DepositPhotos image
Peanut buying points are reporting that peanut contracts are available for the new peanut crop.
Contracts for runner type peanuts now at $415 per ton. That is for the new crop that is about to be planted. Tonnage is not limited on that number.
The contract offers Virginia type peanuts up to $425 per ton. Some farmers need their contracts to secure funding from their local resource for underwriting their crop this year. Another contract for the farmers is a $400 per ton pool program, where you can place your runner type peanuts in a pool and all the farmers after that pool is sold will share in the profits, if there’s any available, and it will not go below the $400.
With the cost of production running about $500 per ton, farmers are going to have to jump over and sign up for the PLC program to receive some assistance from the new farm bill. They could receive, if average price is 24 cents or $480, farmers could receive $150 per ton from their price loss coverage from the government. That will give them about $565 total, and that may be enough to make a profit this year.
Audio Reporting by Tyron Spearman for Southeast AgNet.