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A Change to Virginia's Excise Peanut Tax Could Be on the Table Next Month

As lawmakers are preparing for the upcoming General Assembly session, they're considering one bill aimed at an important staple of Virginia's agriculture sector.

Mr. Peanut is a Virginia native, and he's had a difficult few years. A decade ago, the peanut industry in Virginia was struggling and business leaders wanted an excise tax so they could raise money to promote Virginia peanuts to the world.

Dale Cotton at the Virginia Peanut Growers Association says now the pendulum is swinging in the other direction.

"I think what happened in 2010 was more so alright we have no choice right now but to put it at six dollars per ton until we see that things are changing and stabilizing to the other way, and that's what's happening now," Cotton explains.

Delegate Emily Brewer is a Republican from Suffolk who’s working with the Peanut Growers Association to decrease the excise tax from 30 cents for every 100 pounds to 25 cents for every 100 pounds.

"In Virginia, mostly the Virginia-type peanut is grown, Brewer says. "And the demand from here and western Europe and overseas and countries like Japan for Virginia-type peanuts has grown exponentially. So I think that's why the Ag community is very excited about planting more acres of peanuts."

So why is demand growing for Virginia peanuts? Delegate Brewer has a simple response to that question: They're delicious.

This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.

Michael Pope is an author and journalist who lives in Old Town Alexandria.