Across the Southeast, peanut farmers are hoping for some rain this week as the peanut crop is suffering right now. Weather conditions have added stress to an already challenging season, but new support measures may offer some relief.
This week, the USDA announced the 2025 crop loan rates for the four types of peanuts. These rates will be effective August 1st and remain in place through the end of the crop year. Farmers can obtain a peanut loan through their local Farm Service Agency (FSA) county office or work with a Designated Marketing Association (DMA) or Cooperative Marketing Association (CMA).
The 2018 Farm Bill set the foundation for these rates, establishing a national loan rate of $355 per ton. This loan program, managed through the Commodity Credit Corporation (CCC), offers financial support based on peanut type and quality.
Here’s the breakdown:
- Runners will be supported at $353.90 per ton
- Spanish peanuts will have a loan rate of $345.47 per ton
- Valencia and Virginia-type peanuts will receive the highest support at $362.50 per ton
As noted, “The national loan level of course is $355 per ton. The runners will be $353.90. Spanish will be $345.47. Valencia and Virginia type peanuts will be $362.50.”
The CCC will apply premiums and discounts for quality factors when the peanuts are brought to the buying point. “They’ll compute the loan value and an additional and also the individual tons of peanuts.” This means that peanut farmers will have loan values tailored not only to type but also to the quality of their crop, offering flexibility in a volatile market.
With the loan rate now set, growers are preparing for the season ahead. “So they’re getting ready for the season this year. The loan rate has been set and farmers will be looking forward to utilizing that loan rate. It’ll have to be repaid before those peanuts go into the market.”
For peanut producers facing dry conditions and fluctuating market prices, this crop loan rate update offers a measure of financial planning and security.
Audio Reporting By Tyrone Spearman for Southeast AgNet. 2025 USDA Crop Loan Rates Announced
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