Peanut grrower march 2017

The

PEANUTGROWER ONE GROWER PUBLISHING, LLC

MARCH 2017

THE PEANUT PRODUCER'S MARKETING & PRODUCTION MAGAZINE www.peanutgrower.com

Disease, Insect Management After A Warm Winter

2 0 17

MARKET OUTLOOK

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Seed Treatments & Inoculants

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The

MARCH 2017

PEANUTGROWER ONE GROWER PUBLISHING, LLC

MARCH 2017

THE PEANUT PRODUCER'S MARKETING & PRODUCTION MAGAZINE www.peanutgrower.com

Disease, Insect Management After A Warm Winter

Volume 29 • Number 3

2 0 17

MARKET OUTLOOK

Departments 4

Editor’s Note My, they do grow old quickly

6

Market Watch No excess in U.S. supply

8

News Briefs TPPB builds on successful tour

21 Peanut Pointers No response to starter N

Features

10 Peanut Proud Delivers

The industry rallies to aid those in need.

Stay Connected

12 One For The Books

Enjoy the current market position.

16 When In Drought, Don’t Forget To Scout

Insect populations fluctuate with temperature and moisture.

18 Will The Warm Winter Produce More Disease?

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Regrowth of winter host plants create a haven for pests.

20 Putting Robots To Work In The Field Population increase necessitates the use of robotics.

Cover photo by Amanda Huber.

MARCH 2 017 • THE PE ANUT GROWE R /

3

EDITORIAL/PRODUCTION Editor Amanda Huber ahuber@onegrower.com Copy Editor Carroll Smith csmith@onegrower.com Art Director Ashley Kumpe

ADMINISTRATION Publisher/Vice President Lia Guthrie (901) 497-3689 lguthrie@onegrower.com Associate Publisher Carroll Smith (901) 326-4443 Sales Manager Scott Emerson (386) 462-1532 semerson@onegrower.com Circulation Manager Charlie Beek (847) 559-7324 Production Manager Kathy Killingsworth (901) 767-4020 kkillingsworth@onegrower.com

For circulation changes or change of address, call (847) 559-7578

EDITORIAL ADVISORY BOARD John Beasley Extension Agronomist Auburn University Dell Cotton Peanut Growers Cooperative Marketing Assn., Franklin, VA Kris Balkcom Agri-Program Associate Auburn University Craig Kvien Coastal Plain Experiment Station,Tifton, GA

Jason Woodward Extension Plant Pathologist Texas A & M University David Jordan Extension Agronomist North Carolina State University Glen Harris Extension Agronomist University of Georgia Jason Ferrell Extension Weed Specialist University of Florida

ONE GROWER PUBLISHING, LLC Mike Lamensdorf President/Treasurer Lia Guthrie Publisher/Vice President The Peanut Grower (ISSN 1042-9379) is an agribusiness magazine for U.S. peanut producers. Published in eight monthly issues, January through July and November. Annual subscriptions are $40.00. Single Copy price is $5.00. Annual overseas subscriptions are $70.00, including Canada/Mexico.

Periodicals postage paid at Memphis, TN. Copyright © 2017 One Grower Publishing, LLC, all rights reserved except where otherwise noted. The Peanut Grower ® is a registered trademark, which reserves all rights granted by the U.S. Patent and Trademark Office in association with the registration. POSTMASTER: SEND ADDRESS CHANGES TO OMEDA COMMUNICATIONS, CUSTOMER SERVICE DEPARTMENT, P.O. BOX 1388, NORTHBROOK, IL 600651388. All statements, including product claims, are those of the person or organization making the statement or claim.

The publisher does not adopt any such statement or claim as its own, and any such statement or claim does not necessarily reflect the opinion of the publisher. Printed in the USA.

Another Year Older

M

y, they do grow old quickly.

Am I talking about children? No, although it fits them as well. I’m talking about varieties. In the Peanut Pointer column on page 21, Kris Balkcom, agri-program associate with Auburn University, makes the point that Georgia-06G is more than 10 year’s old.

More than a decade old? It seems like just yesterday Georgia Green covered every acre. Now, a quick look at the Georgia Crop Improvement Amanda Huber Association’s acreage planted in 2016 Editor, The Peanut Grower to produce Foundation, Registered and Certified Seed for 2017 show that 91 percent of the acreage went into Georgia-06G. Balkcom’s concern is that incidence of TSWV has increased in the last couple years, and producers need to spread the risk with additional variety options.

Pathogens adapt and change over time. We all know this. In talking with Barry Tillman, University of Florida peanut breeder, he says that it is possible for pathogens to adapt to a new variety over time, but another explanation includes the environment in which peanuts are grown–and that’s not just weather, but soil types and other factors as well.

In other words, it could be that the environment for spotted wilt is improving so producers are seeing more of it in the field. The bottom line is that TSWV has not gone away and it is best to maintain vigilance against the disease with variety choice, twin rows, mid-May planting, phorate, and good plant stands, all of those practices that will keep fields in a low- to medium-risk category based on Peanut Rx. It’s never a good idea to put all your eggs in one basket and that means it’s probably time to see what one of the newer varieties can do on your farm.

One Grower Publishing, LLC, also publishes Cotton Farming, Rice Farming, Soybean South and Corn South.

One Grower Publishing, LLC 6515 Goodman Rd., Box 360, Olive Branch, MS 38654 Phone: 901-767-4020

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THE PE ANUT GROWE R • MARCH 2 017

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No Excess In U.S. Supply, But Watch Other Origins

T

he final numbers are almost in on U.S. peanut production from 2016. USDA predicted 2,842,305 farmer-stock tons, while the Federal Crop Inspection Service has counted 2,770,299 tons. The numbers are short of the October prediction of 3,155,100 tons.

Lack of rain the last 90 days of the growing season caused both quality and quantity issues. The new numbers are down 9 percent from the November forecast and down 5 percent from 2015.

Harvested area is estimated at 1.55 million acres, down 1 percent from last year. The average yield is estimated at 3,675 pounds per acre and was down 170 pounds from 2015.

The USA is sold on 2016 crop through and until new crop availability next fall. It is important to note that many U.S. suppliers had presold volume into European Union destinations and producing/shipping the required quality has and will be problematic through the year. That means re-milling some stocks to meet quality standards.

Unlike last year, it appears that there is no excess supply in the market that could be sold into the Chinese market for crush. Only low volumes of goods have been sold in comparison to last year, but the Chinese continue to look for crushing material.

