An Act to amend the Agricultural Adjustment Act of 1938, as amended, to provide for acreage-poundage marketing quotas for tobacco, to amend the tobacco price support provisions of the Agricultural Act of 1949, as amended, and for other purposes
PL 89-12 (H.R.5721), enacted 04/16/1965

66 
PUBLIC LAW 89-12-APR. 16, 1965 
[79 STAT. 
D.C, 
Notice of with-
drawal by Com-
missioners. 
authorized by this title, be inapplicable to the taxation and registra-
tion of buses in the District of Columbia during such time as the 
District is a party to such agreement. 
SEC. 205. Unless otherwise provided in any statute withdrawing 
the District of Columbia from participation in the agreement, the 
Board of Commissioners of the District of Columbia shall be the 
officer to give notice of withdrawal therefrom. 
SEC. 206. The right to alter, amend, or repeal this title is expressly 
reserved. 
Approved April 14, 1965. 
April 16, 1965 
[H. R. 5721] 
Public Law 89-12 
AN ACT 
To amend the Agricultural Adjustment Act of 1938, as amended, to provide for 
acreage-poundage marketing quotas for tobacco, to amend the tobacco price 
support provisions of the Agricultural Act of 1949, as amended, and for other 
purposes. 
Tobacco. 
Marketing 
quotas. 
52 Stat. 31. 
7 u s e 1281. 
Be it enacted hy the Seriate and House of Representatives 
of the 
United States of America in Congress asserribled^ That the Agricul-
tural Adjustment Act of 1938, as amended, hereinafter referred to as 
the "Act"', is amended by adding immediately following section 316 a 
section 317 to read as follows: 
Definitions. 
ACREAGE-POUNDAGE QUOTAS 
"SEC. 317. (a) For purposes of this section— 
"(1) 'National marketing quota' for any kind of tobacco for a 
marketing year means the amount of the kind of tobacco produced 
in the United States which the Secretary estimates will be utilized 
during the marketing year in the United States and will be exported 
during the marketing year, adjusted upward or downward in such 
amount as the Secretary, in his discretion, determines is desirable for 
the purpose of maintaining an adequate supply or for effecting an 
orderly reduction of supplies to the reserve supply level. Any such 
downward adjustment shall not exceed 15 per centum of such estimated 
utilization and exports. 
"(2) 'National average yield goal' for any kind of tobacco means the 
yield per acre which on a national average basis the Secretary deter-
mines will improve or insure the usability of the tobacco and increase 
the net return per pound to the growers. In making this determination 
the Secretary shall give consideration to such Federal-State produc-
tion research data as he deems relevant. 
"(3) 'National acreage allotment' means the acreage determined 
by dividing the national marketing quota by the national average yield 
goal. 
"(4) 'Farm acreage allotment' for a tobacco farm, other than a new 
tobacco farm, means the acreage allotment determined by adjusting 
uniformly the acreage allotment established for such farm for the 
immediately preceding year, prior to any increase or decrease in such 
allotment due to undermarketings or overinarketings and prior to any 
reduction under subsection (f), so that the total of all allotments is 
equal to the national acreage allotment less the reserve provided in 
subsection (e) of this section with a further downward or upward 
adjustment to reflect any adjustment in the farm marketing quota for 
overmarketing or nnderniarketing and to reflect any reduction required 
under subsection (f) of this section, and including any adjustment for 
79 STAT. ] 
PUBLIC LAW 89-12-APR. 16, 1965 
67 
errors or inequities from the reserve. In determining farm acreage 
allotments for Fhie-cured tobacco for 1J>65, the 1965 farm allotment 
determined under section 818 shall be adjusted in lieu of the acreage 
7 use 1313. 
allotment for the immediately preceding year. 
"(5) The 'connnunity average yield' means for Flue-cured tobacco 
the average yield per acre in the community designated by the Secre-
tary as a local administrative area under the provisions of section 8(b) 
of the Soil Conservation and Domestic Allotment Act, as amended, 
^^ ^^'^ ^^°^* 
which is determined by averaging the yields per acre for the three 
highest years of the five years 1959 to 1963, inclusive, except that if 
the yield for any of the three highest years is less than 80 per centum 
of the average for the three years then that year or years shall be 
eliminated and the average of the remaining years shall be the com-
munity average yield. 
