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Farm Service Agency Public Affairs Staff 1400 Independence Ave SW Stop 0506, Room 3624-South Washington, D.C. 20250-0506
Release No. 1441.08
Kerry Humphrey (202) 720-9733
WASHINGTON, June 26, 2008 -- USDA's Commodity Credit Corporation (CCC) today announced 2008-crop loan rates for four types of peanuts.
CCC calculated the price support levels for each peanut type using the same method as last year. CCC uses the national average loan rate of $355.00 per ton and five-year average quality factors along with a three-year simple average weighted production. The rates take effect Aug. 1, 2008, the beginning of the peanut crop year.
CCC computes the 2008-crop peanut loan levels and grades based on the type, quality and location of this year's peanut crop. For an average-grade ton of 2008-crop peanuts, loan levels by type are:
Runner-type peanuts - $354.75 per ton Spanish-type peanuts - $348.95 per ton Valencia-type peanuts - $357.32 per ton Virginia-type peanuts - $357.32 per ton
CCC applies premiums and discounts for quality factors to compute the loan value for an individual ton of peanuts. The actual loan level depends on the percent of various sizes of kernels in each ton. CCC uses the percentage of sound mature kernels (SMK) and sound splits (SS) to compute the basic loan value of the load. SMKs are whole kernels that pass over the testing screen officially designated for each type of peanut. Sound splits are whole kernels split into two pieces. Excess sound splits receive discounts. There are discounts for other kernels (OK), damaged kernels (DK), and foreign materials (FM). An additional discount occurs for loose shell kernels (LSK). Other quality discounts may also apply.
For each percent of SMK, plus each percent of SS in a ton of peanuts, the loan levels are:
Runner-type peanuts - $4.842 per percent Spanish-type peanuts - 4.818 per percent Valencia-type peanuts - $5.219 per percent Virginia-type peanuts - $4.939 per percent
CCC uses these base levels to calculate discounts. Additional peanut program information is available from Tonye Gross, (202) 720-4319 or via email at tonye.gross@wdc.usda.gov.
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NOTE: FSA news releases are available online at: http://www.fsa.usda.gov.
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