June 9, 2022, WASHINGTON, D.C. – The U.S. Senate Agriculture Subcommittee on Commodities, Risk Management, and Trade, held a hearing June 9, 2022, on “Agricultural Trade: Priorities and Issues Facing America’s Farmers.” Representing the U.S. Peanut Federation, Karla Baker Thompson with JET Farms Georgia and Integrity Farms of Camilla, Georgia, presented testimony on the export market for peanuts and some of the issues the peanut industry is facing.

In Thompson’s testimony, she presented information on some of the major export markets. In Canada, the U.S. has witnessed an increase in the last few years, but it is still significantly off when compared to export numbers prior to 2013. In Japan, the U.S. has generally seen a flat trend line with significant market swings year after year. The U.S. has experienced a general upward trend in market share for Mexico. However, there are large swings in the Mexican market year after year. China is an unpredictable market for U.S. peanuts. While the China market made a large purchase of U.S. peanuts in 2016 and then again in 2020, there is clearly no consistency in U.S. peanut export sales to China.

Thompson highlighted the decline in peanut exports to the European Union (EU) for U.S. peanuts. While the EU market saw a significant increase over 2021 in the first 3 months of 2022, the overall trend line since 2003 has been downward. The U.S. market share decreased in the EU from approximately 40 percent in 2003 to 14 percent in 2021. Much of this market share loss has been to developing countries. The increase in U.S. market share in early 2022 is deceptive since the overall U.S. peanut exports to the EU have decreased drastically since 2003.

“A look at our major export markets shows some of the issues we are facing. Our best markets, and those with the most potential for growth, are the markets that pay premium prices,” Thompson says. “These markets provide prices that are profitable for exporters and have an impact on grower prices. Unfortunately, some of these best markets are not healthy.”

U.S. Senator Reverend Raphael Warnock, D-Georgia, Chairman of the Subcommittee, opened the hearing stating, “Today’s hearing, titled ‘Agricultural Trade: Priorities and Issues Facing America’s Farmers,’ is an opportunity for members of this Subcommittee to hear directly from our farmers regarding their trade challenges and priorities in today’s changing economy. Just last week, I spent time in Musella, Georgia, meeting with a group of farmers and agriculture leaders to discuss the stress our farmers are experiencing. The message I heard was clear – farming is always a tough job, but especially right now. Farmers in Georgia and throughout the country have been forced to navigate a tremendous amount of uncertainty over the last few years. Trade wars, COVID-19 supply chain disruptions, and Russia’s war in Ukraine have all sent shockwaves through global commodity markets.”

Chairman Warnock also commented on the peanut industry’s struggles with the EU, “Last year, I partnered with Senator Tuberville to highlight concerns to the U.S. Department of Agriculture (USDA) and the Office of the U.S. Trade Representative (USTR) raised by our peanut farmers in getting their products to market in Europe, and ways we need federal agencies to better coordinate and step up to help address this issue.”

In addition to Thompson, other individuals testifying include Gopi Munisamay, distinguished professor at the University of Georgia Department of Agricultural and Applied Economics, Sheryl Meshke, co-president and CEO of Associated Milk Producers Inc. and Neal Fisher, administrator of the North Dakota Wheat Commission.

The United States Peanut Federation (USPF) is comprised of the Southern Peanut Farmers Federation, the American Peanut Shellers Association, and the National Peanut Buying Points Association. USPF serves as a unified voice in Washington, D.C. for all sectors of the peanut industry and advocates actively for strong agricultural policy. For additional information, please contact the USPF at (202) 543-7464.

WASHINGTON, D.C. (March 17, 2022) — The United States Peanut Federation (USPF) combined advocacy with service during their Spring 2022 Washington D.C. Fly-in. The Georgia Peanut Commission in conjunction with USPF proudly partnered with Peanut Proud, the peanut industry’s humanitarian relief organization, to donate 10,080 jars of peanut butter to serve the Nation’s Capital and surrounding area. The delivery of this donation was made possible by SouthernAG Carriers who graciously donated their truck carrier service to transport the peanut butter.

The United States Peanut Federation (USPF) members were joined on site at the Capital Area Food Bank warehouse by U.S. Congressman Sanford Bishop of Georgia. Congressman Bishop is the Chairman of the U.S. House Appropriations Subcommittee on Agriculture, Rural Development, FDA, and Related Agencies and is a champion of the peanut industry. “Peanut butter is nutrition packed, versatile, inexpensive, easy to store and is a convenient source of protein and heart-healthy fats,” said Congressman Bishop. “It helps reduce insulin resistance and is a good source of fiber. On top of that, it’s good!”

“The peanut butter we’re donating can be used to make more than 141,000 sandwiches,” said USPF Chairman Joe Boddiford. “Peanut butter is one of the most requested food items at food banks due to its long shelf life. We are grateful to partner with Peanut Proud and the Capital Area Food Bank to ensure that those affected by food insecurity can have access to safe, nutritional food, and delicious peanut butter.”

