private sources can produce the quality of tobacco if the incentive is such for the individual producer that he can not only stop the trend of a reduced percentage of American tobacco in world trade, but that we may well reverse this trend.

I am thoroughly familiar with the provisions of this bill. I have read it through several times and have discussed it at length. I have had some part at the county level through farm bureau meetings in trying to come up with a bill to put the emphasis on quality and acreage-poundage to accomplish the same purpose that this bill hopes to do. I have made it a point to try to find out how people in my area feel about acreage-poundage. And in my area I can say almost without exception, based on my experience there, that our farm people are in favor of a change in this program to an acreage-poundage basis.

We well know that such a program will not be perfect, but we well know that it will raise many problems both in the administration of it and at the various levels.

We know that at the farm level in some details it will be difficult but I believe that the average farmer knows-and I say almost regardless of what area he is from; what position he holds as a producer that the position he holds as a producer it is absolutely necessary that a change in this present program be made. And up to now I know that no one has come up with a program that offers the possibility that an acreage-poundage program offers.

The rules have got to be changed. It has to be to each individual farmer's advantage to do what is best for himself and at the same time by so doing he will serve the common goal of the entire tobacco industry.

Up to now, up to this point, the rules have been a little different. What is good for me as an individual farmer has been bad for the total program. And to me I think it is just that simple.

I will say that almost the only criticism I have heard of this particular bill in our area is that the spread has been too great. This may or may not be a valid criticism but I do feel from my own experience that if the spread is closer it will have a broader base of support among the average farmers, but I do feel, and the people that I am in touch with feel that regardless of any detail or any slight objection to this bill that the principle of acreage-poundage is the only sound basis for ourselves as farmers and for our agricultural area as a whole. And I would like to urge this committee and the subcommittee and the Congress to make every possible effort to put this bill into effect in the year 1965.

Time is running out. I do not feel that we can go through another year under the present program without risking our entire tobacco program.

I appreciate this opportunity to be a witness before this subcommittee, Mr. Chairman. I did not come with any prepared talk. I came without any intention of being a witness, but I am thankful to you. I have tried to express not only my own thinking, but I believe it is fairly representative of my area and the people with whom I have been in contact.

And working in the warehouse throughout the auction season I know that the buying interests that I have been in contact with, both foreign and domestic, realize that our program has to be changed.

I thank you, sir.

Senator JORDAN. Thank you very much. Whether you had a prepared statment or not, you certainly made a very fine statement from the grower standpoint and from the warehouseman's standpoint. You certainly know a lot about the tobacco problem. You have been with it long enough so that you would be what people would call an expert witness.

Senator Cooper, do you have any questions?

Senator COOPER. No.

Senator JORDAN. Off the record.

(Discussion off the record.)

Senator JORDAN. Gentlemen, if I have overlooked any witnesses here today who want to testify, please let me know. Have I overlooked anybody whose name is on the list? I know some were not here that I had on the list. They will be here tomorrow, I understand.

That will conclude our hearing for today. We will meet in room 324. It has been called to my attention that we will not have as many people here tomorrow as there were today and we will, therefore, meet in the regular committee room, which will provide ample room. The committee room is just around the corner. It is room 324.

Thank you very much, every one of you for being here. You have been fine witnesses. We appreciate this very much.

(Whereupon, at 4:45 p.m. the hearing adjourned to reconvene at 10 a.m., Wednesday, February 10, 1965.)

ACREAGE-POUNDAGE MARKETING QUOTAS FOR

TOBACCO

WEDNESDAY, FEBRUARY 10, 1965

U.S. SENATE,

SUBCOMMITTEE ON AGRICULTURAL PRODUCTION, MARKETING AND STABILIZATION OF PRICES OF THE COMMITTEE ON AGRICULTURE AND FORESTRY, Washington, D.C. The Subcommittee met, pursuant to recess, at 10:15 a.m. in room 318, Old Senate Office Building, Senator B. Everett Jordan presiding. Present: Senators Jordan (presiding), Talmadge, and Cooper. Also present: Representative Gettys.

Senator JORDAN. The committee will come to order.

