07/27/06 Lost equity on spud farms

It has been a struggle for Idaho potato growers thanks to low returns for their crop. Selling potatoes for half what it costs to grow and harvest them has drained equity from Idaho farms. Six dollar costs and three dollar returns forced many family farms to take out second and third mortgages or sell off land and equipment. WRIGHT "Just a significant amount, three hundred million dollars worth of equity taken out of these farms and we recognize that its going to take two or three years of positive pricing to be able to restore that equity." Jerry Wright is the CEO of the United Potato Growers of Idaho, the group that successfully spearheaded the co-operative approach to growing and marketing the fresh crop. With Idaho leading the way, the 2005 spud acreage declined in the state and across much of the nation. As a result prices went up as a steady, but not overwhelming supply of potatoes hit the American market. WRIGHT "Our conservative estimates are that this crop this year got sold for 200 million dollars more than crops in the previous years." It was the first positive market the growers had seen since 2001. They have plans in place which United believes will lead to continued stability this year and profitable grower returns. Today's Idaho Ag News Bill Scott