A34-lancas*r Farming, Saturday. March 14, 1998
Tobacco Quotas? Tobacco Allotments? Confusing Issues!
ROBERT ANDERSON
Lancaster Co. Agent
LANCASTER (Lancaster Co.)
Pennsylvania tobacco growers
have a lot to think about and a lot
of facts to gather before voting in
the Tobacco Referendum to be
held from March 23 through
March 27 at county FSA offices.
What is the “Tobacco Settle
ment?” At this time, it is several
bills which havp been introduced
into the US Congress which will
attempt to reduce the amount of
tobacco used by Americans, espe
cially youth; increase the amount
of funds available through tobacco
taxes to fund a variety
of tobacco use reduc
tion and medical issues;
make payment to tobac
co farmers in the
elimination of quotas;
and to help tobacco
farmers find alternative
crops to grow in place
of tobacco. There are
several bills which have
been introduced by a
variety of legislatures.
Speculations are that
the two bills with the
best chance of passing
are the Lugar and the
Ford Bills. However,
this is all speculation at
this time.
While a lot could
change in these or other
bills before passage, se
veral issues seem con
stant between propos
als. Settlements will be
made with tobacco
growers in states where
quotas exist or where
quotas have not been
voted down by growers.
Non-quota tobacco pro
duction areas which in
clude: Maryland, Penn
sylvania, Connecticut,
and Massachusetts will
not be part of the settle
ment That means any
funds made available to
quota states for growers
will not be available to
Pennsylvania growers.
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CASEjiI
Tobacco Settlement? Tobacco Referendum?
A National Tobacco Confer
ence was held in Lexington, Ken
tucky this past January. Several
economists attempted to summar
ize what impacts they thought the
proposed “Tobacco Settlement”
legislation would have at the farm
level. Most of the economists
agreed on a few key points. First,
the price at which tobacco sells in
the future will be less than it is to
day. Second, lower prices will
make the United States more com
petitive in world tobacco markets.
Third, an increase in exports could
result in an expansion of tobacco
acres in die US. Fourth, farms
growing large acreage of tobacco
are more likely to survive the
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change than are small acreage
growers.
Pennsylvania has always voted
down tobacco quotas. Maryland
has voted them down since the
19605. How will the vote go this
year? It will depend on what
growers know and how they feel
about what is happening. In a re
cent phone call to Maryland, I
asked Dave Conrad, Tobacco Spe
cialist in Maryland, how he felt
the vote would to in Maryland.
His response was “It depends on
what Maryland growers know
about the ‘Tobacco Settlement,’
how they feel about not being part
of it. and what happens with this
year’s sale of tobacco.” He con-
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turned, “At this time, I don’t think
there will be a favorable vote
here.” Hie Maryland Auctions be
gin the week before the referen
dum. Many Maryland growers
may not make a decision until the
last minute before they vote.
The vote in Maryland could im
pact Pennsylvania tobacco grow
ers. To determine if a tobacco is
under quotas, farmers must vote a
2/3 majority in favor of the quota.
Because quotas go across state
Hines, a strong yes vote in Mary
land could mean Pennsylvania
growers of Maryland Type Tobac
co could be under a quota. It could
also mean that the traditional
Pennsylvanai Type 41 tobacco
could no longer be grown in the
state without a major change in
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US tobacco legislation. Federal
Law prohibits the growing of a
non-quota tobacco in a state with a
quota. This would be the case if
growers of Maryland type tobacco
vote in favor of quotas.
If Pennsylvania would become
a quota state as as result of the re
ferendum, each grower would be
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