After repeated warnings that peanut butter prices were likely to skyrocket in the face of drought and low production, American farmers appear on the cusp of harvesting a bumper peanut crop, one that will likely lower prices in grocery stores across the country.

In the face of a major drought in the Southeast last year, peanut production plummeted. With major peanut producers like Georgia hit hard by high temperatures and low precipitation, stunted peanut harvests led to a major rise in prices.

“After last year’s small crop, we saw peanut butter prices on average rise 30 percent or more,” said Patrick Archer, president of the American Peanut Council.

While a 30 percent rise on a $3 jar of peanut butter (roughly 90 cents) may not seem like a significant number, it adds up quickly for bulk purchasers (particularly food banks, which often rely on peanut butter as a cheap form of protein). Moreover, even if 90 cents may not seem like much in a single purchase, it adds up when one considers that the average American will consume about 6 pounds of peanut butter in a given year.

With the Southeast avoiding much of the drought that plagued the rest of the nation, peanut production has shot up by two-thirds. “With this year’s excellent crop, the supply and demand should come back into balance and peanut butter prices should come back to a more normal level at the retail level,” said Archer.

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Written by: Justin Ellison / Farm Plus Staff Writer