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In Memoriam: Frank McGill
Frank McGill: ‘Mr. Peanut’
Frank McGill’s love for the University of Georgia started long before his career with them began. In the early 1930s and in the middle of the Great Depression, the university gave his brother, James Millard McGill, an opportunity for a college education, even though the family didn’t have the means to pay his tuition.
Instead, the McGill’s 1927 Model T Ford was used to carry two butchered hogs and bushels of home-grown sweet potatoes to the university as payment. An 8-year-old Frank McGill said it changed his life forever.
“I decided then that I wanted to know more about a place that would reach out to my brother and make a way for him during those Depression years,” McGill said in his book, “From the Mule to the Moon.” “Such was the beginning of a relationship that would eventually evolve into my tenure of 31 years on the University of Georgia’s Extension faculty.”
A Profound Impact
McGill was instrumental in increasing peanut yields exponentially during his time with UGA Extension. The “package approach” to peanut production that McGill’s UGA peanut team developed was adopted and carried out by county agents. Georgia’s peanut yields increased from 955 pounds per acre in 1955 to 2,040 pounds per acre by 1967 and 3,220 pounds per acre in 1974.
During his career, McGill was the recipient of numerous local, state, national and international awards. His work took him to four continents and 20 countries, some of which credit McGill with starting their peanut industries. In 2017, McGill was one of 12 scientists recognized for his impact on world agriculture as part of UGA’s centennial celebration.
During his tenure, McGill served as president of the American Peanut Research and Education Society. He was technical adviser to the Georgia Peanut Commission, U.S. Senate Agriculture Committee, National Peanut Council and National Peanut Growers Group. He was D.W. Brooks Distinguished Professor of Agronomy and received the Distinguished UGA Faculty Award.
A Man Of Service
McGill was born Dec. 16, 1925, on a small family row-crop farm in Tift County. He was the son of Mr. and Mrs. J.E. McGill, who migrated from Randolph County, Alabama, in 1911. He had two older brothers, Millard McGill and Harold McGill, and two older sisters, Mary Sue Polk and Doris Jones.
A veteran of World War II, McGill was a ground-to-air radio operator in the U.S. Army Air Force from September 1945 until January 1947, serving at Ladd Field in Fairbanks, Alaska. In 1950, after graduating Abraham Baldwin Agricultural College and the University of Georgia, he completed a master’s degree in agronomy in 1958 from the University of Arkansas.
McGill, a lifelong resident of Tift County, passed away March 3. He is survived by his beloved wife of 67 years, Janet Reed McGill from Blakely. He is also survived by their four children and spouses: Mark and Myra McGill of Tifton, Becky and Steve Barber of Marietta, Laurie and John Bolen of Tifton, and Kelly and Stanley Dean of Sandy Springs, as well as 15 grandchildren and 11 great-grandchildren.
McGill was an active member and lay leader of his church, Tifton First United Methodist. He was a man of great faith and was driven by a passion for missions and service. Hard work was his joy.
One behalf of The Peanut Grower, our sincere condolences to the family of Frank McGill, forever Mr. Peanut in our hearts.
University of Georgia College of Agricultural and Environmental Science Dean Sam Pardue, left, presented Frank McGill with the Medallion of Honor during a special event May 2, 2019, on the UGA Tifton campus.
A Few Of McGill's Awards
Inducted into the Georgia Agricultural Hall of Fame in 1996. Inducted into the Georgia Peanut Hall of Fame in 1982. Received the Lifetime Achievement Award from the American Peanut Council in 1999. Received the American/World Agriculture Award from the
National County Agents Association in 2000. Received the Valor Award from Valent in 2018.
MarketWatch
Surveys Indicate Similar Or Slight Reduction In Peanut Acres
J. Tyron Spearman
Contributing Editor, e Peanut Grower
Trading in the U.S. market is relatively quiet with movement only on small quantities as buyers take a wait-and-see attitude toward the new crop. A planting intentions report was due at the end of March. Farmers holding out on contracting were looking at both cotton and corn to compete for those peanut acres in 2021. This bit of leverage may help in contract negotiations for new crop farmer stock, which is now at $500 per ton in some areas.
Last year, contracting was at $425, so we are at least $75 per ton higher, which equates to at least 6 cents per pound higher on shelled grades for 2021 crop. Planting decisions will soon be made, and then the market will watch the weather.
The United States produced a 3-million-ton crop last year with great weather. If acres planted for the 2021 crop are similar and we have dry weather and a lack of rain, the market will quickly rise. Manufacturers are trying to estimate demand in the COVID-19 recovery.
2021 Acreage
Peanut acreage in 2020 increased 16% from the previous year. State peanut specialists’ surveys over the winter indicate planted acres about the same as last year to down 5%. There is some concern over the decline in average yield. For 2018, 2019 and 2020, yields in average pounds per acre were 4,001, 3,934 and 3,796, respectively.
For the most part, industry marketers think that it is imperative planted acres for the 2021 align closely with those planted in 2020.
