PEANUT MARKETING NEWS – May 6, 2021 – Tyron Spearman, Editor (52)

NATIONAL POSTED PRICE SHELLED MKT PRICE MARKET LOAN WEEKLY PRICES
from USDA each Tuesday at 3 PM, USDA - 9 - Mo. loan Average prices
Good til Next day at 12:01 am EST. insp. = Inspected Marketing by type
Week- May 4, 2021 Date – 5-5, 2021 Farmer stock tons Date – 04-24-2021
$424.55 per ton/Runners Shelled Runners 2019-20 Crop 2020-21 Crop Runners - $.207- $414t
$415.57 per ton/Spanish 2020 Crop - $.53- $.55 lb. Date 5-6-2020 5-5-2021 Spanish – none
$428.74 per ton/Valencia 4-28-20 Jum$.85+ Med.$.85 Loans 2,340,990 2,435,355 Virginias - $.238 - $476t
$428.74 per ton/Virginia Blanched Whole - $.80 to $.90 Redeemed 1,115,824 1,308,948 Average - $.212 -$424 t
Same as last week 5-2-19 Jum $.46 Med, $.45 In Loan 1,225,166 1,126,407 Runners –117,965,000#
Splits $.44 Estimate 2,748,043 t 3,067,168 t Virginia –20,491,000#
4-23-2021 (2020 crop) Inspected 2,752,280 t 3,107,188 t Spanish – none
2020 Crop USDA Estimate (Final)- 1,616,000 acres harvested X 3,796 lbs. ac = 3,067,168 tons TOTAL –138,456,000#
2021 Peanut acreage Estimate – 1,625,500 acres, down 2% DOWN $0.4 ct/lb
2021 Farmer Stock Contracts – $500 per ton /$475 per ton, plus $25 per ton premium on seed and/or High Oleic (HO)
VC – Virginias – Some $500/$520 per ton, + $25 per ton for irrigated, Runners -$475 per ton + $25 for HO or irrigation.
Prices Received by Aug 2020 Sept 2020 Oct 2020 Nov 2020 Dec 2020 Jan.2021 Feb.2021 Mar. 2021 Projected PLC
Farmers (PLC $.205 $.205 $.209 $.212 $.204 $.205 $.205 $.212 Price
2019 Program) $410 ton $410 ton $418 ton $424 ton $408 ton $410 ton $410 ton $424 ton $420 per ton

PLC PROGRAM FOR PEANUTS - Price Loss Coverage (PLC) PLC program payments are issued when the effective price of a
covered commodity is less than the respective effective reference price for that commodity. The effective price equals the higher of
the national market year average price (MYA) or the national average loan rate for the covered commodity. The effective reference
price is the lesser of 115% of the reference price or an amount equal to the greater of the reference price or 85% of the average of
MYA prices from the 5 preceding years, excluding the highest and lowest price.
This new method of calculating the PLC payment rates will allow the effective reference price to be greater than the
statutory reference price if the historic average of MYA prices is greater than the statutory reference price. PLC payments are not
dependent upon the planting of a covered commodity or planting of the applicable base crop on the farm. PLC payments, if triggered,
will be paid on 85% of the farm’s base acres of each covered commodity with a PLC election where the farm has been enrolled.
Payment will be issued after the end of the marketing year of the covered commodity, but not before October 1 of the year following
the program year.
The March average price for peanuts was posted at $.212 or $424 per ton. This reflects the improved prices that farmers are
receiving for 2021 crop peanuts. The projected PLC price was also posted at $420 per ton. Reference price for peanuts is $535 ton.
AMS NEEDS RAW SHELLED PEANUTS - The Agricultural Marketing Service has issued Solicitation for the procurement raw
shelled peanuts (3,872,000 lbs). Please note bids are due Tuesday, May 11, 2021 by 9:00 a.m. Central Time. Questions regarding
this procurement should be directed to t: Cheryl A. Davis, cheryla.davis@usda.gov, (816) 926-3377.
COMMODITY SPECIFICATION-RAW SHELLED PEANUTS, From CURRENT CROP YEAR , RUNNER TYPE
PEANUTS 3. MEDIUM or JUMBO GRADE [American Peanut Shellers Grade Standards] http://www.peanut-
shellers.org/pdf/tradingrules.pdf 4. AFLATOXIN NOT TO EXCEED 15 PARTS PER BILLION (ppb).
FARMERS UPSET THAT THEY MAY LOSE THE FARM - President Joe Biden's speech to Congress last week laid out the
details of a tax plan to help pay for his infrastructure proposal and other domestic proposals.
Not mentioned in those plans are proposals to nearly double the tax rate for capital gains and eliminate stepped-up basis
beyond a $1 million exemption as well.
The plan would raise the capital gains rate from 20% to 39.6% for people who earn more than $1 million. IRS data from
2018 returns shows this would only affect about one-third of 1% of American taxpayers -- .32% -- who have adjusted gross income of
more than $1 million, as well as having capital gains or losses on their tax returns.
The plan also calls for raising the corporate tax rate from 21% to 28% as well. And in another proposal expected to come
from the president, he will pitch a plan to eliminate stepped-up basis when passing on property to heirs. Farmers with little equipment
could easily have $1million in assets. They fear the family would have to sell the farm to pay capital gain if the farmer dies.