Producing a pound of peanuts cost U.S. farmers 15.2 cents in variable cash expenses in 1991. Individual farm costs ranged from about 3 cents per pound to more than 72 cents. The Southeast region (Alabama, Florida, and Georgia) had the largest proportions of production and farms, but the Virginia-Carolina region had the highest yields and lowest variable cash expenses per pound. Roughly a third of producers in the Virginia-Carolina region were in the low-cost group while more than a third of producers in the Southern Plains (Oklahoma and Texas) were in the high-cost group. Operator characteristics also contributed to the distinction between high- and low-cost producers. A higher percentage of high cost producers were age 65 or over. High-cost producers were more likely to have primary occupations other than farming.