I am sorry to advise that three witnesses were not able to get here this morning. They were grounded in the Raleigh-Durham Airport, and I think if they got off down there, they would be grounded up here, too.

Mr. Jim Graham, the commissioner of agriculture of North Carolina, Mr. E. Y. Floyd of the Plant Food Institute, and Mr. A. C. Lawrence, who was going to represent the North Carolina Grange. We will keep the record open until certainly early next week in order that statements can be filed by anybody who wanted to testify but could not get here on account of the weather or for other reasons. We, of course, will be glad to have their statements for the record. (The statements are as follows:)

STATEMENT OF JAMES A. GRAHAM, STATE COMMISSIONER OF AGRICULTURE, RALEIGH, N.C.

Mr. Chairman, and distinguished members of this committee, I am James A. Graham, commissioner of agriculture for North Carolina.

The North Carolina Department of Agriculture recgonizes that the tobacco acreage control price support program is in trouble due to the 959 million pounds of tobacco held by the Flue-Cured Tobacco Cooperative Stabilization Corp.

When the 1964 season began it was evident that tobacco was being sold on a buyer's market. The Stabilization Corp. held 690 million pounds in storage, accumulated from seven previous crops.

As the season progressed the situation went from bad to worse and by the time sales were completed the Stabilization Corp. held on loan the 959 million pounds of surplus leaf.

Including the tobacco held by Stabilization, the total amount available from all sources for 1965 will amount to 3,743 million pounds or about 3 times yearly disappearance.

We in the North Carolina Department of Agriculture have made a study of the proposed legislation to change the tobacco program from an acreage to an acreagepoundage program for 1965. We feel this is a step in the right direction and that acreage-poundage control should be put into effect as soon as feasible and practical. We support this bill-Senate bill No. 821.

Thank you.

STATEMENT OF E. Y. FLOYD, DIRECTOR, PLANT FOOD INSTITUTE OF NORTH CAROLINA AND VIRGINIA, RALEIGH, N.C.

Mr. Chairman, distinguished members of the Senate Agricultural Committee, and others, I am E. Y. Floyd, director of the Plant Food Institute of North Carolina and Virginia, Inc., Raleigh, N.C.

At our board of directors meeting on February 9, the directors voted unanimously in favor of Senate bill No. 821-the acreage-poundage proposal.

They realize this bill is a compromise of many thoughts and ideas to improve our critical tobacco situation, and when enacted into law, will give farmers an opportunity to vote on a program designed to help improve the status of the tobacco program in the interest of everyone concerned. This is what my directors want to see; that is, a bill that is as equitable as possible for all the growers and a bill that will direct the attention of all concerned, including growers, to place emphasis on usable tobacco that manufacturers want for domestic and export use. We believe it is wise to attract the attention of growers to usable tobacco, rather than on maximum yields per acre.

The directors of the Plant Food Institute fully realize that production must be kept in line with consumption, if price support continues, and without price support, in the opinion of the directors, the tobacco program will be doomed on any basis-whether on the present acreage program or on an acreage-poundage basis. It is the sincere hope that when factual figures are determined for individual growers, county and States, that an acceptable program to the growers will be available, and one designed to bring production in line with consumption.

Even though at this particular time we are thinking in terms of an acreagepoundage program, we want to remind the Senate Agricultural Committee and Congress, that revisions are needed in the program which will make tobacco competitive on the world market. This was well said by the President of the United States in his farm message to Congress, and we certainly concur in his thinking.

I want to present a one-page fact sheet on tobacco, taken from the records of the Tobacco Division of AMS, U.S. Department of Agriculture. This shows the progress made in the production of tobacco since 1940, when the growers had a continuous program. If you will look back from 1940 to 1920 without a program, you will see the condition and plight of the tobacco farmers. We believe this one-page fact sheet gives as complete a history of tobacco, as can be given, from a statistical point of view.

I want to call particular attention to the disappearance and use of tobacco, both on the domestic and export markets. To me the story told on this fact sheet of records, concerning the history of the Flue-cured tobacco program as it now stands, is inadequate to keep production in line with consumption.

The directors of the Plant Food Institute stand ready to be as helpful as possible in bringing to the attention of farmers, who are their customers, a tobacco program that will assure stability and a continuing program for years to come.