HTML _ 98-715 - Farm Commodity Programs: Peanuts
26-Aug-1998; Remy Jurenas; 5 p.

Abstract: The federal government supports the farm price of peanuts primarily by limiting the amount of peanuts allowed to be sold for domestic food use (referred to as ¨quota¨ peanuts) at a specified ¨high¨ price support level. Farmers may sell peanuts produced in excess of their ¨quota¨ (called ¨additionals¨) for export or crushing into peanut oil and meal, but at a much lower supported price. If quota peanuts are insufficient to meet demand. additionals may also be sold domestically for food consumption. The peanut program's purpose is to support producers' incomes and ensure ample domestic peanut supplies. The enacted 1996 farm bill eliminates the program's budget exposure by effectively making it a ¨no-cost¨ program. This report 1 will be updated annually. [read report]

Topics: Agriculture

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