuild RH 2015 Allan 6 row LH

HARVESTERS

2018 Double L 7340 High Capacity 2012 Spudnik 6640- See spudequip.com 2012 Lockwood 474H 2011 Double L 973 2010 Lockwood 784H 2009 Spudnik 6400 2010 Double 953 2009 Double L 953 2007 Double L 853 2005 Lockwood 474H 2000 Double L 873 2001 Spudnik 6400 1996 Double L 853 1996 Lockwood 4640 4 row 1997 Lockwood 4620 2 row Grimme SE 75-30 1 row, pintle belts cleaning W/ bunker

WATER DAMMERS

2004 Spudnik 9060 cultivator, bed shaper, props 1989 Ag Engineering 6 row Hydraulic reset shanks

2021 Double L 831 36” 53’ boom 480 volt 3ph, remote, 36mm BC 2003 Double L 813 30” x 49’ belted chain, dirt cross, 220 volt 1ph, remote 2000 Wemco 36” all belt, 480 3ph, Remote 1996 DL 831 36” BC Elev., 49’ Tel. Boom 3ph Remote 1993 Spudnik 550 36’’ 1ph belted Chain, Remote 1993 Spudnik 525 30” 3ph, remote, Belt Chain

S

Zapata Seed Company Worley Family Farms SLV Research Center San Acacio Seed Salazar Farms Rockey Farms, LLC Pro Seed Price Farms Certified Seed, LLC Palmgren Farms, LLC Martinez Farms La Rue Farms H&H Farms G&G Farms Bothell Seed Allied Potato Colorado Certified Potato Growers Association P. O. Box 267 Monte Vista, CO 81144 ColoradoCertifiedPotatoGrowers.com Lyla@ColoradoCertifiedPotatoGrowers.com (719) 274-5996

Lorem ipsum

PILERS (CONT.)

1992 Double L 831 36” x 49’ 3ph 230 volt remote, Electric VFD Drives 1987 Spudnik 550 30” Belt Chain, 230 V 3ph 1985 Spudnik 450 Piler 36” 3ph all belt Remote

SIZER ONLY

SCOOPERS

DIRT ELIMINATOR ONLY

1999 Mack 350 13spd, 2011 Logan 24’ Bed PTO 1981 AutoCar 350 Cum, 2012 Logan LP22 combo- See spudequip.com

BEDS

E D

STINGERS

C .

IP

U Q

1990 Spudnik 100 24” 3ph 1984 Spudnik 100 24” 1ph 1982 Spudnik 100 24” 3ph 1993 Double L 837 24” 3ph

2015 DL 832 Stinger 36” rollers & Belt chain 2014 Logan Trac Pro 10’ x 30” belt 3ph 2012 Spudnik 2200 10’ x 36” belt 3ph x 2 2002 Spudik 2200 30” Double L 36” x 12’ all belted chain 3ph Double L 832 BC 30” fingers 1984 Spudnik 2200 Belt 30” x 8’ 3ph x 2

CONVEYORS TELESCOPIC

1993 STI 30” x 75’ 3ph Tel. Conv.

Tri Steel 30/36 x 60 Tel 3ph 1989 Double L 810 Tel. conv. 30” x 50’ 3ph 1987 Double L 810 30” x 50’ 3ph

CONVEYORS STRAIGHT Double L 809 30” x 38’ 3ph Double L 808 30” x 25’ 3ph Spudnik 1200 30” x 40’ 3ph x 4 Spudnik 1200 30” x 30’ 3ph x2

1996 Spudnik 950 72” BC, rolls, peg belt, split picking 480 Volt 1991 Spudnik 900 Eliminator 60” 3ph 1987 Spudnik 60” belt hopper, fingers, BC table 3ph 1984 DL 806 44” BC with 2 stingers 3ph 1986 DL 824 36” BC with 1 stinger 1ph 1986 Spudnik 900 48” 220 V 1ph

ROCK/CLOD/AIR ELIMINATORS

2015 Lockwood Air Vac 8, 480 Volt 3ph 2013 Harriston 4240 Clod Hopper 3ph 2011 Harriston 3240 Clod Hopper 3ph peg belt blower & Ellis table 2004 Harriston 3240 Clod Hopper 3ph 1994 Harriston Model 200 Clod Hopper 1 ph

