Reduction in Peanut Loan Value

There was an Urgent Notice released in the October 1 edition of Peanut Farm Market News.

” On October 1, 2013 all commodities, including peanuts, will have a 5.1% reduction in their respective marketing assistance loans. This reduction for peanuts will be approximately $18.11 per ton FSP on base grade. Instead of a $355 per ton FSP base grade marketing assistance loan, the new marketing assistance loan will be approximately $336.89 per ton FSP base grade. USDA is suspending all loan-making on October 1, 2013 and are target to resume loan-making in mid-October.”

What does this mean? The $355 per ton loan value we all talk about has been reduced to $336.89. Of course with the closure of FSA offices, paperwork will not be processed for peanuts placed in loan until further notice. The USDA webpage is down and offices are closed, so no additional information is available at this time.

Tyron Spearman has more information available on Southeast AgNET.

The Peanut Farm Market News went on to report, “Peanut buying points managers are reporting that all bookkeeping work is in a holding pattern.  One manager said, ‘We’re just grading peanuts and stacking up the paperwork.’ When the USDA programmers return after the shutdown, a computer program must be written and installed at 400 buying points.  That could take weeks.”

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