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USDA announces loan rates for 2014-crop peanuts
Story Date: 6/25/2014
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Source: USDA, 6/24/14
USDA’s Commodity Credit Corporation (CCC) today announced 2014-crop loan rates for four types of peanuts.
The 2014 Farm Bill established the national loan rate for peanuts at $355 per ton, which is unchanged from the previous farm bill. CCC calculated the price support levels for each peanut type using the same method as last year. CCC uses the national loan rate and five-year average quality factors, along with a three-year simple average weighted production. The rates take effect Aug. 1, 2014, the beginning of the peanut crop year. For an average grade ton of 2014-crop peanuts, loan levels by type are:
Runner-type peanuts $354.86 per ton
Spanish-type peanuts $333.91 per ton
Valencia-type peanuts $357.79 per ton
Virginia-type peanuts $357.79 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 (SS) to compute the basic loan value of the load. Discounts for other kernels (OK), damaged kernels (DK), foreign materials (FM) and loose shell kernels (LSK) may apply.
For each percent of SMK in a ton of peanuts, plus each percent of SS, the loan levels are:
Runner-type peanuts $4.819 per percent
Spanish-type peanuts $4.795 per percent
Valencia-type peanuts $5.346 per percent
Virginia-type peanuts $4.915 per percent
Additional peanut program information is available from Kathy Sayers at (202) 834-5879 or via email at kathysayers@wdc.usda.gov.
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