Source: USDA, 7/9/20 U.S.
Department of Agriculture’s (USDA) Commodity Credit Corporation (CCC) today
announced 2020-crop loan rates for four types of peanuts. The rates take effect
August 1, 2020, the beginning of the peanut crop year. Eligible producers can obtain
peanut loans through their local Farm Service Agency (FSA) county offices or
alternative delivery partners, such as Designated Marketing Associations (DMA)
and Cooperative Marketing Associations (CMA). These loans provide producers
with interim financing on their production and facilitate the orderly
distribution of loan-eligible peanuts throughout the year. The 2018 Farm Bill
established the national loan rate for peanuts at $355 per ton. CCC calculated
the price support levels for each peanut type using the same method as last
year. The 2020-crop peanut loan rate for each type was calculated based on the
national loan rate, adjusted by five-year average quality factors and the
three-year simple average weighted production. For an average grade ton
of 2020-crop peanuts, loan levels by type are:
Runner-type
peanuts
|
$354.55
per ton
|
Spanish-type
peanuts
|
$345.57
per ton
|
Valencia-type
peanuts
|
$358.74
per ton
|
Virginia-type
peanuts
|
$358.74
per ton
|
CCC applies premiums and
discounts for quality factors to compute the loan value for an individual ton
of peanuts. The actual loan level depends on the percent of various sizes of
kernels in each ton. CCC uses the percentage of sound mature kernels (SMK) and
sound splits to compute the basic loan value of the load. SMKs are whole
kernels that pass over the testing screen officially designated for each type
of peanut. Sound splits are whole kernels split into two pieces. Excess sound
splits receive discounts. There are discounts for other kernels, damaged
kernels and foreign materials. An additional discount occurs for loose shell
kernels. Other quality discounts also may apply. For each percent of SMK in a
ton of peanuts, plus each percent of sound splits, the loan levels are:
Runner-type
peanuts
|
$4.812
per percent
|
Spanish-type
peanuts
|
$4.788
per percent
|
Valencia-type
peanuts
|
$5.371
per percent
|
Virginia-type
peanuts
|
$4.908
per percent
|
|