Many peanuts are grown in West Texas under contract. Assuming a good crop in West Texas, which appears likely at this time, the number of peanuts which could be purchased for domestic use through the buy back is substantial. I feel that the quota in our area will be purchased domestically and that we will have some buy backs. If over half of our additionals are contracted, their pool prospects should be good. If, however, the majority of our additionals are not contracted, then pool prospects will be small.
History shows that pool returns decrease as the number of additionals under loan increase.
A final word on our quota. If quota peanuts are placed under loan, either by choice or by being forced under loan in January, there is a good chance the pools will suffer. Pool returns will be maximized only if quota is kept out of the loan. This is about the only thing I can be sure of in a year such as this, and please remember it as you market your crop. We will have the latest on all crop conditions along with Association business and a mix of enjoyable and informative speakers.