2013-06-07

Cato: Why a Good Year for Peanut Farming Is Bad News for Taxpayers

The NY Times reports on how well peanut growing has gone this year:
In Georgia, where nearly half of the nation’s peanuts are grown, the annual fall harvest has yielded a record amount of big, shell-filling kernels that farmers say taste better than average.
“I’ll just say that the farmers of Georgia have been blessed with weather conditions,” said Armond Morris, who planted about 1,000 acres near Tifton, Ga., and serves as the chairman of the Georgia Peanut Commission.
“We had rain at the right time and didn’t have but three or four days that were 95 degrees,” he said.
Although the harvest is just winding down, the national peanut crop report from October showed that more than 6.1 billion pounds will be harvested this year, compared with about 3.6 billion last year. The yields are especially good in Alabama, Florida, Mississippi and Georgia, where the main crop is a variety called runner peanuts.
So that’s good news for taxpayers right?  No need to bail out struggling farmers whose crops have been ruined by drought?  A good time to end farm subsidies? Unfortunately, it’s quite the opposite:

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