Georgia Farm Bureau News Alert - September 7, 2016

Page 1

September 7, 2016

www.gfb.org

Vol. 34 No. 30

PEANUT STANDARDS BOARD VOTES TO RAISE SEG 2 PEANUT STANDARD During a Sept. 1 conference call, the Peanut Standards Board (PSB) voted to recommend raising the grading score used to classify farmer stock peanuts as Segregation 2 from 2.49 percent damaged kernels to 3.49 percent damaged kernels. The recommendation will be sent to the USDA. Georgia Farm Bureau and eight other peanut stakeholder organizations wrote in July to PSB Chairman Marty McLendon requesting the change. In the letter it was noted that handling requirements for Segregation 2 peanuts have not changed from the old quota Look for the system, which stipulated that farmer stock peanuts classified as Segregation 2 next issue of had to be crushed. GFB News The conference call included a summary of analysis by UGA Professor Alert on Emeritus Stanley Fletcher, who noted that the loan value for Segregation 2 September 21. peanuts generally ranges $200 per ton less than Segregation 1 peanuts. Segregation 2 peanuts typically account for less than 1 percent of the U.S. peanut crop, but an individual producer who has his entire crop graded Segregation 2 could face financial ruin. “Georgia Farm Bureau is grateful the Peanut Standards Board recommended adjusting the percentage used to grade incoming farmer stock peanuts as Segregation 2. This change will create a more accurate value for growers when their peanuts grade Segregation 2,” said Georgia Farm Bureau President Gerald Long. “We urge USDA to move forward with the Peanut Standards Board request.” With new technology, damaged peanuts can be conditioned and resold at market value without affecting the quality of peanuts delivered to consumers. The Peanut Standards Board is authorized under the Farm Security and Rural Investment Act of 2002 and has18 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 and imported peanuts. The Georgia Peanut Commission also applauded the move. “A farmer having a majority of their crop graded as Segregation 2 is an economic devastation which could lead to bankruptcy while the true value seems to be significantly higher,” said Armond Morris, chairman of the Georgia Peanut Commission. “Based on the tonnage of the peanut crop, potential value and current use of Segregation 2 peanuts in the edible market, a reexamination of what constitutes a Segregation 2 peanut and the associated loan value is prudent.” The recommendation from the Peanut Standards Board will now be taken under consideration by the U.S. Department of Agriculture.


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