Legislation Addresses Reference Price, Voluntary Base Update and Other Peanut Priorities

Released: June 13, 2024

Washington, D.C. – U.S. Senate Agriculture, Nutrition and Forestry Committee Ranking Member John Boozman (R-AR) released the Senate Republican-drafted framework for the 2024 Farm Bill. The legislation addresses the top priorities of the U.S. Peanut Federation:

• The maintaining of the Price Loss Coverage Program
• A reference price increase that reflects the increases in the cost of production since the 2018 Farm Bill
• A voluntary base update

Senator Boozman’s framework reflects what he heard from peanut growers, shellers, and buying points across the peanut belt. Senator Boozman and his team visited peanut farms and processors and heard first-hand the impact of increases in the cost of production, struggles with agricultural financing, labor shortages, trade barriers, and a need for a voluntary base update.

In a letter to Ranking Member Boozman, the USPF stated, “The United States Peanut Federation sincerely appreciates the challenging work that went into producing the recently released 2024 Senate Farm Bill framework. This proposal reflects what you have heard from the peanut industry and from Production Agriculture across the U.S. We support this proposal and encourage the Senate to move forward with a bipartisan Farm Bill this year.”

USPF is comprised of peanut growers, shellers, and buying points and have been unified in their efforts throughout the Farm Bill process. The peanut industry’s priority is a meaningful increase in the reference price for the Price Loss Coverage (PLC) program. The historic rise in input costs and cost of production make a reference price increase a necessity to keep the farm safety net intact. USPF is pleased that this proposal includes a significant increase in reference price for peanuts in the Price Loss Coverage (PLC) program. The legislation also addresses other peanut priorities, including a provision for a voluntary base update which will be essential for young farmers and new production areas that have not been able to utilize safety net programs to date.

USPF Chairman Jamie Brown commented, “In our testimony before the U.S. Senate Agriculture Committee, meetings on Capitol Hill, and in the peanut belt, we have emphasized the increased costs of production for growers and need for a reference price increase. In addition, we have supported a voluntary base update that assured a pathway for young growers and equity for peanut production regions of the U.S. that did not have peanut base. Senator Boozman’s framework addresses our top priorities.”

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The U.S. Peanut Federation represents the peanut industry in Washington, D.C. and was founded by the American Peanut Shellers Association, the National Peanut Buying Points Association and the Southern Peanut Farmers Federation.