Newspapers / The Franklin Times (Louisburg, … / Dec. 6, 1935, edition 1 / Page 14
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TOBACC'CUNEWS . o/Se CAROO N AS T obacco Scrap In Market Helps To KeepP rices Down Further Reduction In Base Acres Advocated By Specialist In Warning To Growers. (By Our Raleigh Correspondent) "Keep your scrap tobacco off the market." This Is the advice E. Y. Floyd, extension tobacco specialist at N. C. State College, is giving farmers. By "scrap" Mr. Floyd means low grade to bacco that will not bring as much a> four cents a pound. Normally there is from 20, 000.000 to 25.000.000 pounds of scrap tobacco produced each year, but due to seasonal con ditions the figure Is nearer 39,000,000 pounds this year. "Most of the contracting growers have co operated In keeping their low grade tobacco off the present market," Mr. Floyd said, add ing: "However, some of the tenants and help ers on the farm have sold scrap tobacco when the producer did not know about the sale. It has been a custom In the past to Ignore scrap tobacco when It comes to a regular sale on the warehouse floor." Beats Down Price* f Mr. Floyd argued that all contracting pro ducers Instruct tenants and helpers on the farm that scrap tobacco must not be sold at "this distressingly low prices" for it beats down the price of some of the better grades. "In as a grower has not sold his 85 per cent and wants to sell his scrap tobacco, he should take It to the warehouse or re-drying plant and have It entered on the allotment card." Mr. Floyd said. "We are stressing this point in the Inter est of the contracting growers as a whole. And with the rental and adjustent pay-ment the growers are receiving, and will receive at the end of this marketing season, they cannot afford to violate their oontracts. In case there hat already been sales made by contracting signers, the thing for the grow er to do is to go to his county agent and he will advise him what steps he can take to clear his contract. "With the present base acreage of flue cured tobacco for all of the flue-cured states, namely Florida, Georgia, South Car olina, North Carolina and Virginia, which is established principally from the base years of 1931, 1932. and 1933, the base acres are so great that there will have to be a reduc tion of at least 20 per cent. And for the years preceding good crop years the reduction will have to be around 26 to 30 per cent from the present base in order to keep production in line with consumption. No Room For Increase "This means that if the present growers of flue-cured tobacco receive a reasonable prioe for their tobacco, there will not be much room for an expansion of acreage. I wish to urge each producer, whether he be a land owner or tenant, to try as best he can to hold to his present farm with an established base. You can readily see that there will not be much leeway for an Increase in the present base tobacco acreage and production, if tobacco growing is profltsble to the pro ducers as a whole." Mr Floyd pointed out that It is the pur pose of the committees in the counties to do all they can to help growers who may lose their farms through foreclosure or tenants who cannot stay with their present landlords In 1036. "It will be necessary for a person moving from the farm that he is now living on to show convincing evidence to the committee before he will be able to establish a tobacco base on a new farm that has never grown tobacco," Mr. Floyd said. Must Be Considerate "Therefore, I want all landowners and ten ants to be considerate of each other In mak ing every possible arrangement to take care of their tobacco needs for 1936 under the tie moving as possible In 1036 because It la our earnest desire to adjust the base acre age and poundage to fit the needs of the pres ent tobacco growers In the very best way pos sible." ; Turning to peanuts, Mr. Floyd pointed out that the present alloted peanut acreage and poundage In North Carolina are 217,440 acres and 243,110.023 pounds. "We," he added, "are beginning to dig and ?ell peanuts In our state at this time and it la desire of the peanut section In Wash ington that growers receive at least three cents a pound tor the Virginia type peanut. Convert Into OU "In order to maintain this price, the pea nut section hss devised a method by which the oil miller or the producers may convert a portion of their peanuts Into oil. Tbs (row er should receive at least three cents a pound, or 160 a ton, for the Virginia type peanuts at this time. "After November IS the grower should re ceive three and one-eighth cents per pound, or ?0a.B0 per ton, for his peanuts. "In case fanners cannot get vary near this price, they could eonvert the peanuts them selves by selling them to an oil mill for around M3410 per ton and fill out the neces sary forms and the peanut section will pay them a diversion payment -of around $16-60. "All growers who can should hold their pea nuts In order not to ruah them on the mar ket and depreee the price, aa baa been dons in ths past. Orderly maikettnr of tills pea nut crop will mean a uniform price for the whole, crap, and there Is a. difference of eent par pound paid tor peanuts diverted to all. beginning November 16, whtah wlH make a little difference that will pay the pea nut gioweia, who can, to hoM their peanuts stf ths market," ? Listing Tobacco In N. Carolina spring will soon be here, and work In the fields will be In order. Above U a typical scene In North Carolina. Photo courtesy Extension Service. 