2024 U.S. Peanut Crop Impacted by Severe Drought: Price Hikes Expected
The 2024 peanut harvest in the United States is facing significant setbacks due to drought conditions, particularly impacting production in key states like Georgia, Texas, Alabama, and Florida. Although many farmers increased their peanut acreage this year, high temperatures and limited rainfall during critical growth periods have led to lower yields than anticipated, raising questions about the industry’s ability to meet ongoing demand.
Yield Reductions Despite Increased Acreage
Georgia, the top peanut-producing state, added 90,000 acres this year, reaching a total of 775,000. Despite this increase, Georgia’s expected average yield is only 4,100 pounds per acre—a 3% drop from last year and the lowest since 2016. Nationwide, average yields are projected at around 3,740 pounds per acre, approximately 200 pounds lower than the 10-year average. The projected total U.S. production is about 3 million tons, marking only a 7% increase from previous years, which remains insufficient given current demand levels.
Challenges in Texas and Other States
In Texas, peanut growers have faced drought’s impact head-on. The state’s peanut crop began with better-than-usual moisture, but August brought intense heat and insufficient rainfall, particularly affecting West Texas, which holds some of the state’s largest peanut farms. Even with irrigation efforts, fields without sufficient water faced yield losses, limiting the effectiveness of the expanded acreage. Some fields have also seen issues with weeds and diseases, which further complicates the growing season.
Demand Pressure and Potential Price Increases
Peanut consumption in the U.S. reached a record 3.3 billion tons last year, driven by demand across various products, including peanut butter, snacks, and candy. With this year’s weather-related yield limitations, pressure on peanut supplies is likely to increase. This strain could push prices higher in the months to come, impacting both peanut processors and consumers. Additionally, drought conditions elevate the risk of aflatoxin, a fungus-related contamination that can affect peanuts in dry and warm conditions, potentially impacting product quality and safety.
As peanut farmers across the country continue to contend with these challenging growing conditions, the industry’s reliance on drought-resistant peanut varieties and improved irrigation methods is likely to intensify in the coming years. For consumers, the potential rise in peanut prices may mean reconsidering household budgets for popular peanut products.
References
Kimura, A. (2024). Texas Peanut Production Climbs in 2024. AgriLife Today. Retrieved from https://agrilifetoday.tamu.edu
Sawadgo, W., & Rabinowitz, A. (2024). Peanut 2024 Outlook. University of Georgia Cooperative Extension. Retrieved from https://extension.uga.edu