TOBACCO MARKETING QUOTAS 4-AUG-6 HEARING Copy 1973 BEFORE THE SUBCOMMITTEE ON AGRICULTURAL PRODUCTION, United States. Cong:D, OF THE Serate COMMITTEE ON AGRICULTURE AND FORESTRY. UNITED STATES SENATE NINETY-THIRD CONGRESS FIRST SESSION ON H.R. 6485 and S. 1533 meg BILLS TO AMEND THE TOBACCO MARKETING QUOTA PRO- Printed for the use of the Committee on Agriculture and Forestry '96-077 U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1978 0 - OUA COMMITTEE ON AGRICULTURE AND FORESTRY JAMES O. EASTLAND, Mississippi HUBERT H. HUMPHREY, Minnesota CARL T. CURTIS, Nebraska HENRY BELLMON, Oklahoma JESSE HELMS, North Carolina COTYS M. MOUSER, Chief Clerk SUBCOMMITTEE ON AGRICULTURAL PRODUCTION, MARKETING, AND WALTER D. HUDDLESTON, Kentucky, Chairman MILTON R. YOUNG, North Dakota HENRY BELLMON, Oklahoma ROBERT DOLE, Kansas JESSE HELMS, North Carolina GEORGE MCGOVERN, South Dakota JAMES O. EASTLAND, Mississippi EX-OFFICIO MEMBERS HERMAN E. TALMADGE, Georgia CARL T. CURTIS, Nebraska (II) 197 CONTENTS catement of Balden, William H., president, Council for Burley Tobacco, Danville, Berry, John M., president, Burley Tobacco Growers Cooperative Asso- Breckinridge, Hon. John B., Representative in Congress from the Cook, Hon. Marlow W., a U.S. Senator from the State of Kentucky- Frick, Hon. Kenneth E., Administrator, Agricultural Stabilization and Huddleston, Hon. Walter D., a U.S. Senator from the State of Ken- Ison, Louis F., president, Kentucky Farm Bureau Federation, Louis- Lanier, William L., director, Tobacco Division, Agricultural Stabiliza- Snodgrass, Frank B., vice president and managing director, Burley Todd, Joseph J., deputy director, Tobacco Division, Agricultural Sta- Wells, Phil B., president, Burley Auction Warehouse Association, Woods, Robert D., president, Burley Farmers Advisory Council, Lex- Miscellaneous documents: H.R. 6485 and S. 1533, 93d Congress_ Burley tobacco: average, yield, production, carryover, supply and disappearance, 1962-72-- U.S. exports of unmanufactured tobacco, farm-weight basis--. 14 14 Affidavits and depositions submitted to Representative Stubblefield by 46 FRIDAY, APRIL 13, 1973 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 notice, at 10:10 a.m., in room 324, Russell Senate Office Building, Hon. Walter D. Huddleston, (chairman of the subcommittee) presiding. Present: Senators Huddleston and Helms. STATEMENT OF HON. WALTER D. HUDDLESTON, A U.S. SENATOR FROM THE STATE OF KENTUCKY Senator HUDDLESTON. Our hearing this morning is on S. 1533. S. 1533 provides that any nonquota tobacco grown in an area where it has not been traditionally produced and where growers traditionally produce a type of tobacco under quota, shall be subject to the quotas for the kind of tobacco traditionally produced in that area. If quotas are in effect for more than one type of tobacco, the nonquota tobacco would be subject to the quota for the tobacco with the highest price support. This means that Maryland tobacco grown in areas which are traditionally burley-producing areas will be subject to burley quotas. For years, burley growers were plagued by overproduction. Acreage allotments which were in effect until 1971 only meant that improved techniques, closely planted rows and other efficient farming methods led to increased production. High yields continued, increasing surpluses and depressing prices. Finally, in 1971, legislation was enacted providing for a poundage quota system, which has proved quite successful. Overproduction has been stemmed and the selling price of burley stabilized. Furthermore, the poundage quota system has been approved overwhelming by thousands of burley growers participating in marketing referendum. It is these growers-growers who have worked for a feasible means of limiting production and protecting existing producers-growers who have voluntarily agreed to restrict their crops-who are threatened by Maryland tobacco. Maryland tobacco is not grown under quota. A grower may raise— and market-as much as he wishes. Maryland tobacco grown in the limestone soil of Kentucky and certain other burley areas assumes many of the characteristics of burley, making it difficult to identify and grade. There were, as we all well know, several widely publicized cases this year where tobacco was incorrectly graded by Government (1) |