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Peanut Program: Impact on Peanut Producers, Users, and the Government

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Report Type Reports and Testimonies
Report Date June 8, 1995
Report No. T-RCED-95-215
Subject
Summary:

The peanut program has generally stabilized the U.S. peanut supply while supporting producers' income. However, peanut farming, like other U.S. agricultural operations, has undergone profound changes since the 1930s, when the program was created, including the globalization of agricultural markets, the decline in the number of peanut producers receiving most of the program's benefits, and cost increases to U.S. peanut buyers. GAO recommends that Congress restructure the peanut program to make it more responsive to market forces. GAO suggests that Congress (1) reduce the annual quota support price to more closely parallel the cost of producing peanuts and the world market price and (2) amend the peanut legislation to allow the quota support price to rise and fall each year to reflect fluctuations in production costs.

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