xt70zp3vvb56 https://exploreuk.uky.edu/dips/xt70zp3vvb56/data/mets.xml   Kentucky Agricultural Experiment Station.  journals kaes_circulars_004_516 English Lexington : The Service, 1913-1958. Contact the Special Collections Research Center for information regarding rights and use of this collection. Kentucky Agricultural Experiment Station Circular (Kentucky Agricultural Experiment Station) n. 516 text Circular (Kentucky Agricultural Experiment Station) n. 516  2014 true xt70zp3vvb56 section xt70zp3vvb56   '
T
T
1
A
T
T
What About the T
T .
BURLEY TOBACCO A
k
CONTROL PROGRAM.
By Glenn L. Johnson
and Harry M. Young, Jr,.
Circulor ST6 U
Cfwperotive Extension Work in Agriculture and Home Economics .
College of Agriculture and Home Economics, University of Kentucky ‘
and the U.S. Department of Agriculture, cooperating A
]U\lrH_,; FRANK J. WELCH, Director '
A Issued in furtherance of the Acts of May 8 and June 30, l9l4. ·.
_.r

 T i ` .
3 .
j .
 
E j FOl’tE\VORD
T The present burley tobacco program is an outgrowth of a long ,
T experience of tobacco growers. Since the beginning of tobacco grow- T
i ing in the Virginia Colony, tobacco farmers have been plagued by nn- .
T stable markets and inability to adjust production to market demand V
j in such a way as to stabilize prices. These difficulties for growers T
j stem from several characteristics of the production and marketing of 1
tobacco. T
T Iiirsl, especially since the close of the nineteenth century, the pur-
chase of tobacco has become progressively centralized and needs for T
manufacture are relatively stable from year to year. pr
j Second, storage stocks of aging tobacco, which amount to two or lll
three times annual consumption for some types, are normally in the jh
hands of commercial processors, which strengthens the buyers` bar- B,
j gaining position in the market by making them somewhat less de- T (ll
  pendent upon the production of any one year. [N
Third, tobacco is grown on thousands of farms in a limited geo-   (,4
g graphic area, mostly on small acreages. Land and labor generally are T I;
i easily available for growing additional tobacco. These two character- l
l istics permit large changes in production from year to year, when no  . m
i acreage controls are in effect. \Vhen left to individual farmers these · Pl
thanges usually were too much and came too late. g gf
Fozzrt/ii., there is no substitute for tobacco as an item of consumption. ‘
.·\mong farm products this is unique to a large degree. This character- T
mic undoubtedly accentuates the effects of changes in supply on primo
ol tobacco and contributes to price instability. $
y In interpreting and analyzing the burley tobacco program since
lf)33, the characteristics of tobacco as a commodity and the condition>   ¢
under which it is bought and sold become major considerations. Not i
to be dismissed lightly is the influence of the increasing demand for
this type of tobacco that has prevailed in recent years. Because Ut
bacco differs in so many respects from other major crops, caution i~
tll`g€d in using p1`0gt‘:1nis successful for other crops for l.()l)2l((U- "l
vice versa.
The following discussion of the burley tobacco program is lraswl
upon technical analyses cited on page Ei. .-\n understanding oi` pmt
experience should help farmers and agricultural leaders adjuSt PY"'
grams to the needs of the future. ·
Auniuay ]. Bnowx, Head _
l)t·partmcnt of Agricultural licononrlc _

