PRICE LOSS COVERAGE PAYMENT ANNOUNCED
The prices for peanuts paid to farmers were very low last year. Over 99.6% of the peanut farmers signed up for the Price Loss Coverage (PLC) program. USDA says that from August 31, 2016 through August 30, 2017, the average price of peanuts in the U.S. as paid to farmers was $.1970 per lb. or $394 per ton.
In the peanut law, the reference price is $535 per ton or $.2675 per lb. When the reference price is higher than the average price paid to farmers, the difference will be paid based on the tons of base allocated to that peanut farm, so $141 per ton. The farmers would take the $141 per ton times 85% of the base acres (includes generic base allocated to peanuts) on that farm serial number times the payment yield for that farm serial number. A payment of $141 per ton ($535-$394 per ton) will be made in October 2017 covering last year’s crop on 85% of the farm’s base. The PLC payment made in October 2016 for crop year 2015-16 was $149 per ton or $0.0745/lb
USDA PREDICTS RECORD CROP
Peanut production is forecast at a record high 7.78 billion pounds (3,890,600 tons), up 5% from August and up 37% from 2016. Acreage updates were made in several states based on a thorough review of all available data. Planted area, at 1.88 million acres, is up 3% from the June estimate and is 13% higher than the 2016 planted area. Harvested area is expected to total 1.83 million acres, up 3% from the August forecast and up 18% from 2016.
Based on conditions as of September 1, the average yield for the U.S. is forecast at 4,254 lbs. per acre, up 64 lbs. per acre from August and 579 lbs. per acre above 2016. The average U.S. yield will be the highest on record, if realized. The largest yield increases from last year are expected in Georgia and Texas. Record high yields are forecast in Alabama, Georgia, Mississippi and South Carolina. If realized, production in Georgia and South Carolina will be the highest on record.