March 2012 News

GA F-S INSPECTION SERVICE – GROWING AND SERVING  T. E. Moye, the new administrator at the Georgia Federal State Inspection Service told the buying point conventioneers that the Service has a new attitude to service and doing everything possible to make the inspections routine with as few delays as possible during the peanut harvest.  GFSIS was started in 1927 and incorporated as a 501 C 3 Corporation in 1993.  Today, GFSIS has added inspections for Vidalia Onions, imported Onions, pecans and continues peanuts, both raw and shelled.  The tons inspected in 2011 vs 2010 show about a 16 percent drop, with 2’s and 3’s about the same. GAFSIS has established a board seat to represent peanut buying points, a major goal of the NPBPA for years.  Moye said they had heard from the buying points as the Advisory Committee discussed praises, issues and four items to improve.  The praises included the outstanding staff, the professionalism of the entire Service and good Lead Inspectors. Some of the issues from the buying points were 1) mandatory breaks stopping inspections, 2) need for drug testing, 3) need more young blood, 4) Fee structure, 5) too few substitutes when someone gets sick, 6) check samples interfere with operations and productivity, 7) cell phones in the grading room and 8) need for a quick start training program.     NATIONAL POSTED PRICE              SHELLED MKT PRICE            MARKET LOAN                            WEEKLY PRICES from USDA each Tuesday at 3 PM EST,                                                                     USDA  - 9 - Mo. loan                       Average prices (USDA) effective next day at 12:01 am EST.                                                                                                                                        Received by farmers

Week of Feb. 21, 2012	Date –Feb. 22, 2012	Date – Feb. 22, 2012 (tons)			Date –Feb. 11, 2012
$1,249.52 per ton/Runners			2010	2011	Runners – $.323 -$646 t
$1,240.87 per ton/Spanish	SHELLED MARKET PRICE	Date	02-27-11	02-22-12	Spanish – $.304 - $608 t
$1,253.26 per ton/Valencia	Flex Contract til 02-27, 2012	Loans	1,810,626	1,401,856	Virginias - $.329- $658 t
$1,253.26 per ton/Virginia	2011  peanuts - $1.15 lb.	Redeemed	588,254	538,259	Valencia –  No Quote
Same as last week	Reduced $.05 per pound	In Loan	1,222,372	863,597	Average - $.324- $548 t
	02-27-2011 - $.70 lb.	Inspected	2,071,089	1,824,842	2012 UP .6 cts/lb
2011 Crop Est.(Jan) 1,818,160 t,FSIS (02-11-12) - 1,824,842					98,163 pounds

        JIM LEEK OF JLA CHALLENGES PEANUT INDUSTRY Jim Leek, world famous food technologist, told NPBPA Conventioneers that all segments must be vigilant to make food safe.  He said, “We have a safe food supply, but it is not safe enough...new advancements in technology make it easier to detect.”  Here’s some advice from Leek: -Stop eating too many calories-we make poor food choices, too much, no exercise, continue to build the “BELLY BANK” -Warning: running out of water!  Past 25 Mo, peanut area is 40 cumulative inches behind in rainfall.  Water supplies are being drained at 10 times the normal rate.  URGENT- Cut 30 days off the production cycle of peanuts to 110 days. -Birth rate growth means in 8 days, 1.8 million more mouths to feed.  Population up to 7 Billion...add 1 BILLION in 12 months.  - Agriculture productivity must respond to population growth. “Peanut industry has a food product that can make a world impact...must grow peanuts more efficiently...answer lies in the seed breeding.” -U.S. food prices will continue to go up, 40% increase now and it’s gonna get worse...cost of production increasing too. - More trouble making margins as diesel hits $4.25 gallon, increasing the cost of irrigation. U.S. is the key to global and food stability...we must create and adopt new technology with less water, less margins with continued good, hard work.   CLIMATE OUTLOOK IMPROVING – Keith Ingram of the Southeast Climate Consortium from the University of Florida told attendees at the National Peanut Buying Points Association Convention that the Climate Prediction Center the drought over the Southeast will continue for two months and then weaken.  One official in the team predicted that the late onset of summer showers that helped save a delayed peanut crop in 2011 is unlikely to occur that late again in 2012.  Maps were presented on the summer and fall predictions of temperatures and rainfall. The good news from Ingram was that LaNina conditions are expected to weaken and become neutral during the spring.  Rains in the summer should occur normal and is unlikely to start as late in 2012 as they did in 2011.  North Georgia reservoirs of water have monthly recovered, but Lake Lanier is unlikely to recover to full pool. The bad news from Ingram’s forecast was that groundwater levels in S. GA, AL and N FL are at historic lows and are not likely to recover soon and will remain below normal for at least three months.  The region needs tropical storms in 2012 after recording 18 named storms in 2011, only three made landfall in the U.S.  The cause of the drought was an unusual back-to-back strong La Nina in 2010 and 2011...in 60 days, the drought model indicates NEUTRAL and that’s good news. COMPETING FOR PEANUT ACREAGE –  Nathan Smith, University of Georgia ag economist told NPBPA Convention attendees that farmers need to look at peanut contracts closely to determine the net price of contracted peanuts.  He showed that a $750 per ton contract on 25 percent of the production and a $450 per ton contract on 75 percent of the production is a net contract of $525 per ton.  He cautioned farmers with a question: “Can you afford to plant peanuts in 2012 without a contract?”  But if none are offered, what can a farmer do? Smith revealed some interesting charts comparing contracts and prices for competing commodities as they compete for land.  The National Center for Peanut Competitiveness assisted in preparing the comparisons.  Today, cotton was about $.92 per pound and corn trading at $6.38 per bushel.  The Economist Team has developed a website that allows farmers to enter the prices offered and compare competing crops.  http://www.caes.uga.edu/?tiny=WERQYW

