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Trade and the Political Economy of Agricultural Policy: The Case of the United States Peanut Program

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  • Nayga, Rodolfo M.
  • Borges, Robert B.

Abstract

NAFTA and GATT will dramatically alter regulations protecting U.S. peanut markets and will allow foreign producers considerable access to domestic market. Traditionally, the political economy surrounding peanut policy has been favorable to domestic producers. Rising peanut butter imports, decreasing domestic demand, and possibly the inadvertent effects of domestic policy, ironically implemented to protect domestic producers, have contributed to significant increases in Treasury costs. These increased Treasury costs have dramatically changed the political climate surrounding the peanut program. In this light, the effects of GATT appear manageable; NAFTA may ultimately require major policy reform. Possible alternatives are presented.

Suggested Citation

  • Nayga, Rodolfo M. & Borges, Robert B., 1995. "Trade and the Political Economy of Agricultural Policy: The Case of the United States Peanut Program," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 27(2), pages 595-612, December.
    • Handle: RePEc:cup:jagaec:v:27:y:1995:i:02:p:595-612_02
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    Cited by:

    1. Devkota, Shankar & Holcomb, Rodney B. & Taylor, Merritt J. & Epplin, Francis M., 2006. "Economically Feasible Crop Production Alternatives to Peanuts in Southwestern Oklahoma," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35377, Southern Agricultural Economics Association.
    2. Mohanty, Samarendu & Beghin, John C. & Kaus, Phillip J., 2001. "Impacts Of Federal Support Programs For Sugar And Peanuts Compared To Corn And Wheat On U.S. And World Markets," 2001 Annual meeting, August 5-8, Chicago, IL 20610, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Skully, David W., 1999. "The Economics Of Trq Administration," Working Papers 14584, International Agricultural Trade Research Consortium.
    4. Lee, Dae-Seob & Kennedy, P. Lynn & Fletcher, Stanley M., 2006. "An Analysis of Latin American Peanut Trade," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(1), pages 1-16, April.

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