UGA cotton and peanut field day Sept. 9 in Tifton

Anyone who wants to see firsthand the latest cotton and peanut research conducted by University of Georgia scientists should attend the annual UGA Cotton and Peanut Field Day Sept. 9 in Tifton, Ga.

The event will start at 8:30 a.m. at the UGA Tifton Lang-Rigdon Farm on Carpenter Road. Hot topics will include peanut disease management, stinkbug control, crop fertility and current and future varieties of both crops.

“Participants will not only get to see the research for these two important Georgia crops, they’ll be able to hear from the researchers and ask them questions about it,” said Phillip Roberts, a UGA Cooperative Extension entomologist and the field day organizer.

Lunch is provided. Along with the UGA College of Agricultural and Environmental Sciences, the event is cosponsored by the Georgia Peanut Commission and Georgia Cotton Commission. To find out more or get directions, call (229) 386-3424.

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Peanut’s sleep habit helps farmers fight diseases

The peanut plant grows a thick canopy of compound leaves close to the ground. This structure provides for good nuts, but makes it hard for farmers to fight diseases that attack near the soil. The plants do something naturally that can help farmers fight these threats, says a University of Georgia researcher, and the difference can be night and day—literally.

In the field, the peanut plant spreads its growth to capture sunlight. It uses it to make sugar and grow healthy peanut pods below ground, says Tim Brennemen, a plant pathologist with the UGA College of Agricultural and Environmental Sciences in Tifton, Ga.

But at night, he said, the plant does the opposite. Instead of spreading out, its paired leaflets fold up, often revealing the base of the plant and the soil under it. Farmers can use this natural event to get fungicides through the plant’s canopy and to its base where soil-borne diseases attack.

After the tomato spotted wilt virus, Brennemen said, white mold is the peanut’s toughest enemy. It attacks low-lying parts of the plant and produces oxalic acid that kills the plant. It can go underground, too, and destroy developing peanut pods.

To fight disease, farmers typically spray peanuts with fungicides six to seven times a year. Two to three of these sprays are primarily to prevent or control white mold, he said. They almost exclusively do this during the day in the United States.

In Nicaragua a few years ago, Brennemen learned farmers there spray fungicides at night. They do this to fight white mold, which thrives in hot, humid weather. Farmers there knew the nighttime habits of the peanut plant and used it to their advantage.

Having toyed with the idea before, Brennemen and CAES graduate student Joao Augusto began experiments three years ago to see if nighttime spraying could benefit Georgia farmers. What they found surprised them.

The openness of the canopy at night allows more of the fungicide droplets to reach the lower parts of the plant. The fungicide lasts longer there, too, protected during the day by the open leaves, which prevent UV rays from reaching it and breaking it down.

They found that early morning before sunrise was the best time to spray. The dew on curled leaves helps the fungicide slide further down the plant.

Last year, Georgia farmers averaged 3,400 pounds of peanuts per acre. In research plots, switching to nighttime spraying typically improved yields by 200 pounds to 800 pounds per acre. In plots where white mold was a severe problem, nighttime spraying increased yields by 1,800 pounds per acre. In research plots where white mold was not a problem, switching spray times made little improvement.

“It was fascinating to me to see the level of improved control without there being any additional cost. That’s unusual,” said Brenneman, a plant pathologist for 25 years.

Most tractors have lights for night work. Satellites can now guide many tractors. Spraying at night, he said, wouldn’t cost farmers more money. The same product would be sprayed at the same rate, just at night. The only cost might be an occasional shift in sleeping habits.

All farmers shouldn’t rush to set the alarm earlier or pull an all-nighter to spray, he said. But the information will be useful for some.

A farmer who has had trouble controlling soil-borne diseases with fungicides or is looking to reduce costs by using less-expensive chemicals this year would see benefit, he said.

Georgia farmers will soon finish planting what is expected to be 500,000 acres of peanuts this year.

