Commodities: Fieldcrops: Peanuts
2009 Peanut Update
ACREAGE AND ROTATIONS UPDATE
R. Scott Tubbs and John P. Beasley, Jr.
It is difficult to project crop acreage for the upcoming season at this time of year. As seen in 2008, contract prices can be very fluid as planting season approaches, which can alter plans for some fields. However, it is possible to make some educated presumptions based on trends, supply and demand, and current or anticipated prices of commodities and inputs. At the time of publication, it is expected that 2009 peanut acreage will not be as high as it was in 2008 for several reasons. First of all, 2008 acreage was the second highest land commitment to peanut since 1993, which was about 25% more than the average over that span (Table 1). Couple that with a near record yield (3,300 lb/ac) and it caused 2008 to be the highest total production on record in Georgia (over 2.26 billion pounds), even surpassing 1991 when 900,000 acres were planted (but yields were just under 2,500 lb/ac = 2.23 billion pounds). Thus, current supply of peanuts has caused demand to slip, so contract prices are expected to be down. Naturally, a drop in acreage should follow, back to a more normal level.
However, high fertilizer prices and irrigation costs (mostly associated with high diesel prices for pivot operation) over the last few years have also influenced acreage of other agronomic crops grown in Georgia. Cotton acreage has experienced a 30% drop in the last two years (Table 1). Corn acreage increased as a response to high commodity prices heading into 2007, but then decreased in 2008 as fertilizer and irrigation costs rose drastically. Meanwhile, soybean acreage nearly tripled the last two years, and acreage could continue to see a steady incline heading into 2009 based on early budget comparisons.
Table 1. Planted acreage for crop years 1998-2008 in Georgia.
Peanut |
Cotton |
Corn |
Soybean |
|
Year |
---------------- Planted Acres x 1,000 ---------------- |
|||
1998 |
540 |
1,370 |
500 |
300 |
1999 |
546 |
1,470 |
350 |
220 |
2000 |
494 |
1,500 |
360 |
170 |
2001 |
515 |
1,490 |
265 |
165 |
2002 |
510 |
1,450 |
340 |
160 |
2003 |
545 |
1,300 |
340 |
190 |
2004 |
620 |
1,290 |
335 |
280 |
2005 |
755 |
1,220 |
270 |
180 |
2006 |
580 |
1,400 |
280 |
155 |
2007 |
530 |
1,030 |
510 |
295 |
2008 |
695 |
950 |
370 |
430 |
Source: USDA – National Agricultural Statistics Service
The University of Georgia recommends a minimum of three years between peanut crops in the same field. Research has consistently shown higher yields and grade when a long rotation is in place. The winners of the Georgia Peanut Achievement Club’s top peanut yield awards all have one thing in common – a long rotation (typically at least three years between peanut crops in the same field). Therefore, it is important to know what crops are good candidates for rotation with peanut and to track the trends in acreage of those crops as well.
It is recognized that cotton and corn are considered the best row crops for rotation with peanut. On the other hand, soybean is not viewed as a good rotational crop with peanut since both are legumes and are similar hosts to some pests (especially certain nematodes and diseases). Peanut yields are also compromised depending on which crop it follows and length of time between peanut crops. Figures 1 and 2 show that peanut yields improve for every additional year between peanut crops. Figure 1 also shows that peanut yield potential is lower following soybean than when following corn or cotton after a recommended rotation of 3 years between peanut crops. This becomes even more pronounced if Cylindrocladium black rot (CBR) of peanut / red crown rot of soybean becomes an issue since they are caused by the same fungal organism. If CBR does become an issue, the best mechanism for control is to remove peanut and soybean from rotations for a minimum of 5 years. It is likewise suggested to clean equipment and shoes after being in a field with CBR to decrease the likelihood of spreading to other fields. Figure 3 also shows the drastic decline in peanut yields when grown in successive years after coming out of a good rotation. Therefore, peanuts should not be grown in consecutive years and should be rotated with non-leguminous crops to break up pest cycles and improve yield potential. The only time two consecutive peanut crops should ever be considered is if peanut has not been planted in at least the last seven years in that field.
PN = Peanut, CR = Corn, CT = Cotton
Since cotton and corn are good rotational crops for peanut, and planting peanut after soybean can be as deleterious as planting continuous peanut, we can look at acreage trends in Georgia combined by group. Table 2 shows peanut + soybean (leguminous) combined acreage in comparison to cotton + corn (non-leguminous) combined acreage. The ratio of these two groupings gives an indication of potential rotation conflicts in the future. When the ratio is near 0.50, it means a three year rotation for peanut is sustainable. However, when this ratio increases above 0.50, especially for consecutive years, it will become increasingly difficult to plant peanut in recommended rotations since land that has not been in a legume in the last two years will be harder to find. The ratio has been above 0.50 in four of the last five years, and was at its highest level in 2008, which is a cause for concern looking ahead. It is realistic to estimate combined peanut + soybean acreage at over 1,000,000 acres again for 2009, which will put an even bigger crunch on rotational land for peanut. With this in mind, it is imperative that growers evaluate their long-term plans and adjust their management and rotations accordingly.
Table 2. Combined planted acreage for crop years 1998-2008 in Georgia.
Peanut + Soybean |
Cotton + Corn |
Ratio |
|
Year |
Planted Acres x 1,000 |
||
1998 |
840 |
1,870 |
0.45 |
1999 |
766 |
1,820 |
0.42 |
2000 |
664 |
1,860 |
0.36 |
2001 |
680 |
1,755 |
0.39 |
2002 |
670 |
1,790 |
0.37 |
2003 |
735 |
1,640 |
0.45 |
2004 |
900 |
1,625 |
0.55 |
2005 |
935 |
1,490 |
0.63 |
2006 |
735 |
1,680 |
0.44 |
2007 |
825 |
1,540 |
0.54 |
2008 |
1,125 |
1,320 |
0.85 |
Source: USDA – National Agricultural Statistics Service