Analysis of production costs for SE Peanut Producers


Board of Regents of the University System of Georgia on behalf of the University of Georgia Cooperative Extension Service and University of Georgia Research Foundation, Inc.

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Southeast (GA, FL, AL)

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Project titled Analysis of Production Costs for SE Peanut Producers is a project to conduct economic analyses for SPRI research projects that lend themselves to economic analysis and conduct research related to costs and returns and profitability of peanut production. 

During a low price market environment, farmers may be tempted to reduce rates of herbicides to control costs. A research project examining varying rates of the herbicide Cadre was conducted by Dr. Tim Grey, Dr. Scott Tubbs and Dr. Ted Webster in 2014. The first objective of this study is to determine how varying rates of Cadre would affect yield and tuber emergence. The second objective is to compare the economic returns of varying rates of Cadre. The methodology used to conduct the analysis was as follows: A) Use 2014 UGA peanut budget to estimate costs on per acre basis, adjusting the chemical cost to determine cost and returns. B) Use the National Loan Rate for peanuts as the price to estimate revenues. C) A base peanut grade of 73.5% SMK and sound splits was assumed. 

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