Despite damage from Hurricane Helene and drought in the Southwest and other peanut producing areas, production looks to be up 11% over last year, with about 75% of the U.S. peanut crop harvested.

Richard Owen, president and CEO, American Peanut Council, recently fielded questions on key issues facing peanuts going into 2025.

He says the latest USDA estimate shows 75% of the 2024 crop has been harvested. Fall rain in the Carolinas and the Delta, kept farmers out of the field a little bit longer.

How does 2024 production look in light of seasonal challenges?

Owen: The most recent USDA crop report indicates 3.2 million farmer stock tons, about an 11% increase from last year. Overall yield is estimated at 3,700 pounds per acre, off about 50 pounds from 2025.

Peanut prices are expected to be strong in 2025. (Photo by Shelley E. Huguley)

Yields and acreage vary, depending on location in the peanut production areas. Overall acreage is up12% from last year.

Were some areas able to make up for those with lower yields?

Owen: I think that's it. Harvest is about to wrap up in most markets, and hurricane losses were less than expected.

Take Georgia, for example. Acreage is up this year. Although East Georgia certainly suffered impacts from Hurricane Helene, unlike cotton, peanuts grow close to the ground and were able to survive to harvest better than cotton.

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The most damage from the hurricane was to the infrastructure. Quite a few buying points were out of power for a while. It took a few days for all of them to get power back. Some buying points were damaged but it didn't take long before they were operating normally.

So, losses are less than expected?

Owen: Definitely. The storm went through Georgia and into South Carolina and caused terrible damage to North Carolina. But it looks like the peanut production areas of South Carolina escaped.

That must mean the U.S. supply is strong.

Owen: It is pretty good. Some shellers are still moving old crop peanuts but by this point, most of the old crop is moved out to make room for the new crop.

How about world supply, and what are competitors doing?

Owen: Argentina and Brazil should be planting in December, which is equivalent to our June. I haven't heard a crop report lately, but there seemed to be a good stand of peanuts started in Argentina, so we expect them to be back in the market when they harvest a closer-to-normal crop.

U.S. peanuts benefitted last year from a bad Argentina crop going into the European market. We picked up market share that way. However, we could anticipate Argentina being back in those markets in a normal way in 2025.

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Brazil production still strong?

Owen: Yes. Brazil did not have the weather problems last year that Argentina did and was able to sell more into Europe and some into the China market.

U.S. manufactures are well supplied?

Owen: Yes. From what I understand, they have an ample supply, and quality is good this year. I have not heard of quality issues other than a few pockets here and there. Overall, the 2024 crop is a good one.

Any thoughts on acreage for next year considering this good production year?

Owen: Peanuts look as good as anything else.

Peanut exports are strong. (Photo by Shelley E. Huguley)

Prices for peanuts are strong while cotton prices are weak. I expect, unless things change for next year, we will see good plantings of peanuts again. That is a ways off, so we wait and see.

What about export markets?

Owen: We focus primarily on the export markets at APC, and exports have been strong. We export on average about 25% of the U.S peanut crop. Mexico is still our number one market for exports. (Canada is 2, EU is 3, China is 4, and Japan is 5).

If proposed tariffs go into effect, will that affect those markets?

Owen: It will, depending on where the tariffs are put on. The European Union is our third-largest peanut export market. Some rumors indicate that tariffs would be levied on Europe at 10% to 20%, and 10% on China. That would hurt us, but the ones that would hurt the most are the number one and two markets. A 30% tariff levied on Mexico and Canada would hurt our ability to be competitive in those two markets. We will be watching closely and hope that it does not happen.

Related:Peanut production rises in Texas, U.S.

It is unfortunate because other countries often like to retaliate, and agriculture seems to be a prime target for retaliation. That is why we would be nervous about retaliation towards U.S agriculture, whether on soybeans, or corn, or cotton or even peanuts.