I've done everything in the past from cutting them up several days before planting to literally cutting them while planting. They always seemed to grow fine no matter when I cut them. I've also heard that like @pingman39 above said, you have to have the eyes pointing up. Not really convinced of that, as my family has always planted with a homemade potato planter that gave you no control how the cut piece landed under ground. It was basically a hinged spade about 2" wide with a piece of stovepipe attached to it. You stepped it into the ground (3-4" deep), dropped in a piece of potato, and then pulled the handle back, opening the hinged portion and dropping the potato, then pull the planter out of the ground. Made planting fast.
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