U.S. Flue-Cured Tobacco Formula Information. Domestic manufacturers raised their intentions from 475.5 million pounds in 1996. The buying intentions variable was the big mover in the formula and was very positive for this coming year. The Secretarial Discretion portion of the quota formula was as expected and was the lower limit or -3 percent. As background, the two major calculated components in the formula are basic and effective quota.
Effective quota is the basic quota plus or minus quota carryover from last year.
Under the above formula the 1997-98 basic quota will be 973.8 mil. This could have been the biggest shock in the entire process. After the industry was down in marketings by more than 70 mil. The effective quota for flue-cured will be 1,019.5 mil. The data for South Carolina are shown in table 2.