Oil Crops Outlook The estimated domestic consumption plus seed for planting next year puts the bar at approximately 2.1 million tons.

The estimation of exports for the U.S. crop beginning in August/September is about 750,000 tons. With a production of 2.84 million tons and a demand of 2.85 million tons, there is definitely no surplus of peanuts. The good news is

6 /

THE PE ANUT GROWE R • MARCH 2 017

J. Tyron Spearman

Contributing Editor, The Peanut Grower

Leading Marketing Indicators (As of Feb. 6, 2017) 2016 Acreage (USDA) up 2% .......................................... 1,547,000 acres 2016 Est. Production (3,675 lbs/A) .................................... 2,842,500 tons 2016 FSIS Inspections (1-31-17) ........................................... 2,757,728 tons 2016 Market Loan (02-1-17) ............................................... 2,266,239 tons 2016 Market Loan Redemptions ......................................... 540,619 tons 2016-17 Domestic Usage (5 Mo.) ............................................. Up + 1.5 % 2016-17 Exports (4 Mo.) ............................................................. Up + 4.5 % NATIONAL POSTED PRICE (per ton) Runners - $424.51, Spanish - $407.34, Valencia and Virginias - $429.28

that USDA has the carry-forward estimated at about 840,000 tons and most analysts agree with this figure.

Shellers will be shelling any and all farmer stock to produce any edibles that can be used for marketing; goods not suitable for the edible market, such as those with higher aflatoxin, have been moving to both China and Mexico destinations for other uses.

Usage Numbers In the U.S. market, December was not a good month for peanut usage.

Compared to the same time last year, usage was down 7.2 percent, but for the five months of the new marketing year, peanut usage in the U.S. remains up 1.5 percent. USDA predicted it would be up 1.9 percent for the year. Peanut candy usage was strong in December, up 24.7 percent keeping the year usage up 12.9 percent. Snacks with peanuts were down 25.5 percent versus December last year and is now down 8.5 percent for the five-month period. Peanut butter reports down 6.3 percent in December, but up 3.3 percent for the year.

Aggressive Contracting In preparation for the new season, shellers have aggressively contracted new crop farmer stock with farmers from $450 up to $500 per ton, with high-oleic varieties earning a $50 per-ton premium.

Brokers estimate that about 65 to 75 percent or more of the crop is already contracted for 2017. Some producers were offered premiums for irrigation and seed production and some required deductions to cover transportation costs to the shelling plant.

Going forward, farmers will plant when the soil reaches the required temperature and shellers will be hoping for a good growing season. They would also like the ability to contract the remaining crop at decreased levels, while farmers will hope for increased contracts later.

Increased Acreage Based on the early contracting levels, it is estimated that an increase in acreage will be approximately 5 to 7 percent, with some estimates at 10 percent or more. Cotton, needed for rotation and also competition for peanut acres, has PE ANUTGROWE R .COM

recently been climbing, and cotton prices are likely to influence acres committed to peanuts. USDA will make their first acreage estimate on March 31.

Markets Abroad One analyst notes that India and China have completely changed the way the world looks at global peanut supply and demand. Chinese buying has dictated crop price movement of other origins for the last five years. China has a large crop this year but it will be used for domestic crush to meet their insatiable demand for oil. They also have a growing domestic salting/roasting business in China. A growing middle class is also pushing demand of peanuts and peanut products.

Even as China produces the world’s largest peanut crop, their growing demands will influence other crop origin price developments for the coming years. China will continue to scour the

globe for the cheapest material to supplement their domestic market. A hiccup in the Chinese or Indian peanut markets because of a crop production issue can immediately surprise other origins as demand can quickly outstrip supply.

It appears that any excess of U.S. peanuts can be sold to the Chinese market for crush, which effectively puts a floor on the U.S. market. Shellers/farmers also have the mechanism of the USDA loan program to manage supply/demand for the markets. Remember though, the government does not want forfeits.

$1,550/MT raw and $1,700 to $1,750 blanched. If China, India and Argentina have bumper crops, China will not likely keep buying U.S. peanuts and another surplus will hit the warehouses.

Focus On Yield And Quality Many domestic and export buyers have taken some coverage for the new crop and will play a waiting game now to see development of crops in both Argentina and the United States.

European prices for both Argentine and USA new crop are approximately

The average yield per acre has already started to slide downward, some caused by weather and some caused by planting peanuts behind peanuts. Pay attention to rotation and plant to maximize program payments to help cover costs. The world demands more quality peanuts, let’s make it happen. PG

“

Pay attention to rotation and plant to maximize program payments to help cover costs.

The world demands more quality peanuts, let’s make it happen.

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To learn more visit us at www.AccuField.com T WIT TE R: @PE ANUTGROWE R

7

MARCH 2 017 • THE PE ANUT GROWE R /

Georgia’s Perdue Selected Ag Sec.

U.S. President Donald J. Trump has selected Sonny Perdue, the former governor of Georgia, to be Secretary of Agriculture. Perdue is a lifelong farmer. He graduated from Warner Robins High School and earned a doctorate in veterinary medicine in 1971 from the University of Georgia.

Following his service as a Captain in the United States Air Force, Perdue became a successful small business owner, concentrating in agribusiness and transportation. Today, those businesses have grown to include several locations across the Southeast.

He ran for the Georgia State Senate in 1990 and won. Sonny spent the next 11 years representing his mid-Georgia district in the General Assembly.

Perdue left the State Senate in 2001 to begin his successful campaign for Governor, which focused on restoring public trust in state government and empowering all Georgians. As a state senator, he was often praised for tackling issues when no one else had the courage to do so and for his ability to grasp the nuances of complex problems.

For all of his success in business and public service, Governor Perdue is proudest to serve as devoted husband, loving father and grandfather. Perdue is married to the former Mary Ruff of Atlanta. The couple has four children and eleven grandchildren and has also served as foster parents at times.

UGA Ag Forecast University of Georgia economists gave farmers and agricultural stakeholders a peek into what’s expected for the 2017 crop year at a recent series of forecast meetings. UGA ag economist Adam Rabinowitz provided the outlook on the state’s major row crops.

On peanuts, he says lower prices on other commodities combined with PLC payments will keep peanut acres high.

