Peanut Farmers Regain Loan Access as Harvest Progresses but Prices Lag
Last week was a significant one for U.S. peanut farmers, who finally regained access to their farm loan programs after weeks of disruption caused by the government shutdown. These loans are essential for farmers to secure financing for storage and operations. With access restored, peanut producers are filling up hoppers and warehouses as the 2025 harvest moves toward completion.
Industry analysts estimate that about 75% of the peanut crop has been harvested, graded, and placed into the loan program. While this marks progress for the peanut sector, producers now face a tougher economic reality: low commodity prices and rising input costs.
Rising Costs and Tight Margins
Peanut farmers report that per-farm production expenses have increased by roughly 40% since 2020, with fertilizer, fuel, and labor costs climbing steadily. Even as yields remain high, these elevated costs are cutting deeply into farm profitability.
The price of peanuts has not kept pace with the surge in expenses, creating what producers describe as a “cost squeeze.” Many have expressed concern that without additional federal assistance programs, maintaining production levels may become unsustainable.
Calls for Assistance and Market Expansion
In a collective appeal, peanut producers have asked President Trump and his administration to consider another agricultural assistance program to help offset financial pressures. Farmers are also urging the White House to use its international leverage to expand export markets, especially as some countries remain restricted by tariffs.
Producers noted that the budget for export promotions has doubled, but market access remains limited due to ongoing trade barriers. At the same time, they are encouraging continued efforts to boost domestic consumption and build new markets both at home and abroad.
Outlook for the Peanut Industry
With a larger crop expected this year and USDA operations just returning after a two-week pause, the exact production totals remain uncertain. However, analysts agree that increasing global and domestic demand will be key to stabilizing prices and supporting farm income.
For now, the peanut industry remains focused on getting the rest of the harvest in, securing financing, and pushing for stronger trade and market opportunities to ensure the sector remains profitable heading into 2026.
Audio Reporting by Tyron Spearman for Southeast AgNet.