Soybeans and Peanuts: Background for 1990 Farm Legislation

by Brad Crowder, Cecil W. Davison, James D. Schaub, and Bruce Wendland

This report address considerations in the 1990 farm bill debate for soybeans and peanuts, including market conditions, policy proposals, trade agreements, and the interactions between policy and markets for selected commodities. Soybean acreage and production declined in the 1980s, reflecting effects of Federal commodity programs, foreign competition in oilseeds production, and sluggish economic growth in many soybean importing countries. Although soybean prices are supported by a Government loan program, market prices have exceeded the loan rate in recent years. Issues for soybeans in 1990 farm legislation will include the price support level, crop substitution on program crop acreage bases, and a marketing loan for soybeans. Peanut producers in the United States have elected mandatory marketing quotas with a two-tiered price-support program. Peanuts sold within a producer's quota qualify for a higher support price than peanuts sold outside the quota. A major issue for the peanut program in forthcoming legislation is whether to continue the current program or to include peanuts in a general agricultural program with other commodities.

Keywords: Soybeans, protein meal, vegetable oil, peanuts, farm programs, agricultural trade, agricultural policy

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