USDA has announced price support levels by type for peanuts grown in 2003. The 2002 farm bill made significant changes in the peanut program and required a national average loan rate of $355 per ton for peanuts. USDA has established individual loan rates for four types of peanuts based on quality.
USDA's Commodity Credit Corporation has announced the average support levels by type, quality and location for the 2003 peanut crop.
The loan level by type for an average grade ton of 2003-crop peanuts is as follows:
- Runner-Type Peanuts: $355.98.
- Spanish-Type Peanuts: $338.67.
- Valencia-Type Peanuts: $353.27.
- Virginia-Type Peanuts: $353.27.
The method of computing the loan levels for 2003-crop peanuts and the grades within the types are the same as in 2002. For each percent of sound mature kernels (SMK) in a ton — including sound split kernels, the loan level is as follows:
- Runner-Type Peanuts: $4.869.
- Spanish-Type Peanuts: $4.845.
- Valencia-Type Peanuts: $5.136.
- Virginia-Type Peanuts: $4.966.
The premiums and discount schedules will be applied for applicable quality factors within a load of peanuts. The actual loan level for an individual lot of peanuts depends on the percent of the various sizes of the kernels in each ton of peanuts and other factors.
To compute the loan value, premiums and discounts are applied to the load based on quality factors. The factors used for calculations include the premium SMK or base (the greatest value of the load) that are discounted for sound split (SS), or whole kernels that are split into two pieces; other kernels (OK); damaged kernels (DK); and foreign materials (FM). An additional discount occurs for loose shell kernels (LSK).