Low-oxygen atmosphere methods of storing and processing peanut seed were evaluated to determine if they offered improvement over conventional methods. Florunner (runnertype) peanut seed from each of six newly harvested certified seed lots were shelled, treated with fungicide and placed in low-oxygen atmosphere containers. The containers were stored in ambient air conditions in a metal-clad warehouse from October 1981 until planted in April 1982. Controls were randomly selected from the six lots in April 1982 after conventional storage and processing. Germination, moisture content and selected grade factors were measured before and after storage to determine if changes occured. Yields were measured after the peanuts were harvested in September 1982. Germination declined in both storage conditions. At planting there was no significant difference in germination between the low-oxygen and controls in three of the seed lots. In two of the seed lots, the control was better than the low-oxygen, and in one seed lot, the low-oxygen had better germination than the control. The controls averaged 1.4% greater loss of moisture during storage and inert material was 3% higher. Yields and grades were not significantly different in peanuts harvested from the low-oxygen and control plantings within each lot, but there were differences between lots. Besides less moisture loss during storage and less inert material in the seed packages, the low-oxygen methods produced higher whole kernel outturn at shelling and the containers provided much better protection for the peanuts from insects, dirt, mold, rodents, and other forms of contamination or destruction.