2016 Peanut Production Break-Even Analysis

Using the 2013 NCSU Peanut Enterprise budget posted online (http://ag-econ.ncsu.edu/extension/peanut-budgets), total production expense for conventionally tilled runner type peanuts without land rent (variable as well as fixed cost) is $872.00. Assuming an average land rent of $65/ac then total production is $937.00. Using a price range from $300 to $425/ton and yields of 3200 lbs/ac to 5,000 lbs/ac there is no profit realized from peanut production unless a minimum of 4600 lbs/ac is reached and a price of $425/ton is met. Yields above 4,800 lbs/ac provide profit at prices of $400/ton or higher. Using this data, it is reasonable to assume viable peanut production as an option provided average yield is at least 4,600 lbs and a minimum price per ton of $425 or higher is available.  Potential profit or loss for yields ranging from 3200-5000 lbs/ac at a price per ton of $300-$425 per ton is shown below.

PEANUT BREAKEVEN

Written By

Photo of Mike CarrollMike CarrollArea Agent, Agriculture (252) 633-1477 mike_carroll@ncsu.eduCraven County, North Carolina
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