Tuesday, February 21, 2012

Quietly Waiting

Well once again the peanut shellers and manufacturers are in a gaming mode and think they will be able to pull the trigger the last minute and get plenty of peanuts planted.

What are the facts?

Seed quality is questionable at best to stinks. How well can we do with poor stands? Will we at some point test the resolve of the Tomato Spotted Wilt Virus?

Corn is a better use of irrigated acres for most farms because you can make more money and your risk ends with the August harvest.

Cotton is a better option on non-irrigated acres because there is revenue coverage which peanut farmers do not have from USDA's Risk Management Agency. Plus you can book cotton and at this point there is no contract at all for peanuts. Peanuts offer the greatest risk to a southern producer.

All the experts are taling about having to quiet consumption. It is sad to see the industry again setting itself up for contraction rather than expansion but that is the decision of the shellers and manufacturers at this point.

There is so much uncertainty now, I would never personally consider peanuts without a contract because the risk is too great. And, that is a contact on everything and not on some portion of the production on a farm.