The average price for peanuts received by farmers is yet to be determined for the full year because we have it posted May, June, or July.
But after that, farmers are thinking about a PLC payment that will come, or price loss coverage payment, that will come after October the 1st. That’s the new peanut program payout if farmers do not make the average price of peanuts. The contract prices are so low, farmers and bankers are counting on that PLC payment to cover their costs and to make ends meet for this year.
The most recent projected PLC payment rate shows the average price of about 24 cents a pound. That’s $480. Well, if you get a $480 and then you add a PLC payment of about $150, then you’re around $560 or higher price and you’ll make a profit this year.
So they’re watching this PLC payment. PLC payments are not dependent on the planting of a covered crop. It’s based on the number of base acres that you have on your farm.
As a farmer, you get 85% of the farmer’s base acres will be figured in this program. The base peanut base is being increased and you need to go by your FSA office to check to see if yours have all covered and they’ll figure up in just a few minutes your base acres and you’ll be looking for a payment after October the 1st.
Audio Reporting by Tyron Spearman for Southeast AgNet.