Molly McGlinchy, Senior Director for Procurement and Direct Programs at the Capital Area Food Bank, expressed appreciation to the peanut industry representatives in attendance. “We are so thankful to be able to supply this to the children and families we serve.”  The food bank works to address hunger today and create brighter futures tomorrow for the half a million neighbors across the region experiencing food insecurity. As the anchor in the area’s hunger relief infrastructure, they provide over 45 million meals to people in need each year by supplying food to hundreds of nonprofit organizations. They also work in partnership with organizations across the region to address hunger’s root causes by pairing food with other critical services. For additional information, visit the Capital Area Food Bank website at www.capitalareafoodbank.org.

The United States Peanut Federation (USPF) is comprised of the Southern Peanut Farmers Federation, the American Peanut Shellers Association, and the National Peanut Buying Points Association. USPF serves as a unified voice in Washington D.C. for all sectors of the peanut industry and advocates actively for strong agricultural policy. For additional information, contact Bob Redding at (202) 543-7464 or by emailing rlredding@reddingfirm.com.
###

USDA Extends Disaster Set-Aside for Direct Loans Until 2022

WASHINGTON, Oct. 4, 2021 – The U.S. Department of Agriculture (USDA) is announcing a higher loan limit will be available for borrowers seeking a guaranteed farm loan starting Oct. 1, 2021, from $1.776 million to $1.825 million.

“Farm loans are critical for our customers’ annual operating and family living expenses, emergency needs, and cash flow,” FSA Administrator Zach Ducheneaux said. “Raising the guaranteed loan limit will allow FSA to better meet the financial needs of producers as natural disasters and the pandemic continue to impact their operations.”

FSA farm loans offer access to funding for a wide range of producer needs, from securing land to financing the purchase of equipment. Guaranteed loans are financed and serviced by commercial lenders. FSA provides up to a 95% guarantee against possible financial loss of principal and interest. Guaranteed loans can be used for both farm ownership and operating purposes.

In fiscal year 2021, FSA saw continued strong demand for guaranteed loans. FSA obligated more than $3.4 billion in guaranteed farm ownership and operating loans. This includes nearly $1.2 billion for beginning farmers. The number of guaranteed borrowers has grown by 10% to more than 38,750 farmers and ranchers over the last decade. FSA expects the increasing demand for farm loans to continue into fiscal year 2022.

Disaster Set-Aside Extension

USDA has additional support available to producers given the recent outbreaks of the COVID-19 Delta variant and has extended the availability of COVID-19 Disaster Set-Aside (DSA) for installments due through Jan. 31, 2022. In addition, FSA will permit a second DSA for COVID-19 and a second DSA for natural disasters for those who had an initial COVID-19 DSA. Requests for a COVID-19 DSA or a second DSA must be received no later than May 1, 2022.

Last year, FSA broadened the use of the DSA. Normally used in the wake of natural disasters, the DSA can now allow farmers with USDA farm loans who are affected by COVID-19 and determined to be eligible, to have their next payment set aside. The set-aside payment’s due date is moved to the final maturity date of the loan or extended up to twelve months in the case of an annual operating loan. Any principal set-aside will continue to accrue interest until it is repaid. This will improve the borrower’s cashflow in the current production cycle.

More Information

Producers can explore available options on all FSA loan options at fsa.usda.gov or by contacting their local USDA Service Center. Service Center staff continue to work with agricultural producers via phone, email and other digital tools. Because of the pandemic, some USDA Service Centers are open to limited visitors. Contact your Service Center to set up an in-person or phone appointment. Additionally, more information related to USDA’s response and relief for producers can be found at farmers.gov/coronavirus.

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.

WASHINGTON, July 30, 2021 – The U.S. Department of Agriculture today announced 2021 crop loan rates for four types of peanuts. The rates take effect August 1, 2021, the beginning of the peanut crop year.

Eligible producers can obtain peanut loans through their local Farm Service Agency (FSA) county offices or alternative delivery partners, such as Designated Marketing Associations (DMA) and Cooperative Marketing Associations (CMA). These loans provide producers with interim financing on their production and facilitate the orderly distribution of loan-eligible peanuts throughout the year.

The 2018 Farm Bill established the national loan rate for peanuts at $355 per ton. USDA’s Commodity Credit Corporation (CCC) calculated the price support levels for each peanut type using the same method as last year. The 2021 Crop Peanut Loan Rate was calculated using the national loan rate and five-year average quality factors, along with a three-year simple average weighted production.  For an average grade ton of 2021 crop peanuts, loan levels by type are:

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 (SMK) and sound splits to compute the basic loan value of the load. SMKs 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 shell kernels. Other quality discounts also may apply.

For each percent of SMK in a ton of peanuts, plus each percent of sound splits, the loan levels are:

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.