Also the operating costs to plant and grow these crops are considerably less which is important for producers with limited cash and credit availability. Price was assumed to not be affected because it is a commodity with a world market. All the factors that apply to wheat also apply to barley. In addition the potential for additional malt barley production was assumed not to exist. Barley competes as a feed grain in a world market therefore production increases in Idaho would not effect the price.
Potatoes require significant operating costs, larger than sugar beets, to produce.
Also production requires specialized equipment. As a result for this analysis it is assumed that only current potato producers would expand production. Many would be limited in expansion by cash flow, rotations and equipment limitations. Two scenarios are described. First with Idaho being part of a national market the price change resulting from supply increases affects all potatoes.