Peanuts are a hot commodity in the U.S.; the twelfth to be exact. According to the American Peanut Council, peanuts are the twelfth most valuable cash crop in the country. Raised in southern states with warm climates like Georgia, North and South Carolina, Texas and Florida, peanuts’ farm value exceeds $1 billion. Georgia grows nearly half— about 44 percent, according to the National Peanut Board— of the U.S.’s peanuts.
Peanuts are king in Georgia, and Georgia’s the national commodity leader when it comes to peanut production, so it only makes sense that the Georgia Peanut Farm Show & Conference is a big deal. According to the event’s host, the Georgia Peanut Commission, they welcomed almost 2,000 growers to the January 21st event held on the UGA Tifton Campus.
They say nothing is as sure as change, and that’s certainly the case in agriculture. Farmers and ranchers know they have to combine resourcefulness and hard work to be successful in the face of daily challenges like Mother Nature and fluctuating markets. One option for diversification that many in the agriculture industry should consider is row crops. In many states, row crops like corn, cotton, peanuts, and potatoes can be a worthwhile investment for farms looking to diversify or expand.
The last six years have been extraordinarily bountiful and profitable for U.S. row crop farmers. This upward trend in prices and profit margins, however, is expected to take a dramatic downward shift due to the waning demand from China and the ethanol industry for altered corn and soybean production.
Limited growth from ethanol, and the resulting losses on row crops, may compel some U.S. row crop farmers to revert acreage back to pasture and forage crops.
To counter an anticipated era of lower costs and profitability, row crop farmers – especially the younger farming generations and large row crop operations – are encouraged to prepare by putting cash in the bank. To manage risk, deal with the hard times ahead, and avoid bankruptcy in the upcoming 6 years, cash is recommended as the ultimate solution.
Though ethanol’s demand for corn has flat-lined, there still remains promise for U.S. corn and other commodities:
- Corn: More corn will be added back into feed rations, causing exports to increase.
- Soybeans: Exports are still very strong from China, Africa and the rest of the developing world.
- Wheat: Recently, the United States has been using more wheat than it’s produced, which has greatly benefited wheat stocks.
- Cotton: The U.S. cotton sector is anticipating a boom, as supplies are at a 29-year low.
Need cash to reset or improve your agricultural operation? Time to refinance a high-interest ag loan? To discuss your farmland financing options, call on Bankers South’s unparalleled ag lending expertise. Our special AgAmerica farm loans offer borrowers many perks, including low interest rates, flexible payment plans, quick turnaround, no annual renewals and more! To learn more about our one of a kind agriculture loans, contact us!