Community average yields for other kinds of 
tobacco shall be determined in like manner, except that the five years 
1960 to 1964, inclusive, may be used instead of the period 1959 to 1963, 
as determined by the Secretary. 
"(6) (A) 'Preliminary farm yield' for Flue-cured tobacco means a 
farm yield per acre determined by averaging the yield per acre for the 
three highest years of the five consecutive crop years beginning with 
the 1959 crop year except that if that average exceeds 120 per centum 
of the community average yield the preliminary farm yield shall be 
the sum of 50 per centum of the average of the three highest years and 
50 per centum of the national average yield goal but not less than 
120 per centum of the community average yield, and if the average 
of the three highest years is less than 80 per centum of the community 
average yield the preliminary farm yield shall be 80 per centum of the 
community average yield. 
In counties where less than five hundred 
acres of Flue-cured tobacco were allotted for 1964, the county may 
be considered as one community. If Flue-cured tobacco was not pro-
duced on the farm for at least three years of the five-year period the 
average of the yields for the years in which tobacco was produced 
shall be used instead of the three-year average. If no Flue-cured 
tobacco was produced on the farm in the five-year period but the farm 
is eligible for an allotment because Flue-cured tobacco was considered 
to have been produced under applicable provisions of law, a prelimi-
nary farm yield for the farm shall be determined under regulations of 
the Secretary taking into account preliminary farm yields of similar 
farms in the community. 
"(B) 'Preliminary farm yield' for kinds of tobacco, other than 
Flue-cured, means a farm yield per acre determined in accordance 
with subparagraph (A) of this paragraph (6) except that in lieu of 
the five consecutive crop years beginning with 1959 the years 1960 
to 1964, inclusive, may be used, as determined by the Secretary. 
In 
counties where less than five hundred acres of the kind of tobacco for 
which the determination is being made were allotted in the last year 
of the five-year period the county may be considered as one commu-
nity. 
If tobacco of the kind for which the determination is being 
made was not produced on the farm for at least three yeai"s of the 
five-year period, the average of the yields for the years in which the 
kind of tobacco was produced shall be used instead of the three-year 
average. 
If no tobacco of tlie kind for which the determination is 
being made was produced on the farm in the five-year period but the 
farm is eligible for an allotment because such tobacco was considered to 
have been produced under applicable provisions of law, a preliminary 
farm yield for the farm shall be determined under regulations of the 
Secretary taking into account jweliminary farm yields of similar farms 
in the community. 
68 
PUBLIC LAW89-12-APR. 16, 1965 
[79 STAT. 
Maryland 
tobacco, inade-
quate marketing 
data. 
Referendum. 
"(7) 'Farm yield' means tlie yield of tobacco per acre for a farm 
determined by multiplying the preliminary farm yield by a national 
yield factor which shall be obtained by dividing the national average 
yield goal by a weighted national average yield computed by multiply-
ing the preliminary farm yield for each farm by the acreage allotment 
determined pursuant to paragraph (4) for the farm prior to adjust-
ments for overmarketing, undermarketing, or reductions required 
under subsection (f) and dividing the sum of the products by the 
national acreage allotment. 
"(8) 'Farm marketing quota' for any farm for any marketing year 
shall be the number of pounds of tobacco obtained by multiplying the 
farm yield by the acreage allotment prior to any adjustment for under-
marketing or overmarketing, increased for undermarketing or 
decreased for overmarketing by the number of pounds by which mar-
ketings of tobacco from the farm during the immediately preceding 
marketing year, if marketing quotas were in effect under the program 
established by this section, is less than or exceeds the farm marketing 
quota for such year: Promded^ That the farm marketing quota for 
any marketing year shall not be increased for undermarketing by an 
amount in excess of the number of pounds determined by multiplying 
the acreage allotment for the farm for the immediately preceding year 
prior to any increase or decrease for undermarketing or overmarketing 
by the farm yield. If on account of excess marketings in the preceding 
marketing year the farm marketing quota for the marketing year is 
reduced to zero pounds without reflecting the entire reduction re-
quired, the additional reduction required shall be made for the subse-
quent marketing year or years. The farm marketing quota will be 
increased or decreased for the second succeeding marketing year in the 
case of Maryland tobacco, and for any other kind of tobacco for which 
the Secretary determines it is impracticable because of the lack of 
adequate marketing data, to make the increases or decreases applicable 
to the immediately succeeding marketing year. 
