Source: TEXAS A&M UNIVERSITY submitted to NRP
CULTIVAR DEVELOPMENT AND ECONOMICS OF A HIGH OIL PEANUT MARKET
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
ACTIVE
Funding Source
Reporting Frequency
Annual
Accession No.
1031872
Grant No.
2024-67013-41994
Cumulative Award Amt.
$490,000.00
Proposal No.
2023-07691
Multistate No.
(N/A)
Project Start Date
Mar 1, 2024
Project End Date
Feb 28, 2027
Grant Year
2024
Program Code
[A1811]- AFRI Commodity Board Co-funding Topics
Recipient Organization
TEXAS A&M UNIVERSITY
750 AGRONOMY RD STE 2701
COLLEGE STATION,TX 77843-0001
Performing Department
(N/A)
Non Technical Summary
This project is focused on developing germplasm and economic tools that can be used to develop a new US market for high oil content peanuts that can be grown exclusively for oil production. Peanuts for oil is a major focus of production in many parts of the world but the US is currently a net importer of peanut oil and this presents an entirely new market for US peanut farmers.The objectives of the project are:1. Develop germplasm with increased oil content that can be grown in a reduced input production scenario.2. Develop genomic and phenomic tools that can be used by breeding programs and processors to quickly determine oil content.3. Develop economic models that explore the value chain of a high oil peanut market and the potential areas that must be examined to make the new market viable.
Animal Health Component
60%
Research Effort Categories
Basic
20%
Applied
60%
Developmental
20%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
2021830108150%
6031830301050%
Knowledge Area
603 - Market Economics; 202 - Plant Genetic Resources;

Subject Of Investigation
1830 - Peanut;