Farmers will need to order peanut seed and be ready for soil temperatures to warm up to 68 degrees Fahrenheit for three consecutive days, as recommended by University of Georgia peanut specialists. Growers are also being advised not to apply in-furrow fertilizer since tests have shown that this practice will reduce germination. Some of the newer varieties are short on certified seed, but it is encouraging that producers are wanting to give them a try. Shellers are offering seed financing to allow for payment at harvest.
Contracts
In the Southeast, contracts are mostly $475 per ton for runner-type peanuts. Each buying point has an allocation to be distributed to customers. Premiums include an additional $25 per ton for seed production and $25 to $50 per ton for high-oleic peanuts. Some contracts limit totals to 50% of last year’s production. Some shellers are offering $500 per ton to ensure that peanuts are grown under irrigation.
Also offered are runner pools with $435 per ton now and dividends to be determined at the end of the season after sales. Another offer is a minimum-maximum pool that allows growers to participate in the shelled market movement.
In the Virginia-Carolina region and the Southwest, offers include $510-$520 per ton on Virginia type with limits. Some areas have a $25 per-ton premium for irrigated crop. Runners are $475 per ton plus $25 for high-oleic varieties, if available. Also being offered is $25 more per ton as a seed producer.
Domestic Markets
Peanut use slowed in January with total edible raw peanut usage down almost 3%. However, earlier gains in the year kept the annual usage up nearly 6%. Peanut butter still looks great, up about 4%. However, some folks predict that when the pandemic is over, consumption will likely drop as people will not be staying home.
Maybe baseball will revive the in-shell market. Peanut candy and snacks still look good, although totals dropped slightly in January. Government purchasing is down 55%, and industry
Leading Marketing Indicators (March 2, 2021)
2020 Acreage (+16%) ..................................................... 1,623,000 acres 2020 Production (+12%) ............................................. 3,066,950,000 tons 2020 Yield Per Acre ................................................................ 3,796 lbs/A
2020 Market Loan .............................................................. 2,435,255 tons
2020 Remaining In Loan ................................................... 1,710,159 tons 2020-2021 Domestic Usage ............................................. (6 Mo.) + 5.9 % 2020-2021 Exports (5 Mo.) ............................................................. + 9.7 %
NATIONAL POSTED PRICE (per ton) Runners -$424.55, Spanish - $415.57, Valencia and Virginias - $428.74
MarketWatch
leaders are encouraging more bids for domestic feeding programs.
The new 2020-2025 Dietary Guide- lines for Americans are favorable to peanuts and peanut butter and included the recommendation for early introduction of peanut foods for infants and children up to 24 months. If followed, this will help with the peanut allergy issue in many cases. However, according to the National Peanut Board, some pediatricians are still not following the science and recommending these guidelines to new mothers. A special pediatrician education effort was implemented to increase awareness of the new guidelines.
Export Markets
In addition to the non-tariff barriers that the European Union has imposed on U.S. peanut exports to Europe, the EU and United Kingdom are now requiring a 25% tariff on peanut and peanut butter imports. The U.S. Peanut Federation has asked U.S. Trade Representative and the U.S. Department of Agriculture to assist in resolving these trade issues.
The EU imported nearly $180 million of U.S. peanuts and peanut products last year and $168 million in 2019. Nearly all of these exports were in-shell and shelled peanuts.
Canada and Mexico led buying for raw-shelled peanuts and peanut butter. Exports of peanut butter are down 11.1% for first four months but holding steady for now. Peanut exports are up 3.7% for the same time. China is still buying lower-grade peanuts for peanut oil.
It’s Planting Time
It is an exciting time for peanut farmers. One can smell the fresh soil and feel the warm sunshine that we’ve been missing all winter. As one manufacturer said, it is an exciting time to be in the peanut butter business.
The National Peanut Board’s Bob Parker said recently, “Americans are turning to peanuts to meet their nutritional, financial and, yes, even emotional needs. For our 7,000 peanut-farming families, that evokes pride but also a sense of responsibility and a commitment to live up to the trust consumers place in us.” PG
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Peanuts And The Pandemic
When Food Network star Ina Garten bantered on national TV with CNN’s Anderson Cooper about their rediscovered love of the PB&J last December, it was no surprise that the classic all-American peanut butter sandwich had risen back to the top of our collective food conscious — not only filling our bellies but soothing our souls during trying times.
As we have during similar times of economic uncertainty, Americans have turned more to peanuts to meet their nutritional, financial and emotional needs.
After peanut consumption hit a low of 5.5 pounds per capita in the United States in 1996, U.S. farmers came together to form NPB in 2000 and get to the bottom of the decline. Through the hard work of the organization and its industry partners, peanut consumption hit a record 7.6 pounds per capita in 2020. Consumption may have gone higher had it not been for limits in supply and constraints on manufacturing capacity for peanut butter.
Primary Factor Behind Growth
Beginning March 2020, as with many foods, peanut products were wiped from retail shelves quickly and manufacturers struggled to build inventory back. Snack peanut sales were hit hard primarily from the travel halts and loss of sporting events. Candy sales also experienced an initial loss as fewer people frequented convenience stores, airport gift shops and movie theaters.
