The deadline for farmers to purchase crop insurance is approaching. When they buy it they’re supposed to say what crops they plan on putting in the ground. But, many peanut farmers remain undecided.
It’s supposed to be a record year for peanut planting. Last year supplies were tight and prices skyrocketed. Most farmers lost out because they had locked in contracts to sell peanuts to manufacturers at lower prices.
This year manufacturers have yet to offer contracts because they’re hoping prices will drop with increased planting. But buying agent Tyron Spearman with the Peanut Buying Points Association says farmers want contracts first.
“Manufacturers have not come to the table wanting to agree on a certain price. The manufacturers seem to want to wait until a little bit later when they heard there was going to be extra acres planted. They thought the price might be reduced."
Spearman says some farmers cannot get loans without contracts. Peanuts go in the ground by the end of April.