Checking on the peanut market this week. Good news for farmers. They do have something offered at buying points. Peanut buying points are reporting that peanut contracts are now available for the 26 peanut crop.
Contracts were started out on runners at $415 per ton. The tonnage is not limited. Contract offers for Virginia type peanuts was $425.
Some farmers of course need some backup for contracts before they can secure their funding for the farming this coming year. Another contract offered to farmers is a $400 per ton pool, again for runner type peanuts. This contract allows farmers to participate in the market, hoping that the market might improve during the year, depending on the weather, etc., and could get more in that pool than just the $400.
The prediction of the runner type peanuts was over, cost is over $500 a ton, excluding land. That according to the extension service, farmers will be having to sign up for the PLC program, which is the price loss coverage. They do expect with the present average about $150 added to the $415, which is about $565 per ton that they’ll receive next year. Maybe they can make it on that cost.
Audio Reporting by Tyron Spearman for Southeast AgNet.