Get paid for new and continued regenerative ag practices.

When business relationships evolve into personal friendships, it’s often the result of years of partnership through good times and bad. ADM Golden Peanut Company customers and employees often call each other friends, relying on each other over many years to succeed in a difficult industry.

No matter where you go in agriculture, relationships are at the heart of the business. That’s certainly the case in rural Southeast U.S. peanut growing areas, where business acquaintances often evolve into long-time friendships.

Howard Hodge Jr., a peanut grower outside Marianna, Florida, explains it this way when discussing Steve Welch, buying point manager for ADM Golden Peanut Company. “I consider him a friend. Not just a peanut buyer. I know he’s going to tell me just like it is.”

The peanut business is extremely competitive, says Welch, and he never rests until growers like Hodge are satisfied. “The door’s going to be open when they need us. That’s my promise to the growers and to Golden Peanut. I’ve got relationships with those guys, and they’re more than just customers. They’re friends also.”

Trust is inherent

Unlike many agricultural commodities, the peanut market does not have a futures contract for price discovery. Mark Milliron, area procurement manager for Golden Peanut, explains that this makes peanut buying different from commodities like grains, cotton, and livestock.

“Your relationship is different in that there’s no board for the grower to look at,” he says. “So, they rely on you to give them your best market knowledge, your analysis of the supply of peanuts. And try to guide them to what they need to do marketwise.”

Peanut growers need to trust that they are getting the best information and a competitive price for their crop, so they rely heavily on that buyer to deliver.

“Developing trust with our buying points and growers is paramount,” Milliron continues. “Service is also very important. But the main thing is that they trust you.”

Welch agrees and says growing peanuts is a tough business. Input prices are high, crops are pressured by disease, and weather in the Southeast U.S. is often volatile. He believes a big part of his role is to help peanut farmers be successful by providing whatever assistance he can as a trusted partner with the grower.

“I know we all got to make money. But without the farmer, we’re not going to be needed,” he emphasizes.

Welch says he looks for areas he can help, such as in selecting the best seed varieties and securing a profitable price. “I get my paycheck from Golden, but I work for the farmer also. And I’m ready to get them the best deal that I can.”

Stressing sustainability

Welch says another way ADM Golden Peanut looks to help peanut growers improve profits and their land is with new programs. ADM re:generations™ is one such program, where growers receive cash incentives for implementing regenerative ag practices such as cover crops and reduced tillage.

Oglethorpe, Georgia, peanut grower Donald Chase says when Golden Peanut offered ADM re:generations, he was the first to sign up. “I believe we have a great story to tell, particularly in peanuts. A lot of the things that raise our sustainability are also the things that put more money in our pockets.”

In addition to the cash incentives, Chase explains that a cover crop takes away two trips across the field with a disc, so there’s money savings. There are also carbon sequestration benefits, improved soil structure which help establish deep roots, and other benefits.

“I think that a commitment by a company like ADM towards sustainability goals is really the way we move forward as an industry,” he says.

Partnering for the future

ADM Golden Peanut as a company stresses true partnerships with its growers to achieve mutual success.

Mark Milliron says it’s this company value that makes his job so enjoyable. “I like getting out in beautiful country like this and visiting customers. Interacting with people is the biggest thing I like about my job.”

Steve Welch echoes this sentiment, and says the personal touch is what makes the difference. “You know, people ask me when I’m going to retire. But I’ve got no plans of retiring as long as I’m able to deal with customers and maintain those long-held relationships.”