PEANUT MARKETING NEWS – September 28, 2020 – Tyron Spearman, Editor (133)

UPDATE ON CHINA PEANUTS - According to officials in China, China's peanut acreage is estimated at more than 4.67 million
hectares, an increase of about 9 percent over 2019. And if the weather is good in the next 5 weeks, 2020 Chinese peanut production is
estimated at about 17 million metric tons, an increase of about 10 percent from 2019.
2020 China International peanut conference was held in Weihai, Shandong. This conference was organized by CCCFNA and
co-hosted by the Wendeng government. American Peanut Council, with other industry players. The conference has attracted about
250+ attendees. According to Mr. Wang, deputy director of Institute of food science and technology CAAS, by July 2020, China had
planted 527,200 acres of high-oleic peanut, an increase of 25% over 2019.
COVID IMPACT ON AGRICUTURE – (USDA Economist) -The disruptive impacts of the COVID-19 pandemic on the U.S.
agricultural system have been broad and varied . The limited impact of the crisis on overall agricultural exports reflects the fact that
demand for food is relatively income-inelastic, and that marine transportation used for most agricultural products (in particular bulk
products) has not been significantly disrupted.
U.S. agricultural exports in Fiscal Year 2021 are projected at $140.5 billion, up $5.5 billion from the FY 2020, primarily
driven by higher exports of soybeans and corn. Soybean export volume is forecast to rise nearly 26 percent year-over-year as growing
demand in China and significantly reduced export volume forecast from Brazil opens the door for a rise in U.S. exports.
Corn exports are also forecast to rise $700 million to $9.0 billion in FY2021 and horticultural exports by $500 million to
$35.0 billion due to expected increase in sales of tree nuts, among other products. Similarly, livestock, poultry, and dairy exports are
forecast up $500 million to $32.3 billion. Peanut exports are estimated to be about the same as last year, about 800,000 FST.
But despite these encouraging signs, many U.S. farmers continue to confront significant challenges and the immediate
outlook for the sector remains highly uncertain. In many cases, producers didn’t experience the full impacts of markets disrupted by
COVID-19 until just recently.
And the impacts of COVID-19 are expected to continue into next year: a forecast by the Food and Agricultural Policy
Research Institute at the University of Missouri expects farm income to fall by $21.9 billion in 2021 compared to their forecast prior
to COVID-19, even when accounting for higher payments from farm bill programs.
The prospect of continuing COVID-19 impacts in 2020 and 2021 has led Congress to consider additional assistance to help
agricultural producers adjust to disruptions in domestic and global agricultural markets. Earlier this month, USDA announced the
second round of the Coronavirus Food Assistance Program (CFAP 2), which will provide additional assistance of up to $14 billion to
farmers facing market disruptions caused by COVID-19 in the second through fourth quarters in 2020. CFAP 2, which is based on
appropriations from the earlier CARES Act, covers a more expansive range of commodities compared to CFAP 1, such as turkeys and
all table eggs, and simplifies the application process for specialty crops. Peanuts included in CFAP2 – estimated at $15 per 2020 acre.
The CFAP program, together with the recent surge in exports of some agricultural commodities, has provided much-needed
relief for the farming sector. But with much uncertainty still clouding the horizon, it’s hard to tell whether the tough times are
over for farmers or more still lie ahead.
SEPTEMBER 30 – DEADLINE TO UPDATE CROP YIELDS - SDA’s Farm Service Agency (FSA) reminds farm owners of the
September 30 deadline to update Price Loss Coverage (PLC) program yields for covered commodities on the farm. This is a one-
time opportunity for producers to update yields, which are used to calculate 2020 through 2023 payments.
“Don’t miss this one-time opportunity to update yields for the Price Loss Coverage program,” said FSA Administrator
Richard Fordyce. “Please contact your FSA county office to schedule an appointment.”
Updating yields requires the signature of one owner on a farm and not all owners. If a yield update is not made, no action is
required to maintain the existing base crop yield on file with FSA.
For program payments, updated yields will apply beginning with the 2020 crop year which, should payments trigger,
will be paid in October 2021. Additionally, recently published updates to the payment limitation and eligibility provisions for Farm
Bill programs do not impact payments from ARC and PLC for the 2019 crop year or the 2020 crop year.
The updated yield will be equal to 90% of the average yield per planted acre in crop years 2013-2017. That excludes any year
where the applicable covered commodity was not planted and is subject to the ratio obtained by dividing the 2008-2012 average
national yield by the 2013-2017 average national yield for the covered commodity.
NOTE: Recent Rule on Payment Limitations and Payment Eligibility Does Not Impact 2020 or 2021 Payments

NATIONAL PEANUT BOARD - US per capita peanut consumption has risen to an all-time high of 7.6 pounds in 2020, up 3.2%
on 2019 driven in part by increased demand for peanut butter and at-home snacking as food consumption has shifted towards
the home during the coronavirus pandemic.