Are peanut shellers taking advantage of farmers?
A recent lawsuit against two of the largest peanut shellers in the country was filed after complaints of potential collusion resulting in lower pay for farmers. The complaint has alleged that shellers Birdsong and Golden Peanut have been coordinating with one another to underpay peanut farmers for runner peanuts, the most common peanut in the U.S.
Peanut shelling is a large part of the peanut production process. Thousands of peanuts are sent to shellers before being processed and sold to other food companies. Because the peanut industry comes from private sellers and farmers, sheller set prices they pay to farmers. The peanut shelling lawsuit alleges that not only is the peanut shelling industry susceptible to price fixing but that the small size of the industry may have allowed Birdsong and Golden Peanut to collude.
Unlike many other agricultural markets, there is no futures market in the peanut industry. This may lead to a lack of pricing transparency, which has allegedly caused shellers like Birdsong and Golden Peanut to hold a majority of the shares, leaving farmers with less pay.
After weather changes in 2013 impacted peanut farming, production became difficult for shellers, resulting in a lower prices for farming. However the lawsuit alleges that in 2014 Birdsong and Golden Peanut may have falsified inventory numbers to the USDA claiming that there was an oversupply of peanut production, in order to keep prices low.
Birdsong and Golden Peanut have allegedly been paying peanut farmers significantly lower for their crops since 2014 through price fixing schemes. If you have sold runner peanuts to either Birdsong or Golden Peanut since 2014, you may have a claim.
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Think you may have a claim in the Peanut Farmer Lawsuit? Call us Today!
We would like to speak with you about your experience selling runner peanuts to Birdsong or Golden Peanut since 2014. Don’t let shellers take advantage of your farm.
We would like to speak with farmers who sold their runner peanuts directly to Birdsong or Golden Peanut since 2014.
Our consumer class action law firm offers a free initial consultation at no charge to learn about your case and see if we can help. Call today to speak with one of our consumer class action attorneys.
Call Us Toll Free at 1-800-551-8649