By Brad Haire
University of Georgia

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Unlisted peanuts causes granola bar recall

Commissioner of Agriculture Tommy Irvin is alerting consumers with an allergy or sensitivity to peanuts to the recall of some Market Pantry Chocolate Chip Chewy Granola bars sold at Target stores in 35 states, including Georgia.

LeClerc Foods of Montgomery, Pa., has recalled a single lot of Market Pantry Chocolate Chip Chewy Granola Bar packages with UPC Code 85239 20124 and a “Best By” date of 18JAN2010.

Some of the retail units also may contain Peanut Butter Chocolate Chip Bars and S’more Bars. As a result the ingredient statement on the retail package does not include peanuts. People who have allergies to peanuts run the risk of serious or life threatening allergic reactions if they consume this product.

Individual bars within the retail package have the correct variety names on the wrappers.

The product is available in 15.2 oz. boxes containing 18 bars per box and the date code is found printed in white on the right side of the box.

This product also was shipped to other states in the southeast, including Alabama, Florida and South Carolina.

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Recall Adds to Peanut Stockpile

In connection with a salmonella investigation, the Food and Drug Administration has warned consumers against eating processed foods made with peanut butter. The country already had a large surplus of peanuts. With any decline in consumption now, that stockpile will grow, says a University of Georgia peanut expert.

“It’s never a good time to have anything like this, especially when there is consumer concern for health. But it comes at a particularly bad time considering the rather large surplus of peanuts last season’s bumper crop produced,” said Nathan Smith, an economist with the UGA College of Agricultural and Environmental Sciences.

U.S. peanut farmers produced 2.58 million tons of peanuts in 2008, a record crop, Smith said. This helped create what is now growing to be an 800,000-ton surplus. Because of the way the crop is bought and sold before becoming food, the industry likes to keep 300,000 tons to 400,000 tons in the pipeline as a buffer against a major crop loss.

In recent years, peanut consumption has increased annually. In fact, consumption was on track to be 6 percent more than in 2007, or around 2.24 million tons. Average annual peanut consumption in the U.S. is 6.5 pounds per person.

Before the FDA warning, the peanut industry was adjusting to the surplus. Because of it, farmers are expected to plant fewer peanuts this year and produce less than the U.S. consumes in a year, eating into that surplus, Smith said. That would be in a typical year, one without a decline in consumer consumption.

“It’s too early to tell how the FDA warning will impact consumption this year,” Smith said. “We were probably on our way to correcting the supply and demand gap we have with this year’s crop, but now it may take another year to do that.”

The peanut stockpile has already affected farmers’ prices.

Last year at this time, farmers could contract peanuts for $500 a ton, some as high as $600 a ton. There are no contracts being offered right now for the ’09 crop. A farmer that sees a contract above $400 per ton this year should think hard about taking it, Smith said. Prices may not get much higher for a while.

As part of the warning, the FDA now lists more than 125 products containing peanut paste, which has been linked to a Peanut Corp. of America plant in south Georgia.

Consumers can find a list of the suspect products at the FDA’s Web site www.fda.gov. Jarred peanut butter is considered safe and not part of the safety alert.

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Peanut Corporation of America Announces Voluntary Nationwide Recall of Peanut Butter

Peanut Corporation of America (PCA), a peanut processing company and maker of peanut butter for bulk distribution to institutions, food service industries, and private label food companies, today announced a voluntary recall of peanut butter produced in its Blakely, Georgia processing facility because it has the potential to be contaminated with Salmonella.

All product affected was produced on or after July 1, 2008, specific to the lot numbers and descriptions listed below.

The peanut butter being recalled is sold by PCA in bulk packaging to distributors for institutional and food service industry use. It is also sold under the brand name Parnell’s Pride to those same industries. Additionally, it is sold by the King Nut Company under the label King Nut. PCA customers who received the recalled product are being notified by telephone and in writing.

None of the peanut butter being recalled is sold directly to consumers through retail stores.

“We deeply regret that this has happened,” said Stewart Parnell, owner and president of PCA. “Out of an abundance of caution, we are voluntarily withdrawing this product and contacting our customers. We are taking these actions with the safety of our consumers as our first priority.”