It was clear early in the pandemic that consumer food purchasing behaviors were rapidly changing to meet the new normal.
Short-term adjustments in what and how we bought things evolved into new lifestyles. People bought groceries online, turned away from dining out and relied on food delivery services or prepared their meals at home. According to a recent report by the National Confectioners Association, 61% of consumers bought groceries online in 2020. Impulse buying for items like candy and snack nuts took a sharp turn downward. Parents working from home and their children attending school remotely, unimpeded by peanut restrictions, turned to the flavor, nutrition, convenience – and joy – of the peanut butter and jelly sandwich.
Economic disruptions of the pandemic have placed great hardship on many U.S. families. At less than 3 cents per gram of protein, peanut butter is an incredible value when compared to meat, tuna, dairy and tree nuts. Advancements by America’s peanut farmers in yield and efficiency have placed them among the low-cost producers of peanuts in the world. The price of peanut butter, when adjusted for inflation, cost the consumer 25% less in 2020 than it did in 1995.
A recent report on consumer behavior by J.M. Smucker Company says the pandemic accelerated the growth of peanut butter by 7.1% for the 52 weeks ending Nov. 1, 2020.
Three examples of how peanut butter consumption has expanded are: An increase in snacking. Consumers are snacking with peanut butter and jelly more, 64% vs. 49%, in both mornings and afternoons.
Younger generations are embracing
PB&J. Millennials and Gen-Xers are turning to peanut butter and jelly for their families. More Millennials and Gen-Xers have children and worked full time in 2020, thereby are having more
PB&J occasions.
More Mentions, More Sales
The NPB saw a 55% increase in peanut butter recipe mentions on social and other media channels with 414% more mentions about its non-perishability. Increased social media conversations about peanut butter translated to retail sales. According to research firm IRI, there was an 8.8% increase in peanut butter retail sales volume in 2020. Unit sales of peanut butter were up only 5.2%, as manufacturers pivoted to larger container sizes to keep pace with demand. The average retail price paid per pound was lower than the average of the previous four years.
Nearly 55% of peanuts are used for peanut butter in the United States, more than for any other category. Because of taste, affordability, nutrition and shelf stability, NPB continues to see significant growth in the category, and as more peanut butter manufacturing capacity comes online and with a large 2020 crop, we expect this growth to continue.
Demand for peanut butter by food banks was also unprecedented in 2020. Peanut butter manufacturers struggled to keep up with normal demand, making it difficult at times to supply food banks. Again, as manufacturing capacity ramps up in 2021 and the abundant supply finds its way, peanut butter will play a major part in reducing food insecurity.
Let’s Talk Snack Peanuts
Early in the pandemic, snack peanuts were depleted from grocery shelves just as peanut butter. But consumers did not replenish snack peanuts at the same pace as peanut butter. In-shell peanuts especially lost sales when sporting events reduced or eliminated fans. Snack nuts also lost sales to impulse buyers in convenience stores.
However, 2020 was an exceptional year for snack peanuts according to IRI retail sales data. Sales volume rose by 7.25%, leading to the highest volume year since 2016. The increase in snack peanut sales was slightly higher than the 7.2% increase for the snack nut category as a whole. Similar to peanut butter, unit sales were also down, likely an indication of fewer impulse sales of small packs of peanuts in convenience stores and airport gift shops.
With the trials of the pandemic, it is heartwarming to hear all the ways peanut butter brings joy and about new generations discovering their love of peanut butter and peanuts for the first time. As an industry, we are optimistic that peanut butter, peanut candy and snack peanuts will continue to represent fond memories and lifelong emotional connections for millions of Americans. PG
It didn’t earn its way into one of the most famous songs of all time without good reason. “Buy me some peanuts and Cracker Jacks” is as accurate today of the millions of fans taking in a ballgame as it was in 1908 when written by Jack Norworth and Albert Von Tilzer. Without America’s favorite pastime, the in-shell market declined.
Nathan Smith, Clemson University Extension agricultural economist, says that from August to December 2020, in-shell use declined 28.7% from the same period the previous year.
However, 2020 crop quality, because of the rainy harvest season, has the Virginia-type market volume the lowest since 2015.
“At $450 per-ton contracts, total acres were almost unchanged from 2019 but produced 12.5% fewer tons because of horrible harvest conditions,” says George Lovatt, president of Lovatt and Rushing, a peanut broker. “That’s a deficit of 48,000 tons, and that’s huge.”
Dell Cotton, executive director of the Peanut Growers Cooperative Marketing Association, says, “We’ve gone from one extreme to the other. They couldn’t get any prettier than the 2019 crop. But the 2020 crop was not the best. We are going to struggle because of the decrease in Virginia production, coupled with the quality problems and the appearance of the in-shells.
“We do our best to remind consumers and the general public that in-shell peanuts are always in their grocery store,” Cotton says, “But, in my opinion, Virginia producers are going to need incentive to increase acreage to make up for the quality and production shortfall.” PG
