ARS | Publication request: ECONOMIC FEASIBILITY OF SCREENING FARMER STOCK PEANUTS PRIOR TO MARKETING

Submitted to: American Peanut Research and Education Society Proceedings
Publication Type: Abstract Only
Publication Acceptance Date: April 16, 1997
Publication Date: N/A

Technical Abstract: Screening farmer stock peanuts prior to marketing provides a method to increase the per ton value of peanuts. Through the mechanical separation of larger, higher value pods (overs) from foreign material (fm), loose shelled kernels (lsk), and smaller, lower value pods (thrus), significant changes in farmer stock grade result. Based on data from 395 runner lots in the Southeast, the percentage of sound mature kernels (ok) were changed by ñ0.61, -4.31, -2.32, and -0.3 between overs and unscreened lots, respectively. The average per ton value of farmer stock peanuts was $26.45 higher in the overs lots compared to the unscreened lots. Although the average per ton value of peanuts is increased, feasibility of screening is dependent upon several factors. The specific marketing situation of the farmer must be such that production in excess of quota provides additionals to replace peanuts removed during the screening process. Typical investment in screening equipment is approximately $150,000. Amortized at a 10% rate of interest over 6 year period with salvage value and labor and energy included, a minimum of 4,000 farmer stock tons per year must be screened to effectively "spread" fixed cost. Further, the quality of peanuts prior to screening also impacts feasibility. These factors will be incorporated to estimate specific decision thresholds to determine if individual lots should be screened prior to marketing.