However, lack of rotation will increase disease pressure, thereby increasing pro8 /

THE PE ANUT GROWE R • MARCH 2 017

duction costs and reducing yield.

On cotton, Rabinowitz says there could be some marketing opportunities above 70 cents for 2016. Irrigated production appears to favor peanuts and cotton followed by soybeans and corn.

He urges producers to place priority on crop rotation when net returns are comparable among crops. Cotton and peanut acres are likely to increase in 2017. Soybean acres will likely remain stable. Corn and wheat acres are likely to decrease because of price.

Morris Remains GPC Chairman Armond Morris, peanut farmer from Ocilla, was again elected chairman of the Georgia Peanut Commission in February. This is Morris’ sixteenth term as chairman. He also served as chairman in 1996, 1997 and 2003.

“It is a pleasure to serve peanut producers in Georgia,” Morris says. “As farm income has declined, the next Farm Bill will be even more important. We are excited to have national leaders like future Ag Secretary Sonny Perdue, and American Farm Bureau president Zippy Duvall, who understand the importance of agriculture to the rural economy.”

Other officers elected include Joe Boddiford, Sylvania, vice chairman, and Rodney Dawson, Hawkinsville, t re a su rer. Boa rd members Ti m Burch, Newton, and Donald Chase, Oglethorpe, represent District 1 and District 5, respectively.

NPB Elects Officers The National Peanut Board elected the following officers: Greg Gill, (A rk.), vice-chairman; Ed W hite (A la.), chairman; Peter Froese Jr. (Texas), secretary; and Dan Ward, (N.C.), treasurer. Officers will serve one-year terms beginning Jan. 1.

“It’s quite an honor that my fellow board members had enough faith in me to elect me as chairman,” said White. “I look forward to playing a

In Brief: • Industry has definite advocate in new Ag Secretary.

• Ag Forecast favors peanuts, cotton over soybeans and corn.

• Morris to serve sixteenth term as GPC chairman.

• Alabama producer NPB chairman.

elected

• GPC honors producers and other friends of the industry.

• Cotton, peanut producer to chair National Cotton Council.

key role in advancing the board’s mission of improving grower economics through funding compelling research and increasing consumer consumption of peanuts.”

USDA officially instated new and reappointed board members and alternates, who began three-year terms Jan. 1. Those sworn in were Greg Gill, (Ark.), Jim Chandler (N.M.) and Les Crall (Okla.). Alternates sworn in were Greg Baltz (Ark.), Karen Jackson, (N.M.) and Gayle White (Okla.), who was NPB’s immediate past-chairman.

The NPB also thanks outgoing board member Wayne Baker, (N.M.) for his years of service to the industry.

Farm Show Award Winners More than 1,400 producers attended the 41st annual Georgia Peanut Fa rm Show a nd C on ferenc e in January, at the University of Georgia Tifton Campus Conference Center in Tifton. The show is sponsored by the Georgia Peanut Commission.

Producers were able to view the products and services of more than 110 exhibitors, and the University of Georgia Peanut Team presented a seminar on advanced irrigation management, and a seed seminar on varieties available for 2017.

PE ANUTGROWE R .COM

Awards presented by the Georgia Peanut Commission were as follows: n Distinguished Service Award Gov. Nathan Deal n Research and Education Award - Jere W. Morehead, president of the University of Georgia n Promotion Award - The Kroger Company n Media Award - RFD-TV n Georgia Peanut Special Award - John Harrell, past chairman of the National Peanut Board, and Don McGough, director of the commodities/marketing, Georgia Farm Bureau.

Kelley Manufacturing Co. was recognized for 50 years in the peanut industry. n The Outsta nding Georgia Young Peanut Farmer Award, sponsored by the GPC and BASF, was presented to Brandon Branch of Baxley.

Branch operates a 1,500-acre diversified row crop operation including peanuts, cotton, corn, soybeans and wheat, as well as a custom harvesting enterprise.

Branch receives a sign to display at his farm and a trip to the Southern Peanut Growers Conference in July. n The GPC and Agri Supply presented the Outstanding Georgia Peanut Farmers of the Year Award to the following: District 1 - John Bridges Sr., Brinson; District 2 Kenneth Hall Sr., Tifton; District 3 - Rep. Jon Burns, Newington; District 4 - Richard Nutt, Pitts; and District 5 - Glen Lee Chase, Oglethorpe. These farmers received a sign and a $100 gift card from Agri Supply. n The Grand Door Prize package donated by Kelley Manufacturing Co. was presented to Aaron Cosby of Smithville and A lex Hardy of Hawkinsville. Cosby received one season’s use of a new six-row KMC peanut combine and Hardy received one season’s use of a new digger shaker inverter. Both have options to purchase the equipment at a reduced price. n A madas Industries’ Grower Door Prize went to Al Rowland of Wrightsville. Rowland received one T WIT TE R: @PE ANUTGROWE R

season’s use of a new Amadas four-row or six-row peanut digger or a certificate good for the amount of $10,000 towards the purchase of a new Amadas self-propelled combine or $5,000 towards the purchase of any new Amadas pull-type peanut combine.

New NCC Chairman Also A Peanut Producer Ronnie Lee, from Bronwood, Ga., was recently elected National Cotton Council chairman for 2017. Lee is managing partner of Lee Farms and raises cotton, corn, peanuts, small grains, hay, pecans and cattle in Terrell, Lee, and Sumter counties. He owns and operates McCleskey Cotton Company, a ginning and warehousing operation in Bronwood and Albany.

Prior to focusing on some of his other businesses, including RCL Flying Service; LGT LLC; McCleskey Saw and Machine Co., LLC; and Adela Logistics, he was a vice president with McCleskey Mills, Inc., a peanut shelling company in Smithville.

Lee has been a NCC producer delegate since 2003 and served on the NCC’s Board of Directors in 2015.

He currently is a director of Cotton Incorporated.

Lee is a past president and chairman of Southern Cotton Growers. From 2005 through 2013, he served on the Farm Services Agency Georgia State Committee as a committee member and later as its chairman. He also has served on the boards of the National Peanut Buying Points Association and the American Peanut Shellers Association.

Lee’s three sons, Ron, Chandler, and Neil, are all actively involved in the family businesses.

West Of West Texas Tour Building on the success of the 2016 Texas Peanut Producers Board (TPPB) West of West Texas Tour, plans have already begun for the 2017 event. The tour gives manufacturers the opportunity to get to know farmers who grow

Calendar • March 23 — Oklahoma Peanut Expo, Southwest Technology Center, Altus, Okla. For more information, contact Ron Sholar at okpeanutcomm@ aol.com.

