| According to this final report, the 11 southeast peanut representative farms were updated to reflect 2005 cost and acreage allocation, and the updated farms were entered into the FLIPSIM computer for analysis. Nearly all the farms showed increases in production costs relative to the last update in 2003 under 2002 cost structures.
The farms reported average increases in variable cost per acre compared to the 2002 figures: irrigated peanuts—$85.76 or 23.15%; irrigated cotton—$97.65 or 23.86%; irrigated corn—$151.90, or 52.82%; non-irrigated peanuts—$66.79, or 23.06%; and non-irrigated cotton—$69.45, or 31.42%.
The average acreage in the farms’ row crop rotations also increased from the 2003 figures, from 1,299 acres to 1,592 acres, an increase of 23 percent. This should not imply that all SE peanut farms have experienced such growth, but that the average, representative farm has expanded; some areas report that smaller farms are selling out, with the land transitioning into non-production agriculture.
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