Additional peanuts
Encyclopedia
In United States agricultural policy, additional peanuts (or additionals) refers to peanuts sold from a farm in any marketing year in excess of the amount of quota peanuts (see peanut poundage quota
) sold from that farm. Additional peanuts must be exported or crushed into oil and meal. Additionals are eligible only for the lower of two price support levels available under the peanut price support program
. The lower additionals loan rate is set to ensure that the Commodity Credit Corporation
does not incur losses on their sale and disposal.
In setting this support level, USDA is also required to take into account the demand for peanut oil and meal, expected prices of other vegetable oils and protein meals, and the demand for peanuts in foreign markets. Under the FAIR Act of 1996, loans for additional peanuts remain available.
Peanut poundage quota
Poundage quotas were authorized by the Agricultural Adjustment Act of 1938, so the peanut poundage quota was the supply control mechanism for the peanut price support program until its revision in the 2002 farm bill ....
) sold from that farm. Additional peanuts must be exported or crushed into oil and meal. Additionals are eligible only for the lower of two price support levels available under the peanut price support program
Peanut Price Support Program
The 2002 farm bill replaced the longtime support program for peanuts with a framework identical in structure to the program for the so-called covered commodities...
. The lower additionals loan rate is set to ensure that the Commodity Credit Corporation
Commodity Credit Corporation
The Commodity Credit Corporation is a wholly owned government corporation created in 1933 to "stabilize, support, and protect farm income and prices"...
does not incur losses on their sale and disposal.
In setting this support level, USDA is also required to take into account the demand for peanut oil and meal, expected prices of other vegetable oils and protein meals, and the demand for peanuts in foreign markets. Under the FAIR Act of 1996, loans for additional peanuts remain available.