The Food Conservation and Energy Act of 2008 (2008 Act) provides loans for crop years 2008 through 2012 for peanut producers. Producers may apply for marketing assistance loans for farm- or warehouse-stored peanuts or for peanut loan deficiency payments (LDPs). These programs help to stabilize America’s peanut industry and ensure the well being of agriculture in the United States.
Peanut nonrecourse marketing assistance loans provide eligible producers with interim financing on their production and facilitate the orderly distribution of loan-eligible peanuts throughout the year. A nonrecourse loan allows a producer with eligible peanuts to store the production and pledge the peanuts as collateral instead of selling them immediately after harvest. The loan helps an eligible producer pay bills without having to sell the peanuts at a time of year when prices tend to be lowest. When market conditions may be more favorable, a producer may sell the peanuts and repay the loan with the proceeds of the sale. If a producer is unable to repay the loan, he or she can deliver to Commodity Credit Corporation (CCC) the quantity of peanuts pledged as collateral as full payment for the loan at maturity.
Nonrecourse MALs and LDPs are administered by the U.S. Department of Agriculture's (USDA) Farm Service Agency (FSA) on behalf of CCC.
See the fact sheet Nonrecourse Marketing Assistance Loans/Loan Deficiency Payments for additional information on MALs and LDPs.
To be eligible for a loan or LDP, the peanuts must:
- Have been produced and harvested by an eligible producer and be in storable condition;
- Be merchantable for feed, food or other uses as determined by CCC;
- Meet the specific commodity eligibility requirements for nonrecourse loans;
- Be one of the following types: Virginia, Runner, Spanish or Valencia;
- Not have been shelled or crushed;
- Be inspected and graded if warehouse-stored and;
- Be inspected and graded upon delivery if farm-stored.
For details on:
- Application Process Marketing Assistance Loan
- Electronic Warehouse Receipts
- Repayment Rates (National Posted Price)
- Application Deadline/Loan Availability Period
2014 Price Support Levels by Peanut Type
The loan levels by type for an average grade of 2014-crop peanuts per ton are:
- Runner-type peanuts -- $354.86
- Spanish-type peanuts - $333.91
- Valencia-type peanuts - $357.79
- Virginia-type peanuts --- $357.79
The method of computing the loan levels for 2014-crop peanuts and the grades within the types are the same as last year.