 f i
, What About the Burley Tobacco i
_1 W F Control Prog rams?
i£1`0“`· . . . .
` ' t By Glenn L. Johnson, formerly Economist in Agricultural Economics,
by ml` Kentucky Agricultural Experiment Station, and Harry M. Young, Jr.
emimtl  ' Extension Specialist in Agricultural Economics ,
growers
*i¤¤<>l l, What basis do we have for answering questions on the l
I
I Burley Control Program?
te pur-
Cds fm. A special study on the ellects of the control programs on ;
production and price ol? burley tobacco has been carried out at  
two or the Kentucky Agricultural Experiment Station. The results of
* in tlw i this study are reported in two bulletins: Bulletin 580, entitled
YS) l>¥l1`·  ` Burley Tobacco Control Progmnzs, Tlveir Over-/1/l Effect on Pro-
l€$S °l"' l rluc/ion and l’rices. I93350, and Bulletin 590, Inter-Farm and
 · In/m‘—Arz·r1 S/if/`/s in liurlvy Tobacco Acreuges Under Government
  gw. (fmzlrol ])}`Og`)`((I}l5, 1933-50. This research, done independently
·z rare . .
1 ltr q by persons close to burley growers and not involved ll] the ad-
lZII`ilC L` · . . . . .
Vhen no mmistration ol the control programs, provides more or less com-
_l_S thcml V plete answers to a wide variety of questions concerning the pro-
Urzmis.
N ‘ .
unption. V _ V
taractet- \__)., ,2
in pri<‘€~ i.~··~‘°"`   ‘ f "»_,%
r O   °¢·
I C   4) Q4
gincv 'AC ‘ ···
un is- _ Mb {Ob S O Q ,,’>
V lt ms , (9 — 9 *7
,)ll(l It \cg] {*5 , 0; SL ·.$
V i tt tw t¤% · · V
tins. .0 Y) 0\Q Q3; C; @6 Q _
qmutl l‘rams of the middle 30’s were being worked
, D P D D
out, the question of income and price equality among growers
of different farm roducts also arose. Burle Growers and leaders
P Y O
were also concerned about the alleged concentration of buying
, power in the hands of tobacco manufacturers. And, it should noi ,-0}
be for¤‘otten that because tobacco-raisin¤` areas had ex erienced i C
ca ¤ P y
strife and disorder in earlier attempts at production control, the  
1 people in these areas desired legal, peaceful means of setting up  
and administering controls. As the programs developed, other  
problems arose, one of which dealt with the welfare of small  ‘l '
  burley growers relative to that of large growers. It also became l All i
l evident that the problem of unstable burley prices and production
t was about as important as the problem created by the level wl
l burley prices.
  `
l
l \.}r"‘-·· e l
. t. M;-» , w  
“ ttrejae 
,ge$f<’g’;y 2,;   5  ·- \
  t  l Fwli rj liwrgirrrmlllllll  t T],
gg, tai, _,     ,,,__.,~ _
i§_,;_ g; l¤l,|  lp ,   _ or
U-   e   d .
    gg . 11i
j  E i ll
Violence and E Q ` lll
misunderstanding ·[
E K ix; ll.
  1   Q -
_ ti
Prices paid to Burley   Cf
non-farmers prices y , i,
    *<
ll
x ex
A   l\`
Bargaining posllltn 
farmers ,

 ` 5
ted to I I
. 3. What fundamental beliefs and convictions about how l
lc ml things ought to be are involved in the burley programs?
te gen- 1
vorketl
rowers 1
leaders t
buying  
.1ld not i .-df S`,- · ·”#i3Q_
Yicucul   ,¢( gg " Problems e x i s t because
·ol, the ty,      PGQPIG have fundamental E
1. U gt; \,  t p 6 beliefs and convictions about t
m¤ up  V how things ought to be, but
» Olllcl l\ _   % • find that things actually are
l small ll · ll not that way.
became i All OF U5
iluctiott
level ttl · 1%
@»
_ l"Lll1(l2lIll€l](Zll beliefs and convictions about justice and equality i
t were involved in setting up and developing the burley programs.
1 These same beliefs showed up repeatedly i11 tl1e attempts to secure
4 equality between farm and nonfarm incomes, and between tl1e
incotnes ol° farmers wl1o grow burley and tl1ose wl1o did not; in
i the attempt to equalize tl1e bargaining position ol? burley growers
with that of tl1e large manufacturer and processers; 2lll(l in the
’ ellorts to help Slllélll growers. Beliefs in ()l`(l€1`llll€SS and in tl1e
` desirability ol peaceliul legal procedures were also evident. As
W N ti111e went by, more people became concerned with productive
y   ¤lltCiency—tl1ey were eonvinced that productive ellicietrcy was
  something worth attaining a11d tried to develop progratns to at-
tain it. rl`lll`()L1gllOllt tl1e period, many growers were emphatic i11
[ N expressing tl1eir belielf in the desirability ol being lree to grow V
ix trlrat they wanted.
uining |¤¤$lll°l  V
f¤r¤l€" .

