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Abstract

This study analyzed the potential economic impacts of the FAIR Act under GATT and NAFTA on the U.S. peanut industry. Results indicate that the economic impacts of the new program combined with the trade agreements are profound on the peanut industry in both short and long terms. Changes of the peanut program could decrease peanut producers' farm income substantially, eliminate government financial costs related to excessive quotas, and transfer peanut growers' program benefits back to peanut consumers. Increasing imports of foreign peanuts due to free/reduced trade barrier agreements would transfer peanut producers' program benefits to domestic peanut importers and foreign exporters who sell peanuts to the U.S. Note: Tables 3 and 4 not included in machine readable file--contact authors for copies.

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