STEMMING DISTRICT TOBACCO ASSOCIATION, INC. HENDERSON, KY. JOINT RESOLUTIONS Whereas two bills have been recently introduced in the Congress of the United States vitally affecting the interests of dark tobacco growers, one of these bills being H. R. 5002 and the other bill being H. R. 7259; and Whereas Eastern Dark Fired Tobacco Growers Association, Western Dark Fired Tobacco Growers Association, and the Stemming District Tobacco Association have given much thought and attention to this legislation and have held various meetings concerning same in recent weeks, and the directors of these three associations have now met in joint session at Hopkinsville, Ky., on this, the 17th day of May 1957, to discuss this legislation and to adopt a policy with reference to it: Now, therefore, be it Resolved by this joint meeting of said associations— (1) That we oppose H. R. 5002 as detrimental to the growers of dark tobacco and the tobacco program in general. (2) That we hereby go on record as favoring substitute bill, H. R. 7259, as being appropriate and timely legislation, enactment of which we believe to be in the interest of the growers of dark tobacco and the future of the tobacco program. (3) That copies of this resolution be forwarded to the Senators from Kentucky and Tennessee and all Congressmen from these States, to the Secretary of the United States Department of Agriculture, the Director of the Tobacco Division, Commodity Stabilization Service, and the Kentucky and Tennessee Farm Bureau Federations. STEMMING DISTRICT TOBACCO ASSOCIATION, By C. W. MALONEY, President. EASTERN DARK FIRED TOBACCO GROWERS ASSOCIATION, INC., Mr. JOE R. WILLIAMS, Director, Tobacco Division, CSS, Department of Agriculture, Washington, D. C. DEAR SIR: You are aware, I am sure, of the legislation proposed in H. R. 5002, which was introduced recently by Hon. Watkins Abbitt of Virginia. Our association opposed the enactment of that legislation. At a joint meeting in Hopkinsville, Ky., on Friday, May 17, attended by the directors of the three dark associations and others unanimous agreement was reached on H. R. 7259, a substitute for 5002. Some of the provisions of the bill are objectionable, but we feel that this is a step in the direction of correcting the provisions of the tobacco program which become burdensome in the form of large surpluses. Your interest and aid in the passage of this legislation, as set out in the enclosed resolution, will be appreciated by tobacco farmers of Tennessee and Kentucky. Very truly yours, R. A. HAMMAOK, General Manager. WESTERN DARK FIRED TOBACCO GROWERS ASSOCIATION, INC., Mr. JOE R. WILLIAMS, Director, Commodity Stabilization Service, Murray, Ky., May 21, 1957. Tobacco Division, Department of Agriculture, Washington, D. C. DEAR MR. WILLIAMS: We are enclosing copy of resolution adopted at Hopkinsville, Ky., Friday, March 17, by the three dark tobacco associations of Kentucky and Tennessee. We believe the proposed legislation to be in the best interest of dark tobacco growers and the future of the entire tobacco program. We will appreciate your assistance. Sincerely, HOLMES ELLIS, General Manager. REAL PROPERTY CONVEYANCE IN PRAIRIE COUNTY, ARK. 4-JUN 18 "HEARING BEFORE THE SUBCOMMITTEE ON DEPARTMENTAL ADMINISTRATION AND CROP INSURANCE OF THE COMMITTEE ON AGRICULTURE HOUSE OF REPRESENTATIVES EIGHTY-FIFTH CONGRESS Mr. ABBITT. I should like to recognize Mr. Joseph Williams, of the Commodity Stabilization Service, United States Department of Agriculture, who is present this morning. Mr. Williams, we shall be glad to hear from you. Mr. WILLIAMS. Mr. Chairman, I should like the record to show that all three of the associations have approved the bill under consideration, H. R. 7259. We told the Secretary of Agriculture of this action on the part of the three associations and the unanimous agreement on the bill. Mr. ABBITT. I should like the record to show that Congressman William H. Natcher, of Kentucky, stated that he did not oppose H. R. 7259. The representatives of the Department were kind enough to prepare an analysis of H. R. 7259. I think this analysis should be read and considered. Mr. Williams, this is an analysis of the bill? Mr. WILLIAMS. We think so. Mr. ABBITT. Mrs. Downey, will you please read the analysis? (Mrs. Downey read the following analysis of H. R. 7259:) ANALYSIS OF DRAFT OF A BILL (H. R. 