 fl A A t
i 6 .
i .
  4. How did the first AAA legislation affect burley producers?
l
i i The AAA of 1933 was designed to reestablish the ·‘teur— exchange 5-
A value" ol agricultural products relative to prices paid byiliartners.
I Those who framed the act recognized the special position of burley V
‘ among larm products by dehning   special base period lor figuring ’ bl
\ the burley parity price. Provisions were made for burley acreage ll
l and poundage allotments. and for marketing orders and agree- Pl
I ments, with rental and beneht payments to 1`armers as a means gl
A ol? securing compliance. I
ln 1934, the Kerr-Smith Tobacco Act was passed. providing lor ’ ll
» l a tax on all burley, to be placed in eflect by vote of persons in Cl
i control ol} 75 percent ol the land customarily engaged in burley ('
production. The tax amounted to between 25 and 33 lr/Fi percent
i ol` the sale price. Certihcates lor payment ol this tax were issued `
l [rate to cooperators. The tax was an important tool for securing
lt compliance with the acreage and poundage allotments. A
These two acts provided lor   price supports through pro
l duction controls and (2) enforcement penalties. The shortrun
t problem ol` handling extra production resulting from good .
  weather was lelt; to the individual farmer. ·
éi
N g s»
Cvoperutcrs W€l'€ given freq wg;- Q     ‘
rants to pay the tax on burley .   y A
sales. T     V
Hf  .r  
_; ..tll' 3   5:. ` *l
  » l1
:1
Farmers who failed to cooperate =     i (T
in the program had to pay their     g l;
burley tax in cash amounting to   ll
a fourth to a third of the sales  
price.     .. _
.?'·$@ ~ i
' A5 .

 ` 7
' i
icers? 1
_h,m(,.C A 5, What was the outcome of the first AAA legislation? l
rnrcrs. . , . L . .
I lk In the Hoosac Mills (rase. on january (1, 195b, the Urrrted
>u· w . _ , . . . .
y)_lu_iHé] A srrnes Supreme (rourt declared unconstitutional those sections ol
`IUOZ y rlre AAA of 1933 which provided for production controls and
ece. ‘~ _ _
__°  · processing taxes. Con- ME
agr ec- _ _ éupai V
mm gress thereupon repealed c¤u¤T
1 lt 5 l .
t h e Kerr—Snrrth A c t ,
. . which had been nrade in- />¢>;<
nw lor c . .  * .     .
is in ellectrve by the Suprenre   _ / :
`l ky (lourr decision. \   __ 1 I
Jur y *"‘——;   AAA , .
)Cl`CCl1l ’   · (3% m`
rssuctl ;_’/ `@  6 -
j(`ll1`1l1@[    
I! 1
gh pro ,
‘t-‘urr
Ol l I As a supplernerrt to
<>· o< ~ . .
I GO _ what remained ol the
f l  ;  AAA of 1935%. Congress
 1   gupnerg   rn 1*ebruary l9;l(r passed
/ gull ‘ , i` _ _ _ _
_ @/  C  /" the Soil (ronservatrorr and
r 1 § - ) LEA Donrestic Allotment Act.
g _; gi ; . A  This act authorized pay-
 .¢  —  —·—;—_§ 4 0/ Q rrrents to larrrrers to in-
   "  —  hg? duce tlrern to   adopt
  j sorl—conservrng practices,
;_:_ and (2) adjust their acreages of soil—depleting crops, including
A lrurley tobacco. The paynrent in 1936 and in 1937 amounted to
c around $40 per acre, and was the primary means available lor
  . <`<>¤il`<>lli1rg the acreage of burley, This payment \\’2lS small ill 1`C*
  Q liiiloll to the income from an acre of burley, and was Ll1Cl`€l'Ol`C
 ,,.,,_`}’ NUI Pl Strong incentive toward control of burley 2l. _ ~I   I / V   M 1
1 —@%=— *1  "_··I ·-*\ ’
. 1 1 r - se
l`l§Cllll§ /_ ° _ 1  
¥*<`l`Ti*§l' Y1 ll/ ,.e111•~#°?i{;;4’ £§"“1;‘é€5il§·  —` iii
)llQ;l 111 1 .1 ‘   @,9 .-s ' 1
1 1 1 1 QJ. »
1 1 1     ~ ‘ .
(2) 'l l1e level lll \\'lll(Zll $1101*1- ly 1 Q 1 lléf ,1
1 1 e e 1 a ee/· Y \\ §“
]`lIl1 pr1ce—s11ppor1 0pera— 1 * \s ‘Q`.4. ge 1
l 1 E" E; .,
.s il tions could legally be l 1 `X ~\ ¤~·11U vmnrii  _,- -5 1 1
`/'·= \\ l  r _' '
5   1 Sl.?l1`KC(l. was too low 10 per- 1 K-;
  Ill- ff —‘-   l`1` 1   ?
,,5/_ lt e eeme p11ee-s1aJ1 1- ~   ·
 gy 21111011 to be carried 0111. QF ’ 1 1* f
5 V `   4. {
x , . 1 1 l 1
* 1 fl l*l~‘1 il 1
it J _,,Ay{,{_,q`l4l»\`.,·-/ ____ _ ` 1
  ,
%~q_.. ~ A longer prop was needed, to
" stabilize prices.
tin uolus  ‘ _ _ . .
9 q (iongress corrected the hrsi ol these Sll()l`l(`(')lll1llgS hy Cllilllglllg
1l1c lmse period for eo111p111i11g 1he p;1ri1y pri1;e lor hurley, zmd
ill gl`t‘l\` lllCl`Cl)}` raised the level ol; prices :11 \\'lll(Tl1 price—s11ppor1 ()l)Cl`2ll.l()llS
1`0 lllt‘L`l (`1 was ¢iorrec1ed hv lewis-
D 1 C
divi1l11;1l lillltlll l)Cl`Il]ll[lllg approval ol l]l(l1`l{(*lll]g` (lll()IZllS hy fl-year periods.
1s 0p1·1·;1-
'   /l
Al last, 1n 1940, after seven years *‘——;r11 (-0 1 ‘
-|`(1re 1l11‘ Q ¤l¤xper1e11ce, there was delivered     / 
V, u(1,11111- 1 ° lullllédged, workable price-    _¤` A
hill PW, S“PP°'l’ Pf0gr¤m for burley to- _' __/_é—··—_,»r—-..-·'  
_‘ I U b¤€€0. This program was based,   1
llll ( ln fha lang run, on control of supply through ¤cr€- ·  
. I 1
we ¤ll0fments, and in the short run, 0n n0m'€- /  ’ U
course loans. ’ l ,

