Peanut poundage quota
Encyclopedia
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 (P.L. 107-171, Sec. 1301-1310).
The 1996 farm bill (P.L. 104-127) required that (for the 1996-2002 crops) the poundage quota
be set equal to projected food demand and related uses. The national quota was allocated among states based on historical shares, and then divided among farms based on production history. Owners (via inheritance or purchase) of quota were allowed to sell peanuts produced against their quota, or sell, lease and transfer their quota to other producers. Peanuts marketed above the quota limits (called additional peanuts) had to be crushed for non-edible uses or exported.
The 2002 farm bill eliminated peanut quotas and the two-tiered pricing
structure and replaced this with a support program comparable to that for so-called covered commodities
-- such as wheat, feedgrains, cotton, and rice—as well as with buy-out funding.
Agricultural Adjustment Act of 1938
The Agricultural Adjustment Act of 1938 was legislation in the United States that was enacted as an alternative and replacement for the farm subsidy policies, in previous New Deal farm legislation , that had been found unconstitutional...
, so the peanut poundage quota was the supply control mechanism for 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...
until its revision in the 2002 farm bill (P.L. 107-171, Sec. 1301-1310).
The 1996 farm bill (P.L. 104-127) required that (for the 1996-2002 crops) the poundage quota
Poundage quota
A poundage quota, also called a marketing quota, is a quantitative limit on the amount of a commodity that can be marketed under the provisions of a permanent law...
be set equal to projected food demand and related uses. The national quota was allocated among states based on historical shares, and then divided among farms based on production history. Owners (via inheritance or purchase) of quota were allowed to sell peanuts produced against their quota, or sell, lease and transfer their quota to other producers. Peanuts marketed above the quota limits (called additional peanuts) had to be crushed for non-edible uses or exported.
The 2002 farm bill eliminated peanut quotas and the two-tiered pricing
Two-tiered pricing
Two-tiered pricing refers to a system under which commodities for domestic use are supported at one level and those for export markets at another, lower level....
structure and replaced this with a support program comparable to that for so-called covered commodities
Covered commodities
Covered commodities are crops eligible for the Direct and Counter-cyclical Program under commodity program provisions under the 2002 farm bill . These are wheat, corn, grain sorghum, barley, oats, upland cotton, rice, soybeans, and other oilseeds...
-- such as wheat, feedgrains, cotton, and rice—as well as with buy-out funding.