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Cause of Potato Scab. The cause of common potato scab is a bacterium, Streptomyces Scabies, found in the soil. It is most common on light, sandy soils, low in organic matter. Soils that were previously grassland are particularly liable to having the disease. Soils with a high pH (recently limed) provide a better environment for the bacteria.
All potatoes actually contain low levels of natural toxins called glycoalkaloids. The toxins are produced by the potato in response to stress, which is green potatoes, which have been exposed to UV light, can contain high levels. Potatoes that have a lot of bruising, sprouts or eyes, or that taste bitter may also have high levels of toxins. Green potatoes really can make you sick. Glycoalkaloids can cause severe stomachache and even death, in rare cases, and it's not destroyed by cooking.