The peanut (Arachis hypogaea L.) breeding programs in Virginia and Nor
th Carolina develop germplasm for a common production duction area. Cu
rrently, both programs select lines for advanced testing based on thei
r performance at a single location within each state. If the genotype
X environment interaction does not affect early generation performance
between these two environments, then similar crosses and lines within
crosses would be selected in each state. The purpose of this study wa
s to examine the G x E interaction effect on genotypes grown in these
two environments. Yield and market grade characteristics were determin
ed each of 2 years at the two selection sites for nine crosses represe
nted by eight lines per cross in the F4 and F5 generations. Significan
t differences for all traits occurred among cross populations and amon
g lines within populations. Crosses interacted with the environment fo
r all traits, while lines within crosses interacted with the environme
nt for all traits except yield. The crosses interacted with the enviro
nment because their rankings of performance changed in the different e
nvironments. In spite of a significant cross x environment interaction
, the three best performing cross populations were identified as being
high yielding at both locations. An examination of genetic components
of variance for crosses and lines within crosses for the different en
vironments indicates that superior crosses can be identified at a sing
le location. However, individual lines within crosses should be select
ed on mean performance across environments (years and locations).