1936 Tobacco Outlook Generally Favorable For Carolina Growers BY A STAFF WRITER Trend* of major significance in the tobacco industry insofar as the Caro lina* are concerned, relate largely to consumption increases at home due to improved economic conditions, and to the export situation. The outlook on prices for 1936 is favorable, although decreases in the production of flue cured, Maryland and fire-cured are advised by the bureau of agricultural eco nomics, at least until stocks are further reduced. increuea consumption 01 lODacco, ama some Increase In export* of American types, la anticipated. Both cigar and cigarette con sumption Is Increasing steadily. Cigarette consumption this year Is estimated at 132 billion, compared to 136 billion In 1034 and 130 billion In 1930. In 1033 consumption of cigarettes fell to leas than 104 billion. This trend Is a hopeful algn for both flue-cured and burley tobacco. Consumption of plug and scrap chewing, snuff and smoking tobacco la decreasing, but the last named, only moderately. This trend affects tha fire-cured types, of which It la by far tha most Important domestic outlet. Exports Are Lower Exports for the last 13 months were sub stantially lower than those of any other simi lar period. American tobacco continues to meet with unfavorable trade restrictions and increased competition In foreign markets. Production of tobacco in seven countries which, before the world war took approxi mately 45 per cent of the leaf exported from the United States, increased from an aver age of 350.000,000 pounds In 1018-30 to 455, 000.000 pounds in 1031-33. This resulted largely from high foreign tariffs, tobacco monopolies in foreign countries, and unfa vorable exchange rates. During the past two marketing years, exports were leas than 35 per cent of production. Of particular algnlflcance la the decline In exports to China. These decreased from 144, 000.000 pounds in 1030-31 to 30,000,000 pounds in 1034 - 35, while consumption In China during this period actually increased. Increased domestic production, the inaugura tion of higher taxea on gradea of clgarettea in which American tobacco is used, and more recently higher prices on our auction mar keta, are reaponslble for this situation. Decrease Is Desirable in union, m in continent*! Europe, with drawals of American flue-cured seem to ban exceeded Import? and with lower price* tome Increase in purchssss la anticipated. Whether the depletion of foreign stocks of American tobaeeo will have a hearing on the 193? marketing situation will depend on the de gree to which replenishment Is accomplished out of the 1938 crop. The bureau says that with a moderate de crease In production of flue-cured tobacco In 1936. the outlook is for favorable prioea. Do mestic and foreign stocks on July were low er than last year, and although this short age has been more than offset by the large crop of 1935, domestic consumption I s con stantly Increasing; while export buying has been active recently. The 1935 crop has moved at prices equal to or greater than parity. Record yields and resulting surpluses would Indicate a slight curtailment In 19M acreage Is desirable. With such adjustment there would be good reason to expect favor able prices. The Barley Situation The outlook for burley continues to be dominated by large stocks in ths hands of domestic dealers and manufacturers. The stocks on October 1, 1935 (not yet tabulated) are expected to be about 770,000,000 pounds, farm sales weight. While these stocks ars smaller than those of a year ago. they an substantially larger than for any other year, being 40 per cent above ths 1999-33 five year average. With aa estimated orop of 948.853,000 pounds far 1985. the total supply Is approxi mately 1,019.000,000 pounds as of October 1st. With the exception of 1933-14 and 19M-36, this Is ths largest supply of burley for any similar period on reoord. In view Of this burdensome supply, and the fact that con sumption of hurley win lnimsss but little. It appear* that, plantings In 19M should not be larger than In l??? H is estimate* that the present ret* of production. If continued for four yean, would reduce stocks to nor Supplies of Maryland tobacco continue to be too large. Export* for the year ended with September, 1036 were the lowest on record, and a decline In domestic consumption ap pears probable. During reoent years supplies of low-grade tobacco have accumulated in warehouses, although last year much of It moved into the hands of the trade and Is being used in manufacture. It Is hot be lieved. however, that this trend toward in crease in domestic consumption will oon tinue. Improvement in the dark-air -cured situa tion is indicated. Production since 1032 has been greatly reduced and it is leas than the average annual disappearance, with the re sult that stocks have declined heavily since the 1932-33 marketing season. Present Indi cations are that there will be no marked change in the rate of consumption during the 1985-33 season. The outlook for cigar tobacco has improved materially over that of last year. However, excessive supplies and restricted outlets for the stemming grades are still a serious prob lem. Although the production of certain types of cigar tobacco in 1936 should be In creased over that of 1936, in comparison with the 10-year period prior to 1931, production of all types appears to be on a permanently lower basis. ? O Tobacco In S, C. Brings Fine Return Tobacco growers In 0outb Carolina received 14.452,750 more for their crop In 1935 than they did for that of 1034, a statement Issued from the office of J. Roy Jones, commission er of agriculture, commerce and Industries, shows. During the season, which closed with Oc the golden leaf for $16,887,753 as compared with the sale of 52,952,175 pounds for $11, 484,003 In 1034. The average price for the 80-odd million pounds this year was $18.56 per 100 as com pared with $21.80 In 1934. However, the to tal amount of cash realized from the sale was greater by four million dollars. In October there were only two markets open. Lake City and Mulllns which sold dur ing the month, 7,020,280 pounds for $1,118, 791. The warehouses at Lake City disposed of 1,593,939 pounds for $172,822 while those at Mulllns sold 5,428,341 pounds for $945, 988. The average price In October was $15.94 per 100 pounds as compared with $10.24 for the preceding October. O Scrap Tobacco Law Ruled