The U.S. Department of Agriculture Commodity Credit Corporation (CCC) today announced the marketing assistance loan rates for four types of peanuts for the 2015 crop year. The rates are posted on the Farm Service Agency (FSA) website at www.fsa.usda.gov/programs-and-services/price-support/commodity-loan-rates/index.
Marketing assistance loans provide interim financing to peanut producers so that commodities can be stored after harvest, when market prices are typically low, to be sold later, when price conditions are more favorable.
The 2014 Farm Bill established the national loan rate for peanuts at $355 per ton. The price support levels for each peanut type are determined using the national loan rate, five-year-average quality factors, and the three-year simple average weighted production. The rates take effect Aug. 1, 2015, which is the beginning of the peanut crop year. For an average grade ton of peanuts for the 2015 crop year, loan levels by type are:
Runner-type peanuts | $354.51 per ton |
Spanish-type peanuts | $337.34 per ton |
Valencia-type peanuts | $359.28 per ton |
Virginia-type peanuts | $359.28 per ton |
Marketing assistance loans for the 2015 peanut crop is available through Feb. 1, 2016.
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 and sound splits to compute the basic loan value of the load. Sound mature kernels 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 shelled kernels. Other quality discounts also may apply.
For each percent of sound mature kernels in a ton of peanuts, plus each percent of sound splits, the loan levels are:
Runner-type peanuts | $4.824 per percent |
Spanish-type peanuts | $4.800 per percent |
Valencia-type peanuts | $5.398 per percent |
Virginia-type peanuts | $4.921 per percent |
For additional information, contact your local FSA office. To find your local FSA office, visit http://offices.usda.gov.
Marketing assistance loans were continued by the 2014 Farm Bill. The Farm Bill builds on historic economic gains in rural America over the past six years, while achieving meaningful reform. Since enactment, the U.S. Department of Agriculture has made significant progress to implement each provision of this critical legislation, including providing disaster relief to farmers and ranchers; strengthening risk management tools; expanding access to rural credit; funding critical research; establishing innovative public-private conservation partnerships; developing new markets for rural-made products; and investing in infrastructure, housing and community facilities to help improve quality of life in rural America.
Source:usda.gov