Field Of Science
1081 - Breeding; 3010 - Economics;
Goals / Objectives
In the past, we have made progress in developing cultivars, with traits including nematode resistance, drought resistance, and high oleic to decrease cost d maximize profits. However, if a new peanut oil market is to be developed there is a critical need for new cultivars that have higher total oil content as well as a rigorous economic analysis to ensure a viable market in the future. The costs to transport, dry, handle and shell peanuts produced for traditional edible uses are very high due to the need to maintain the value of shelled peanuts. Peanuts must remain whole and undamaged which slows processing time and requires additional sorting. We believe these extra steps add substantial costs and inefficiencies and many could be reduced or in some cases eliminated. Peanuts markets devoted solely to crushing for oil and meal coproducts should begin with a blank slate to determine what cost reductions are achievable. The value of traditional edible peanuts is substantially higher than the value of peanuts used strictly for crushing, but with higher oil content the value could be significantly increased. Traditional edible value would most likely still be much higher than the crushing value so the difference will need to be determined, which would be a starting point for where to start eliminating cost from the crushing equation. We could then begin to identify where those cost savings could be potentially obtained. As part of our strategy to address these issues we will build off of previous and ongoing research in breeding and economics to explore the feasibility of the interesting opportunity. Our long-term goal is to develop a new market for US peanut growers centered around high oil content peanuts.As mentioned, from previously completed and ongoing activities by key project personnel include using exotic and cultivated germplasm to develop high oil breeding lines we currently have lines with oil content as high as 62% compared to conventional cultivars which contain 48%. Additionally, we have an experienced team of economists to explore all facets of this new potential market from the farm to the processing plant and to the consumer. We propose to leverage our expertise in these areas to provide the knowledge and resources needed to further enhance the yield and disease resistance of peanuts in a profitable and sustainable manner with the following objectives:1. Develop germplasm with increased oil content that can be grown in a reduced input production scenario. We are currently field testing high oleic content breeding lines that vary for 55-57% oil content. Several of these lines that have been tested under irrigated conditions for 4 years show the potential as commercial cultivars. Furthermore, we also have other early generation materials that are high oleic and have Sclerotinia resistance and are up to 62% oil content. Our intention is to continue developing these lines. Success will be determined by the identification of breeding lines that represent viable release candidates.2. Develop genomic and phenomic tools that can be used by breeding programs and processors to quickly determine oil content. Our program has already identified viable Simple Sequence Repeats (SSR) molecular markers that need to be converted to Single Nucleotide Polymorphisms (SNP) markers and validated in new germplasm. Additionally, we routinely use Marker Assisted Selection (MAS) for selection of high oleic oil content and nematode resistance. We currently have germplasm in our pipeline to complete this work and are currently working in this area. Additionally, Near Infrared (NIR) spectroscopy is a viable tool for quantification of oil content, and we are currently developing an algorithm that will allow bulk selection for oil content at up to 30 seed per second.3. Develop economic models that explore the value chain of a high oil peanut market and the potential areas that must be adjusted to make the new market viable including consumer's willingness to use peanut oil by using a nationally representative survey. Our team is actively involved in modeling and budgeting for production scenarios for renewable energy using peanuts in Texas. We have developed a network of both agricultural and industry partners that give us unique access to the development of economic and environmental models for the establishment of a totally new industry. This will allow both farmers and industry to identify the differences in the value of edible versus oil peanuts and find key choke points that must be addressed to create the new value chain.Tools and data developed in this project will be disseminated through presentation at national and international scientific meetings, as well as at numerous extension programs offered by the Texas A&M AgriLife Extension Service, including both in-person and virtual formats. Furthermore, data will be published in scientific journals associated with the disciplines involved. The plan for these activities is presented in detail in the Dissemination and Outreach Plan section.
Project Methods
To reach our goal we will divide our work into three objectives. The objectives are interconnected and information and germplasm created in objective one (cultivar development) will be used to achieve objectives 2 (genomic and phenomic tools) and objective 3 (economic feasibility). Likewise, tools developed in objective 2 will then be used to make selections in objective 1. Furthermore, objective 3 will use all the information gathered in objective 1 and 2 to refine the models it creates to explore the feasibility of this potential market.Objective 1 (Years 1, 2 and 3)-- Develop germplasm with increased oil content that can be grown in a reduced input production scenario from the breeding programs of Texas A&M AgriLife Research. We continue testing of previously developed populations using a combination of field and UAS testing to establish lines suitable for cultivar release. Breeding plots will then be harvested and processed (Objective 2 describes further) and subject to statistical analysis.Objective 2 (Years 2, 3 and beyond)-- Develop genomic and phenomic tools that can be used by breeding programs and processors to quickly determine oil content. Our program has already identified viable SSR molecular markers that need to be converted to SNP markers and validated in new germplasm. Additionally, we routinely use MAS for selection of high oleic oil content and nematode resistance. By combining all of the MTA's for the various traits we can streamline our breeding pipeline. We currently have germplasm available to complete this work and are currently working in the high oil peanut research area. Additionally, NIR is another viable tool that can be used for quantification of oil content. As with high oil germplasm and MTA development we are also currently developing algorithms that will allow selection of individual seed for oil content as well as bulk sampling at up to 30 seed per second. Finally, as part of our ongoing breeding program we employ UAS for selection. Greenness index can be tied to maturity and is essential for maximum oil content and will be used in this project.Objective 3 (Years 1, 2, and 3). Develop economic models that explore the value chain of a high oil peanut market and the potential areas that must be adjusted to make the new market viable including consumer's willingness to use peanut oil using a nationally representative survey. Our team is actively involved in modeling and budgeting for production scenarios for renewable energy using peanuts in Texas. We have developed a network of both agricultural and industry partners that give us unique access to the development of economic and environmental models for the establishment of a totally new industry. This will allow both farmers and industry to identify the differences in the value of edible versus oil peanuts and find key choke points that must be addressed to create the new value chain.