 Hi   {
  12 V
is
l ‘9. Whot obout the wor ye¤rs—w¤s production of burley od- ll
I justed to the wor economy?
I Early in the war, tobacco was not considered as important to
l the war effort as it later proved to be. Probably because of this I v
° feeling, 1942 acreage allotments were not expanded and controls
on tobacco production were considered in about the same category
I as wartime restrictions on the production of luxury items. Before
A the end of the 1942 marketing year, however, the importance of
tobacco as a war product became evident, and it was necessary to [
impose price ceilings on burley, to allocate the leaf among manu-
i facturers, and to allocate cigarettes to the armed forces.
l Acreage allotments were expanded during the war years be
yond the capacity of farmers to grow them with wartime shortages
I —ol` labor. fertilizer, and machinery. After the war, acreages were
l -cut back to levels consistent with price-level objectives and the
l somewhat reduced postwar demand.
I Ki _
I "
2 5t2   , . .
I MILLION { `   
POUNDS pa `
k r °
I   y I
¤  {4, 420 Mtccton poonos ‘ y
t\ 0 M { .
$42 Mtjon Pounos   __ I   _ I
I Q  I A I
`“ `— III  s’· ;
LQ I .. r &% l I
  Marti \'  A gt   ,
3-`  ""” L  "I S
‘   ave as   * ` I " `
,— " ·.;· cr. *‘·~ "'tr I /` I` I I
¤% elf ‘   ‘IiI   W/W      ¤
I94O l945 |947 (
t
Burley production-prewur, wartime, und I947 4
» t
<
I <