• March 25 — Peanut Proud Festival, Blakely, Ga. For more information, visit their website at peanutproud.com.

• June 24-28 — USA Peanut Congress, Amelia Island, Fla. For information, visit their website at peanut-shellers. org or call 229-888-2508.

• July 11-13 — American Peanut Research Education Society Annual Meeting, Alburquerque, N.M. For more information, go to www.apres.org.

• July 20-22 — Southern Peanut Growers Conference, Sandestin Golf & Beach Resort, Miramar Beach, Fla. For more information, visit southernpeanutfarmers.org or call 229386-3470.

the peanuts used in their products.

“Many of these manufacturers have never seen a peanut field, much less witnessed harvest,” Shelly Nutt, TPPB executive director said. “It’s important for them to know where their ingredients come from to ensure they are using the best, highest quality peanuts available, as well as see the effort it takes our farmers to produce this valuable crop.”

The tour consists of visiting peanut farms in West Texas of all varieties of peanuts. The event will allow manufactures to see the hard work of peanut farmers and what it takes to get peanuts from the field to their product.

Establishing connections from farmer to consumer is the goal of this event.

For more information on the tour, contact Shelly Nutt at shelly@texaspeanutboard.com or 806-687-6363.

9

MARCH 2 017 • THE PE ANUT GROWE R /

Peanut Proud Delivers The industry rallies to aid those in need.

P

eanut Proud didn’t have far to travel with their disaster response to recent storms as it was neighbors in Southwest Georgia and Mississippi who were hit by severe weather two consecutive weeks in January.

Even Southern Ag Carriers, who has transported peanut butter donations to other places, was ravaged by the storms, losing their Albany, Ga., terminal shop and office building.

Thousands Sustained With PB Peanut Proud, the humanitarian organization for the peanut industry responding to disasters quickly delivered peanut butter to churches and food centers in the areas hit.

Gregg Grimsley, chairman from Blakely, Ga., says 10,080 jars–4,320 jars of Peanut Proud Peanut Butter and 5,760 jars of Fisher Peanut Butter–were available for immediate delivery from Lineage Logistics in Albany. The American Peanut Shellers Association coordinated delivery of these jars and already-made sandwiches to area work centers and churches.

When the first round of storms hit in early January, Peanut Proud donated jars of peanut butter for food relief packages that went to low-income school children in a hard hit area.

These kids were out of school and their damaged homes were without power for more than 10 days. Without the school lunch/breakfast program, many of these children would not have had access to and adequate supply of nutrition.

Thousands of PB&J sandwiches in bag meals were distributed daily all over the area to storm victims in the weeks following the storm.

GPC Brings Relief The Georgia Peanut Commission donated peanut butter to Second Harvest of South Georgia and disaster relief efforts in Cook and Turner counties.

“Peanut butter is the perfect food in disaster relief efforts since it does not have to be refrigerated, does not require cooking, and delivers a nutritional punch that is life-sustaining,” says Armond Morris, GPC chairman.

“We are overwhelmed by the continuing generosity of Georgia’s farming community,” says Eliza McCall, chief marketing officer with Second Harvest of South Georgia. “This donation from the Georgia Peanut Commission will go a long way toward helping us care for our neighbors in need.”

Approximately 14,400 jars of peanut butter, a combination of Kroger, Fisher, and Golden Boy, were delivered to the commission to be delivered to area food kitchens and churches in the Cook and Turner Counties. Peanut Proud ordered another 34,560 jars of Peanut Proud Peanut Butter from Kroger/Tara 10 /

THE PE ANUT GROWE R • MARCH 2 017

Foods in late January to service the disaster areas and assist other peanut producing states needing food relief assistance.

Donations are still being accepted for the Peanut Proud disaster relief efforts, which include additional areas in South Georgia and Mississippi. Anyone interested in donating to this effort can send tax deductible contributions to: Peanut Proud Inc., P.O. Box 446, Blakely, GA, 39823. Make checks payable to Peanut Proud. For additional information on the project, visit www.gapeanuts.com or www.peanutproud.com. PG Proud Of These Peanut Numbers: • One pallet of Peanut Proud PB contains 1,440 jars.

• 1,440 jars provides more than 23,000 servings.

• Peanut butter has seven grams of protein per serving, is shelf stable and requires no refrigeration.

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2 017

MARKET OUTLOOK

One For The Books Enjoy the current market position, but remember a Farm Bill and trade agreements are needed.

By Amanda Huber

P

lain and simple, there were not enough peanuts produced in 2016. But that’s what we know in hindsight. At planting, producers were cautioned not to plant too many peanuts and, for certain, don’t plant without knowing where those peanuts were going to go. Producers did just that–most holding to similar acreage as planted the year before or just a bit less. Drought and other weather conditions did the rest to make the crop come in nearly a million tons below expectations, although that large estimate was much debated.

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THE PE ANUT GROWE R • MARCH 2 017

Demanding Market “Last year was one of the few years where demand was more than supply,” says Dell Cotton, Virginia Carolina Peanut Growers Marketing Cooperative. Demand was 2.9 million pounds and the crop came in short of that amount. “But that’s a good thing for us. We want demand to be higher.”

Tyron Spearman, executive director of the National Peanut Buying Points Association and marketing editor of

PE ANUTGROWE R .COM

MARKET OUTLOOK Acres 2010

2011

AL

185,000

FL

135,000

GA MS SE Total

2012

2013

2014

2015

2016

166,000

219,000

157,000

200,000

138,000

172,000

194,000

172,640

130,000

160,000

177,000

152,218

555,000

465,000

18,000

14,000

730,000

426,000

585,000

771,000

714,168

49,000

33,000

29,000

42,000

893,000

802,000

37,000

1,198,000

727,000

946,000

1,184,000

1,076,026

NM

10,000

6,600

10,000

7,000

5,000

5,000

7,976

OK

21,000

22,000

22,000

16,000

16,000

9,000

11,366

TX

163,000

97,000

145,000

117,000

122,000

168,000

305,000*

AR SW Total

16,000

23,089

194,000

125,600

177,000

140,000

143,000

198,000

347,431

NC

86,000

81,000

106,000

81,000

92,000

89,000

100,355

SC

64,000

73,000

107,000

78,000

110,000

109,000

108,074

VA

18,000

16,000

20,000

16,000

18,000

18,000

20,179

V-C Total

168,000

170,000

233,000

175,000

220,000

216,000

228,608

U.S. Total

1,255,000

1,097,600

1,608,000

1,042,000

1,309,000

1,598,000

1,652,065

*Only 210,000 acres harvested.

