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 three components of the Peanut Price Support Program are fixed direct payments, counter-cyclical payments, and marketing assistance loans or loan deficiency payments . The peanut poundage quota and the two-tiered pricing features of the old program were repealed. Only historic peanut producers are eligible for the Direct and Counter-cyclical Program. All current production is eligible for marketing assistance loans and LDPs. Previous owners of peanut quota were compensated through a buy-out
program at a rate of 55¢/lb. over a 5-year period.