EVEN FLOWS

1998 Milestone 45cwt 1992 Milestone 150 cwt 3ph Reconditioned

2009 Spudnik 8080 Pull type cup, 36” rear steer 2008 Spudnik 8080 Pull type cup, 36” 2020 Checchi Magli 4 row used but like new 2013 Spudnik 8069 bed planter 9 units in 6 row pull 2012 Harriston 6 row cup,36”, pull, dry fert, Allan Press wheels 2005 Spudnik 8060 Cup 6 row 36” Semi Mount 2004 Spudnik 8060 Cup 6 row 36” Semi Mount

M O

DIRT ELIMINATOR WITH SIZER

1999 Double L 901 bed 22’ front/rear drive & combo 1998 Spudnik model 2100 24’ White PTO only 1984 Logan SB20’ electric

TRUCKS

PLANTERS

2011 Mayo 72” quick adj. 2 tables sizing, 1991 Spudnik 910 60” 3ph 480 volt 2002 Milestone 72” DES with 2 belt stingers 2002 Spudnik 72” DE belt elev., rolls, peg belt blower, sizer rolls, picking table 2011 Mayo 72” DE, Sizer 3ph 2010 Milestone MSDS 60” DE, Sizer, Clod drums 230 V 3ph 2000 Double 878 DE 78” 3ph flip down 72” sizer 1997 Double 807 Dirt Elim. 62” BC 3ph Stingers 72” Sizer 1994 Milestone 72” Dirt Elim. Sizer, 2 – 24” x 12’ stingers

U P

PILERS

Seed Growers:

SEED CUTTERS

1999 Milestone 48” 220 volt 1ph, Hyd adjust, elev. Drive, wheel drive 1991 Milestone 60” 220 Volt 1ph Field Ready 2000 Better Built 46520 60” 3ph

TREATERS

2008 Milestone 42” Duster 2002 Better Built 12” Duster See spudequip.com 1996 Milestone 36” Duster

PLANTER/TARE/PILER

New Logan 36” Tare Piler 3ph VFD Spudnik Seed tube Lockwood L24 1500 All belt Tare piler 3ph

MISC.

Unverferth 500 3point Caddy Like new cat 5 hitch 2020 Logan Barrel Washer for little potatoes Scooper belly dump unloader attachment Mayo Scooper belly dump unloader attachment Macro Plastics Model 1212 bins +80 44” x 46” Ace 5 bottom Hyd. Reset Plow

NOT COMPLETE LIST - CALL OR CHECK OUR NEW SITE

SPUDEQUIP.COM

BRUCE: (208)390-5120 | BRUCEN@TRISTEELMFG.COM • EVAN: (208)757-8481 | EVANN@TRISTEELMFG.COM • JOSH: (701)340-4554 | JOSHB@TRISTEELMFG.COM

PotatoCountry.com

25

Calendar June 12-14

Washington Potato and Onion Association Summer Convention Hotel Bellwether, Bellingham, Wash. www.wapotatoonion.com

June 14

Ag World Golf Classic

Canyon Lakes Golf Course, Kennewick, Wash. www.agworldgolf.com

June 22

OSU Potato Field Day

OSU HAREC, 2121 S. 1st St., Hermiston, Ore. Lora Sharkey, (541) 567-8321

June 23

WSU Potato Field Day

WSU Othello Research Unit, Othello, Wash.

Mark Pavek, (509) 335-6861 or mjpavek@wsu.edu

July 18-21

June 16

Ag World Golf Classic

The Links at Moses Pointe, Moses Lake, Wash. www.agworldgolf.com

Potato Association of America Annual Meeting Missoula, Mont. www.potatoassociation.org

June 16-17

National Potato Council Summer Meeting Nashville, Tenn. www.nationalpotatocouncil.org

Know Your Insects Answers (from page 24)

1. Photo B is the pest; it is a winged green peach aphid, which is a virus vector and capable of direct feeding damage when their populations grow beyond the control of predators, disease and/or insecticides.

2. Photo A is a male fungus gnat of the genus Pnyxia (family Sciaridae). Fungus gnats are common in many habitats from agricultural fields, to potato storages, to the living rooms of houses with many indoor plants. The larvae are scavengers, often found in potato tubers in the early stages of rot. Photo C is a moth fly (family Psychodidae). The larvae of this family are also scavengers. Moth flies are found in many habitats, but some of us are most familiar with them in conjunction with their alternative common name: drain flies. These flies are often found indoors near sinks and toilets where their larvae live in drain pipes.

Know Your Disease Answers (from page 12)

1.

2.

3.

4.

