Peanut Growers Get $49 Million in Assistance

December 21, 1999

Peanut farmers' share of market assistance funds to compensate for low prices is about $49 million. Farmers can sign up for the payments at local Farm Service Agency county offices from Dec. 22-Feb. 21.

Each year, USDA projects the amount of domestic edible peanuts that will be consumed. That is divided among farmers who have government authorized quotas, and quota peanuts are guaranteed a minimum support price. Farmers with quotas may lease them to other farmers; farmers without quotas may grow "additional" peanuts that are guaranteed a much lower minimum price support.

Farmers are eligible for the market assistance payments if they produced quota or additional peanuts during the 1999 crop year. The rate for calculating payments is 5% of the respective per-ton support rates for quota and additional peanuts or $30.50 per ton of quota peanuts and $8.75 per ton for additional peanuts.

The payment amount can be determined by multiplying the quantity of 1999-crop year peanuts produced or considered produced times the applicable payment rate.