A2Hjnc—Hf Farming, Saturday. December 11,1M3
Proposal Could Kill Tobacco
ANDY ANDREWS
Lancaster Farming Staff
PARADISE (Lancaster Co.)
If President Clinton has his way,
tobacco growers could be out of
business, according to Claude
Martin, president of Lancaster
Leaf Tobacco, who spoke before
the start of opening day at Paradise
Tobacco Auction on Monday.
“When Bill Clinton introduced
the Health Care Package in Con
gress, it was a dark day for the
tobacco industry in the U. 5.,” said
Martin. The proposed tax bill, to
help pay for the cost of nationwide
health reform, is set to draw most
of the money out of all segments of
the tobacco industry, from farmers
who grow it to packagers and
suppliers.
Clinton has proposed a 10,000
percent increase in taxes on
smokeless tobacco, said Martin.
That would raise a 3-ounch pouch
of chewing tobacco from about
$2.50 to more than $5, according
to a report in the October 29 New
York Times. Cigar tax could go up
more than 3,000 percent, accord
ing to Martin. In the Times report,
taxes on snuff would soar 3,472
percent and pipe tobacco would be
increased more than I,Boopercent
Pipe smokers who pay about 67.3
cents in federal tax per pound
could pay more than $l3 a pound.
Cigarettes taxes could be raised
about 300 percent, but small cigar
taxes could rise 3,333 percent,
according to the Times.
Those who wrote the proposal
I CLASSIFIED
f® PAY OFF!
TAP INTO AN
ECONOMICAL
POWER SOURCE.
The Cougar? has always been one of our most
POPULAR SLEDS, THANKS TO AN UNMATCHED COMBINA-
TION OF POWER AND ECONOMY. FROM ITS 440 CC UQUID-
COOLED ENGINE TO THE RENOWNED AWS" CHASSIS, THE
Cougar delivers a great ride at a spectacular
PRICE. IT’S ALSO AVAILABLE IN A MOUNTAIN CAT®
VERSION WITH A LONG 136” TRACK. STOP IN AND BET
YOUR HANDS ON ONE OF THE BEST ARCTIC CAT
VALUES ON THE SNOW TODAY.
Oasotco Sales, Inc., *993 ® '■trademarks or ahotco, Inc., Thief river falls, mn.
are “trying to kill the tobacco busi
ness,” said Martin. “It’s unac
ceptable to you, as a farmer, to you
as a consumer, to us as a processor,
and to the manufacturer. It's abso
lutely devastating to the industry
itself."
Martin urged the the more than
250 tobacco growers present and
the eight buyers on the floor to sup
port the movement by various
tobacco groups to stop the prop
osed tax increases. Right now, the
Rostenkowski Commission is
reviewing the proposal in a series
of hearings in Congress. At the
auction, a petition was available
for those in the industry to sign.
“We think iris absolutely unfair
and totally crazy what they’re
doing in Washington to you as a
farmer and to us,” said Martin.
He told those at the auction to
lend their support in any way they
can. Already, according to the
Lancaster Leaf president, support
has been coming in strong from
Kentucky, Tennessee, and Virgini
a against the proposal.
“It is absolutely important that
every one of us work to defeat this
legislation," he said. If Washing
ton has their way, he reminded the
fanners, “you will no longer need
to grow tobacco.” He said thou
sands of jobs are at risk, including
workers who make the boxes and
other packaging.
“Now think about that very ser
iously,” he told the farmers. “You
got a beautiful crop of tobacco, it
brings a lot of money for you on
your farm, it helps us make a liv
V&rld Qass Snowmobiles
Industry, Says Buyer At Opening Of Auction
ing, and we need it"
In an interview with Lancaster
Farming, Martin urged fanners to
contact their federal legislators and
to ‘‘keep the enthusiasm going”
throughout the next year. He urged
growers to contact him in support
of the tobacco industry at Lancas
ter Leaf Tobacco, 198 West Liber
ty St., Lancaster, PA 17603, (717)
394-2676.
Auctioneer was Mitch ‘ ‘Snake”
Ashby, from North Carolina. At
Monday’s auction, about 380,000
pounds of the Maryland6o9 tobac
co went on sale, with a high price
of $1.25 a pound, down from $1.36
a pound last year and from SI.6S a
year before that The Auction
reported about $296,000 in sales
for the day. On Wednesday,
120.000 pounds were sold, about
40.000 of which went for a high of
$1.25 a pound.
The auction continues every
Monday, Wednesday, and Friday
until Christmas week, then
resumes for a few weeks in
January.
ADC Meets Farmers’ Needs
More Than $129 Million in Extra Payments
"At Atlantic Dairy Cooperative, our mission
is to maximize returns to members. In the past
six years, we returned more than $129 million
to members in equity payments, over-order
premiums and quality bonuses. That’s an
average of $36,600 per member. And these
extra dollars are continuing at the rate of $1.7
million a month.
"When non-members ask me why they
should belong to Atlantic Dairy Cooperative,
I am happy to report that we are financially
healthy, strong in membership and growing in
sales. ADC is the region’s largest and most
fiscally-sound cooperative, with a guaranteed
market and outstanding benefits.
"More dairy farmers joined us last year than at any time in the
past decade. If you are not an ADC shipper and are worried about
your own milk market, then you should talk to the cooperative that
is facing the future with confidence.”
I?**,
Atlantic Dairy Cooperative
.. 1225 Industrial Highway, Southampton, PA 18966
1-800-645-MILK
spoke about the devastating effects the federal tobacco tax
es could have onthe Industry before the start of the auction.
Robert B. McSparran
President