Production 2010

2011

2012

2013

2014

2015

2016

SE

1,489,400

1,368,500

2,596,665

1,503,040

1,894,475

2,446,736

2,072,690

SW

343,000

158,144

311,520

257,600

253,403

354,420

385,100

VC

245,000

293,086

462,622

326,450

442,994

319,003

383,000

2,077,800

1,819,730

3,370,807

2,087,090

2,590,872

3,120,159

2,840,790

U.S. Total

Peanut Grower, says “This is the first time we’ve been this short on peanuts. At first it was estimated that there would be a crop of nearly 3.8 million tons. We ended up with 2,767,000 tons.

“We got some Seg. 3s and a lot that came in as Seg. 1, but have high aflatoxin. We’re having to reclean those to see if we can get them to clear inspection.”

Spearman says some of the decrease was related to extended drought and increased temperatures. “Peanut plants do not always want to peg down into scorching soil when the temperature is high and soil moisture is long since gone.”

Exports Slow As for exports, Spearman says peanuts moving out of the country have slowed down just because there are not any in the market to really move.

“Canada continues to be our biggest buyer of peanuts and peanut butter,” he says. “China was big last year and kept peanuts out of the government loan program.”

Cotton says that South Africa and Argentina had problem crops last year, “and that opened opportuT WIT TE R: @PE ANUTGROWE R

MARCH 2 017 • THE PE ANUT GROWE R /

13

MARKET OUTLOOK nities for our peanuts.” He also points out that exports to China, while considered in-shell peanuts, are not always edible-use peanuts.

“What they are buying is important, but don’t get fooled by those numbers because it doesn’t always mean edible peanuts. Some of that was farmer stock that was possibly forfeited the year before and went into the Chinese oil market. But, they are buying peanuts from us and let’s hope it moves from farmer stock to more edible use.”

Spearman says the European Union continues to be a juggernaut of regulations that are tough to meet. “Meeting their level of less than four parts per billion is difficult even for the United States. You realize that one part per billion is like one second in 32 years. Now, with new testing equipment that can detect even smaller amounts of chemicals, producers are being told not to use certain products on their peanuts.”

Back To School For school nutrition progra ms,

Lower Input Costs Expected At the annual Georgia Ag Forecast seminar presented earlier this year, projections were made based on trends and what ag economists believe is going to happen.

Kent Wolfe, director of the UGA Center for Agribusiness and Economic Development, says he expects the U.S. economy to grow faster in 2017 than it did in 2016.

“We’ll see an increase in consumer spending, disposable income and business spending,” he says.

The good news for farmers is that the price of inputs, like fertilizer and diesel fuel, are down. Seed prices may increase by 1 percent, machinery costs may rise 1.5 percent and labor rates are expected to remain the same, Wolfe says. The price of diesel fuel is down from a year ago, but is expected to increase in 2017.

Projections on row crops other than peanuts are as follows.

Corn American farmers grew a record corn crop in 2016, but Georgia yields were down despite an increase in acreage.

U.S. corn acreage is expected to decrease due to lower prices in relation to soybean prices, says UGA Cooperative Extension economist Don Shurley.

The increase in ethanol because of the renewable fuel standard program is good for corn producers, but whether or not strong exports continue is the big question.

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THE PE ANUT GROWE R • MARCH 2 017

Cotton Georgia’s acreage has been down for the last two years, and drought conditions in 2016 prevented cotton bolls from filling out early, causing farmers to lose some of their crop.

Shurley says he expects Georgia’s cotton acreage to remain stable or decline slightly.

“It will be hard for cotton to compete at the high prices we’re hearing about for peanuts. But a peanut acreage increase could come from both corn and cotton,” he says.

Soybeans Soybean crops broke records nationwide last year, but acreage and yields in Georgia were down. Georgia farmers harvested 7.2 million bushels, which was a 46 percent decrease from 2015. Acreage may increase in Georgia this year as soybean prices are expected to be higher relative to corn prices, Shurley says Wheat Wheat acreage has decreased nationwide and in Georgia over the past three years. “Wheat prices have gotten weaker and prices will continue to stay low due to a large oversupply in the U.S. and worldwide,” Shurley says. PG Article by Sharon Dowdy, University of Georgia College of Agricultural and Environmental Sciences.

PE ANUTGROWE R .COM

MARKET OUTLOOK Spearman says peanut allergy, plus a general change to school cafeterias has left peanuts and peanut butter off the menu in many schools.

“These days, school cafeterias mostly want ready-made meals, something they can pull out of a box or bag and put on a tray for kids,” Spearman says. “However, with that trend in mind, Smuckers is building a new plant to make ‘Uncrustables,’ the peanut butter and jelly sandwich with no crust, and they plan to supply several million sandwiches to the school lunch program.”

Farm Bill And Trade Agreements Spearman says it is time producers look ahead to the Farm Bill and make sure legislators, especially any new ones, hear from the actual producers, as well as from state and industry representatives.

“Can we save what we have in the Farm Bill? The Price Loss Coverage and Agricultural Risk Coverage–will those provisions remain? What about peanut base, will it be updated?”

Spearman says.

“We need to keep separate payment limits for peanuts. Currently, peanut has its own payment limit provision, which will be important to keep.”

Cotton says trade agreements are also something producers need to talk about. “Most of our agriculture commodities rely on exports. We must have trade agreements to move our crops into export markets. Talk to your legislators and make sure they understand how important trade agreements are to agriculture.”

A Look Ahead For 2017, Spearman says, the big question is will China return for more peanuts and at what price will look elsewhere?

“Shellers are upgrading plants to try to shell faster and move more peanuts into the market. Warehouse expansions are going on throughout the network,” he says. “Work with your buying point.

The government does not want your peanuts. They want them moved into the market.

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Average Yield 2012

2013

2014

2015

2016

SE

4,335

4,135

3,916

4,133

3,852

SW

3,520

3,680

3,818

3,580

3,051

VC

3,971

3,730

4,012

2,953

3,351

U.S.

