PEANUT MARKETING NEWS – May 29, 2020 – Tyron Spearman, Editor (66)

CROP INSURANCE CONTRACT PRICES - For crop insurance, states have many different planting deadlines. This is becoming
more important as rains have delayed planting. (Deadline list available upon request.)
If a grower has a contract, the crop can be insured at the contract-specified price up to 1.45 times the peanut type and
location-specific projected price for conventional production or 2.5 to 3.5 times the projected price for certain organic types.
The final insurable value would be based on the percent of the grower’s approved yield that has been contracted. This
option is available on all three individual-based plans of insurance: Yield Protection (YP), Revenue Protection (RP), and Revenue
Protection with Harvest Price Exclusion (RP-HPE)
The contract price cannot exceed 1.45 of the projected price. See Table. And the Sheller contracts have to be done by the
acreage reporting date (July 15) (except South Texas) for the AIP to except them. For Contract Maximums, see Table.
Type States Projected Maximum A reminder to growers, if you are
Price Contract Price finished planting, get with your
Runners AL, AR, FL, GA, LA, MS, NC, SC, TX (1), VA $397.80 $576.81 agent and report your acres and
Runners NM, OK, TX (2), VA $407.80 $591.31 not wait to the deadline. (7-15). If
Runners TX (3) $419.00 $607.55 a producer needs to replant, you
Spanish AL, AR, FL, GA, LA, MS, TX (1) $549.00 $796.05 must contact the agent and
Spanish TX (2) $557.20 $807.94 company before you destroy and
Spanish NM, OK, TX (3) $562.80 $816.06 replant the crop.
Valencia NM, OK, TX $473.20 $686.14
Virginia AL, FL, GA, MS, NC, SC $433.60 $628.72
Virginia NM, OK, TX, VA $473.20 $686.14
http://www.rma.usda.gov/tools/agent.html for the agents in your area. For info about crop insurance visit www.rma.usda.gov

PEANUT STOCKS AND PROCESSING REPORT– USDA’s Peanut Stocks and Processing Report was released May 27, 2020
for the month of April, 2020, the 9th month of the marketing year. The report shows shelled edible grade to date utilization is up
4% from last year.
Peanut stocks in commercial storage as of April 30, 2020 totaled 3.27 billion pounds equivalent farmer stock, compared to
3.49 billion pounds last year, DOWN 6.3%. This total includes 2.51 billion pounds of actual farmer stock, down 7.4% from
last year.
Shelled peanuts on hand farmer stock equivalent totaled 735 million pounds, DOWN 1.5% from last year. Roasted
stocks were 33.1 million pounds, down 25.5% from one year ago. Total shelled peanut stocks showed 552 million pounds of
which 523 million pounds were considered edible grades. Oil stocks totaled 28.9 million pounds, up 27.3% from same time
last year.
Edible stocks of shelled peanuts by type, Virginia & Valencia stocks are at 92.3 million pounds, up 7.3% from last year.
Runners were 380 million pounds, DOWN 5.9% and Spanish totaled 51.2 million lbs, UP 6.0%.
In April, shellers milled 406 million pounds, 3.8% less than same month last year.
Commercial processors used 199 million pounds of shelled edible peanuts, 4.2% more than last year.
Government purchases for Nutrition Programs in April totaled 1.173 million lbs of peanut butter, DOWN 330%
compared to same month last year. However, for the 9 months, government purchases are up 2.6% to 18.6 million lbs.

USE OF RAW SHELLED PEANUTS IN PRIMARY PRODUCTS

Month (1000 #) Peanut candy Snack peanuts Peanut butter Total edibles In-shell P'nuts
Aug 2019-Apr 2020 277,174 364,560 1,045,074 1,769,827 108,294
Aug 2018-Apr 2019 281,621 345,928 990,712 1,699,131 103,537
DOWN – 1.6% UP + 5.4% UP + 5.5% UP + 3.6% UP + 4.6%
Apr.20 vs Apr.19 DOWN – 7.7% UP + 9.2% UP + 12.0% UP + 4.6% UP + 16.0%
Use of raw shelled peanuts in primary products in April was led by peanut butter, up 12% for April vs April 19 and up 5.5%
for the year. The impact of the Coronavirus pandemic urging families to stay at home has many grocery stores asking for
more peanut butter. The pandemic is also encouraging more snacks, up 9.2% for the month and now up 5.4% for the year.
Should be another boost when the government purchases show up on the charts. Good news...up almost 4% for the year.