Comparisons of On-Farm Peanut Drying Systems in the Southwest¹

The economic and management characteristics of five types of on-farm peanut drying systems were compared. Costs were determined as average present value costs per tonne using a 15-year planning horizon. The systems compared and their average present values of net, after tax, cash outflows were: high capacity, heated air drying - $16.50/tonne; low temperature, controlled humidity drying - $23.07/tonne; fan-powered, natural air drying - $20.88/tonne; wind-powered, natural air drying in field modules - $22.15/tonne; and sack drying in the field - $28.60/tonne. Costs for the wind-powered, field module system were reduced to $18.00/tonne by Federal Energy Tax Credits (15%) and further reduced to $9.70/tonne by Oklahoma Energy Tax Credits (30%). Management comparisons included flexibility, drying capacity with respect to weather conditions, seed quality, risks of mold development and possibilities for multiple use.