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Peanut price increase too little too latePeanut price increase too little too late

Peanut posted price up $200 in two weeks.Increase is result of aflatoxin in the Southeast.Texas farmers switching to cotton.

Ron Smith 1

April 27, 2011

1 Min Read

Two significant price increases for peanuts in consecutive weeks will do little or nothing to encourage Texas peanut producers to add acreage.

“Even with $850 runners, Texas won’t see a significant increase due to the drought,” says Shelly Nutt, executive director, Texas Peanut Producers Board, Lubbock.

“And it’s too little too late,” she says. “Farmers have already gotten their budgets set with their lenders; cotton ground is being prepared for seed and, at this time, I doubt that half-a-dozen farmers will change their plans.”

She says recent USDA peanut planting estimates are off the mark, based on what she hears from growers and seed suppliers.

“USDA came out with an estimated acreage of 160,000 acres, which is ridiculous. Where in the world did they come up with that? We based our 2011 budget on 80,000 acres.”

The recent price jumps result partly from more of the 2010 peanut crop going to crush because of aflatoxin in the Southeast. “Supply is tight,” Nutt says.  “Manufacturers are finally realizing that if they don’t come to the plate with a fair contract, farmers will grow something else. Unfortunately, they’ve waited too late. And it hasn’t rained in over 5 months.”

National Posted Prices increased by $100 a ton the week of April 27. That followed a $100 per ton increase from the previous week. Posted prices include:

  • $849.54 per ton for Runner peanuts

  • $841.68 per ton for Spanish peanuts 

  • $853.06 per ton for Valencia peanuts

  • $853.06 per ton for Virginia peanuts

About the Author(s)

Ron Smith 1

Senior Content Director, Farm Press/Farm Progress

Ron Smith has spent more than 40 years covering Sunbelt agriculture. Ron began his career in agricultural journalism as an Experiment Station and Extension editor at Clemson University, where he earned a Masters Degree in English in 1975. He served as associate editor for Southeast Farm Press from 1978 through 1989. In 1990, Smith helped launch Southern Turf Management Magazine and served as editor. He also helped launch two other regional Turf and Landscape publications and launched and edited Florida Grove and Vegetable Management for the Farm Press Group. Within two years of launch, the turf magazines were well-respected, award-winning publications. Ron has received numerous awards for writing and photography in both agriculture and landscape journalism. He is past president of The Turf and Ornamental Communicators Association and was chosen as the first media representative to the University of Georgia College of Agriculture Advisory Board. He was named Communicator of the Year for the Metropolitan Atlanta Agricultural Communicators Association. More recently, he was awarded the Norman Borlaug Lifetime Achievement Award by the Texas Plant Protection Association. Smith also worked in public relations, specializing in media relations for agricultural companies. Ron lives with his wife Pat in Johnson City, Tenn. They have two grown children, Stacey and Nick, and three grandsons, Aaron, Hunter and Walker.

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