7259) RELATING TO MARKETING QUOTAS AND PRICE SUPPORTS FOR FIRE-CURED, DARK AIR-CURED, AND VIRGINIA SUN-CURED TOBACCO "Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 301 (b) (15) of the Agricultural Adjustment Act of 1938, as amended, is amended by adding the following new proviso at the end thereof: 'Provided, further, That with respect to the 1958 and subsequent crops, type 21 (Virginia) fire-cured tobacco shall be treated as a "kind of tobacco" for the purposes of all of the provisions of this title, except that for the purposes of section 312 (c) of this title, types 21, 22 and 23, fire-cured tobacco shall be treated as one "kind of tobacco."' "SEC. 2. Section 2 of the act of July 28, 1945 (59 Stat. 506), is amended by adding the following proviso: 'Provided, That, beginning with the 1958 crop, the levels of support for such kinds of tobacco shall not exceed the higher of (a) the level applicable to the 1957 crop or (b) 90 percent of the parity price.'' The bill amends section 301 (b) (15) of the Agricultural Adjustment Act of 1938, as amended, to provide that, beginning with the 1958 crop, Virginia firecured tobacco, type 21, shall be treated as a "kind" of tobacco for all provisions of title III of the act with the exception of section 312 (c) which provides for treating all fire-cured types 21, 22, and 23 as one "kind" of tobacco in a referendum of growers. Marketing quotas for the 1958 and subsequent crops of Virginia fire-cured tobacco, type 21, would be determined and proclaimed on the basis of its own supply and demand situation separately from the other fire-cured types. Growers would approve or disapprove the marketing quotas for fire-cured tobacco as a "kind" of tobacco in a combined referendum. As such, two-thirds of all fire-cured growers voting in a referendum must favor marketing quotas before acreage allotments and price supports on any fire-cured tobacco would be effective. Section 2 of the bill amends section 2 of the act of July 28, 1945, Public Law 163, to provide that, beginning with the 1958 crop, the levels of support for firecured, dark air-cured, and Virginia sun-cured tobaccos shall not be higher than the level applicable to the 1957 crop or 90 percent of parity. This eliminates any further increase in support levels for fire-cured, dark air-cured, and Virginia sun-cured tobaccos arising out of increases in the 10-year moving average price of burley tobacco. Further increase in support levels of these tobaccos would be made whenever 90 percent of the parity price exceeded the 1957 support level. This would be consistent with the modernized parity concept. Parity for Virginia fire-cured, type 21, will be computed separately. Other fire-cured tobacco, types 22 and 23, will be combined in one parity. Beginning with the 1958 crop and subsequent years, support levels for Virginia fire-cured, type 21, fire-cured types 22-23, dark air-cured types 35-36, and Virginia sun cured, type 37, will be (1) the 1957 level or (2) the percentage of burley provided in Public Law 163, if lower, but in no event less than 90 percent of their own parity. Support levels for 1957 based on a percentage of the burley rate and 90 percent of parity for these tobaccos are compared below. 175 percent of burley rate for fire-cured tobacco, types 21, 22, 23; 66% percent of burley rate for dark air-cured, types 35-36, and Virginia sun-cured, type 37. 2 According to April 1957 parity index. Source: Tobacco Division, Commodity Stabilization Service, U. S. Department of Agriculture. Mr. ABBITT. As I understand, the Department does recommend the enactment of H. R. 7259 and feels that the legislation would be an improvement in the dark-tobacco program? Mr. WILLIAMS. You are correct in your understanding. Mr. ABBITT. Is there any provision in this bill which calls for any additional expenditure of Government money in the support program? Mr. WILLIAMS. No. I think that it will strengthen the support program. It is a very definite move on the part of the growers and we are happy that they had wisdom to compromise and meet this problem. Mr. ABBITT. It is a step in the right direction, too, in trying to protect the export of dark tobacco? Mr. WILLIAMS. I think so. Mr. ABBITT. The committee will now go into executive session. (The committee adjourned at 10: 45 a. m., to reconvene immediately in executive session.) X |