Texas peanut farmers across the Southwest are hoping that higher yields and a boost in exports will help the market.
A global peanut surplus has caused prices to drop in recent years, according to Southwest Farm Press. Wheat, corn, cotton and other commodities are also faced with depressed markets. But a boost in export sales to China could help farmers see some profits.
“Basically, we’re now sitting with even stocks. There’s no surplus, but really we’re not too short either,” Shelly Nutt, executive director of the Texas Peanut Producers Board, told Southwest Farm Press. “In Texas, we’re seeing some late season contracts, especially on peanuts under irrigation that weren’t contracted in the spring.”
West Texas peanut farmer Michael Newhouse said a boost in prices is much needed.
“I love growing peanuts,” Newhouse told Southwest Farm Press. “But our contracts haven’t been very attractive. Runners could only be contracted for $400 per ton. Spanish brought about $450. We hope to see better prices next year with the reduction of some of the surplus.”
Growers are also hoping that higher yields will help offset some of the poor prices.
Newhouse credits a solid crop rotation to get the most out of the soil to achieve higher yields.
Many West Texas growers had to push back their planting schedule due to cool, wet conditions in the spring. But Newhouse was able to get his planter in the field on time. He said a good seed treatment plan helped him avoid disease issues.
Disease issues like leaf spot and pod rot problems forced some growers who didn’t apply fungicide to dig about two weeks early, according to Newhouse.
“Farmers who didn’t stay on top of the disease pressure with fungicide applications have or will lose yield. Some fields are scattered with black plants, especially in low lying areas where water sat,” Chuck Wilbur, an independent crop consultant in Wellington, told Southwest Farm Press.
Wilbur said that early peanut graded in the high 60s and low 70s and yields for many farmers are in the 4,000 to 5,000 pounds per acre.
“I’d like to encourage farmers to continue to manage their peanut crop with the highest level of diligence to maintain the reputation we’ve worked so hard to build,” Nutt said.