I have had a lot of questions recently concerning possible peanut payments for the 2014 peanut crop. The Marketing Year Average (MYA) price for peanuts is calculated from August 1 – July 31 using National Agricultural Statistics Service (NASS) prices. That being said, we are about 75% of the way through the 2014 marketing year.
The Farm Service Agency (FSA) has a Projected 2014 PLC Coverage Payment Rate on their ARC/PLC website. The MYA price for peanuts from this source has the price at $430/ton for peanuts, which has not changed since November.
Another source to get the MYA price for peanuts is NASS’s Quick Stats database and it has the current MYA price at $426/ton. However, this average only includes August through December prices for peanuts.
NASS publishes weekly peanut prices in their Peanut Prices report (not to be confused with FSA Weekly Posted Price for peanuts). Looking at published weekly prices of peanuts since August 1, 2014 through last week brings the MYA of peanuts to $438/ton. The only peanut prices from this source that is not included for each week are those values not published due to individual buyer disclosure concerns.
Dr. Nathan Smith has put together a spreadsheet that includes the published peanut values for each week since August 2014. This spreadsheet will be fairly close to the value FSA will use to determine PLC peanut payments for 2014. The only values not included in spreadsheet are those that are not published.
Please go to Decision Aids and then click on Peanut Season Average Price (2015) to get the latest MYA price for peanuts. Remember that you must subtract the MYA from the Statutory Reference Price to get PLC Payment Rate.
$535 – $438.15 = $96.85
$96.85/ton is the current estimated PLC payment for peanuts. The final payment rate for 2014 will not be determined until after July 31, 2015. Payments for the 2014 production year will not be paid by FSA until October 2015.