nptions now appearing in the statute an additional exrnonquota tobacco produced in a quota area in which the acreage allotments for quota tobacco established for ss than 20 acres. The result of the amendment would be ylvania would no longer be considered for purposes of on a quota area so long as that State has less than 20 reage allotments for quota tobacco. Therefore, growers of type 32) tobacco in Pennsylvania could continue to proobacco in the State free from penalty as they have done

quotas for dark air-cured tobacco and fire-cured tobacco establishes a procedure under which producers of dark bacco and fire-cured tobacco would be given the opporreferendum to choose whether they favor or oppose est of farm marketing quotas for such kinds of tobacco on - basis instead of an acreage or acreage-poundage basis. n 50 percent of the producers voting in the referendum indage control program, marketing quotas would be esn a poundage basis for the next 3 marketing years. ould be converted to pounds on the basis of individual for the 4 highest years during 1978-1982, or the most ar period. No farm would be permitted to have an avern excess of 3,000 pounds for converting acreage allotpoundage quotas. The bill also provides a procedure subsequent years if the Secretary determines there is nterest, producers of dark air-cured tobacco and fireco could choose whether to establish marketing quotas age basis.

luctuations in both the supply and price of dark airco and fire-cured tobacco that have been experienced in s, growers of these kinds of tobacco have expressed an exploring the possibility of going to a poundage control ch a system could provide a more dependable supply of cos along with more stable prices. The bill provides the with authority to conduct a referendum to determine if indeed wish to change from an acreage allotment poundage control program in the case of dark air-cured I fire-cured tobacco.

versity of Kentucky, the Kentucky Farm Bureau, and organizations have explored and discussed this possibile growers and have assisted in developing this provision pportive of this option.

12.

O,

At the Raleigh hearing nearly 40 witnesses testified, includi farmers. The hearings attracted an estimated 2,000 people th cluded farmers, tobacco industry representatives, and other ested persons.

The Honorable James B. Hunt, Jr., the Governor of North lina, gave a series of recommendations for fine-tuning the to program, including support for a provision to allow the Secr of Agriculture to adjust the price support level for low-dema bacco. Governor Hunt stressed that it is important that fa retain control of the tobacco program and allotments not lowed to move too far from the land.

Testifying for the Department of Agriculture, Hoke Legget sociate Administrator of the Agricultural Stabilization and C vation Service, recommended that the Committee author system for collecting a fee or contribution from each produ tobacco to be used to cover possible future program losses, and the Secretary of Agriculture be given authority to adjust pric port levels for various kinds and grades of tobacco.

Jim Graham, Commissioner of the North Carolina Departm Agriculture, testified in strong support of amending the to price support program in such a way as to guarantee its healt future life. Mr. Graham cautioned that the problems of the gram are not simple to work out, and he emphasized that ea the alternatives developed during the hearing process must be uated carefully.

Bryan Patrick, the South Carolina Commissioner of Agricu supported proposals (1) to use net gains from the sale of crop beginning with the 1975 crop to offset losses that may be sust by CCC in other tobacco crop years and (2) to establish a g assessment program to ensure the operation of the Flue-cur bacco price support program on a no loss basis to CCC with t sponsibility for determining the amount of the assessment r with the board of directors of the producer-owned association ject to approval by the Secretary of Agriculture. An optiona posal Mr. Patrick discussed was to adjust the current rate of lation of the price support formula.

Richard Jenks, a farmer and president of the Wake Co North Carolina, Farm Bureau, proposed a farmer-owned co tive with an assessment program and authority for the coope to borrow from private sources in order to carry out the pric port program. Mr. Jenks also made proposals for keeping sup

nmendations of his organization and endorsed the

als:

The Secretary, with the advice of a producer advisoo adjust the price support loan rate to provide not rcent of the normal increase for a 3-year period excessive.

grower controlled assessment.

sale of tobacco allotments within the same county o producers with the total acreage allotment not exceed 50 percent of the tillable cropland.

e and transfer but require that the allotment be arm of origin at least 1 out of every 3 years.

ect sales by the Flue-cured Tobacco Stabilization

sing of allotments only during the period from Jan1 of each year.

vidual poundage and acreage ratios at least every 5

arley tobacco loose-leaf sales with USDA grade and -r the total quota.

ls were generally endorsed by the South Carolina, rginia Farm Bureaus. With regard to a farmer-fiprogram, the Georgia Farm Bureau proposed a d assessment beginning in 1982 of a minimum of 1to accumulate funds for underwriting future losses

bacco.

rolina State Grange generally endorsed recommento price supports and grower assessments similar described. However, the State Grange recommendse and transfer program be continued under the I that such activity be limited to the period from ril 15 each year.