COTTON VS PEANUTS 2012		CORN VS PEANUTS- 2012
Price /lb Cotton	Price/ton Peanuts	Price Bu./Corn	Price/ton Peanuts
$.70	$501	$5	$532
$.80	$553	$6	$622
$.90	$605	$7	$712
$1.00	$657	$8	$802
$1.10	$709	$9	$892
$1.20	$760	$10	$982
Irrig-1351 lbs/acre.	Irrigated /4,452 lbs/acre	Irrigated 199 bu/acre	Irrigated 4,452 lb/a

      LOVATT CHALLENGES PEANUT INDUSTRY  At the National Peanut Buying Points Convention, George Lovatt, peanut broker told peanut leaders that for the U.S. peanut industry to get through 2011 crop year, the industry must either increase imports, reduce exports, reduce domestic demand and increase seed sales for 2012.  Lovatt proceeded to build a model to bring a balance and to avoid a major supply disruption.  He said that domestic usage is not cooperating at this point, but he expects a substantial decline in usage before July. He noted that imports are not likely to skyrocket and export sales should fall further. As for 2012-2013, Lovatt advised the industry to try to rebuild stocks with a peanut production of 2,250,000 tons.  His model suggested peanut acreage of 1,350,000 acres with an average yield of 3,350 pounds per acre.  He estimates that will give a 96 day supply as the new crop starts in August.  Lovatt said that growers want to grow peanuts, but without a contract, many farmers cannot grow peanuts and will option to other crops, especially if other commodity prices stay high. Lovatt advised:  To grow 1,350,000 acres, SOMEBODY HAS TO GET LONG!

• Shellers must get LONG on contracted peanuts at $650 per ton or better knowing prices might fall, OR

•   Growers must get LONG on un-contracted peanuts at $355 per ton knowing that prices might NOT RISE, OR

•   Manufacturers must get LONG at $.70-$.75 per lb. knowing that there’s a potential for prices to FALL $.10/lb or more.

Planting date of April 15 is only 60 days away and time is running out for these major decisions. PLANTING DATES & CULTIVARS John Beasley, Extension Peanut Agronomist, told attendees at the National Peanut Buying Points Association Convention that issues facing peanut production in 2012 include 1) WATER, 2) How long will La Nina Weather pattern persist, 3) Will burrower bug return, 4) rainfall during these season, at harvest and hurricanes, and 5) will West Texas recover from drought.  Beasley gave an update on cultivars available to farmers.  He noted:

•   Farmers have 5 really good cultivars available – Georgia 06G, Georgia 07W, Georgia Greener, Florida 07 and Tifguard

•   For problems; Peanut root-knot nematodes – Tifguard, CBR – Georgia Greener, White Mold – GA 07W or FL-07.

