Marketing Quotas and Random Yields: Marginal Effects of Inframarginal Subsidies on Peanut Supply

This is the authors' abstract. We don't add key points for this paper.

The U.S. peanut program restricts domestic sales with poundage quota but allows surplus production to be exported or crushed. Empirical analysis of North Carolina peanut production reveals that the marginal (and lower) price received by production above quota, that is the world price, is far more important in determining acreage than is the inframarginal subsidy of the quota support price.