26

Potato Country

May/June 2022

Fusarium redolens Fusarium oxysporum Fusarium sambucinum Fusarium culmorum

PotatoCountry.com

27

Market Report

Production Costs, Food Inflation, G

rowers are busy planting the 2022 crop now. Planting decisions may have been more challenging this year than they have been in the past. Production costs are rising rapidly. Inflation is higher than it has been in 40 years. Crop prices have been extremely volatile. There is no shortage of uncertainty going into the 2022 crop year. In this article, we review some of this year’s challenges and opportunities: production costs, food inflation and potato prices for the 2022 marketing year.

Production Costs Continue to Climb

Food Inflation on the Rise

The average U.S. price of food jumped 7.9 percent during the year ending Feb. 28, 2022, according to the U.S. Bureau of Labor Statistics. That is the largest food inflation surge since 1981. During that same timeframe, “food away from home” and “food at home” prices increased by 6.8 percent and 8.6 percent, respectively.

Overall, food inflation has averaged 2 percent for the previous decade (20122021).

Food inflation projections for the next few years vary widely. The RussiaUkraine war has added a new level of uncertainty to the equation. Typically, one-fourth of the world’s wheat supply comes from the region. Though that wheat does not directly affect U.S. markets, as we have seen recently, it can have a large indirect impact on U.S. and global wheat prices. Higher wheat prices have a ripple effect throughout

the food industry. Rising production costs combined with the disruption in the world’s wheat supply are likely to translate into higher-than-normal food inflation, which could continue for the next several years.

Lessons Learned From the 2021 Marketing Year Figure 1 shows the marketing year fresh weighted average prices (FWA) for russet table potatoes in Idaho, the San Luis Valley, Wisconsin and the Columbia Basin over the past five years. The 2021 prices are preliminary through March 16, 2022 (press time). There are several interesting things to point out with prices for the 2021 crop.

First, Idaho and Columbia Basin prices have outpaced San Luis Valley and Wisconsin prices for the first time in modern history. Prices in the Pacific Northwest usually lag behind other areas, partially due to transportation costs.

However, prices for the 2021 crop have exceeded those from other areas despite

Russet - Marketing Year FWA Prices 2017 - 2021 Crops

$30.00 $28.00

ID

SLV

WI

CB

$26.00 $24.00 $ Per CWT

Nailing down production costs this spring has been like trying to buckle a 2-year-old child into a car seat. This year, the global crop input supply situation has been rattled by inflation and war. Growers have been struggling with rapidly rising production costs for the past two years.

Input costs for the 2021 crop increased by approximately 15 percent to 20 percent per acre. Though prices are constantly changing, early estimates indicate that input costs could jump another 18-22 percent or more for the 2022 crop.

Prices for fuel, fertilizer, chemicals and repairs have surged. Labor supplies are short, and growers have had to increase wages to keep employees. In addition, rising interest rates will contribute to the overall increases in costs. If 2022 crop yields return to trendline, that could increase total production costs by $0.60

to $2 per cwt. Break-even prices to the grower will take another big jump in 2022.

$23.12$23.29

$22.00 $20.00 $18.00

$23.01

$22.31

$20.14 $19.49 $18.96

$21.85 $20.78

$20.55

$17.42

$17.08

$16.00

$21.02

$19.20

$19.12

$17.67 $16.82

$21.70

$15.59

$15.33

$14.00 $12.00 $10.00

2017 2017

2018 2018

2019 2019

2020 2020

2021 2021P Preliminary

Figure 1. Marketing year fresh weighted average prices (FWA) for russet table potatoes in Idaho, the San Luis Valley, Wisconsin and the Columbia Basin over the past five years

28

Potato Country

May/June 2022

Potato Prices skyrocketing transportation costs this year. Strong frozen processing demand for open market russets combined with the region’s smallest potato crop in more than a decade have supported strong prices.

Second, prices for the 2021 crop appear to be meeting some resistance at the 2019 price level. Idaho and Columbia Basin shippers have been able to break through that resistance. Though movement from Idaho and the Columbia Basin has been slow this year, the region will likely have little to no carryover from the 2021 crop. Shippers in the San Luis Valley and Wisconsin held back on price increases for the first half of the season.

Their marketing year average prices could remain $1 to $2 per cwt below 2019 levels. Shippers will be challenged to increase prices above that resistance level in 2022.

Most importantly, the chart illustrates that pricing patterns can be broken. The 2017-2020 price patterns are very similar, though the price range varies from year to year. During that timeframe (and many years before), Idaho prices have been at the bottom, followed by the Columbia Basin. Wisconsin has always held the top spot, with the San Luis Valley not far behind. The typical pricing pattern may return for the 2022 marketing year, but it will need to shift upward if prices are to remain profitable for growers.