•   On Planting Dates: Encourage peanut producers to plant some of their acreage in April, more than present 5%

•   The major consideration for planting in April is the soil temperature.  (65 degrees for 3 consecutive days)

SEED UPDATE ON QUALITY AND SUPPLY John Beasley, Extension Peanut Agronomist, told attendees that early reports from Georgia Department of Agriculture Seed Lab in Tifton indicates seed quality of peanuts is poor to good with the average being slightly below average.  Officials were concerned that a high percentage of seed samples from farmer saved samples are not good quality.  Based on the fact that over 100,000 acres were planted for seed in the Southeast (over 96,000 acres in Georgia) and quality is GOOD, “we do not expect a seed shortage, even with an increase in acreage by 20-30% in 2012.” Beasley figured that if a 23% in acreage occurs, the 100,000 acres planted for seed production last year should yield about 4,000 pounds and 50% seed shell-out, the industry would have about 200 million pounds of seed.  At 140 pounds per acre, the industry would need about 140 million pounds of seed, enough to plant the peanut crop. Saving seed from the farm has some legal implications.  Beasley said it is illegal for a peanut producer to save seed of any cultivar that is patented.  In peanuts, the only patented trait is the high oleic oil chemistry.  The high oleic cultivars are:  Florida 07, Georgia 02C, Georgia 09B and FloRun 107.  All other peanut cultivars are PVP cultivars meaning a grower can save the seed to plant on their own farm, but it is illegal for a farmer to sell seed of a PVP cultivar.

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January 2012 News

BUYING POINTS MEET IN NEW ORLEANS The National Peanut Buying Points Association invites all peanut industry members to attend the Annual Meeting and Convention on February 10-11-12, 2012 at the W Hotel  in New Orleans, LA.  This will be fun-filled Valentine weekend with updates on key peanut issues with New Orleans style fun. The Convention opens Friday night with a reception with the program on Saturday featuring updates on Peanut Markets, Other Commodity Markets that Compete, New Grading System, Peanut Production Plans, and more. Saturday PM will include tours of the New Orleans area and dinner on your own Saturday night at one of the Big Easy best restaurants.  Don’t forget the Mardi Gras parades and parties that kick off this weekend.  Sunday features updates from leading peanut organizations and a special peanut brunch. The Great Cash Giveaway means the owner of the final ticket drawn in a reverse raffle will win $10,000.  Over 30 sponsors are supporting the Convention and you need to be there.  .  Decide today to attend and call Angela at 229-386-1716 or spearmanagency@friendlycity.net  for a registration packet. Call hotel direct to book rooms – 1-887-WHOTELS.   NATIONAL PEANUT BUYING POINTS ASSOCIATION ANNOUNCES PROGRAM Kenny Brownlee, President of the National Peanut Buying Points Association extends an invitation to all peanut industry members to attend the Annual Convention on February 10-11-12, 2012 at The W Hotel in New Orleans, LA.  Convention Chairman Rodney Locke of Locke Farm Center has announced the keynote speakers and subjects:  Some remain tentative. Saturday, February 11, 2012 PANEL 1 – PEANUT MARKETS & COMPETITION-

• COMMODITY MARKETS - Lon Swanson, Commodity Marketing, Wells Fargo Bank
• THE PEANUT MARKET DILEMMA – NOT AGAIN! George Lovatt, Peanut Broker, Lovatt & Rushing

PANEL 2 – PEANUT OUTLOOK and CROP PROSPECTS

• 2011 CROP & WHAT’S AHEAD –John Beasley, UGA Peanut Agronomist
• COMPARING COSTS & COMMODITY COMPETITION – Nathan Smith, UGA Peanut Economist,
• 2012 WEATHER FOR PEANUTS – Keith Ingram, Florida Weather, RISA, UFL

PANEL 3 – HELPING BUYING POINTS SURVIVE

• X-RAY GRADING UPDATE & RESEARCH PROJECTS  - Dr. Marshall Lamb, LAB
• GA FED-STATE INSPECTION – A NEW ATTITUDE – T.E. Moye, Director, GAFSIS
• YOUR ASSOCIATION AT WORK -  Tyron Spearman, Executive Director, NPBPA

Sunday, February 12, 2012 PANEL 4 – INVESTING IN THE FUTURE OF PEANUTS

• NATIONAL PEANUT BOARD ENERGIZING THE MARKETS - - Lauren Highfill Williams,
• PEANUTRITION & MORE GOOD RESEARCH NEWS -  Bob Parker, Peanut Institute
• PROJECTS THAT BUILD A FUTURE – Howard Valentine, Peanut Foundation/American Peanut Council

PANEL  5 – TUNING UP THE PEANUT INDUSTRY

• PEANUTS & THE NEW FARM BILL – Live from Washington – Speaker to be Announced
• CHALLENGES FOR THE FUTURE -THE GOOD, THE BAD and THE UGLY - Jim Leek, CEO, JLA International

