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An Analysis of the Impact of Alternative Peanut Marketing Quotas and Support Prices

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  • Trapp, James M.

Abstract

The first significant changes in the peanut program in more than 20 years are contained in the Food and Agricultural Act of 1977. The new program retains the use of acreage allotments, marketing quotas, and support prices but changes the procedure used to establish the size of the allotments and quotas given. The new program provides for two support prices versus one under the old program and no longer relates the support price level to a “parity price†concept.In anticipation of the changes expected to be forthcoming from the new program during 1978 and future years, an analysis was undertaken to determine the effect of changing peanut marketing quotas and support prices on producer income, peanut consumer surplus, and peanut program costs. The analysis does not focus on changes generated by the new program because specific aspects of the program were not known when the research was conducted. Rather, the effect of a change or combination of changes in marketing quotas and support prices is analyzed in a general manner. Generalizations about the new program can be made on the basis of the analysis.

Suggested Citation

  • Trapp, James M., 1978. "An Analysis of the Impact of Alternative Peanut Marketing Quotas and Support Prices," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 10(1), pages 99-104, July.
    • Handle: RePEc:cup:jagaec:v:10:y:1978:i:01:p:99-104_01
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