NewsBriefs News Briefs Loan Repayment Extension
Producers now have more time to repay marketing assistance loans as part of the U.S. Department of Agriculture’s implementation of the Coronavirus Aid, Relief, and Economic Security Act of 2020. The loans now mature at 12 months rather than nine, and this flexibility is available for most commodities. The extension applies to nonrecourse loans for crop years 2018, 2019 and 2020. Eligible loans must be in good standing with a maturity date of March 31, 2020, or later or new crop year (2019 or 2020) loans requested by Sept. 30, 2020. All new loans requested by the end of September will have a maturity date 12 months following the date of approval. Current, active loans will be automatically extended an additional three months. Loans that matured March 31, have already been extended by USDA’s Farm Service Agency. Loans requested after Sept. 30, 2020, will have a term of nine months. “Spring is the season when most producers have the biggest need for capital, and many may have or are considering putting commodities under loan. Extending the commodity loan maturity affords farmers more time to market their commodity and repay their loan at a later time,” says U.S. Secretary of Agriculture Sonny Perdue. “We are extremely pleased that USDA can offer these marketing flexibilities at this critical time for the agriculture industry and the nation.”
Peanut Economic Impact
According to USDA’s National Agricultural Statistics Service, the price of peanuts averaged 20.1 cents per pound or $402 per ton last season, 6.5% lower than 2018. The value of the 2019 peanut crop at farm level is $1.129 billion, a 3.5% decrease from 2018. Harvested peanut acres were down 1%. TWITTER: @PEANUTGROWER
The highest average price was paid in Texas at $584 per ton, followed by New Mexico at $564 per ton. The lowest average price was paid in Alabama at $370 per ton. Mississippi was next lowest at $372 per ton. Georgia came in at $384 per ton. About 47% of the revenue from peanuts was produced in Georgia, followed by Texas at 12.8% and Florida at 10.5%.
Aid For The Rural Economy The CARES Act was signed into law on March 27. The $2 trillion legislation represents phase three of relief intended to provide immediate assistance for the workforce and businesses of all sizes. In addition to direct payments to individuals, extended unemployment benefits and federal loan guarantees, the act provides a number of food- and agriculture-related benefits. It includes funding to ensure children and low-income families have continued access to nutritious, affordable food. It also ensures that farmers have the financial resources needed to offset the more immediate economic impacts of the virus. The USDA received $9.5 billion, approximately 19% of the total food and agriculture provisions, to provide financial support to farmers and ranchers impacted by the coronavirus. The funding is allocated specifically for specialty crops, producers who supply local food systems and farmers’ markets, restaurants and schools, livestock producers and dairy farmers. In addition, the Commodity Credit Corp. received $14 billion, 29% of the total funding amount for agriculture. The CCC bolsters commodity and income support programs, natural resources conservation programs, disaster assistance programs and the market facilitation program. The outlay is for fiscal year 2020, so that’s in addition to the second and third tranche of MFP payments, as well as Farm Bill payments
In Brief • CARES Act extends marketing loan maturity to 12 months, provides ag-related benefits. • Peanut crop worth $1.12 billion. • Aflatoxin task force expands focus, urges more support. • GPC funds 40 research projects. • Missouri ruled a primary producing state.
made last fall. This replenishment will allow USDA to develop new support programs to assist agricultural producers and potentially help agribusinesses such as ethanol plants. Direct food- and agriculture-related provisions in the CARES Act total approximately $49 billion. The act provides $24.6 billion for domestic food programs and $15.8 billion to improve access to supplemental nutrition programs in the event costs or participation exceed budget estimates. Of that total, $300 million is allocated for SNAP improvements in underserved areas such as Indian reservations or U.S. territories. Child nutrition programs received $8.8 billion in additional funding.
USDA Asked To Buy More PB
The Southern Peanut Farmers Federation, the American Peanut Shellers Association and the National Peanut Buying Points Association, under the heading of The U.S. Peanut Federation, recently requested that the USDA include peanut butter in the coronavirus relief funding being used for nutrition programs. In a letter to Secretary Perdue, the USPF wrote, “As USDA continues to work on providing further assistance, the peanut industry believes that peanut butter is a product that should be considered for those in need.” MAY 2020 • THE PEANUT GROWER /
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