May 31, 2017
www.gfb.org
Vol. 35 No. 11
AMS ISSUES PROPOSED RULE TO SET RAISE SEG 1 PEANUT STANDARD On May 25 the USDA’s Agricultural Marketing Service (AMS) issued a proposed rule to adjust the grading score used to classify farmer stock peanuts as Segregation 1 (Seg 1) from 2.49 percent damaged kernels to 3.49 percent, with a corresponding adjustment to the standard for Segregation 2 (Seg 2) peanuts. The Peanut Standards Board (PSB) recommended this change to align the incoming standards with recent changes to the outgoing quality standards and to help increase returns to peanut producers. The PSB voted in September 2016 to recommend the change in an effort to limit losses in value for peanut crops. Peanuts graded lower than The next issue of Seg 1 are less valuable, in some cases by hundreds of dollars per ton, GFB News Alert comes out according to information presented prior to the September PSB vote. Seg 2 June 14. peanuts typically make up less than 1 percent of the U.S. peanut crop, but a farmer whose entire crop is graded Seg 2 could face financial ruin. With new technology, damaged peanuts can be conditioned and resold at market value without affecting the quality of peanuts delivered to consumers. “Segregation 1 peanut standards are an ancient regulation and the technology in the industry is vastly improved,” said Armond Morris, chairman of the Georgia Peanut Commission. “A similar action was granted to the peanut processors last year on outgoing regulations so it only makes sense growers should be afforded the same revision in the rules.” Georgia Farm Bureau and Rep. Rick Allen (R-Georgia) also support the adjustment in the Seg 1 peanut standard. “These proposed changes align with the recommendations of the Peanut Standards Board and I believe these changes will greatly reduce the burden on peanut growers in my district and across the United States,” Allen said. The AMS is accepting public comment through June 26. Comments must be sent to the Docket Clerk, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 20250-0237. Comments may be submitted by fax at 202-720-8938 or online at www.regulations.gov. All comments should reference the document number (AMS-SC-16-0102; SC16-996-3 PR) and the date (May 25, 2017) and page number (24082) of this issue of the Federal Register. The PSB is authorized under the Farm Security and rural Investment Act of 2002 and has 18 members representing the peanut-growing regions of the U.S. The USDA consults with the board to establish or change quality and handling standards for domestically produced peanuts. Georgia growers produce about half the U.S. peanut crop.