 1 1 1 i
A 13
_y ¤d_ _ 10, Wasn't it strange to have price supports and acreage
1 controls and, ot the same time, price ceilings and sales 1
allocations for burley?  
ant to . x.-/‘ l
You °*1" c;,C2_/J *6 I zh;} ts. has: sw vnvch  
)HLl`()lS ` We ave ·sopp<»—\`mq Q gf`} A   (Ll we have peice edntiwqs `
1"l‘°$ t¤ keep mu.-,   /1 *°.‘$‘“"’ ?"‘"’ twwn l
tegori 4..,,,, rwrnq ,00 ,0* 2-xx ·1<>—~~··. wm mqh.
‘ .   h1,\ \ , 'TTT/_
Beloit . \ 1 \/v
~ 1 aj A \—J’
nce ol —//  
*111* ¤~ csswam il- any
111:11111- L
ars llc-     5   FAQMEQB `
ortagcs     V
rs werc : / \ Qi kw
nd tht   It ® ”°/S fi
1 V ,71/ ’ 0  
,{·’ \\ gy
( r %
This situatio11 is understandable mainly in View ol the con-
i lused conditions of war and the desire to keep in existence the
0oNOS machinery for production control and price support so laboriously
= co11str11cted in earlier years.
ll. Did acreage allotments take on value?
From 1940 on, acreage allotments began to be assets of co11—
1 sitlerable value to farmers. The right to grow l>urley—which is
what an allotment is—l>€- y in
, $2111 to take on value as   lédédié  
" 1 tl 150*** J--- ----<”J"·`. --p¤*“
11C program became SllC· `,l 1 FARM AL`; J   ./
——····"   · · cl %LC`"-`..- 'L · i 1 ( T /
1C$bl1ll lll reducrng year- J`;   {r:;"··· . 
to—year changes in prices 1 ·   --· I  
1 zlxilvlliilllltillllillg the pur-     r.;_r_L{_
1 (I [‘l)111‘ley L', Fgguggr  
@$P11€ mcreases ll] pro- 1; {gigs #__=·'i§f", /   if-» '
(l11CIi\‘e elheieney 1 `llogflfgls   _, é//

   14 `
E1
I `
  12. How were small growers affected by the wartime ex-  `
T pansion in burley acreage?  
1 I In the acreage expansion during World \Var II, farmers with  
I small allotments were given preferential treatment, and a consider-  
1. able number of small allotments were distributed to new growers. R'.
1 By and large. the areas of intensive burley production as shown  
1 on the opposite page, are areas of relatively large allotments.  
I Hence, the over-all result of administration of allotments from  
t 1942 to 1950 was a dispersal of acreage from areas of intense pro- i
duction and large allotments to areas of less intense production  
. and small allotments.  
1
` iii}
y 13. How effective have the price-support loans been in raising all
1 burley prices? §|· 
'· The study mentioned on page 3 brought out that on the aver-  
age, since 1939, four million pounds of burley have to go to the  
1 pools in order to raise the price 1 cent a pound. The amount re-  
{ quired probably increases progressively as the price position 01  
f burley becomes weaker in relation to its support price. 1.
I
'I
14. Does an increase in stocks of old-crop burley depress  
burley prices as much as a corresponding increase in  
production?  
Increases in the stock of old burley on hand at the opening 01  
the auctions have not weakened prices as much as increases in pro-  
I duction. Similarly, decreases in stocks have not strengthened  
prices as much as corresponding increases in the amounts of t0·  
bacco pledged for price-supporting loans.  
Burley tobacco a year old is a commodity somewhat dilfelflll  
from new tobacco, and is in different hands. Hence, the effect 01  
iflcrcases in the stock of old crop tobacco on the price of HCW W  
bacco is somewhat different from the effect of increases in tht lll 
production of new tobacco. g  
ll

 E EX-   var 15 i  
  @·#»z··‘#$>;§    IIII  E'=$$$% »
iii? i!,m}Eg$%é$.§{%%§€{¢*  A    
IHQIKS.   .   3 3 2
§f“l“7       Z 1
        i
= I any       ~— IN §
Ellyn §§=:¤:::.$’$§·g:·:·¥% ;§e%#` 6;, ‘¤‘ g 2, g, A I  
°“'"g       “” 9 §  
n x . S     2 ` ”
G *""“"   ...._.     § gg E
“° °'“  { T %'
um YC. au., Iqxmyq \&·,,   ; 2
EiO11 O[   § at O, °Y 5
g:i=H}¥E§§%§?'·¤§=   ll  Z E if  
I. "• ¥IN'·· ""     I     f E
|€pI'€?g   cé   U   Q
 m  5=$¤5aw%%@g=5':H  
»   ~ · ·~`•·¢ •·· nn'!  
mug 0l‘ ··I~     * 2 .,,
. _ alt I ·•|I pg. In ·•·¤I¤ E ·»
m pw- 'l|lHH` ln__§ Q.   z 2*
;[h€l“l€(l       !     Z .2
lllg x ~\|`I. ti W .,0, . .,
S Of [O·     (3 5 § tv
In l§@\@;4]I=||¤·.•I|`¤If I   ~ ~» 5 5*
iffercm       Lg   D 5
III $§&l ·*.I|g§[ fi § -2 =—
new to-     »     3.
in me ]|y§!4·‘2§j,¢&I|&. .I¤§»*,'  Q
Jlglllwwllgl llnw-u' II] E M
|·g.§·.-.=.-Q_ Q]   2 2 C;
v III! Iilll" I-  ·= 5 ¢· é
'··-¤4_•;!!E"n.".'P&$@   QM

