Mr. Williams, will you bring your group back in the morning with the information that has been requested, and any other information which you think might be needed.

Mr. WILLIAMS. Mr. Chairman, you do not expect me to mark up the percentages. We will be glad to get all of this information that we can. Of course, with 6 or 7 bills being discussed we would not have a policy statement.

Mr. ABBITT. We understand that.

Mr. WILLIAMS. We will be delighted to be here and to bring the information, and if you have any other informational requests we will be glad to bring it.

Mr. ABBITT. The House is meeting at 11 o'clock today, and I thought we would not try to hear any more witnesses, but if anyone has something they want to say right now we will be happy to hear from them.

Mr. MATTHEWs. Mr. Chairman, since we have only a minute or two here of course I am not on this subcommittee but I do appreciate the privilege of sitting in with you.

Mr. ABBITT. And we appreciate having you. You are of tremendous help to this committee and to the full committee, too, Mr. Matthews. Mr. MATTHEWs. I appreciate that statement, Mr. Chairman. And I want to express my deep interest in all of these bills. I want to say, as the other Congressmen have from the flue-cured area, that I have 6,000 planters of flue-cured tobacco and they are in a desperate situation. And I am very grateful for the privilege of working with my colleagues on this legislation, with the hope that we can come out with something that will be beneficial.

Mr. ABBITT. Thank you, Congressman Matthews. I want to say that the chairman of our great Committee on Agriculture is such a fine fellow and has such great interest in all of the farmers of America, realized the great help you have been to this subcommittee, and realizing the help you could be has put you on this committee.

Mr. MATTHEWS. Thank you, Mr. Chairman.

Mrs. BLITCH. Mr. Chairman, I also want to express my great appreciation for your indulgence, for I am not a member of the Agriculture Committee at all, and I know that you have always been most courteous and gracious to me.

Mr. ABBITT. We appreciate your being with us today.

Mrs. BLITCH. I appreciate your invitation each time you have asked me to be here, and I felt that I was not out of place at any time, because you have been most courteous.

Mr. ABBITT. You have never been out of place.

Mrs. BLITCH. Thank you so much.

Mr. ABBITT. And we hope you will find it possible to meet with the committee tomorrow.

Mrs. BLITCH. Thank you so much.

Mr. ABBITT. Unless there is something else the committee will adjourn until 10 o'clock tomorrow.

(Whereupon at 11 a. m. the subcommittee adjourned to meet at 10 a. m. the following day, Thursday, March 14, 1957, in room 445, Old House Office Building.)

TOBACCO

THURSDAY, MARCH 14, 1957

HOUSE OF REPRESENTATIVES,
SUBCOMMITTEE ON TOBACCO OF THE

COMMITTEE ON AGRICULTURE,
Washington, D. C.

The committee met at 10 a. m., pursuant to adjournment, in room 445, Old House Office Building, Hon. Watkins M. Abbitt (chairman of the subcommittee) presiding.

Mr. ABBITT. The meeting will come to order.

We will now hear a statement by Mr. John B. Vance, president of the Virginia Farmers Union.

STATEMENT OF JOHN B. VANCE, PRESIDENT, VIRGINIA FARMERS

UNION

Mr. VANCE. Mr. Chairman and gentlemen, I would like to state for the record that my name is John B. Vance. I am privileged to appear before you today in my capacity as president of the Virginia Farmers Union-one of Virginia's two large general farm organizations with membership producing a major part of the flue-cured and dark-fired tobacco grown in the State. May I say that we deeply appreciate this opportunity to present our views and recommendations with respect to the matters under consideration.

Realizing, Mr. Chairman, that there are many who wish to testify today, I shall make my remarks to the point and as brief as possible. We favor and urge that legislation be enacted which would require that soil-bank payments be made to the producers of tobacco on that acreage representing the difference between the 1956 farm allotment and the 1957 allotment and that the rate of payment be based on a rate per pound equivalent to 50 percent of the prevailing average support price for the particular kind of tobacco.

As we view it, there is every reasonable justification for this action. May I point out that we are asking no more consideration for the tobaccogrowers than was accorded the corngrowers in the commercial area last year. I believe I am correct in pointing out that soil-bank payments amounting to $179 million were made to corngrowers in the commercial areas last year and instead of this expenditure resulting in less corn being produced, actually the 1956 corn acreage increased. In the case of tobacco there is no question but that a reduction will be accomplished in 1957 acreage due to the application of the marketing quota provisions of the law. The question is whether or not it is the desire of the Congress of the United States and this administration to discriminate against the tobaccogrowers and to legislate in favor of the corngrowers.

90119-57

The records will show that the tobacco producers have consistently cooperated with the United States Government in reducing supplies wherever they were called on to do so. No group of farmers anywhere have been more willing to make the necessary sacrifices in order to maintain a reasonable balance between supply and disappearance, but just because the tobacco farmers are willing to make the necessary adjustments in this acreage is certainly not sufficient reason for denying them the same privileges given the producers of corn.

It is common knowledge that flue-cured tobacco is in a surplus position today. It is also generally agreed that there is need for the 20-percent cut made in 1957 allotments, although, we in Farmers Union maintain that an overall 20-percent reduction could have been accomplished without having to resort to anything so drastic as an across-the-board 20-percent cut. If the soil bank had been fully utilized with more attractive payment rates a net 20-percent reduction in supply could have been accomplished with not more than a 10percent across-the-board reduction.

But be that as it may, the fact remains that flue-cured growers will take a 20-percent cut in their 1957 allotments due to the accumulation of an oversupply of tobacco. It is argued that the farmers themselves are responsible for the 20-percent cut due to their increasing yields per acre. Perhaps this is partly true, but let me point out that it is not entirely true. Part of the blame for the present oversupply of flue-cured tobacco must rest squarely on the shoulders of the United States Department of Agriculture.

For the information of the committee I would like to direct attention to the attached chart which I have identified as exhibit 1. This chart clearly shows that during the period 1951-52 actual supply of fluecured tobacco was ideal in that it was almost exactly in line with the reserve supply level as defined in the act. Then note that in 1953 the actual supply began to mount rapidly whereas the computed reserve supply level dropped only very slightly to the extent that by the end of 1956 actual supply exceeded the reserve supply level by 625 million pounds.

I would now like to direct the committee's attention to another chart which I have identified as exhibit 2-showing estimated purchase requirements of flue-cured tobacco for filter and nonfilter cigarette manufacturers. Note that during 1951-52 the amount of tobacco used in filter cigarettes was negligible. Then in 1953-54 flue-cured tobacco used in filter cigarettes began to climb rapidly with a tremendous increase during 1955 and 1956 to the extent that by the end of 1956 out of 675 million pounds of flue-cured tobacco used by domestic. manufacturers in cigarettes, 280 million pounds were used in filter tips. Now I would like to suggest, Mr. Chairman, that the committee compare the two charts and note the striking relationship between the buildup in total stocks and the increased use of flue-cured tobacco in filter tip cigarettes.

It it my understanding that in establishing support prices by grades of tobacco that the primary consideration is the grades and quality of tobacco in demand by the manufacturers and buyers.

EXHIBIT 1

SUM OF 275% OF ANNUAL DOMESTIC CONSUMPTION AND 165% OF ANNUAL EXPORT QUANTITIES,
PLUS 5% THEREOF (AVERAGED FOR CURRENT AND PRECEDING YEARS).

EXHIBIT 2

Crop Years 1951-52 through 1956-57

MILLION LB. (FARM-SALES WEIGHT