Progress 03/01/24 to 02/28/25

Outputs
Target Audience:The target audience for this project spans multiple levels of the peanut industry, with a particular focus on evaluating the formation of a new high-oil peanut market. At the forefront are Texas peanut growers, who will be directly involved in producing these cultivars. We actively engage with them through field days as well as regular interactions with the Texas Peanut Producers Board, where we gather feedback, and they serve as a sounding board for new ideas on the project. These meetings allow us to connect with producers from every peanut-growing region in Texas, ensuring their insights help shape the direction of our work. Additionally, we use these opportunities to share information about the potential of high-oil peanuts for cooking and renewable fuel applications and assess farmer interest in this emerging market. Beyond growers, we engaged with industry stakeholders to access their interest in the potential new market. Finally, we extend our outreach to the general public, fostering awareness and understanding of this initiative through educational events, research center tours, and community presentations. Over the past year, we have hosted diverse groups, including international visitors, government officials, and industry representatives. By engaging these stakeholders, we aim to build a sustainable foundation for a new high-oil peanut market that benefits growers, researchers, and consumers alike. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?Myself and several members of my staff attended the 56th annual American Peanut Research and Education Society meetings in Oklahoma City, Oklahoma, where we learned about current trends in peanut research. We also attended multiplein-person field days and grower meetings. These events provided opportunities to earn continuing education credits toward the Texas Department of Agriculture Noncommercial Pesticide Applicator's license, as well as maintain FAA accreditation as a Remote Pilot in Command in addition to learning about new pesticide available for use in peanut research. How have the results been disseminated to communities of interest?All of these accomplishments have been actively shared through regularly scheduled Texas A&M AgriLife Extension farmer meetings and field tours, ensuring that growers remain informed about ongoing developments in high-oil peanut research and market feasibility. Additionally, we have presented our progress at Texas Peanut Producers Board meetings, engaging directly with industry stakeholders to discuss the economic and agronomic potential of high-oil peanuts. Beyond these group settings, we have conducted one-on-one discussions with seed and shelling companies, fostering direct industry engagement and exploring the logistics, processing challenges, and market opportunities necessary for the successful establishment of a high-oil peanut sector. What do you plan to do during the next reporting period to accomplish the goals?In the next reporting period, we will build on our initial feasibility analysis, field data evaluations, and industry engagement to further refine the development of a high-oil peanut market. Specifically, we will expand our economic feasibility model by incorporating additional site-specific production data across multiple years as well as refining cost assessments based on industry feedback and multi year data. We will also look at current barriers to adoption and customer preferences through the Human Behavior Laboratory at Texas A&M University. We will finalize the analysis of 2024 field trial data, identifying the most promising high-oil breeding lines for yield, grade, and oil content that can be used to create new breeding populations and reevaluate the highest performing lines in 2025. We will also continue seed increases to as we move towards large plot trials as well as Foundation Seed increase of new high oil lines. Additionally, we will initiate advanced economic modeling to compare the cost structures of edible vs. oil-use peanuts, identifying key areas for cost reduction in processing. Engagement with seed and shelling companies will continue, focusing on potential partnerships for processing high-oil peanuts at scale. Finally, we will intensify our outreach efforts, presenting findings at Texas A&M AgriLife Extension meetings, Texas Peanut Producers Board meetings, and scientific conferences to further educate growers, industry stakeholders, and the scientific community on the economic and agronomic potential of high-oil peanuts.

Impacts
What was accomplished under these goals? Significant progress has been made in both thebreeding and economic evaluationof a potentialhigh-oil peanut market during the first official year of the project. This year, weenlisted the help of Mr. Bob Parker to developa feasibility modelto analyze theeconomic viability of peanut production for oil based on pricing from 2013 to 2023. This model accounts for key economic parameters, includingproduction costs, processing expenses, transportation, and potential revenue streams. We are also looked at site-specific economic factorsfrom ourtesting locations in Texas. All these estimates will be updated with2024 season data. From a breeding perspective, we planted breeding trials around the state of Texas that evaluated high oil breeding lines in different real farm production scenarios. Yield, grade and management data were collected and will be entered into the Economic feasibility models. We are still activelyanalyzing 2024 field datato assessyield, grade, and oil contentacross all these environments. These evaluations are critical for identifying peanut lines with thehighest oil yieldswhile maintaining agronomic performance under various production scenarios. In addition to these fully irrigated scenarios we also evaluated high oil lines under limited irrigation and rainfed conditions to further evaluate the feasibility of peanut production for oil in Texas and the Southwest. As part of this we have developed an high content algorithm and flew UAS. This data will be used to develop best management practices and recommendation for seeding rate and irrigation timing for low input sustainable peanut production. Finally, wesubmitted applications for the release of two high-oil peanut varietieswith theTexas Plant and Seed Board. Both varieties tested significantly higher than commercial checks in Texas across several years of testing. They underwentinitial seed increases in 2024 and will be increased for future expansion and as well as demonstration trials during the 2025 season. These efforts, spanninggenetic improvement, economic modeling, and market feasibility,are essential steps toward establishing asustainable high-oil peanut industryin the U.S. As our work progresses, we will continue refining our models, exploring barriers to adoption, consumer preferencesand expanding our field evaluations to ensure that this new market is botheconomically viable and beneficialforfarmers, processors, and end-users.

Publications

  • Type: Other Status: Published Year Published: 2024 Citation: Cason, J.M., M.D. Burow, H. Pham, C.E. Simpson, B.D. Bennett, J. Shumaker, W. Ravelombola and M.R. Baring. 2024. Registration of Tx137967 Peanut. Texas Seed and Plant Board. November 15, 2024. texasagriculture.gov.
  • Type: Other Status: Published Year Published: 2024 Citation: Cason, J.M., M.R. Baring, M.D. Burow, C.E. Simpson, B.D Bennett, H. Pham, J. Shumaker, W. Ravelombola. 2024. Registration of 31-08-05-03 Peanut. Texas Seed and Plant Board. November 15, 2024. texasagriculture.gov.