1. Continue the marketing loan program with the $355/ton loan rate for peanuts.
2. Continue the separate payment limit for peanuts.
3. Continue storage and handling payment for forfeited peanuts.
4. Make the PLC or ARC payment available for ALL active peanut producers based on a $535 reference price with a base update using crop years 2009-2012.
All of these provisions, except #4, are currently in law and are included in both versions of the 2018 Farm Bill, in House and Senate. The 2014 Bill converted cotton base to generic base and allowed it to qualify, if planted, for the $535 reference price and subsequent PLC payment. This provision in place for 4 growing seasons, with a very low cotton market, encouraged generic base holders to grow peanuts and distorted the market significantly. Our non-base growers,mostly young farmers who were encouraged by the 2002 Farm Bill to go into business, were then left out in the cold with no base and no government safety net once the generic base provisions kicked in. Many of them are now facing bankruptcy or liquidation as a result of 4 years of low prices, in large part caused by our government policy.
A simple fix would be a base update for the peanut producers:
4. To maintain stability in the marketplace, FPF supports a peanut program with a support payment (PLC or ARC) when the market price falls below the cost of production. FPF supports, for ALL active producers, a reference price of$535/ton with a base update using crop years 2009-2012.