PCA initiated this recall after an open container of King Nut brand peanut butter in a long-term care facility in Minnesota was found to contain a strain of salmonella. King Nut brand peanut butter is produced by PCA.

According to the Minnesota Department of Health and Minnesota Department of Agriculture, the Minnesota laboratory analyses on the contamination in the already-opened container of peanut butter have the same genetic fingerprint as the cases in the national outbreak that has sickened almost 400 people in 42 states.

The voluntary recall of 21 lots of its peanut butter, in containers ranging from five to 50 pounds, is being taken immediately. PCA is notifying its institutional customers and has set up a toll-free hotline number 1-877-564-7080 to answer questions.

PCA is continuing to work closely and cooperating with the Food and Drug Administration (FDA) and Centers for Disease Control and Prevention (CDC), as well as state officials as part of this ongoing investigation.

According to a CDC update issued on their website today (January 13, 2009), preliminary analysis of an epidemiologic study conducted by CDC and public health officials has suggested peanut butter as a likely source. The CDC and other public health officials are continuing to conduct surveillance for cases of infection with the outbreak strains, and to gather and analyze data or exposures that may be associated with illness. To date, no association has been found with common brand names of peanut butter sold in grocery stores.

Customers are asked to take all peanut butter manufactured with the lot numbers listed below out of distribution immediately. Customers can call the following toll-free 24-hour number 1-877-564-7080 for further instructions on what to do with the product or visit the company website at www.peanutcorp.com for additional information.

Eating food contaminated with Salmonella can result in abdominal cramping, diarrhea, and fever. Most people infected with Salmonella develop the symptoms 12 to 72 hours after infection. The illness usually lasts 4 to 7 days, and most people recover without treatment. However, in some persons, the diarrhea may be so severe that the patient needs to be hospitalized. In rare circumstances, infection with Salmonella can result in the organism getting into the bloodstream and producing more severe illnesses. For more information on the salmonella bacteria, please visit the Centers for Disease Control and Prevention’s Website at http://www.cdc.gov.

Lot Numbers Affected:

8193, 8194, 8197, 8233, 8234, 8235, 8241, 8255, 8256, 8275, 8276, 8282, 8283, 8284, 8296, 8316, 8330, 8331, 8336, 8345, 8354

Stock Numbers Descriptions Pack Size Affected

551000 Creamy Stabilized Peanut Butter 6 ct / 5 lb

551006 Crunchy Stabilized Peanut Butter 6 ct / 5 lb

551020 Creamy Stabilized Peanut Butter 35 lb

551022 Natural Course Peanut Paste 35 lb

551025 Old Fashioned Creamy Peanut Butter with 1% Salt 35 lb

551035 Crunchy Natural Peanut Butter 35 lb

551040 Creamy Natural Peanut Butter 35 lb

551050 Creamy Stabilized Peanut Butter 50 lb

551050-D Dark Creamy Stabilized Peanut Butter 50 lb

551051 Creamy Stabilized Peanut Butter with Monodiglyceride 50 lb

551053 Crunchy Stabilized Peanut Butter 50 lb

551072 Peanut Butter Variegate 45 lb

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Cost to Grow Georgia Crops Most in History

Row-crop harvest is winding down in Georgia. Farmers don’t know yet exactly how much corn, cotton, peanuts and soybean they’ve grown. But one thing is almost certain: This year’s row crops were the most expensive in history to produce.

“Georgia farmers, like many, have enjoyed good yields and prices for a few years now. But they’ve had to deal with rising costs, too,” said Don Shurley, an economist with University of Georgia Cooperative Extension. “The bigger problem is (crop) prices are falling now.”

Last year, Georgia farmers spent $478, on average, to grow an acre of cotton on irrigated land, Shurley said. This year, they spent an estimated $573 per acre, the most ever, according to UGA College of Agricultural and Environmental Sciences data.

The per-acre figure includes a farmer’s variable costs, which are things like fuel, seed, fertilizers, chemicals, labor, monitoring, harvesting and utilities. It doesn’t include what are called fixed costs, or things like equipment depreciation and payments, insurance or land rent that can also be associated with growing crops. It doesn’t include the salary the farmer pays himself, either.