4,192

4,006

3,912

3,905

3,649

“Also, for good average yields and good qualit y for the market, it’s

important for producers to stick with a good rotation.” PG

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MARCH 2 017 • THE PE ANUT GROWE R /

When In Drought, Don’t Forget To Scout Insect populations fluctuate greatly with temperature and moisture.

Y

ear 2016 was an interesting one that started with a very wet spring followed by a drought starting in June with a dramatic reduction in precipitation that lasted five months. Looking at climate data from Clanton, Ala., as an example of what happened last year, after the last big rain event in June 2016, the total rainfall was a mere 3.9 inches from July to November, a shortfall of 18.5 inches. This was stressful for producers and underscores the critical nature of our water resources. Many northern parts of the state had worse rainfall records, and the struggle continues for many farmers in the state.

Insects Prefer Drought Unfortunately, insect pests took full advantage of the hot, dry summer months that favored shorter development periods and intense migration between crops. In the graphs below, we have summarized the insect pest population fluctuations based on sticky wing insect traps from multiple locations, including Clanton.

The cool, wet spring with frequent rainfalls from January through May appeared to delay the activity of several moth species such as corn earworms, loopers and some armyworm species.

However, moth activity significantly increased in peanuts and vegetables once the drought hit us in mid-summer. We noticed the largest spike in the activity of fall armyworm, soybean looper and the lesser cornstalk borer in August and September. We generally see a late-season migration of fall armyworms–a highly migratory pest–from hay and 16 /

THE PE ANUT GROWE R • MARCH 2 017

pasture fields to vegetable crops.

Record LCB Moth Catch In 2016, this behavior created an extra heavy pressure made worse by the drought that may have affected crop yield. Direct crop scouting in research plots also indicated an unusually high number of armyworms actively feeding in the crops along with soybean loopers.

The lesser cornstalk borer, a major peanut pest, becomes a major issue during drought and our traps removed nearly 5,000 moths in four months–the highest ever on our record.

Extreme drought also pushes insects

to seek moisture in soil around plants, and that can really mess things up for farmers. Caterpillars and pests like the burrower bugs in peanuts, which may enter the soil cracks to escape heat and get moisture, are very difficult to kill with any organic or conventional contact insecticide.

It was also intriguing to find a very prolonged squash vine borer activity in vegetables with nearly three overlapping generations detected over the year.

Tobacco budworm moths were detected at 70 to 80 percent of our pest monitoring locations with very high trap catches in north Alabama.

PE ANUTGROWE R .COM

In drought conditions, follow these IPM recommendations: • Plan your irrigation system now and optimize the water delivery system to maximize plant health. Adjust irrigation schedules to reduce plant stress.

• When in doubt, use insect pest monitoring systems such as bucket traps or sticky wing pheromone traps to detect pest activity. Caterpillar outbreaks usually occur within 10 days of a spike in dry conditions.

• Reduce spraying of synthetic pyrethroid insecticides in drought conditions and look for softer alternatives. Keep good records and compare effectiveness of products over multiple years.

• Incorporate selective insecticides in your spray rotation to reduce dependence on pyrethroids.

Selective insecticides are also generally less harmful to beneficial insects compared to wide-action chemistries.

• Reduce unnecessary tilling or mowing around the field edges or within fields. Dust from the end of equipment may have spider mites or they may hitch a ride on equipment resulting in spider mite “hotspots.” Treat spots intensely instead of spraying entire fields.

Always Consider Spider Mites Hot dry weather also favored spider mite outbreaks. Indiscriminate spraying of crops with synthetic pyrethroids can worsen spider mites in peanuts and vegetables by removing beneficial mites from the ecosystem. An aggressive spider mite outbreak is the worst problem than all other pests combined and crop loss in peanuts can be over 30 percent in uncontrolled conditions – so be cautious in developing your IPM plan during stressful weather.

Know What To Expect Lastly, when in drought, don’t forget to scout using the proper sampling techniques and tools. Producers should check the Alabama Peanut IPM or the Alabama Vegetable IPM website for a complete listing of crop scouting man-

uals. Hay producers are encouraged to contact Dr. Kathy Flanders and refer to her blog article on armyworms. Consult with the agronomy or commercial horticulture regional Extension agents for assistance with insect pest identification and to develop site-specific IPM plans.

Insect pest populations f luctuate greatly with temperature and moisture levels. Please check the USDA Drought Monitor regularly and find the condition in your county. For details, visit ht t p://d rou g ht mon it or.u n l.e du / Home/StateDroughtMonitor. PG Article by Ayanava Majumdar, Extension Entomologist, Gulf Coast Research and Extension Center, Fairhope, Ala., and Neil Kelly, Rudy Yates and Monte Baugh, Alabama Cooperative Extension Service Regional Extension Agents.

Quantifying Burrower Bug Risk Burrower bug damage resulting in grade reductions and lost profit for some growers was observed in 2016. The burrower bug thrives in hot, dry conditions.

While sometimes a problem in irrigated fields, it is most prevalent and damaging in non-irrigated peanut. Granular chlorpyrifos is the only insecticide that has been shown to have efficacy against burrower bug, and it does not provide complete control.

Identifying Risk Factors The factors that are known to increase the risk of burrower bug damage are conservation tillage and hot, dry soil conditions. Conversely, deep turning and irrigation reduce the likelihood of infestations.

Many growers have asked, “Will abandoning conservation tillage in favor of a turning plow eliminate burrower bug problems?” Previous research suggests that the risk of damage will decline, but there are no certainties. Burrower bug damage has been reported from fields that were turned prior to

T WIT TE R: @PE ANUTGROWE R

planting. Work is currently underway to quantify the risk associated with different production practices, location, soil type, etc.

Current Options In the near term, management options available to growers who have experienced significant losses due to burrower bug are limited to deep turning and application of granular chlorpyrifos. A USDA-funded research project was initiated in the fall of 2016 to develop a risk index for peanut burrower bug. The success of this project will depend on cooperation between UGA Extension, peanut growers and buying point operators. Identifying fields where burrower bug damage occurred and collecting field and production information will provide the foundational data from which the risk assessment tool will be created. PG Information provided by Mark Abney, University of Georgia Extension entomologist, in 2017 Peanut Update..

17

MARCH 2 017 • THE PE ANUT GROWE R /

Will The Warm Winter Produce More Disease?

