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Frequently Asked Questions

Peanut Revenue

Nov 25, 2014

Q: What changes have been made to the program?
Previously, peanuts were insured under the actual production history (APH) program providing yield based coverage. The new plan provides revenue based protection, with a price based on commodity markets for related commodities. This provides coverage in price fluctuations from the projected to harvest price discovery periods, similar to other crops with revenue protection. Additional changes to the policy provisions include:

  1. Simplification of the provisions regarding the maximum allowed per acre replant payment. There is no longer a replant payment qualification using 20 percent of the production guarantee and price election. The new policy sets the maximum amount of the per-acre replant payment at $95 multiplied by your share. This per acre dollar amount was increased from $80 under the APH program.
  2. The quality adjustment procedures were revised to eliminate usage of the price the producer receives in the market from the sheller, handler, marketing association, etc. Additionally, the price used to compare against the value of the damaged peanuts has changed. Quality adjustment is now based on a comparison of the grade value of the peanuts to the USDA loan price. The grade value is found on the FSA 1007 Inspection Certificate and Calculation Worksheet. Quality adjustment may now apply when the value per pound of damaged peanuts (by type) found on the FSA 1007 is less than 90 percent of the average price per pound (which is based on the USDA loan price). Previously, production to count was reduced for quality if the price per pound received for damaged peanuts was less than 85 percent of the price election.

Q: Can I still choose to insure only yield coverage under the new policy?
A: Yes, you can still elect to insure yield only by selecting Yield Protection.

Q: If I have an existing APH policy, will my policy be cancelled?
A: No, RMA has worked with approved insurance providers to ensure that producers with current APH yield-based policies are transitioned to the new Peanut Revenue Policy without a loss of coverage. Please see MGR-14-017 for further information.

Q: How was the new pricing methodology for peanut revenue created?
A: The pricing methodology was part of a privately developed peanut revenue program submitted by the peanut industry. It examines the relationships that exist between the shelled peanut market and other market variables, as well as relationships needed to convert a shelled peanut price into an in-shell peanut price.

Q: How will prices for the new peanut revenue policy be determined?
A: Prices will be based on a formulation of a series of factors corresponding to the futures prices of cotton, wheat, soybean oil, and soybean meal, as well as several other factors including the Brazilian price of peanuts, peanut stocks, and the FSA loan rate for peanuts.

Q: Where can I go to get more information about the how the price is determined?
A: An explanation of the pricing methodology can be found here: Pricing Methodology

Q: Will I be able to view projected prices during the discovery period?
A: Yes. During the discovery period daily updates will be available with the latest calculated peanut price. This can be found in the Price Discovery application located at:

Q: What are the discovery periods for my county, and which contracts are used?
A: Prices for all discovery periods will be based on December contracts for cotton, soybean meal, soybean oil, and wheat. The discovery periods will depend on your state and county’s sales closing date found in the Special Provisions of your peanut policy. Information regarding discovery periods and contracts can be found here. Commodity Exchange Price Provisions – Peanuts

Contact Information

Consult your crop insurance agent for more information about the new peanut revenue program.