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New from REAP
Farm Business Management Update, December 2001
By Karen Mundy
At the printer is a new REAP report: Proposed End of Peanut Quota Program: Economic Effects on Virginia Producers, by Jim Pease, John Lehman, and David Orden. The authors compare the current peanut quota program with the new program proposed by the House of Representatives which eliminates the quota system. Under the new program, the government will buy the quota from quota owners over a 5-year period. Marketing loans, loan deficiency payments, and counter-cyclical payments are proposed to make peanut support programs similar to those of other supported commodities. Analysis of program impacts indicates that peanut production will move to regions of lowest cost of production. Although some Virginia producers may receive similar net farm income under the new program, producers currently renting a significant portion of peanut quota grown and those with higher costs of production will need to examine other cropping alternatives. Copies of the report can be obtained from the REAP office (540-231-9443 or reap01@vt.edu) or from the REAP website: http://reap.vt.edu.
Contact the author at karenm@vt.edu
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