In 2007, Georgia cotton farmers picked an average of 801 pounds of cotton per acre. After subtracting the variable costs, they made $63 per acre. In 2008, they averaged 843 pounds per acre. After subtracting their variable costs this year, they made only $19 per acre.

“These are all average numbers. Some farmers did better. Some did worse,” Shurley said. “But this just goes to show that even with good yields it hasn’t been enough to keep up with cost.”

The situation is the same for corn, peanuts and soybean, said Nathan Smith, a UGA Extension economist.

An acre of irrigated peanuts cost a farmer $529 in 2007. It cost $685 this year, a 30 percent increase. An acre of irrigated soybean cost $225 in 2007. It cost $314 this year, a 40 percent increase. An acre of irrigated corn this year cost $648, almost 50 percent more than last year. All are record-setting numbers, he said.

The rising prices are cutting farmers’ returns on their investments.

The average return on an acre of peanuts last year, after subtracting the variable costs, was $233. It will be $178 this year. The average return on an acre of soybean last year was $105 after variable costs. It will be $24 this year. The average return on an acre of corn last year was $148. It will be $98 this year. Again, these numbers don’t include costs for equipment depreciation or payments, insurance, land rent or the farmer’s salary.

“What these numbers do show is that farming has always been volatile in that the farmer has little control over input prices or the prices he receives,” Smith said. “That volatility is even more so now.”

The prices for fuel and fertilizer have stabilized, or decreased, in recent weeks, Shurley said. “But to me, ‘09 will be tighter than ‘08. Farmers will have some tough decisions to make for next year’s crops.”

By Brad Haire
University of Georgia

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Fay Damages Crops in 31 Georgia Counties

Tropical Storm Fay brought much needed rainfall to Georgia in late August, but it caused $159 million in damage to crops in 31 south Georgia counties, according to a University of Georgia economic impact study.

Colquitt, Mitchell and Brooks counties in southwest Georgia were the hardest hit by the storm.
Conducted by the UGA Center for Agribusiness and Economic Development, the study evaluated the damage five weeks after the storm and the resulting economic impact it had in the area, said Archie Flanders, an economist with the UGA College of Agricultural and Environmental Sciences.

“We released a production value loss report a few days after the storm, but it’s difficult to determine the full extent of damage for many crops immediately after a weather event,” Flanders said. “Harvesting of some crops had begun at the time of the storm, but other crops were weeks away from harvest.”

Crop conditions can improve after a storm, but the potential for disease pressure is also a lingering concern, he said.

The storm caused $54 million in damage to vegetable crops, or 70 percent of the expected value, Flanders said. Ninety-eight percent of the vegetable losses occurred in Colquitt County alone.
A quarter of the cotton crop in the affected counties was lost, totaling $62 million in damage.

Pecans had the third greatest loss from the storm with 29 percent of the expected production value lost, or $21.1 million, Flanders said.

Peanut suffered $10 million in damage, or eight percent of the expected value. The storm knocked almost $5 million off the value of tobacco in the area and $1 million off the soybeans.
“Economic changes in agriculture reach other sectors of the state economy," he said.

Though the storm cost farmers $159 million in potential income, the lack of that money has a ripple effect, costing the economy another $108 million in potential revenue. Fay’s blow cost Georgia a total of $267 million.

By Sharon Dowdy
University of Georgia

Sharon Dowdy is a news editor with the University of Georgia College of Agricultural and Environmental Sciences.

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Sens. Chambliss-Isakson Urge USDA to Stop Plans to Change Peanut Program Loans

U.S. Senator Saxby Chambliss (R-Ga.), Ranking Republican Member on the Senate Agriculture Committee, and Johnny Isakson (R-Ga.) today (July 11, 2008) sent a letter to U.S. Department of Agriculture Under Secretary Dr. Mark Keenum urging the Department to continue using the current peanut loan differential method for 2008 and 2009. The proposal made by USDA last month would result in a significantly lower marketing loan rate for the Runner variety, which makes up almost 100 percent of Georgia production. Georgia produces nearly 45 percent of all the peanuts produced in the United States, making it the number one peanut producing state.

