Number: RS21642
Title: Comparing Quota Buyout Payments for Peanuts and Tobacco
Authors: Jasper Womach, Resources, Science, and Industry Division 
Abstract: Legislation is pending in the 108th Congress (S. 1490, H.R. 3160) to eliminate tobacco quotas and compensate quota owners at the rate of $8 per quota pound. A comparison of peanut and tobacco quota buyout rates shows that the two are substantially comparable. However, current USDA budget projections indicate that continuing operation of the peanut subsidy program likely provides significantly higher benefits that the proposed tobacco transition payment (relative to the costs of production of each commodity).
Pages: 6
Date: Updated October 14, 2003