An Economic Evaluation of Alternative Peanut Policies

Abstract

Three alternatives to the current peanut-price support, acreage-allotment program are considered. A linear programming framework is used to compare the effects of these policies on geographic location of peanut production, producer and consumer surplus, treasury costs, and value of allotments. Peanut production would expand in all areas except Texas under less restrictive production constraints. The largest expansion would be in Georgia and Alabama. Some version of the target price plan is considered to be a likely compromise program.

Agricultural economics: an exoteric or esoteric science?

“…However, as agriculture operation and Development (OECD) countries, agricultural economists became increasingly drawn to the development problems of poor countries, to trade and the macroeconomic policy implications of agriculture in richer countries, and to issues in production, consumption, environmental and resource economics from the 1960s. It is interesting to note that only one South African has succeeded in publishing in the AJAE -namely, Nieuwoudt (1976), ironically on an issue of importance to agriculture in the US and not South Africa, and a year later (Bullock et al, 1977) in a more theoretical paper. Another notable publication was that of Du Toit (Heady & Du Toit, 1954) Table 4 shows the number of degrees awarded in Agricultural Economics in South Africa since the beginning of formal teaching in the subject for those universities that provided the information (which means that the totals are underestimated), while Table 5 shows some trends in these data where they are available.…”

Land Values and Allotment Rents

“…acreage-allotment program were considered. A linear programming model was used to compare the effects of the three alternative policies on geographic location of peanut production, producer and consumer surplus, treasury costs, and value of allotments (Nieuwoudt, Bullock, and Mathia 1976b). 8 Calculated using average yield for the region.…”

“…These estimates are shown in the third column of table 1. The larger the number, the 9 The programming model of the study indicates that peanut acreage is reduced by about 50% in Texas if the allotment program is replaced with a free market policy (Nieuwoudt, Bullock, and Mathia 1976b). 10 Values of P, -Po shown in table 1are estimates for marginal increase in acreage.…”

The price of determinate solutions: A call for methodological pluralism in agricultural economics∗

“…individual to market behaviour (see, for example, Nieuwoudt et al, 1976;Ortmann, 1985;Prank, 1986 andVan Zyl &Vink, 1989). However, there are clearly costs associated with these choices, and most surprisingly, there is virtually no explicit consideration of these choices and their costs.…”