Fact Sheet

Other Tobaccos: Dark Air-cured,

Fire-cured, Sun-cured, Cigar Filler & Binder

March 2003

1

continues

2002 Support Program and Related Information

Overview

Quotas for dark air-cured, firecured, sun-cured, cigar filler &

binder tobaccos are treated

differently than burley and fluecured tobaccos. The U.S.

Department of Agriculture (USDA)

calculates a quota that is converted

to an allotment. The marketing year

for all tobaccos covered in this fact

sheet begins October 1.

Legislative Authority

The Agricultural Adjustment Act of

1938, as amended, authorizes

marketing quotas on an acreage

allotment basis for various kinds of

tobacco, except cigar wrapper and

perique. The Agricultural Act of

1949, as amended, sets the price

support at the previous year’s level,

with an annual adjustment based on

the change in a parity index

average.

Marketing Quotas

Marketing quotas, having been

approved by more than two-thirds of

the producers, are in effect for the

following tobaccos and crop years:

(See chart 1).

Producers in March 2001

disapproved marketing quotas for

2001, 2002, and 2003 crops of

Maryland (type 32), Pennsylvania

cigar-filler (type 41), and

Connecticut Valley cigar-binder

(types 51-52) tobaccos. The next

referenda for those three kinds are

scheduled to be held in March 2004.

In addition, a referendum was held

in March 1996 for Cigar Filler (Type

46) tobacco in which no one voted.

Because this kind of tobacco is no

longer grown, a special ruling was

made accepting the referendum as

a “No” vote and absolving

producers from future referenda

unless they actively petition the

Secretary of Agriculture to reinstate

the quota process.

Acreage Allotments

Following are 2002 national acreage

allotments compared to 2001:

(See chart 2).

Producers who exceed acreage

allotments for tobaccos under

marketing quotas are subject to

marketing quota penalties. The

penalty rate is 75 percent of the

previous year’s average market

price.

Support Level

National support levels for the 2002

crops are up around 2 percent from

2001 levels. USDA sets individual

grade rates before the marketing

season begins: (See chart 3).

Support Method

Nonrecourse loans are available on

2002 production for the five quota

tobaccos listed. Price support is

provided to growers through

producer associations under

contractual terms with USDA’s

Commodity Credit Corporation

(CCC). The associations receive

the tobacco not sold at the support

rate, using funds loaned by CCC.

Producers are required to certify

that they have not nested their

tobacco and also that pesticides

used in producing tobacco have

been approved by the Environmental Protection Agency and that

these products have been used in

accordance with label directions.

Assessments

As a condition of price support

eligibility, producers of these various

kinds of tobacco must pay an

assessment on each pound of

tobacco marketed to ensure the

price support program operates at

no net cost to taxpayers, as

required by the No Net Cost

Tobacco Program Act of 1982.

The U.S. Department of Agriculture (USDA)

prohibits discrimination in its programs and

activities on the basis of race, color, national

origin, gender, religion, age, disability, political

beliefs, sexual orientation, and marital or family

status. (Not all prohibited bases apply to all

programs.) Persons with disabilities who

require alternative means for communication of

program information (braille, large print,

audiotape, etc.) should contact USDA’s TARGET

Center at 202-720-2600 (voice and TDD).

To file a complaint, write USDA, Director, Office

of Civil rights, Room 326-W, Whitten Building,

14th and Independence Avenue, Washington,

D.C., 20250-9140, or call (202) 720-5964 (voice

or TDD). USDA is an equal employment

opportunity employer.
Fact Sheet

Other Tobaccos

2

2002 Support Program and Related Information

CHART 1

CHART 2

CHART 3

Average Support Level (cents per

pound) Kind (type) 2002 2001

Dark Air-Cured (35-36)

Fire-Cured (21)

Fire-Cured (22-23)

Sun-Cured (37)

Cigar Filler & Binder (42-44 & 53-55)

152.6

160.3

176.7

142.9

128.6

149.9

157.2

173.6

139.2

125.2

Kind (type)

2000 Allotment

(acres)

1999 Allotment

(acres)

Fire-Cured (21)

Fire-Cured (22-23)

Dark Air-Cured (35-36)

Sun-Cured (37)

Cigar Filler & Binder (42-44 & 53-55)

780

10,706

4,100

78

3,448

1,340

13,802

5,246

113

3,450

Kind (type) Crop Years Referendum Date

Sun-Cured (37)

Cigar Filler and Binder (42-44 & 53-55)

Fire-Cured (21-22-23)

Dark Air-Cured (35-36)

2001

2002

2000

2000

2002

2003

2001

2001

2003

2004

2002

2002

March 2001

March 2002

March 2000

March 2000