As part of this historic change, owners of peanut quota will be compensated for elimination of an income-generating asset.Īs background, the 1996-2001 peanut program largely kept intact the broad Actual returns will vary among farmers, depending on whether they had produced quota peanuts and had incurred the additional cost of renting quota. These will ensure that “historic” producers receive a return roughly comparable to what they accessed in the past, after taking into account they will no longer have to rent or buy quota. The new program’s price support and income subsidy features (covering the 2002 to 2007 crops) are similar to those authorized for producers of other crops. It repeals the limit set on the amount of peanuts that farmers can sell domestically for food consumption, and substitutes in large part the revenue this “quota” system with its high level of price support had guaranteed them, with an infusion of annual government payments to “historic” peanut producers. Replacing the supply and price management system in place for more than 60 years. The 2002 farm bill radically overhauls the peanut program, by completely Supply Management to Market Orientation Summary Resources, Science, and Industry Division Congressional Research Service ˜ The Library of Congress Peanut Program: Evolution from Received through the CRS Web Peanut Program: Evolution from Supply Management to Market Orientation Updated August 8, 2002 These costs largely to the federal government and taxpayers. Largely upon the buyers of peanuts (manufacturers and consumers). (by controlling the supply and significantly affecting the price) placed the cost of the peanut program price of food peanuts, the peanut quota structure and import restrictions With peanuts marketed internationally at a price much lower than the level at which the past Programs could facilitate a policy change. These farmers also realized changes were needed to addressĬompetitive pressures from increased peanut and related product imports under the terms of currentĪnd anticipated trade agreements, and that additional budget resources made available for commodity Ideologically opposed to government management of a food commodity) who had sought for many Quota system could not be defended much longer against opponents (food manufacturers and those Program could not be sustained for political and economic reasons. Largest peanut producing region ) and some in the Southwest who had concluded that the quota The new program reflects an approach proposed by many peanut farmers in the Southeast (the To assist growers to cover their share of program losses. Another issue that lawmakers addressed in 2000, and may again face, is whether Packages in the 1999-2001 period provided a total of $170 million in supplemental income payments In other action, three emergency farm aid Of amendments offered to agriculture spending bills. Fromġ996 through 1998, program opponents pressed for further change, but failed in securing passage Opponents' efforts to modify the Agriculture Committee-reported package by a 3-vote margin. The House during farm bill debate rejected program The program operated at "no-cost" to taxpayers. In 1996 reduced the quota loan rate by 10% to $610 per ton. Marketers of peanuts to food manufacturers) and calls by others for the program's repeal, Congress Reflecting a compromise between growers and shellers (the As part of this historicĬhange, owners of peanut quota will be compensated for elimination of an income-generating asset.Īs background, the 1996-2001 peanut program largely kept intact the broad outlines of previous Produced quota peanuts and had incurred the additional cost of renting quota. Actual returns will vary among farmers, depending on whether they had Roughly comparable to what they accessed in the past, after taking into account they will no longer These will ensure that "historic" producers receive a return Support and income subsidy features (covering the 2002 to 2007 crops) are similar to thoseĪuthorized for producers of other crops. Infusion of annual government payments to "historic" peanut producers. Revenue this "quota" system with its high level of price support had guaranteed them, with an Peanuts that farmers can sell domestically for food consumption, and substitutes in large part the It repeals the limit set on the amount of Price management system in place for more than 60 years. The 2002 farm bill radically overhauls the peanut program, by completely replacing the supply
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