 rt .
;, l
  16 `
S
  l5. Does a cut in production have about the same effect on W lt
{ rices as an e ual amount of burle laced under loan?
P
It is estimated that production needs to be reduced about 7
l million pounds to increase the price of burley l cent a pound. ([1
l The amount of tobacco which must go to the pools in order to lu
l raise the price of burley 1 cent a pound probably increases as thc en
l price position of burley weakens. Thus, pledges of tobacco lor ti<
I loans and cuts in production probably have about the same over- lo
V all eifect on prices. Apparently loans are more effective than uw
changes in production when only a small amount of support is dc
_ I 7 required. Production control, however, is necessary when long- 7
{ run major price supports are desired. pt
PI
ll
; f, /
l  s*" {
u *‘  _·*'
it     , - 
  ; i 4., L2? Q l  
i —°`}*" 1   EEEL E:: ` ` `=
l .   · .- nl ,_,;::.:: lll -· `— `*·.
1 ~   ‘ ··   2l..»=· ‘=§%Ei§' " ua  
¢   r ..· ....   ‘¤‘“     ~ ‘r s
* ‘ rz   ·=====·" aaaanaa .  ,  e Q
·  " =§§a2ai at — T
la.-; "ill pl}
wm - #5,;;} · _
· ` (· 7/1   l
 'h> § ` ` mul/M¤•»\·-·*. __ _
\ I
’ ,  .
i.,.:lz....;2z%i” 7     . r
_    
· a&:·§EEiEEE.EEi’ ~ "·riEE · `
  ‘ . q· ll!§T?... '
  if    
-   ‘ .”¤ · · '*EEll§§iE€;..
‘   I ¤. Ws! |  
IIIII I rr n
Eiiil Q »°°"` fl"!
. up , if nl. ,
lr o I ··. ,
rr K y ·= ' , .
 , ...~.,_   "‘* ··  
"Don't send a boy to do a man’s job."

 V 17
act on = I6. What effect do increases in disappearance have on price y
.an? . of burley? ,  
Imu;7  _ Increases in the disappearance of burley tobacco have about  
pound. the same effect on prices as corresponding decreases in production. i
·der to In other words, prices tend to increase about l cent a pound for V
as the f each 7 million pounds increase in disappearance, other considera- I
ico for tions unchanged. \Vhile there has not been much export demand
e over- · lor burley, it appears logical to conclude that increases in exports
e than would have about the same over—all effect on prices as increases in y
.port is domestic disappearance. That is, if exports could be increased I
1 long- 71nillion pounds, tobacco growers stand to gain about l cent a
pound if production were not expanded. If production were ex-  
panded, the price gained would be less but the benefits of growing
a larger acreage would also be received.
I ·· "` ¤~
I ·' ° zi " 
. \ .  I  /
. I   I  
. \  “‘ [ ' //
\ K  " iz \ /?
i   To   \ am"!  lwcficides  
» **1 . Q-    ’ r ’l   .$»
  __\ `r\c_ /»’ ¤¤¤m‘
  ilfijll . \    
' · "\`\\\E:— "~   /   '{flflwx
 it  ~ x    r’ l  
 ‘q|M¤v 5. ,»· H I I I   “
`  °WIl“• ly   hi ¤ | 1,   _._  
W /ly/[   l y / y \\ Ill
{ / ,/   an hl wi - l { *U***
  \\ hlilif
IQ ». ly ff ·’ `
 »    
&;\ `I   r /
e -~e —- Su _
I _, ·-— ex;  
- Eventually every pound is used.
;"" I

