USDA Sets Peanut Quota But Notes Program May Change

December 18, 2001

The U.S. Department of Agriculture Friday announced a national poundage quota for peanuts for the 2002 marketing year of 1,180,000 short tons (2,360,000 billion pounds), unchanged from the 2001 level. But the Department said the peanut program could change profoundly if Congress enacts new farm legislation in time for the 2002 crop.

James Little, Administrator of USDA's Farm Service Agency, said the announced quota level is the amount which will provide peanuts for domestic use in accordance with statutory requirements. The announcement of the final national poundage quota must be made by December 15, 2001, for the 2002 marketing year, which begins August 1, 2002.

The national average 2002 quota price support level is set by statute at $610 per short ton. The price support level for additional peanuts must be set by February 15, 2002.

In an unusual move that reflects the major reforms being mulled in Congress, USDA added this caution: "The Farm Bill currently being considered by Congress would dramatically change the peanut program. Poundage quotas would be eliminated and price support would be replaced with a target price and deficiency payment plan. If pending legislation is enacted as law, the 2002 poundage quota and price support announced by this release may be altered or rescinded. "