Constitutional By Judge Judge J. Paul Frlnle bu ruled that North Carolina* new scrap tobacco law. wt}lch le vlea a 11,000 tax on scrap dealers and waa Intended to drive them out of bualnaa, 1* con stitutional. But the 10 defendants in the case have ex pressed intention of appealing to the Supreme The scrap tobacco tax test case opened more than a month age before a Robeson county reoorder. Ha allowed a motion to quaah. holding the law Unconstitutional . The state appealed and the matter waa argwad before Judge Frlzale who reversed the recorder an* found that the law waa neither confiscatory ?or discriminatory. Seventy Millions For Tobacco Crop First Ten Months (By Our Raleigh Correspondent) North Carolina tobacco farmer* received * total of *70.613.668 31 for the weed they acid on atate market* through October 81, and Indication* now are the full crop may pro duce a record money return. Figure* compiled by the Federal State Crop Reporting Service show that farmers had sold through that date a grand total of 883,878, 961 pounds of tobacco at an average price of 31 cents a poun<^. The prloe average la identical with the part ty figure originally accepted for thla year and above the revised figure announced by the AAA. it la, however, more than eight cent* blow the average figure of 20.17 cents a pounds registered through October 81 of last year by North Carolina farmers. Although the price Is far below that of last year, leaa than half the estimated 1036 crop has been sold. At the same time last year ap proximately 77 per cent of the crop had beenN disposed of. 1984 Crop Revenues At the end of October, 1934, North Caro lina growers had been paid a total of 693, 966,179.30 for the 322.095,229 pounds of tobac co they had soM at the average level of 29, IT cents a pound. Forthee ntlre sea so n,de spit ethe For the entire season, despite the poorer quality of the weed and the lower prlcea, North Carolina's growers stand this year to receive a larger aggregate total for their crop thin In any year In history, on the basis of pres ent crop estimates. Price trends for the 1936 season Indicates that the seasonal average will climb some what, at least, above the 21-cent figure. In August, with the light sales, the price average was only 18.88 oents a pound. The next month, with sales still light but Increasing, the monthly average rose to 21.86 cents a pounds. For October, with sales heavy, the aver age price paid was 22.86 cents a pound, bring ing the seasonal average up to an even 21 - cents. The crop reporting service estimated as ot October 81 that the State would produce a crop of 786.786,000 pounds, but present In dications are that the figure may fall below this level. Tobacco Allotment Cards Available Contracting growers of Bur ley. fire-cured and dark air-cured tobacco, who have com plied with their contract# to date but who have, produced tobacco imr, exoeee of their al lotments, may obtain s^dltlonal allotment cards under aa amendment to an admin istrative ruling announced by the Agricul tural Adjustment Administration. * The new ruling provides two methods through which contracting pfMucers with excess tobacco may purchase additional allot ment cards. First, producers Wfth exeees to bacco may* purchase, through ?Ounty agent's offices, the unused allotments of other pro ducers whose production Is deficient. In such cases, the producer whoee production is less than his allotment will be required to exe cute a form on which he . waives the de ficiency payment under his contract for 1938. May Purchase Cards Under the other -method, a contracting grower with excess production may, after he has sold his Initial allotment, purchase an additional allotment card through coun- / ty agents' offices by refunding three cents for each pound of excess Burley tobacco, and two cents for each pound of excess fire cured and dark air-cured tobacco. UnJdsr this latter method, the producer purchas ing the additional allotment card will be re quired to sign an agreement and deliver to the oounty agent a certified check, bank draft cashier's check, or postal money order made payable to the order of the United States Department of Agriculture. The funds accumulated through these fo ments to all growers who cooperate under tobacco contracts. The value of excess tobacco sold will not v. . be Included In calculating the amount ot the adjustment payments under the contracts for 193$. Diverting; Low Grades In order to encourage the diversion o I the lower grades of tobacco to by-product uses, espeecially In the case of dark types of tobacco, growers with excess production may sell such excess tobacco to manufacturers who enter into an agreement with the Sec retary to use such tobacco only in the man ufacture of nicotine, spray material, fertili zer, or other tobacco by-products. For ad ditional allotment cards to cover such sales to nlootlne companies, the contracting grow er will pay 1-2 cent per pound and will be eligible to receive tax-payment warrants if the sale bills are properly certified by the nlootlne buyers. Detailed Instructions may be obtained through county agents' offioes when the markets open. Contracting growers will not be permitted to sell tobacco except on allotment cards is sude in accordance with the provisions of the contract or the ruling. O NEW CONTRACTS LAUDED '"The new tobacco contracts leave free play for the best farming practices that fit each particular farm Is using land shifted from tobacco to other purposes," said E. Y. Floyd, tobacco specialist at If. C. State College, re cently. "This provision will be a help to fartners in working out their own sound crop rotation programs by using the various fields of the farms which suit them best, and still protect producers of other com mercial crops frojn undue eompetition."
The Franklin Times (Louisburg, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
Dec. 6, 1935, edition 1
14
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