Tobacco quota announced

U.S. flue-cured tobacco growers will have a 6 percent increase in quota for the 2002 season, but won't have to increase acreage substantially to meet that mark, says a North Carolina State University Extension economist.

That's due in part to a “substantial” carryover from the 2001 season, says Blake Brown, North Carolina State University Extension ag economist. “There's quite a bit of carryover out there.

“The quota increase is good news for farmers and a positive sign,” Brown says. “Hopefully, the quota increase will mean that farmers don't have to increase acreage because of the carryover.”

Industry observers had anticipated a quota increase between 3 percent and 6 percent for 2002.

The national marketing quota for the 2002 crop is 582 million pounds, up from 548.9 million pounds last year. The national acreage allotment is 278,736 acres, a little more than a 6 percent jump from last year's 262,253 acres.

The no-net-cost assessment for 2002 is five cents per pound — split equally among growers and purchasers.

The quota is based on a formula that considers purchase intentions of domestic cigarette makers, the three-year average of un-manufactured exports and reserve stock adjustments. The formula also gives the secretary of agriculture a 3 percent discretionary adjustment.

Earlier in December, cigarette makers said they intended to purchase 310 million pounds of flue-cured tobacco for 2002. Un-manufactured exports from 1998-2001 were 249.9 million pounds. The reserve stock adjustment is 22.1 million pounds.

The effective quota is expected to be about 566 million pounds or 3.7 percent above last year.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.