The

2002 farm bill The Farm Security and Rural Investment Act of 2002, also known as the 2002 Farm Bill, includes ten titles, addressing a great variety of issues related to agriculture, ecology, energy, trade, and nutrition. This act has been superseded by the 2 ...

(P.L. 107–171, Sec. 1301–1310) replaced the longtime (65-year) support program for peanuts with a framework identical in structure to the program for the so-called

covered commodities The Direct and Counter-cyclical Payment Program (DCP) of the USDA provides payments to eligible producers on farms enrolled for the 2002 through 2007 crop years. There are two types of DCP payments – direct payments and counter-cyclical payments. ...

(wheat, corn, grain sorghum, barley, oats, upland cotton, rice, soybeans, and other oilseeds). The three components of the Peanut Price Support Program are fixed direct payments (at $36/ton),

counter-cyclical payments Counter-cyclical payment (CCP) — Under the Direct and Counter-cyclical Program (DCP) created by the 2002 farm bill (P.L. 101-171, Sec. 1101-1108), counter-cyclical payments are made to participating producers when the marketing year average pric ...

(based on a target price of $495/ton), and

marketing assistance loans Marketing assistance loans are nonrecourse loans made available to producers of loan commodities (wheat, corn, grain sorghum, barley oats, upland and extra-long staple (ELS) cotton, rice, soybeans, other oilseeds, honey, wool, mohair, dry peas, len ...

loan deficiency payments In United States agriculture policy, loan deficiency payments (LDP) are a farm income support program first authorized by the Food Security Act of 1985 (P.L. 99-198) that makes direct payments, equivalent to marketing loan gains, to producers who ag ...

(LDPs) (based on a loan rate of $355/ton). The

peanut poundage quota Poundage quotas were authorized by the Agricultural Adjustment Act of 1938, so the peanut poundage quota was the supply control mechanism for the peanut price support program until its revision in the 2002 farm bill (P.L. 107-171, Sec. 1301-1310) ...

and the

two-tiered pricing Two-tiered pricing refers to a system under which commodities for domestic use are supported at one level and those for export markets at another, lower level. In the United States, the peanut price support program, until policy changes made by th ...

features of the old program were repealed. Only

historic peanut producers In United States agricultural policy, Historic peanut producers are those producers who were actively involved in planting and harvesting peanuts in the 1998-2001 period. Under the 2002 farm bill (P.L. 107-171, Sec. 1301-1310), only these historic ...

are eligible for the

Direct and Counter-cyclical Program The Direct and Counter-cyclical Payment Program (DCP) of the USDA provides payments to eligible producers on farms enrolled for the 2002 through 2007 crop years. There are two types of DCP payments – direct payments and counter-cyclical payments. ...

(DCP). 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. ($1,100/ton) over a 5-year period.

References

*{{CRS, article = Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition, url = https://web.archive.org/20110810044532/http://ncseonline.org/nle/crsreports/05jun/97-905.pdf, author= Jasper Womach Peanuts Agricultural subsidies