Understanding This Year’s USDA Peanut PLC Program Payments
Peanut farmers across the Southeast continue to navigate fluctuating markets, and one tool available to support them is the USDA’s Price Loss Coverage (PLC) program. Many growers may qualify for a payment this year based on how the market price of peanuts compared to the USDA reference price. As explained, “The peanut farmers may participate in one of the parts of the peanut program offered by USDA. It’s called the PLC program, the price loss coverage.”
The PLC program is designed to provide a financial safety net when market prices drop below a predetermined reference price. “What this means is if the price of peanuts is below the suggested reference price, then farmers may qualify for a” payment through the program. For the most recent marketing year, the average price of peanuts was lower than the reference price, making many producers eligible.
“This year, the average price of peanuts for last year was about $522 per ton. The reference price was $535.” That creates a difference of $13 per ton—“a comparison of $13 between those two numbers that farmers would qualify if they had signed up their base acres on the farm.” While $13 may seem small, the update emphasizes its importance: “It’s only $13, but every little bit helps when you’re farming under today’s regulations.”
For reference, last year’s average price was higher at “$538 per ton of peanuts,” meaning no PLC payment was triggered. But even with the $13 gap this year, producers won’t receive the full amount. The rules of the PLC program require adjustments that reduce the final payment.
As noted, “It is only payable to the farmer on 85% of the farm base, and they also take off a budget item of 5.5 is deducted for sequestration percentages.” These reductions apply automatically through the Farm Service Agency (FSA), the USDA branch that administers program enrollment and payments.
The final outcome: “Farmers will be receiving, if you had your farm, your base acres enrolled in the peanut program at the Farm Service Agency, you’ll be receiving less than $13. But that is the payment for this year.”
For peanut growers, understanding these calculations is essential for managing budgets and anticipating revenue. Even small PLC payments play a meaningful role in mitigating market volatility and supporting farm stability.
Audio Reporting by Tyron Spearman for Southeast AgNet.