The Commodity Credit Corporation (CCC) has announced 2011-crop loan rates for four types of peanuts.
The corporation calculated the price support levels for each peanut type using the same method as last year. CCC uses the national average loan rate of $355 per ton and five-year average quality factors, along with a three-year simple average weighted production.
The rates take effect Aug. 1, 2011, the beginning of the peanut crop year.
For an average grade ton of 2011-crop peanuts, loan levels by type are:
Runner-type peanuts — $354.52 per ton;
Spanish-type peanuts — $345.87 per ton;
Valencia-type peanuts — $358.26 per ton;
Virginia-type peanuts — $358.26 per ton.
CCC applies premiums and discounts for quality factors to compute the loan value for an individual ton of peanuts. The actual loan level depends on the percent of various sizes of kernels in each ton.
CCC uses the percentage of sound mature kernels (SMK) and sound splits (SS) to compute the basic loan value of the load.
SMKs are whole kernels that pass over the testing screen officially designated for each type of peanut.
Sound splits are whole kernels split into two pieces. Excess sound splits receive discounts.
There are discounts for other kernels (OK), damaged kernels (DK) and foreign materials (FM).
An additional discount occurs for loose shell kernels (LSK). Other quality discounts also may apply.
For each percent of SMK in a ton of peanuts, plus each percent of SS, the loan levels are:
Runner-type peanuts — $4.867 per percent;
Spanish-type peanuts — $4.843 per percent;
Valencia-type peanuts — $5.222 per percent;
Virginia-type peanuts — $4.964 per percent.
Additional peanut program information is available from Tonye Gross at (202) 720-4319 or via e-mail at firstname.lastname@example.org.