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Peanut poundage quota: A peanut price
support program supply control mechanism authorized by the
Agricultural Adjustment Act of 1938 to regulate
the marketing of peanuts consumed domestically for food when production becomes
excessive. The FAIR Act of 1996 requires that (for
the 1996-2002 crops) the poundage quota be set equal to projected food demand
and related uses (but not including seed use). A related provision allocates a
separate temporary (annual) quota to all peanut producers, based on the amount
of seed peanuts planted on each farm. The national quota is allocated among
states based on a historical share, and then divided among farms based on
production history. Owners (via inheritance or purchase) of farm quota may sell
peanuts produced against their quota, or sell, lease and transfer their quota to
other producers. The FAIR Act of 1996 permits the
sale, lease, and transfer of a farm quota across county lines up to specified
limited percentages of a county’s total of all farm quotas. Quota owners in
certain counties, depending on the size of the state or county quota, have
unlimited rights to transfer their farm quota within the state. Government
entities and out-of-state quota owners cannot hold quotas after the 1997 crop.
Peanuts marketed outside the quota limits must be crushed for nonedible uses or
exported and are called additional peanuts.
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