Witness broilers, turkeys, milk, eggs, some vegetables, some fruits and in recent years, hogs. Interestingly, peanuts, which are produced under a federal program similar to tobacco, are often marketed via forward marketing contracts. A company's management control is necessary in areas where there is no Extension Service and producer's lack of access to inputs - primarily financing. Interestingly, no tobacco was produced in Brazil before leaf merchants introduced it in the 1970's. The current tobacco program allows for tobacco companies to directly purchase tobacco from existing growers and bypassing the traditional auction market.
Direct marketing can occur with or without production contracts.
The pounds of tobacco produced under such an arrangement are deducted from the marketing card and are subject to various marketing assessments. Even with contracting, the tobacco program is likely to continue - at least in the short run. But many growers express the concern that contracting within the program would jeopardize the program. The following are items for consideration. Most likely, at this point in time it will be a marketing contract.