US Peanut Producers: A Multi-Economic Analysis of Their Competitive Position in the Domestic and Global Markets



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Southeast (GA, FL, AL)

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Several Excel spreadsheet programs were developed to aid peanut farmers in the transition and farming implementation plans in regards to the 2014 Farm Bill. The first Excel spreadsheet program aided peanut farmers in their decision process in regards to crop base re-allocation and yield updating as well as how generic base can be utilized. A presentation was made to the board of directors of the Southern Peanut Farmer Federation and to the Peanut Leadership. A second Excel spreadsheet program was developed to aid peanut farmers in their determination of potential payment limitation for their operation. A third Excel spreadsheet program was developed to aid peanut farmers in their determination of their contracted bases and their attributed bases (from generic acres) by farm serial number. A fourth Excel spreadsheet program aids peanut farmers in their determination of potential peanut PLC payments and how it compares to their total payment limit of $125,000 per entity plus the interaction of MLG was completed. This last Excel spreadsheet program was refined. This refined Excel spreadsheet program will aid peanut producers to realistically calculate their potential PLC payments by including producer shares and multiple Farm Serial Numbers as well as the type of farming operation. A producer will also be able to input alternative national seasonal average peanut prices (high, low and USDA estimate) to determine their potential PLC payments using their payment yields and bases by individual Farm Serial Numbers. While the first four Excel spreadsheet programs were distributed through the Georgia Peanut Commission's website, the last one will be distributed this Fall 2016. These spreadsheets were also distributed to the other peanut state peanut organizations so that the program could be distributed to their peanut growers. Results from the latter two Excel spreadsheet programs indicate a significant change in the maximum peanut base per entity from 2014 to 2015 and 2016. For the 2014 peanut crop and allowing peanut payment yield per acre to range from 1.75 tons/acre to 3.0 tons per acre, the maximum peanut base (traditional base + allocated generic base) would range from approximate 516 acres to 885 acres per entity. For the 2015 peanut crop, the maximum peanut base is estimated to range from approximately 322 acres to 552 acres. This implies that the maximum peanut base per entity for 2015 is approximately 38-44% less than the 2014 level. 

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