Legislation Includes Key Peanut Provisions
July 3, 2025 – Washington, D.C. – Today, the U.S. House of Representatives voted to pass
the final version of H.R. 1, the One Big Beautiful Bill Act, in a 218-214 vote. This follows the
U.S. Senate passage of the legislation in a in a 51-50 vote Tuesday, with Vice President JD
Vance casting the vote required to break the tie. The United States Peanut Federation
(USPF) applauds the U.S. Senate and U.S. House of Representatives for working diligently
to pass this legislation and send it to the President’s desk for final approval.
The U.S. House Agriculture Committee and U.S. Senate Agriculture Committee both
prioritized many typical Farm Bill provisions to be included in this budget legislation
package, additions which focused on investments in rural America. The final legislation
included meaningful provisions for the peanut industry, including an increase in the
reference price for the Price Loss Coverage (PLC) program, a voluntary base acres update,
a marketing loan increase, and modified payment limitations that reflect increased costs
of production.
Specifically, this legislation:
- Increases the peanut reference price from $535/ton to $630/ton, beginning with
the 2025 crop year - Provides an additional 30 million new base acres, beginning with the 2026
crop year - Increases the peanut marketing loan from $355/ton to $390/ton, beginning with
the 2026 crop year - Increases payment limitations from $125,000 to $155,000 per entity
- Includes a separate peanut payment limit set at $155,000 per entity
USPF commends the efforts of Congressional agricultural leaders for working tirelessly to
protect peanut industry provisions and ensure these meaningful policies were included in
the final legislation. During the U.S. Senate approval process, the peanut industry and
other agriculture commodity industries faced a challenge with an amendment offered by
U.S. Senator Chuck Grassley (R-IA) to restrict payment limits. USPF joined over 40
agriculture groups in signing a letter to Senate leadership to oppose the amendment, and
on June 30, Senator Grassley withdrew his amendment.
“The peanut industry has struggled over the past several years due to increases in farm
inputs, labor shortages, and trade barriers. This inclusion of peanut provisions in the
budget legislation package is significant in our efforts to provide producers with the tools
and assistance they need to continue to produce our nation’s food, fuel, and fiber. USPF
applauds the Members of Congress who supported rural communities by voting to
advance this important legislation. We are grateful to U.S. House Agriculture Committee
Chairman GT Thompson and U.S. Senate Agriculture Committee Chairman John Boozman
for their hard work and leadership in ensuring the much-needed provisions for the peanut
industry were included in the final version of this bill,” said Jamie Brown, U.S. Peanut
Federation Chairman.
“The budget legislation passed today reflects a strong response to the peanut industry’s
continued discussions about challenging economic conditions. Alabama peanut growers
appreciate the U.S. House Agriculture Committee and U.S. Senate Agriculture Committee
for their actions taken to address these issues. After two extensions of the 2018 Farm Bill,
producers currently have no viable safety net in today’s economy. The peanut provisions in
this package address these outdated farm bill provisions and provide a chance to quickly
improve financial conditions for growers. We applaud Congress for prioritizing the
advancement of this legislation,” said Carl Sanders, Alabama Peanut Producers
Association President.
“The budget reconciliation package provides much-needed financial relief to the peanut
industry. Peanut growers have faced significant economic strain due to high production
expenses and low commodity prices. The detrimental financial situation has made
increasing the reference price essential to preserving the farm safety net. The legislation
passed today contains our industry’s top policy priorities, and we are thankful for the
urgency in passing this bill,” said Joe Boddiford, Georgia Peanut Commission Chairman.
The United States Peanut Federation (USPF) is comprised of the Southern Peanut Farmers
Federation, the American Peanut Shellers Association, and the National Peanut Buying
Points Association. USPF serves as a unified voice in Washington D.C. for all sectors of the
peanut industry and advocates actively for strong agricultural policy. For additional
information, contact Lorene Parker at (202) 543-7464 or by emailing
[email protected].