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CED-81-156 1 (1981-09-21)

handle is hein.gao/gaobabclo0001 and id is 1 raw text is: ~r , UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 September 21, 1981 COMMUNITY AND ECONOMIC DIEVELOOPMENT DIVISION B-2 04 751 The Honorable Richard G. Lugar United States Senate 116480 Dear Senator Lugar: Subject: Information on Peanut Allotment Owners That Lease and Rent Away Rather Than Plant Their Peanut Allotments/Quotas (CED-81-156) In response to your August 26, 1981, letter, we obtained information on certain aspects of the Department of Agriculture's peanut allotment program. Your office was provided an oral brief- ing on the matters discussed in this report on September 16, 1981. In addition to responding to your specific questions, this report provides general background information on the program. In summary, our limited review disclosed that: --County offices of the Department's Agricultural Stabili- zation and Conservation Service (ASCS) maintain records on individual leases and rentals 1/ of peanut allotments; however, only those on leases are summarized for internal agency reporting purposes. The ASCS records do not show the primary occupation or sources of income of the allot- ment owners. --The Department's estimate that 70 percent of peanut allot- ment acreage planted is leased or rented is based on data obtained from a 1978 survey. The purpose of this survey was to obtain information on peanut production practices in selected growing areas. Because it was not a compre- hensive study- not all peanut-producing States and counties were represented and only a small number of producers were contacted in the selected areas. Therefore, the data contained in the survey cannot be projected across the whole program. I/The peanut program permits the leasing of allotments; that is, the transfer of an allotment and quota from the allotment own- er's farm to a lessee's farm. The other method of transferring an allotment is the renting of the allotment owner's land and allotment to the producer. (022770) , 7

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