Over 30 sponsors are supporting the Convention.  Call Angela at 229-386-1716for a registration packet.  Room block deadline is January 20.  To Call hotel, call 1-877-WHOTELS.  The theme is “Gettin’ Tuned In!!”  Be there to get turned on to peanuts!  Hope to see you there. U.S. PRODUCTION:  2011 peanut production is estimated at 3.636 billion pounds, (1,818,160 tons) down slightly from the previous forecast and down 13 percent from 2010. Planted area is estimated at 1.14 million acres, down 11 percent from 2010, and area harvested, at 1.10 million acres, is down 13 percent from the previous crop year. Average yield is estimated at 3,313 pounds per acre, up 38 pounds from the previous forecast and up 1 pound from 2010. Estimated yields were down significantly from last year in the Southwest due to severe drought conditions during the growing season. In Texas, growers realized the lowest yield since 1995. Further east, peanut yields were up from last year in most States. Record high yields were estimated in Virginia and Mississippi, and the yield in Florida tied the record high achieved in 2010.   OILSEED OUTLOOK PREDICTS LOWER SUPPLIES - An extreme drought in the Southwest this year stifled peanut planting and devastated yields in the region. Intense competition with other crops also contributed to an 11-percent reduction in U.S. peanut acreage to 1.1 million acres. Peanut production for 2011 declined to 3.64 billion pounds from 4.16 billion in 2010. This month’s final crop estimate for 2011 was down 12 million pounds from the previous forecast as yield reductions for Texas and Oklahoma more than offset upward revisions for the Southeast. The national average yield for 2011 was 3,313 pounds per acre—almost identical to the 2010 yield of 3,312 pounds. Food demand for peanuts in 2011/12 is expected to grow slightly, but exports and other domestic uses could decline. Lower supplies are also likely to sharply cut season-ending peanut stocks to 1.05 billion pounds from 1.5 billion in 2010/11.  Peanut prices have increased sharply from last year as a consequence.   Calendar of Events - Peanuts

• January 25, 2012 – Mississippi Peanut Growers Association Annual Meeting, Cooperative Extension Service Bldg, Hattiesburg, MS. Exhibit space available.  For info, call 601-947-4223.
• January 26, 2012– South Carolina Peanut Day, First Baptist Family Life Center, Orangeburg, S.C.  Exhibit space available. For info, call 803-284-3343.
• January 27-28, 2012 – Georgia Young Farmers Association Annual Meeting, Marriott Evergreen Conference Resort, Stone Mountain, GA  Call 229-386-3429, www.georgiayoungfarmers.com.
• February 9, 2012 – Alabama/Florida Peanut Trade Show, National Peanut Festival Fairgrounds, Dothan, AL. For info, see www.flpeanuts.com, www.alpeanuts.com or call 334-792-6482.
• February 10-11-12, 2012 – National Peanut Buying Points Association Winter Conference, The W Hotel & Convention Center, New Orleans, LA.  Call Angela at 229-386-1716 for registration packet or spearmanagency@friendlycity.net.  Tabletop displays and sponsorships available plus a Great Cash Giveaway Auction.
• February 14, 2012 – Production Meeting and Annual Meeting – Virginia Peanut Growers Association – Southhampton Fairgrounds near Franklin, VA – 9 AM - For Information, call 757-562-4103 or Dell Cotton - dcotton25@cs.com.
• March 1, 2012 – Florida Peanut Producers Association Annual Meeting – Jackson County Ag Complex, Marianna, Fl.  For info, call 850-526-2590.
• March 6, 2012 – Georgia Peanut Day, Georgia Capitol during Georgia General Assembly. 9AM- 1 PM.  For info, contact Georgia Peanut Commission at 229-386-3470 or www.gapeanuts.com.
• March 13, 2012 – Georgia Governor’s Ag Day, Georgia Capitol during Georgia General Assembly. 10AM- 1 PM – Exhibits at the Depot.
• March 15-16, 2012 – Oklahoma Peanut Expo – Quartz Mountain Resort – Lone Wolf, OK. For info, call Oklahoma Peanut Commission at 405-275-5994 or contact Mike Kubicek at okpeanuts@sbcglobal.net
• March 13-14, 2012 – American Peanut Shellers Association Spring Conference, Merry Acres, Albany, GA.  For info, contact APSA at 229-888-2508 or Email at info@peanut-shellers.org.
• March 30-31, 2012 – PEANUT PROUD FESTIVAL – Special program on Friday with Parade and Festival on Court House Square on Saturday with guest speakers and entertainment.  For info, Lea Jean Manry or lmanry@birdsong-peanuts.com.

  NOTE:  Now is the time to join the National Peanut Buying Points Association for 2012 and be listed in the directory.  Buying Points and Associates join for $400 per year.  Register now for the National Convention set for Feb. 10-11-12, 2012.

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