Welcome to the Georgia Tobacco Hotline
December 15, 2000
1-800-659-7288
Also on the web:
http://www.griffin.peachnet.edu/caes/tobacco/
J. Michael Moore,
University of Georgia
Extension Agronomist-Tobacco
USDA ANNOUNCES PROVISIONS OF THE 2000-CROP FLUE-CURED TOBACCO
PROGRAM AND NO NET COST ASSESSMENTS
WASHINGTON, December 15, 1999--The U.S. Department of Agriculture today announced the
provisions of the 2000 flue-cured tobacco program and that the flue-cured tobacco
no-net-cost assessment will be 5 cents on each pound of 2000-crop flue-cured tobacco that
is marketed. USDA set the no-net-cost assessments at 2.5 cents per pound for the producer
and 2.5 cents per pound for the purchaser for crop year 2000.
The national marketing quota for the 2000 crop is 543.0 million pounds, down from the 1999
quota of 666.2 million pounds and is based on the following:
-- Purchase intentions by domestic cigarette manufacturers: 286.0 Million pounds
-- Unmanufactured exports (3-yr. average): 334.1 Million pounds
-- Reserve stock adjustment: - 92.9 Million pounds
-- Discretionary adjustment: ±15.8 Million pounds
The national average yield goal remains unchanged at 2,088 pounds per acre.
The price support level for the 2000 crop is $1.640 per pound, up 0.8 cent per pound from
1999.
The national acreage allotment for the 2000 crop is 260,057 acres, down from the 1999
allotment of 319,061 acres.
For each farm, the 2000 basic quota will decrease approximately 18.5 percent from 1999.
The effective quota is expected to be about 553 million pounds, or 17.6 percent below
1999.
The Flue-Cured Tobacco Cooperative Stabilization Corporation, the producer-owned
association through which price support is made available for flue-cured tobacco, was
consulted before the no-net-cost assessments were set.
2000 Flue-Cured Quota Set: Good and Bad News
by Bill Givan
Extension Economist
University of Georgia
Cooperative Extension Service
The USDA announced yesterday the 2000 flue-cured tobacco quota at
543 million pounds. The bad news is that it is 18.5% less than the 1999 basic quota.
But the good news is that 65 million pounds of stabilization stocks were sold, making the
reduction less than had earlier been feared.
For Georgia growers, the basic quota will be slightly less than 58 million pounds. This is 44% less than the 1997 basic quota of 102 million pounds, but 38% less than the 1990-96 quota average of 92 million pounds.
However, the effective quota is expected to be slightly more due to
the shortfall in 1999 marketings. Effective quota could be approximately 68.5 million
pounds, with effective allotment equal to
31,300 acres.
Thank you for visiting the Georgia Tobacco Hotline, presented by the
University of Georgia Extension Tobacco Team and brought to you by the makers of Orthene
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