Wendell, North Carolina, and Terry Howes of rolina, stressed the problems faced by young tobacthe barriers presently facing them in tobacco prowes proposed forfeiture of allotments where poundased off the farm for 3 consecutive years and reapactive tobacco farmers, a prohibition on inheritance nents and quotas by a nonproducing heir, eliminaand transfer system, and a prohibition on the sale ards, managing director of the Bright Belt Wareon, testified that the three problems facing tobacco

growers in North Carolina, testified on the need to move ments back into the hands of growing farmers. While in ge agreement with many of the recommendations of other groups, the Association also recommended requiring sale of ments by owners with insufficient cropland, charging all non tobacco produced in Flue-cured counties against Flue-cured qu eliminating fall leasing except where 80 percent of the effe quota for the farm is planted, and eliminating lease and tra across county lines.

The Virginia American Agricultural Movement also prese proposals that closely paralleled the proposals of the Tol Growers Association of North Carolina.

The Leaf Tobacco Exporters Association, Inc., was represent their Executive Vice President, Dr. Hugh Kiger. Dr. Kiger str the difficulty his organization has in dealing with the price d ential of American leaf versus lower priced foreign leaf. The ciation recommended that price support levels for the 1982 cr frozen at the 1981 level, that thereafter increases in tobacco supports be tied to the actual cost of production of such tob and that the Secretary be given further authority to adjust su levels for individual grades of tobacco which he determines to excess supply.

With respect to quotas, the Association recommended that q should be in the hands of actual growers in the traditional pr ing areas and that authority should be provided for the sa quotas within counties to growers with sufficient tillable acr John S. Campbell, an international tobacco consultant, desc the changing foreign market for U.S. tobacco and indicated country of origin is no longer the primary concern of internat tobacco buyers but that the relationship of price to quality is paramount.

Kirk Wayne, president of Tobacco Associates, Inc., which r sents U.S. Flue-cured tobacco growers in promoting, develo and expanding world markets for U.S. Flue-cured tobacco, cussed the export market situation and indicated that a stabili responsive tobacco program that provides a dependable, ade supply of the types of tobacco in demand will be necessary for growers to compete effectively in today's limited and highly petitive world market.

Richard Whitaker, president of the Randolph County To Club, recommended removal of all allotments and redistrib within the same counties to active tobacco growers based on 80 cent of their average production for the last 3 years.

he Committee to support the tobacco program and inmportant it is to the State of Kentucky.

s, an aide to Senator Ford, expressed the Senator's ne tobacco program and any changes necessary for the urvive.

Barkley, Kentucky Commissioner of Agriculture, cauhe tobacco program should be dealt with very carefulif changes are needed in the program they should be

Shuffett, professor of agricultural economics at the Kentucky, provided some background on the tobacco Kentucky and spelled out a number of alternatives and it should be considered in connection with any changes o program.

ey, representing the Kentucky Farm Bureau, testified anization generally supported the Administration's nos with some exceptions. With regard to increasing the itted to be deducted from the price support advance, recommended a limit of $2 per hundredweight. The u supported retention of net gains to offset losses in years, collection of a reasonable fee from producers obacco to be used to offset losses in subsequent years, of price supports on grades that have accumulated in oply with no adjustment to be less than the price supprevious year plus 65 percent of what the increase der the present formula. The Farm Bureau also recomauthority be provided to the Secretary to conduct a on permitting 4 dark tobacco types to shift from an poundage program.

iel, president of the Burley Tobacco Growers Cooperaion, traced the history of the association and its role in he price of tobacco in Burley areas. Mr. McDaniel exupport for the no-cost program and the establishment ff fund. He also recommended that the no-cost fund arted with 1982 sales.

Nelson, representing the Burley Leaf Tobacco Dealers recommended freezing the price support level for the the 1981 level, increasing price supports in subsequent on changes in the actual cost of production, and giving y authority to adjust support levels for individual bacco which he determines are in excess supply. Mr. recommended certain changes in the allotment system of the 15,000 pound leasing limit on Burley tobacco.