 *1 i .
g l
1 is -
1 ,
1 17. How have price changes affected the yield and acreage ]g
1 under the program?
l Prices received b · 1`armers lor burle at one year’s auction have
1 .
1 a direct effect on the amount ol burley raised the next year. even lt)
|. with acreage controls in operation. This eilect is two-fold. as both V 1111
' . V . . .
yield and acreage are related to the prices recetved lor t11e precetl- 111
ing crop of burley. Yields have gone up about 00 pounds per acre 111
· for each 10 cents increase in the price 01* a pound ol’ burley al Ima
V levels of jarices, and about 2() pounds per acre al high lewis al 11
juices. 1 111
1 1 ha
’ 1
1 tt
ol
I285 'POUNDS  ‘ 11,
.   l
l 1
1 ala Pouwos   "l
,’,;,»>’:_" ' Jilagi.
lt    \    "‘
1 Y ‘ ·¤ "     - tin
1  ggogm _ gi . ,§ ;?§r__-_~_ {
1 LE ·‘ ·· wv-· ;· .L‘ .` .~ T-*2:; ve.-3 1  1- -
1 . xxi Ii; .;·'t2 (~:l1* PRIOR TO 1940- 49
S_ A LOANS AFTER LOANS
19-1911* r ‘
933. and _

   1
11 211 1
 
1 . • · •
1 19. Has greater stability of burley prices affected yields? 2
1
Z There has been a definite trend upward in yields in the pad
’ A 12 0r 15 years. This trend really started about 1940, if allowance
is made for the influence 0n yields of price changes and thc “
chan<>·ed <>·eo<>`ra hic distribution of acrea<·‘e. About 1940, two $111- ` 1
1 ca 0 0 0 n 1,
niHcant developments occurred. Om? was the development of high “
Fielding, 1`00t—1`0L resistant varieties and the other was the increased
1 D O1
1 stability of prices resulting from the program. A U
lt is diilicult to isolate the se >arate effects of these two derelm-
. l {11
ments on yields. The fact that the acreage was being distributed
to lower yielding areas and to smaller. and at times, less efliciem V
1 1 growers, further confuses the question. The trend in yield 1]
‘ amounts to somethin<»‘ in the nei<»‘hborh0od of 50 nounds er attrt·
D U 1
per year. After allowance for the decrease in yield resulting from
1 dis ersal of acreage, such a trend in Yield cannot be easily at- _
I D T ,
1 counted for by technical advances alone. Thus, part of the incrczist
1. . . . .
in yield appears to be due to the better farm organization and
financinrr made ossible b the increased stabilit 1 of rices.
1 O T
1 .
1
as veto
PER Aoae
1500 tas 1 1
c   _ .
· 1
1300 tos e 1 1
W 1 c  V
1100 tos 1 1 9 i
was 1 1 »
. 1 1 1 Y
700 tos e l 1 1
[it 1 l 1 cj .
1933 I935 1940 \945 1950 “
v1:AR _ I-
Trends in acre-yields of burley tobacco, 1933-49 °

 ¤ 21
ds?  y 20. What have the programs done to the efficiency with
he lm ~ which burley is produced? y
9“’?m .
ml lll? with which burley 1S produced. (1) \Vithout arguing whether l
(WO 3*% J the dispersal of acreage to outlying arcas and to smaller producers
Ollllgll l was increased, decreased, or perniittcrl, the dispersal which has  
C1`€¤$€ly reduced efliciency. One
computation indicates that this may liave reduced average per-
l€"€l"P‘ acre yields by around 2 percent.
flblllfd (2) \Vhen we consider the effects of iiureased stability on  
Cmclfm _ yields, it seems probable that higher yields due to stability more
ll llclll than offset the reduced yields due to dispersal of acreage. l
DCT il(Tl`('
ig from
isily at-
increase
. E uucts sAMMY
ion and girfcrtsu wz vines cov
Mw www me new
_ ~ .   DOING MUCH BETTER
.  I" ?R°D\!cTlvE ?URLEg°?lCE$
  \ \ • ?‘:;aClE CY ,2* "lg
1%%%   »·‘“ ¤=*> l Eff
· aura: `   eg g w
1 1 — Q \ - mr
 ` _`* 5..-ri"'-]   / i   l:5\kEEDWG
1 §¤ .
{_ .     Ws-e »  , M
L\· \\ —     J  
V \\" * I!
I Y $4}
W f%&hI` 3    (/
. ~/` X I )
4 zé  ` . I?
  / ?RlN“NG   2, /7yIh •");¥‘\® ""
r a 2 ·  /  .
  x ‘·
zi . ""  
350 _ ·
Hlgltcr yields due to price stability probably more than offset the reduced ‘
A yields due to dispersal of acreage.

  `
l 2l. Have the programs raised burley prices out of line with
Z prices of o