Peanut is an important crop in eastern New Mexico and maintaining the productivity and sustainability of peanuts is critical to the regional economy. A short growing season, low humidity and the sandy soil provide ideal conditions in eastern New Mexico for growing organic peanuts. The dairy industry in eastern New Mexico has expanded over the past decade giving rise to easy availability of manure and compost for crop production. However, there is lack of information on the utility of these organic amendments for peanut growth and yield, and its effect on soil quality. The objective of this study was to evaluate the application of two rates (5 t/ha & 10 t/ha) of dairy manure compost in a peanut production system. The effects of manure compost application on growth, yield and soil quality was assessed.  Preliminary results are presented on various chemical and physical soil quality indicators including the nutrient status, aggregate stability, soil organic matter, along with crop growth and yield parameters.