Sen. Rick Santorum (R-PA) has introduced a bill to scale back the peanut program and increase consumption of peanut-containing products.  The legislation is designed to make U.S. peanuts more competitive in international markets.

The American Peanut Coalition says there is no valid reason to continue a peanut quota system that favors quota-owners over "hard-working American peanut farmers without a quota."  Non-quota farmers must sell their peanuts to markets other than in the United States.

Two-thirds of the quotas are held by people who do not grow peanuts themselves; the rent the quota to farmers who must pay $240 and more per ton in rent for the right to sell peanuts "in their own country," says the coalition.

The bill would phase down the peanut loan rate over three years and implement a new non-recourse loan program for peanuts similar to the program available for other U.S. agricultural commodities.

It also provides a mechanism for USDA to purchase lower-priced no-quota peanuts for the National School Lunch Program and other food assistance and nutrition program, increasing government purchases of peanut butter and other peanut products.

Santorum was joined by Sens. Russell Feingold (D-WI), John Chafee (R-RI), Judd Gregg (R-NH), Sam Brownback (R-KS), Mike DeWine (R-OH), Susan Collins (R-ME) and Arlen Specter (R-PA) as co-sponsors.