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A Potato is a farmable food source, where in the uncooked state, it will replenish 0.5 hunger. Released in the 1.4 update, it is one of the five crops that grows in tilled farm-land. Potatoes have three states: Normal Potato, Baked Potato, and Poisonous Potato.
A fully grown Potato plant can drop up to five potatoes or a mixture of a poisonous potato and regular potatoes. Occasionally, potatoes have a small chance of being dropped by a Zombie, this is most likely due to the fact that potatoes are only found in villages otherwise.
Potatoes grow in the village farm and, rarely, they are dropped by zombies. Farmer villagers might give you an emerald for 35-40 potatoes. They can be cooked in the Furnace to make a Baked Potato.