Source: USDA, 7/30/21
The U.S.
Department of Agriculture today announced 2021 crop loan rates for four types
of peanuts. The rates take effect August 1, 2021, 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. USDA’s Commodity Credit Corporation (CCC) calculated the price support levels for each peanut type using the same method as last year. The 2021 Crop Peanut Loan Rate was calculated using the national loan rate and five-year average quality factors, along with a three-year simple average weighted production. For an average grade ton of 2021 crop peanuts, loan levels by type are:
Runner-type peanuts
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$354.89 per ton
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Spanish-type peanuts
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$343.05 per ton
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Valencia-type
peanuts
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$357.70 per ton
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Virginia-type peanuts
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$357.70 per ton
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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
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$4.788 per percent
|
Valencia-type
peanuts
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$5.393 per percent
|
Virginia-type peanuts
|
$4.908 per percent
|
USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.
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