USDA PEANUT FORECAST

               U.S. peanut planted acreage is projected to increase by 5 percent from MY 2024/25 to 1.9 million acres in 2025/26, the highest planted acreage since 1991. Sown acreage is forecast to increase in all major peanut-producing States—with the biggest increases in Georgia, Texas, Alabama, and North Carolina. In Georgia, the largest peanut-producing State, planted area is up 6 percent from MY 2024/25 and is expected to total 900,000 acres, the largest area since 1991.

                As of July 6, 2025, 75 percent of the peanut acreage is rated in good-to-excellent condition, compared with 58 percent at the same time last year. Peanut yields are forecast at 4,000 pounds per acre, up 9 percent from last year. As a result of higher acreage and yields, U.S. peanut production is projected to reach 7.4 billion pounds in MY 2025/26, 952 million pounds higher than last year’s crop. If realized, this would be a record-high peanut harvest .

               Supply and Demand Estimates, July 2025 -The total use of peanuts in MY 2025/26 is expected to increase by more than 9 percent from 2024/25—driven by higher domestic food usage, crush, and exports. Peanut ending stocks are projected to increase to 2.26 billion pounds. The season-average peanut price for MY 2025/26 is forecast at 25.0 cents per pound, down 3 percent from last year’s forecast of 25.9 cents per pound, on higher stocks.

PEANUT EXPORTS DOWN 18%

                The total export shipments of U.S. peanuts have dropped 18% compared to the same10 month period last year.  Mexico continues with the largest volume (30.2%). Canada is another favorite market with 30.0%.  China has dropped 27.3%.   Major declines were posted in the Netherlands, United Kingdom, Japan, Germany and Spain.

            The American Peanut Council will again manage USDA funds for expanding peanut markets.  The MAP and FMD budgets below were for the 2024 program year. For 2025, we received $2,421,772 for MAP and $558,464 for FMD. The Regional Agricultural Promotion Program (RAPP) is multi-year and runs from 2024-2029. In total, APC has received $6.47 million in funding (Tranche 1 & 2 combined).

USA MARKET

              Stocks and Processing - Raw peanuts in primary products is down 1.4% in Aug-May compared the same 10 mo. of 2023.  Peanut butter usage is down 2.2% for the 10 month period, Peanut candy usage is DOWN 6.7% for the ten months. Peanuts in snacks are up 11.4% May vs May and now up 4.4% for the 10 months.          Government purchases were 22,746 million pounds of peanut butter and 286,120 pounds roasted peanuts in May.  USDA reports use of shelled edible grade peanuts is down 1% from last year. 

PEANUT BUTTER ON THE WAY

                 Peanut Proud announced that a shipment of 30,240 jars of Peanut Proud peanut butter was being shipped to the San Antonio Food Bank in response to the flood that happened last week in the Texas Hill Country.     SAFB is part of the Feeding America network and services the counties which were most affected by the flood.  Daily deliveries are being made now by the food bank to local food pantries and Christian outreach ministries in the Kerrville area.

            The cost of the 30,240 jars was $37,195.20.  Officials said that Peanut Proud had received donations from Georgia Peanut Commission for $5000 and Dell Cotton for another $5000. The Peanut Proud team called for help. The following donations were pledged by late Friday.  Here’s donation so far: 7-11-2025            TOTAL Pledged - $27,500

       Alabama Peanut Producers Assoc  - $5,000                American Peanut Shellers - $6,000

       National Peanut Buying Points Assoc - $5,000            Virginia Peanut Growers - $1,500

       North Carolina Peanut Growers Assoc. - $4,000          American Peanut Council - $6,000

Donations are being accepted for the next shipment to the Texas area.  Contact Gregg Grimsley, [email protected].

WHAT IS IN  THE SEED COTTON SAFETY NET

                We have been so focused on the Peanut Program that we failed to inform you about other commodities.  A frequent rotator for peanuts is cotton.  We have a seed cotton program not a cotton program.  Seed cotton is a “combo” of cotton and cottonseed.

            The Big Beautiful Bill raises the PLC Reference Price 5.3 cents, from 36.7 to $42 cents per lb.  Payment is made on your farm’s seed cotton payment yields times 85% of the farm’s seed cotton base acres.  PLC rate is the difference if the Market Year Average Price of seed cotton is below the “Effective Reference Price.”

            The ERP is the higher of the 42 cents Reference Price or 88% of the MYA Price for the previous 5 years, but cannot exceed 113% of the Reference Price.

            Beginning with the 2031 crop year, the Reference Price will be the previous year multiplied by 1.005.

The MYA Price is a “Combo” weighted average price of cotton and cottonseed.

            For 2005, producer will receive the higher of PLC or ARC – payment made in October 2026.  Beginning in 2026, annual ARC or PLC election will be made.

            The current projected PLC rate for the 2025 crop is 9.21 cents per lb. 

LEADING MARKETING INDICATORS (As of Jul 21, 2025)

2025 Est. Peanut Acreage (+5.2%)     1,850,000 acres

2024 Est. Peanut Production (+9.6%) 3,700,040 tons

2024 Est. Average Yield                          4,000 lb/ac

2024-25 Market Loan                                     2,439,059 tons

2024-25 In Loan (7-12-25)                             1,754,368  tons

2024-25 Loan Redeemed -sold                           684,691 tons

2024 -25 Domestic Usage (10 Mo.)                   DOWN – 1.4 %

2023-24 Exports (Aug-May) (10 Mo)                  DOWN – 18.06%