Regrowth of winter host plants create a haven for disease pathogens and nematode populations.

A

La Niña weather pattern is providing warmer winter temperatures for Georgia residents, sparking farmers’ concerns about potential plant diseases at the start of production season in early spring.

University of Georgia Cooperative E xtension pla nt pat hologist Bob Kemerait says that farmers rely on extreme cold and freezing temperatures during the winter for a break from one growing season to the next. Right now, that isn’t happening.

Regrowth Of Host Plants The warmer temperatures allowed volunteer peanuts and cotton plants to regrow, increasing nematode populations and creating a haven for diseases.

Kemerait is especially concerned that unusually warm temperatures early in the peanut season will spark outbreaks of white mold. White mold threatens peanuts every year along the soil line and near the soil surface leading to the death of the limbs and crown, with pegs and pods destroyed as a result.

“When you have a winter like we just had where we had a very brief cold snap, it killed back some of the volunteer plants that might have the disease, but it’s been so short that the soil temperatures are warming back up,” Kemerait says. “Nematodes can become more active on the regrowth of peanut volunteers. This is something that farmers need to be aware of when they’re developing their disease and nematode management programs for 2017.”

Late First Frost A warmer winter also led to a delay in the first frost experienced in south 18 /

THE PE ANUT GROWE R • MARCH 2 017

Warmer winter and spring temperatures could spell earlier white mold for peanut producers.

Georgia this season. It sometimes happens as early as November, but the first winter frost did not occur this season until January. According to Kemerait, this allowed more time for nematodes to build up and for pathogens to develop.

If this trend continues, Kemerait worries farmers will have greater problems with diseases in the coming season.

“Now, the ideal situation for disease and nematode management on the crops would be to have a very cold February. That would send the nematodes back into a hibernation phase.

The pathogens would not survive on different crops or weeds,” he says.

In cotton, Kemerait says that about 75 percent of south Georgia fields have some level of parasitic nematodes. “If these nematodes remain on plants that stay alive and remain in the ground because of warmer temperatures, that could really spell trouble for our growers once planting begins,” he says.

Watch For Late Spring Frost UGA Agricultural Climatologist Pam Knox says that weak La Niña conditions still remain in the eastern Pacific, leaving Georgia feeling warmer and drier. Since the system has decreased in intensity, Knox believes weather conditions should return to normal within two months. She cautions farmers about the possibility of a late frost.

“One thing we do know from this kind of weather pattern is that the chance of a late frost goes up since the atmosphere often swings more wildly than usual between cold and warm episodes,” Knox says. “So don’t get too anxious to start planting if we have a warm spell because a cold wave could be just down the pike.” PG Article by Clint Thompson, University of Georgia College of Agricultural and Environmental Sciences.

PE ANUTGROWE R .COM

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Putting Robots To Work In The Field A 30 percent population increase necessitates the use of robotics in food production research.

I

t may be a while before robots and drones are as common as tractors and combines, but the high-tech tools may soon play a major role in helping feed the world’s rapidly growing population.

At the University of Georgia, a team of researchers is developing a robotic system of all-terrain rovers and unmanned aerial drones that can quickly and accurately gather and analyze data. This information is vital for scientists working to increase agricultural production.

The Need For Robots “By mid-century, scientists estimate the world’s population will reach 9.1 billion people, a 30 percent increase in a little more than 30 years,” says Changying “Charlie” Li, a professor in UGA’s College of Engineering and the principal investigator on the project. “This increase will demand that we nearly double our current food production. One solution is to use genomic tools to develop high-quality, highyield, adaptable plants.”

While scientists gather plant data now, the process is expensive and painstakingly slow. The team of robots developed by Li and his collaborators will one day allow researchers to compile data on entire fields of crops throughout the growing season.

Breaking The Bottleneck The project addresses a major bottleneck in genetics research, says Andrew Paterson, a co-principal investigator.

Paterson, a world leader in the mapping and sequencing of flowering-plant genomes, is a Regents Professor in UGA’s College of Agricultural and

20 /

THE PE ANUT GROWE R • MARCH 2 017

Environmental Sciences and Franklin College of Arts and Sciences.

“The robots offer us the means to gain information presently beyond our reach,” he says. “For example, by measuring plant height at weekly intervals instead of at the end of the season, we can learn about how different genotypes respond to specific environmental parameters, such as rainfall.”

In addition to multispectral, hyperspectral and thermal cameras, the robots will be outfitted with a remote sensing method that uses light in the form of a pulsed laser to measure distances. The technology will allow the researchers to create precise three-dimensional images of the plants they study.

Crunching Massive Data Sets During preliminary testing last year at UGA’s Iron Horse Plant Sciences Farm, Li estimates the team collected 20 terabytes of data over the six-month growing season. He says the team will collect 30 times that amount when the robots are fully deployed.

To analyze these massive data sets, researchers are developing an artificial intelligence algorithm similar to the facial recognition program Facebook uses to facilitate the identification and “tagging” of people in a photograph.

“Our algorithm will be able to scan an aerial photo of a field and automatically identify the location and number of flowers on each plant,” says Li.

With teams of autonomous vehicles rumbling through rows of crops and hovering overhead, algorithms will also play a key role in making sure the robots and drones perform their assigned tasks while staying out of each other’s way. Javad Mohammadpour Velni, a co-principal investigator and an assistant professor in the College of Engineering, is developing tools that will allow the ground and aerial vehicles to operate independently but collaboratively to efficiently cover fields and collect different types of data.

Most Gains Through Genetics The researchers believe their work will provide a platform for plant geneticists to gather massive amounts of phenotype data.

“Historically, genetics has been credited for about half of the yield gains,” Paterson says. “It’s realistic to envision that genetics will need to account for about half of the doubling of agricultural output that’s needed by 2050.”

The team’s project is supported by a $954,000 grant from the National Robotics Initiative, a program jointly sponsored by the National Science Foundation, the U.S. Department of Agriculture, the U.S. Department of Energy, NASA and the National Institutes of Health. PG Article by Mike Wooten, external communications coordinator with the University of Georgia College of Engineering.

PE ANUTGROWE R .COM

Don’t Cut Corners With Pests

Soil Test For Nutrient Needs

The pea nut sea son ha s begun on a warm note. To date, we have only received a few cold days going into March. Luckily, rain has been a part of the weather patterns replenishing many of our ponds and aquifers. Looking at the short-term models, the current weather patterns SCOTT MONFORT (above-average temperatures University of Georgia and rain) are expected to conExtension Agronomist tinue for the next two months.