Will Potato Prices Keep Up?

Potatoes are a staple item in the American diet. Consumers have become accustomed to potatoes as a relatively inexpensive part of their food purchases.

Fresh shippers will likely face some resistance when it comes to increasing prices for the 2022 crop, especially if yields rebound and the industry is challenged to market a much larger crop. The industry will need to make a significant pricing shift upward for the 2022 crop. Nevertheless, if shippers are unable to increase potato prices with general food inflation and rising production costs, growers could receive prices well below breakeven.

By Ben Eborn, Publisher, North American Potato Market News

KEY POINTS

• Prices will need to increase significantly to cover rapidly rising production costs.

• A return to trendline yields could boost U.S. production for the 2022 crop by 5 percent to 8 percent.

• Holding prices above production costs could prove to be challenging.

Editor’s note: To contact Ben Eborn, or to subscribe to North American Potato Market News (published 48 times per year), write or call: P.O. Box 176, Paris, ID 83261; (208) 525-8397; or email napmn@napmn.com.

Agricultural Consulting & Testing • Soil Testing • Irrigation Scheduling • Feed Analysis • Contract Research • Tissue Testing • Pest Management

• Field Research • Grid Sampling • Variable Rate Fertilization • International Testing • Agronomic and CCA Seminars • Nematode Testing

Contact: Paul Stukenholtz, Consulting Agronomist

Crop Consultants: JP Kruckeberg • Bart Kunz • Cameron Brower Antone Christensen • Wess Gibson • Cody McCoy • Kevin Victor

www.stukenholtz.com 208-734-3050 • 800-759-3050

PO Box 353 • 2924 Addison Ave E. • Twin Falls, ID 83301 PotatoCountry.com

29

In the News

U of I Opens Seed Potato Germplasm Lab

The University of Idaho has opened a new seed potato germplasm laboratory.

The facility was built to address demand for disease-free plantlets and mini-tubers, which is greater than current capacity allows. Plans are to increase plant production by three times over the next five years. Increased cold storage capacity allows for greater production of current varieties to meet industry needs while supporting increased development of new varieties.

The $5.3 million lab was funded by the Idaho Potato Commission, Northwest Farm Credit Services, the state of Idaho and private donors.

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30

Potato Country

May/June 2022

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Study Compares Fries to Almonds

A research trial has found no shortterm statistically significant difference between calorie-matched French fries and almonds on key health metrics. Study participants added 300 calories to their daily diet by eating either one-third cup of almonds or a medium serving of French fries each day for a month. The study found that the French fries did not result in differential short-term weight gain or other biomarker changes associated with impaired blood sugar regulation compared to the almonds.

The Alliance for Potato Research and Education provided funding for the study but had no influence on the study or data analysis.

PEI Potato Shipments Resume

Canada resumed exporting Prince Edward Island (PEI) table stock potatoes into the U.S. in early April, following the end of a ban resulting from the discovery of potato wart in several PEI fields last fall. Shipments are subject to several mitigation measures, and the ban on seed potatoes from PEI continues.

The National Potato Council issued a statement in response to USDA’s announcement that trade of table stock potatoes could resume, noting that organization leaders are dismayed and calling the decision surprising and disappointing. The NPC urges the USDA to “enact science-based mitigation measures that will protect U.S. growers from this highly destructive disease.”

Need stacking power?

NPC Names 2022 Leaders

Jared Balcom was elected to serve as the 2022 National Potato Council (NPC) president during the organization’s Washington Summit.

Balcom is the owner of Balcom and Moe, a fourth-generation potato growing and fresh packing company in Pasco, Washington.

Balcom will lead the NPC Executive Committee, which will also include RJ Andrus, Idaho, first vice president and vice president, Legislative Affairs; Bob Mattive, Colorado, vice president, Environmental Affairs; Ted Tschirky, Washington, vice president, Trade Affairs; Ben Sklarczyk, Michigan, vice president, Finance; Dean Gibson, Idaho, vice president, Grower Outreach and Industry Research; and Dominic LaJoie, Maine, immediate past president.

Discover the ultimate potato stacking & palletizing solutions.

