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Adapting to a New Peanut Program and a New Risk Environment

Nathan Smith

Summary

The Farm Security and Rural Investment Act of 2002 (2002 Farm Bill) eliminated the peanut program that had been in place since the 1930’s. Prior to 2002, peanuts were produced under a two-tiered price system in which production was controlled by a quota allotment system with a government support price. The 2002 Farm Bill replaced the peanut quota system with a marketing loan program similar to other major program crops. The new peanut program made significant changes to marketing and production decisions for U.S. peanut farmers. Two regional train-the-trainer meetings were organized to address the peanut program changes for industry leaders. The train-the-trainer peanut marketing programs featured changes in the structure of the peanut commodity program, the new structure of the peanut industry, lenders assessment of peanut producer’s loans, and evaluation of new peanut contracts. Over 100 peanut industry leaders attended the two regional meetings. Slide presentations and factsheets were developed for educational programs. Several peanut producer training meetings were organized in Georgia, North Carolina, Oklahoma and Virginia following the train–the-trainer meetings.

Details

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