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Drying, cleaning, and shelling peanuts represents approximately one-third of the costs of growing, harvesting, and processing peanuts for oil extraction. A conventional two-row peanut combine normally used to thresh windrowed peanuts was modified to shell the peanuts as they were harvested. Peanuts were dug, windrowed and allowed to partially dry in the windrow. They were then harvested using the modified peanut harvester, and a conventional grain combine. As a control treatment, peanuts were harvested using the modified peanut combine with the shelling grates removed from the sheller. The modified peanut combine successfully captured 91% of the peanut kernels harvested in the control and shelled 99% of the kernels harvested. The grain combine captured only 62% of the peanut kernels. The grain combine shelled 93% of the peanuts harvested. Peanuts harvested with the grain combine had 30% foreign material compared to 11% harvested with the modified peanut combine or the control. Allowing the peanuts to dry in the windrow and shelling with the modified peanut combine reduced the estimated post harvest oil production costs as much as 36% from $611/1000 L of oil to $391/1000 L.