Does this mean no more cold weather or frost? The answer is maybe. It is still a little early to say. Since we are now in neutral as opposed to La Niña conditions, there is always a chance of a late frost.

Keep track of the weather!

What impact will the warm winter and spring have on peanut production? This is not a question that can be easily answered. However, the most notable negative impact in years with warmer than normal conditions is related to diseases and nematodes. To further increase the risk of disease and nematode issues, it is estimated that Georgia growers will plant another 700,000-acre peanut crop with many acres produced in shorter rotations.

Considering growers will likely see elevated disease and nematode issues, I suggest taking time to develop a plan of attack for increasing management strategies for these potential pests. Do not cut corners managing these problems.

Lastly, keep in mind Tomato Spotted Wilt Virus has increased over the last few years. Planting before May 10 increases your risk for having TSWV. Contact your county agricultural agent for updated research results and recommendations for the 2017 growing season.

Assessing nutrients within a field and correcting any fertility issues is essential in order to meet your yield goal. Doing so requires properly collecting soil samples. When testing for soil nutrients, pull and composite an adequate number of soil cores to represent the field.

In general, collect 15 to 20 JASON WOODWARD cores from a depth of six to Texas Agri-Life Extension eight inches and from represenPlant Pathologist tative areas of the field mixed thoroughly to comprise a composite sample. Multiple composite samples may need to be collected from fields with different soil types, or where other crops have been grown or production practices were implemented that may have affected nutrient availability.

Soil moisture does not affect test results; however, representative samples are difficult to collect in excessively wet soil. In dry soils, collecting to the appropriate depth can be problematic. Always follow soil test recommendations to avoid over- or under-fertilizing the crop.

One of the main benefits to growing peanut, or any legume, is that the crop requires little nitrogen fertilizer. Studies in the Southwest have shown essentially no response to starter nitrogen, preplant nitrogen or midseason nitrogen applications provided the crop is properly nodulated by rhizobia. Placing large amounts of nitrogen fertilizer near the root zone of young plants can negatively affect nodulation, creating problems later in the season.

Peanuts are highly efficient at using residual phosphorus and potassium when previous crops have been properly managed. If needed, applications of phosphorus or potassium should be made before land is prepared and thoroughly

T WIT TE R: @PE ANUTGROWE R

21

MARCH 2 017 • THE PE ANUT GROWE R /

incorporated into the root zone. Unlike some other crops, calcium requirements are relatively high for peanut. This nutrient is critical for pod development. In general, calcium is not limited in the Southwest; however, soil pH and high amounts of other nutrients in the pegging zone could have an effect on its availability and uptake.

Likewise, high pH soils are prone to micronutrient deficiencies, even in some cases where soil test results indicate adequate levels are present. The most common example of this problem is iron chlorosis. In contrast to deficiencies, an overabundance of nutrients can lead to toxicity issues.

For example, zinc toxicity causes splitting of stems and lateral branches. Note that mixing soil samples in a galvanized bucket will contaminate samples with zinc and may complicate the interpretation of test results. If you have any questions regarding sampling procedures, how to ship samples, soil test results or recommendations, contact your local Extension office or fertilizer distributor.

Spread The Variety Risk Most of the calls I receive this time of year are questions concerning what variety to plant. Georgia-06G has been around for nearly 12 years and has been the variety of choice for a number of years.

However, I am concerned with the amount of TSW V that has been observed over the past few years, and I believe KRIS BALKCOM Auburn University that we should spread our risk Agri-Program Associate out by planting more varieties. Some of the instances of TSWV are unexplainable, which is alarming and could lead to a big fall out at any given time, such as some farmers experienced with Georgia Green.

I encourage everyone to not only look at variety trial data but to also pay attention to the data from their growing region. Some varieties respond differently under varying conditions or circumstances, which we have across the state.

Here are a few facts I have noticed while testing new varieties over the past few years. Looking at the variety data, TUFRunner™ ‘511’ has shown a lot of high-end yield potential. But yield is not everything. TUFRunner™ ‘511’ is also very susceptible to leaf spot. TUFRunner™ ‘297’ has showed it not only has the capability to yield with TUFRunner™ ‘511’ but also provide the grower with a better disease package. TUFRunner™ ‘297’ grows a lot of vine making it a good choice for sandier soil and more attractive for the single-row producer because it has not responded to twin rows. Georgia22 /

THE PE ANUT GROWE R • MARCH 2 017

13M continued to show its weakness with the leaf spot pressure this past season as it did the year before. Georgia-12Y is the only long-season variety currently available, but don’t let the long season discourage you from trying this variety. It is a small-seeded high-yielding variety that holds on to the peanuts well at harvest time. I hope these points will help you in considering what variety to plant.

Many Benefits To Good Rotation Contract prices for peanut have strengthened this spring compared with the past few years. When combined with weaker prices for some of the other commodities found in peanut rotations, peanuts are attractive. They are also forgiving when it comes to weather.

DAVID JORDAN While increases in peanut North Carolina State plantings in the V-C area most University likely will be modest, growExtension Agronomist ers need to keep cropping sequence and rotation in mind as they prepare for 2017. Three years of cotton, corn or grain sorghum–or some combination of these–between peanut plantings helps maintain high-yield potential. Sweet potatoes are a good rotation while soybean and tobacco create some challenges for peanuts.

With some of the issues we are now seeing with performance of fungicides and varieties that once were excellent, we need good rotations to be a central theme in our IPM programs. Certainly the economics of rotation crops and their relative risk often dictate rotation, but keep in mind that poor rotations extend their impact down the road for many years in some cases. At some point the benefits of a less-than-ideal rotation in the short term may catch up with us in the long term.

With that said, once you develop your rotation sequence, look closely at your vulnerabilities, before planting based on that rotation, and plan accordingly. Select a resistant variety, consider an in-furrow application of fungicide, plan to use an intensive fungicide program and contemplate fumigation if necessary to protect yield.

In most cases our pest management inputs pay for themselves and are well worth the investment in time and energy. Work hard to get the benefits of “free pest management” from a solid rotation, but if there is an overall economic penalty at the farm level for the most effective biological rotation make the best of it by being proactive and diligent in your approach to pest management. PG PE ANUTGROWE R .COM

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