PEANUT MARKETING NEWS – February 23, 2015

PFMNBy: Tyron Spearman, Editor

J.M. SMUCKER’S TO ROLL OUT NEW PEANUT PRODUCTS – The J.M. Smucker Co. will roll out a wide variety of new products across categories and platforms under its Jif and Smucker’s in an effort to boost the iconic brands’ worth to $1 billion each,.        COO Vince Byrd said, “The new products will accelerate the growth of these well­ known brands by leveraging their equity and heritage and by meeting consumers’ evolving desire for convenience, variety and better-­for-­you nutrition.”

He said that the company will expand the Jif brand into two new, fast ­growing categories: bars and peanut powder. “With more than 70% of households purchasing snack bars, we are leveraging our protein rich Jif peanut butter to launch Jif bars to capitalize on the $5 billion and growing snack bar category,” Byrd said. “We are also excited to be the first national brand to enter the peanut powder category, which is a smaller category, but is growing quickly and is projected to move than double in the next three years,” he said. Peanut powder has potential as an alternative to soy and whey protein powders that can be difficult to digest or harder to mask with a flavor. Peanut generally tastes better and pairs well with chocolate, which explains the two flavors launching – regular and chocolate peanut. The powder also touts less fat than peanut butter.”

Marshall Lamb Addresses Mississippi Growers Marshall Lamb, Research leader at the USDA/ARS National Peanut Research Laboratory at Dawson, Ga. told Mississippi growers that because peanuts now offer the most attractive economic potential compared to other crops such as corn, soybeans, or cotton, he says, those who can grow the crop are likely to increase acres this year – and that could , “could result in a big carryover that could depress prices in 2016.”

“The reality is that the U.S. is oversupplied with peanuts right now, crops that would otherwise be competing for acres are all down in price. You would think with the kind of carryout we had in 2014 that we’d be looking at a reduction in peanut acreage this year, but instead I think we’ll see an increase. The big question is, how much increase?”

The peanut market, Lamb says, “is basically a roller coaster ride, with a history of ups and downs – good prices that spur acreage increases, followed by oversupply that results in lower prices and acreage cutbacks.”

“That scenario is going to be difficult to change, and growers are going to have to get accustomed to it and learn to manage it.” The current large carryover illustrates the seesaw picture of U.S. peanut production, he says. “In 2011, we had one of our shortest, poorest quality crops, largely due to drought in Texas and the Southeast, which resulted in only 380,000 farmer stock tons of carryout. The carryout number I like to see is about 500,000 farmer stock tons, which is what is needed to keep mills and shelling plants running in August, September, and October until new crop deliveries start coming in.” (Info by DELTA FARM PRESS)

DEADLINE IS FEBRUARY 27 – USDA reminds farmers that February 27, 2015 as the final date to update BASE AND YIELD and March 31, 2015 as the final date to select ARC or PLC GO BY THE FSA office if you have not UPDATED!

UPDATE PROCESS; 1) Retain current yields or update 2008-2012 (Average of years planted X 90%). Can substitute 75% of simple county average yield per planted acre if not available. OWNER makes decision on UPDATE, farmer certifies at County Office. Base Options means 1) retain current (2014) base acres or reallocate base acres (Cannot increase total) based on plantings of covered commodities 2009 through 2012.

Certified yields are subject to spot check and the OWNER will be responsible for providing the records to verify the accuracy of the yields. The OWNER also makes the update decision to reallocate or retain base acres. If NO DECISION, farm will retain 2014 base acres and yield. Remember, it will be Mid-April before a farmer can ENROLL for 2014 & 2015 in ARC or PLC.

TAKING CARE OF PEANUT CROP INSURANCE – The USDA’s Risk Management Agency (RMA) reminds farmers of the February 28 sales closing date for crop insurance in Georgia. This applies to crop insurance policies for corn, cotton, flue-cured tobacco, grain sorghum, peanuts, and soybeans. The sales closing date is the last day to buy a new policy or change an existing policy’s coverage level. Check with your RMA Agent.

Crop insurance provides protection against crop production losses due to natural perils such as drought, hail, and excessive moisture. Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator. Producers can use the RMA Cost Estimator to get a premium amount estimate of their insurance needs online.

INSURANCE SALES CLOSINGS OTHER STATES:

February 28 – AL, AR, FL, GA, LA, MS, SC, NC, TX       March 15 – NM, OK, TX, VA

In 2014, the Federal Crop Insurance Corporation reports 22,829 policies sold for peanuts, including 2,389 CAT(catastrophic)policies. The peanuts covered were 1,243,453 acres with total liability of over $698.2 million. Total premiums paid by farmers were $65.2 million with government subsidy of $38.2 million. Indemnity totaled $67.2 million or a loss ratio of 1.03.

DID YOU KNOW? Under the New Farm Bill, a total of 1,444,858 base acres are approved for peanuts. Net farm income is forecast to be $73.6 billion in 2015, down nearly 32 percent from 2014’s forecast of $108 billion. The 2015 forecast would be the lowest since 2009 and a drop of nearly 43 percent from the record high of $129 billion in 2013.