<p>Some peanut farmers are concerned their government-guaranteed sale price could take a major hit because of a minor change in the fee they pay to promote the crop.</p><p>The ramifications of the fee hike, as they call it, have farmers so concerned that their lobbying groups for the first time are asking the U.S. Department of Agriculture to overrule a decision by the National Peanut Board, which is made up of peanut farmers who were elected by other farmers to handle marketing and promotion.</p><p>"They're just trying to acquire all the money they can get their hands on," said Jimmy Cheney, chairman of the Georgia Peanut Commission. "For 40 cents a ton, they're going to jeopardize farmers $60 a ton. If they do that, they better not go home, because there's going to be a lynch mob waiting on those board members."</p><p>Under the new farm bill, traditional peanut farmers are guaranteed $355 a ton from the government for their crop unless they can get more on the open market. The National Peanut Board, with the blessing of the farmers, takes 1 percent of all sale money and puts it toward television commercials and other peanut-marketing efforts.</p><p>But the board recently ruled that when a farmer and sheller enter a contract _ or "option" _ for a future sale, any monetary value of that contract should also be assessed at 1 percent. Marie Fenn, the board's president and managing director, said the intent wasn't to increase the fee but to make it more consistent for all farmers.</p><p>The concern for Cheney and others isn't really about the fee, which amounts to pocket change for a typical farmer. The harm, they say, is a potential change in how the government treats option contracts and whether the grower maintains ownership rights before the peanuts are transferred to the sheller.</p><p>That's crucial because the government currently foots the bill for storing and handling peanuts until they're sold _ as much as $60 per ton. If an option contract between a grower and sheller is perceived as part of a sale, Cheney is afraid the government might not be obligated to pay for storage, wiping out the profits for hundreds of farmers.</p><p>Fenn said that was never the board's intention and she has received no indication from the USDA that the proposed fee change would be treated that way.</p><p>"The National Peanut Board does not want to do anything to in any way harm or cause problems for their fellow growers," Fenn said. "However, we are obligated to pursue a clarification, and we are doing that."</p><p>Last week, Cheney and other farmers appealed their case to the peanut board, which attempted to ease their concerns. Unsatisfied, they fired off a letter to the USDA's Farm Service Agency. Fenn says the board has already sought the agency's clarification and is anxiously awaiting its response.</p><p>"This is the first time we've done anything like this," said Randy Griggs, executive director of the Alabama Peanut Producers Association, which joined Georgia in the appeal. "Based on what they're recommending, I don't know they understood all the ramifications it could have."</p><p>The Farm Services Agency didn't return telephone calls for comment made by The Associated Press.</p><p>Don Koehler, executive director of the Georgia Peanut Commission, said he took Fenn at her word that the peanut board never meant to lower the profits for farmers. Still, he said the threat is legitimate.</p><p>"I don't think there's anything sinister here, but I just think there's an unintended consequence," Koehler said.</p><p>Cheney said the matter was so serious there could be efforts among farmers to throw out the board members.</p><p>"If this happens and it costs money, I think you'll hear clamoring among the growers in the peanut belt to have a recall election," he said.</p><p>___</p><p>On the Net:</p><p>HASH(0x2864ab4)</p><p>HASH(0x2864b5c)</p><p>HASH(0x2863084)</p><p>HASH(0x2863168)</p>
