The USDA has announced quotas and provisions for its peanut and tobacco programs.
The national poundage quota for peanuts for the 2002 marketing year has been set at 1,180,000 short tons or 2,360,000 billion pounds, unchanged from the 2001 level. This level has been determined to be the quota level which will provide peanuts for domestic use in accordance with the statutory formula for establishing the quota.
The Agricultural Adjustment Act of 1938, as amended, provides that the national poundage quota for the 2002 crop of peanuts shall be a formula quantity equal to the estimated quantity of peanuts needed for domestic edible and related uses, excluding seed, in the 2002 marketing year.
The formula quantity, together with an allowance for the possibility of under-deliveries up to 10,500 short tons, totals 1,180,000 short tons.
The 2002 crop national poundage quota will be allocated to each state based on the state's share of the 2001 crop national poundage quota.
The national average 2002 quota price support level is set by statute at $610 per short ton. The price support level for additional peanuts must be set by Feb. 15, 2002.
The farm bill currently being considered by Congress would change the federal peanut program. Poundage quotas would be eliminated and price supports would be replaced with a target price and deficiency payment plan. If pending legislation is enacted as law, the 2002 poundage quota and price support as announced may be altered or rescinded.
The USDA has announced that the 2002 flue-cured tobacco no-net-cost assessment will be five cents on each pound of the 2002 crop flue-cured tobacco that is marketed. USDA set the no-net-cost assessments at 2.5 cents per pound for the producer and 2.5 cents per pound for the purchaser for crop year 2002.
The national marketing quota for the 2002 crop is 582 million pounds, up from the 2001 quota of 548.9 million pounds and is based on purchase intentions by domestic cigarette manufacturers, unmanufactured exports, reserve stock adjustment and discretionary adjustments by the USDA. Purchase intentions by cigarette companies are 310 million pounds, the three-year average of unmanufactured exports is 249.9 million pounds and the reserve stock adjustment is 22 million pounds. No poundage was added or subtracted at the discretion of the USDA.
The national average yield goal remains unchanged at 2,088 pounds per acre. The price support level for the 2002 crop is $1.656 per pound, down 0.4 cent per pound from 2001. The national acreage allotment for the 2002 crop is 278,736 acres, up 6.3 percent from the 2001 allotment of 262,253 acres.
For each farm, the 2002 basic quota will increase approximately 6 percent from 2001. The effective quota is expected to be about 566 million pounds or 3.7 percent above 2001.