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08
Mar
2016
Peanut PLC payment yields for 2016
Author: Archie Flanders, Extension Economist

By Archie Flanders, Agricultural Economist

Peanuts have potential as a rotation crop for much of Arkansas field crop acreage. Generally, soils that are suitable for cotton and corn are also suitable for peanut production. While cotton is not covered by provisions of the 2014 Farm Bill, cotton base acreage is considered generic base and is attributable to any covered crop planted in a production year. Farms without a production history to establish PLC payment yields are assigned yields by the Farm Service Agency. PLC payments for peanut base acreage, or generic base acreage assigned as peanut base acreage, are determined by the farm PLC payment yield. The most recent FSA assigned peanut yields for Arkansas counties are more attractive to potential growers than the yields that were assigned for the 2014 production year. For most Arkansas farms with assigned peanut payment yields and assuming the 2015 national average price projection of $366/ton, the PLC payment would be greater than $200/acre. PLC assigned payment yields for peanuts are available as Planning Information at http://www.uaex.edu/farm-ranch/economics-marketing/farm-planning/

 


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