Georgia’s peanut acreage is at its lowest level in 30 years. That, combined with the drought will boost the price of peanut butter.
This year many farmers planted cotton instead of peanuts. Prices for cotton were high and there were plenty of peanuts in storage.
But now many of the peanuts they did plant are not coming out of the ground because of the drought. Don Koehler with the Georgia Peanut Commission says peanut butter manufacturers are preparing for tighter supplies.
“One of the major brands has already increased their price 23-percent so that they can just manage what they view as a tight supply situation.”
Georgia leads the nation in peanut production, churning out 46-percent of American peanuts. The number two state, Texas, is suffering from even worse drought conditions.