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PotatoCountry.com

31

Potato Growers of Washington

Clearing Up Contract Confusion

By Dale Lathim, Potato Growers of Washington

T

here has been a lot of talk and emotion surrounding the everescalating cost of production for the 2022 crop and the contract price. As this has been happening, there have been some misunderstandings and misinformation about Potato Growers of Washington (PGW), our focus and the profitability of potato contracts. For those who directly asked about some of these issues, we thank you, as it is always good to have checks and balances in place. By walking many growers through this process in one-on-one conversations and at the well-attended all-grower meeting we had, we hope many of you are feeling better about things going forward.

For those of you who have not heard the explanations and for those who may want additional perspective, I will try to address once again several of the concerns that have been expressed.

To make it very clear, we use weighted averages for all the Columbia Basin potato contracts we negotiate. All quality attributes such as size, specific gravity, color, etc. are done on a weighted average basis by potato variety and delivery type.

For instance, we calculate size to be used in the Russet Burbank grower storage contract valuation by weighing only the volume of Russet Burbank potatoes that exceed 6 ounces in weight over the past five crop years delivered on grower storage contracts.

The same is done for each attribute, variety and delivery type.

Here’s an example to demonstrate weighted average. If 10 growers grow 500 acres of potatoes with a yield of 30 tons/acre and one grower grows 5,000 acres of potatoes with a 42 ton/ acre yield, the straight average yield would be 31.09 tons/acre.

But on a weighted average basis, the average would be 36 tons/ acre or the total production from all 10,000 acres divided by the number of acres, not the number of growers.

Weighted average is the most equitable way to look at any aspect of a potato contract and is the method that has been used for at least the last 50 years in the Columbia Basin. We do this on profitability, as well. We want the weighted average profit margin to be as close as possible to our targets of 15 percent for out-of-field deliveries and 25 percent on grower storage.

We fully recognize that there will always be growers who are above and those who are below the weighted average. But there will always be half of the volume above and below, not necessarily half of the operations above and half below due to their differences in size.

Why so many have an issue with using weighted average for yields is very surprising to me. Since we use the same methodology for calculating quality attributes, why is there not as big an uproar over not everyone hitting the specific gravity number or the size profile we use in our contract valuation sheets? There are just as many operations that are either above or below those numbers as there are on yield, yet growers adjust 32

Potato Country

May/June 2022

those in their minds when they compare the contracts just like they should with the yields.

The push to divide the north basin into a separate bargaining region was done because the yields in the north are not as high as they are in the south. This is true and most likely will always be true. But yield is only one factor in determining the economic return on a potato contract. Quality can often be more valuable than yield, and individual cost of production is the third leg on the profitability stool.

Historically, the north basin storage potatoes have been higher quality than those in the south basin. That difference has become much less than in the past, but there is still a gap. On average, storage contracts in the north basin will pay in the neighborhood of $5-6/ton more than the same variety and delivery date in the south, while the overall average yield in the south for storage potatoes is about 5-6 tons/acre more than it is in the north. The added revenue from the higher quality makes up for some of the lesser yield, but the rest is made up in the third factor for profitability, the cost of production.

Cost of production is significantly higher in the south basin.

In talking with growers, processors and financial institutions, growers will typically spend $600-$800/acre more to grow, harvest, handle and store potatoes in the south basin than they do in the north. The higher costs come in to play with the longer growing season and additional pests which require more crop protectant applications. Larger yields mean more harvest, handling and hauling costs. And the most significant difference is the cost to get the water to the field. In the north basin, water costs are about $30-$60 per acre foot of water and power, while in the south, where they use more water, it is closer to $120/acre foot.

In our information gathering, we learned that while yields are lower in the north, the north also has the advantages of lower costs of production and higher quality. In the end, the return for each dollar invested to grow the potato crop returns a higher percentage in the north on the weighted average production of Russet Burbank storage potatoes, which is the highest volume contract type. Other varieties were closer to being equal. But the bottom line was that due to the lower cost and higher quality, all contracts were in line with our projections of hitting our targets for profit margin.

We fully understand there are several operations in the north basin that either don’t get the higher quality and/or don’t have the lower costs, resulting in profit margins well below our weighted average. But as a group, we must continue to focus on the weighted averages while each individual operation must focus on addressing the two legs of the profitability stool they can control: the quality they produce and the cost it takes to grow the potatoes.

Again, we appreciate the challenge brought forth to help us be certain that the direction we are going is the right one.

Nematode Protection + “Carbamate Kick” = Improved Yields

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Furthermore, Vydate C-LV offers the well-documented “carbamate kick,” characteristic of its class of chemistry. In the field, this often shows up as “green up” of plants, improved plant vigor/growth, reduced senescence and improved yields.

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