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Diane Publishing Books
Post-Buyout Experience: Peanut and Tobacco Sectors Adapt to Policy Reform
Erik Dohlman (au); Linda Foreman (au); Michelle Da Pra (au)
The Government enacted quota buyouts, in 2002 for peanuts and 2004 for tobacco. Elimination of the quota programs exposed producers more to market risks and brought about structural changes at farm, regional, and marketwide levels. Since the buyouts, many peanut and tobacco farms have exited production. Freed of the planting restrictions in the quota programs, production of peanuts, and to a lesser extent of tobacco, has been relocated to regions better suited to their growth. While total acreage and prices for peanuts and tobacco have remained below pre-buyout levels, the lower prices — along with increased production efficiency — have supported renewed growth in demand, particularly in export markets. Charts and tables.
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