Argentina’s peanut farmers reduced their plantings over 15% to 20% for the 2018/2019 growing year. The drop comes on the heels of a horrible growing season in the 2017/2018 cycle.
Several factors contributed to the expected decline.
First, poor growing conditions during much of the season drastically reduced yields and farmers’ enthusiasm to plant as many acres. Farmers endured long and excessive periods of wet, cold conditions during key periods.
Due to budget deficits, the government also has triggered export taxes and reduced export refunds.
Beyond that, tighter crop loan availability, discourage growers from planting as many acres as they might otherwise have planned.
Added to that, seed quality is less than ideal. During April and May when seed peanuts have been gathered, the weather prevented farmers from harvesting on time and much of the seed supply went through a prolonged period of excessive rain, saturated soils, high humidity and above-normal temperatures.