Text of the letter is below:

July 10, 2008

Dr. Mark Keenum
Under Secretary
Farm and Foreign Agricultural Services
Room 205 Whitten Building
United States Department of Agriculture
1400 Independence Ave., SW
Washington, DC 20250

Dear Dr. Keenum:

Now that the 2008 farm bill has finally been enacted into law the responsibility of implementing the legislation consistent with Congressional intent falls on the Department of Agriculture. This task can be as daunting as crafting the legislation and we are appreciative of the efforts you have taken to expedite the implementation process.

However, we are concerned about proposed changes to the peanut program. Shortly after the passage of the farm bill, a white paper was distributed at the direction of Deputy Under Secretary Floyd Gaibler highlighting proposed changes to the method of determining marketing loan differentials for peanuts. The proposal to move to a market-based loan differential for peanuts was met with little to no support within the peanut industry. We find it very disturbing that since Congress made minimal changes to the Peanut Title of the 2008 farm bill that USDA would make such a drastic proposal, which was never discussed during the many farm bill meetings attended by the Department.

Recently you held an industry wide meeting to discuss the peanut market-based loan differential proposal. You made it clear to the industry that the proposal would not be implemented for the 2008 crop of peanuts, but that a decision for the 2009 and subsequent crop years has not yet been made. We are appreciative of the fact there will be no changes for the 2008 crop and that you assured the industry there would be an open dialogue on the subject before a final decision is made for the 2009 and subsequent crop years.

After the industry wide meeting, we both received a letter from the American Peanut Council (APC). The APC is the trade association representing all segments of the U.S. peanut industry. The letter stated that APC members, at your request, reviewed the proposal again and still determined that if enacted the proposal, “…will harm the peanut industry and subject the federal government to the risk of increased financial losses.”

Dr. Keenum, we respectfully request that the peanut market-based loan differential proposal not be considered and that the Department continue to use the existing peanut loan differential method. The proposal is not supported by any segment of the industry and we are fearful that if the Department continues to pursue this proposal there will be a significant deterioration of USDA’s relationship with the peanut industry.

Please do not hesitate to contact us or our staff if you have any questions about our request.

Very truly yours,

Saxby Chambliss
Johnny Isakson

Chambliss Applauds Decision to Postpone Changes to Peanut Loans

U.S. Senator Saxby Chambliss (R-Ga.), Ranking Republican Member of the Senate Agriculture Committee, today applauded the decision made by the U.S. Department of Agriculture (USDA) to not make any changes to the manner in which they establish marketing loan differentials for peanuts for the 2008 crop year. Maintaining the current practice for determining differentials for 2008 benefits Georgia peanut producers as the recent USDA proposal would have resulted in a significantly lower marketing loan rate for the Runner variety, which makes up almost 100 percent of Georgia production. Georgia produces nearly 45 percent of all the peanuts produced in the United States, making it the number one peanut producing state.

“This is good news for peanut producers in Georgia,” said Sen. Chambliss. “This year’s crop of peanuts has been in the ground for weeks and 2008 production contracts were signed months ago. Changing the loan differential formula after the peanut crop has been planted would have been detrimental for our growers. Domestic demand for peanuts and peanut products has increased and the federal government should allow growers to respond to this demand without interrupting current systems in place. I applaud USDA for recognizing the importance of maintaining the historically recognized practice of establishing loan differentials for the 2008 crop year.”

The farm bill recently approved by Congress contains several provisions that benefit peanut producers such as: maintaining a separate subtitle for peanuts; preserving the target price, direct payment rate and marketing loan rate established in the 2002 farm bill; providing for a mechanism to ensure handling and associated costs are not deducted from a producer’s loan rate; maintaining separate payment limits for peanuts; and including Conservation Security Program incentives for producers moving towards an optimal crop rotation.