A change in the regulation for the National Peanut Board assessment rate computation was published in the Federal Register June 14, 2018. The effective date for the new assessment rate is July 16, 2018, and will be applicable to the 2018 crop year.
The new rule changes the basis for assessment from value to volume (per ton). The new computation will be flat rates of $3.55 per ton for Segregation 1 farmers stock peanuts and $1.25 per ton for Segregation 2 and 3 farmers stock peanuts.
This action was unanimously recommended by the National Peanut Board in 2017 and will help facilitate program operations by providing a more predictable revenue stream for the board to carry out its mission. NPB’s mission is to improve the economic condition of U.S. peanut farmers and their families through compelling promotions and groundbreaking research.
This rule also updates the definition of “fiscal year” from the 12-month period beginning Aug. 1 of any year and ending July 31 of the following year to the 12-month period beginning Nov. 1 of any year and ending Oct. 31 of the following year. This proposed change reflects current industry practices.
Regarding the economic impact of changing the basis of assessment from value to volume per ton, the new assessment rates are comparable to the rates that have been in effect since the board’s inception. The assessment costs to producers are offset by the benefits derived from the operation of the program.
The National Peanut Board ’s programs have been successful in helping build demand and improving producer returns, according to a 2014 economic study showing an increase in demand by 15 percent from 2007-2013, as well as a return-on-investment of $8.87 for each dollar invested by producers in the Board’s activities.
For further information contact: Jeanette Palmer, marketing specialist, Promotion and Economics Division, Specialty Crops Program, AMS, USDA, at 202-720-9915 or via email at Jeanette.Palmer@ams.usda.gov.