The numbers are in

USDA released its June Crop report and something that was expected happened. Tobacco and peanut acreage was down. Peanuts were down 23% from last year to 75,000 acres. The explanation of this drop is summed up well by NCDA's blog (In the Field): "That drop is the result of a couple of factors: 1) Last year’s N.C. peanut crop was a record, so some decrease this year was to be expected; and 2) the peanut industry was hurt by the salmonella outbreak earlier this year that saw the recall of lots of peanut butter products. The massive recall affected consumer demand for peanut butter and related foods. That has left a lot of N.C. farmers with peanuts in storage and no contracts for them. In other words, nobody’s buying."

Tobacco farmers planted 3% less this year due to the reduction in contracts. In an effort for tobacco companies to reduce their costs, they responded to Congressional action that was taken this year (FDA regulation of tobacco & 62-cent per pack excise tax). Less demand calls for less supply resulting in fewer acres of tobacco being planted this year.