"(b) Within thirty days after the enactment of this section the 
Secretary pursuant to the provisions of subsection (a) of this section 
shall determine and announce the amount of the national marketing 
quota for Flue-cured tobacco for the marketing year beginning July 
1,1965, and the national acreage allotment and national average yield 
goal for the 1965 crop of Flue-cured tobacco, and within thirty days 
after the announcement of the amount of such national marketing 
quota shall conduct a special referendum of the farmers engaged in 
the production of Flue-cured tobacco of the 1964 crop to determine 
whether they favor or oppose the establishment of marketing quotas 
on an acreage-poundage basis as provided in this section for the mar-
keting years beginning July 1, 1965, July 1, 1966, and July 1, 1967, 
in lieu of quotas on an acreage basis in effect for those marketing years. 
If the Secretary determines that more than 66% per centum of the 
farmers voting in the special referendum approve marketing quotas 
on an acreage-poundage basis, marketing quotas on an acreage-
poundage basis as provided in this section shall be in effect for those 
marketing years and tlie marketing quotas on an acreage basis shall 
cease to be in effect at the beginning of such three-year period. 
"(c) Whenever, during the first or second marketing year of the 
three-year period for which marketing quotas on an acreage basis 
are in effect for any kind of tobacco, including Flue-cured tobacco, 
the Secretary, in his discretion, determines with respect to that kind 
of tobacco that acreage-poundage quotas under this section would 
result in a more effective marketing quota program for that kind of 
7 use 1312. 
79 STAT. ] 
PUBLIC LAW 89-12-APR. 16, 1965 
69 
tobacco he shall at the time the next announcement of the amount of 
the national marketing quota under section 312(b) of this Act deter- 
^
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T
T
Q
*
^
^
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mine and announce the amount of the national quota for that kind of 
^ "'"" ' ^'^ 
tobacco under this section of the Act and at the same time announce the 
national acreage allotment and national average yield goal and within 
forty-five days thereafter conduct a special referendum of farmers 
engaged in the production of the kind of tobacco of the most recent 
crop to determine whether they favor the establishment of marketing 
quotas on an acreage-poundage basis as provided in this section for the 
next three marketing years: Provided^ however^ That the Secretary 
shall not make any such determination with respect to any kind of 
tobacco except Flue-cured tobacco unless prior thereto he shall 
conduct public hearings in the areas where such tobacco is produced 
for the purpose of ascertaining and taking into consideration the atti-
tudes of producers and other interested persons with respect to acreage-
poundage quotas. If the Secretary determines that more than 66% 
per centum of the farmers voting in the special referendum approve 
marketing quotas on an acreage-poundage basis as provided in this 
section, quotas on that basis shall be in effect for the next three market-
ing years and the marketing quotas on an acreage basis shall cease to 
be in effect at the beginning of such three-year period. If marketing 
quotas on an acreage-poundage basis are not approved by more than 
66% per centum of the farmers voting in such referendum, the market-
ing quotas on an acreage basis shall continue in effect as theretofore 
proclaimed under section 312(a). 
"(d) If marketing quotas have been made effective for a kind of 
tobacco on an acreage-poundage basis pursuant to subsections (b) or 
(c) the Secretary shall, not later than December 1 of any marketing 
year with respect to Flue-cured tobacco, and February 1 with respect 
to other kinds of tobacco, proclaim a national marketing quota for 
that kind of tobacco for the next three succeeding marketing years if 
the marketing year is the last year of three consecutive years for which 
marketing quotas previously proclaimed will be in effect. 
The Secre-
tary, in his discretion, may proclaim the quota on an acreage-poundage 
basis as provided in this section or on an acreage allotment basis, 
whichever he determines would result in a more effective marketing 
quota for that kind of tobacco, and shall conduct a referendum in 
accordance with the provisions of section 312(c) of this Act. 
If the 
Secretary determines that more than one-third of the farmers voting 
oppose the national marketing quotas the results shall be proclaimed 
and the national marketing quota so proclaimed shall not be in effect. 
If the Secretary proclaims the quotas on an acreage-poundage basis 
he shall determine and proclaim at the same time the national market-
ing quota, national acreage allotment, and national average yield goal 
for the first year of the three years for which quotas are proclaimed. 
Notice of the farm marketing quota which will be in effect for his 
farm for the first marketing year covered by the referendum insofar 
as practicable shall be mailed to the farm operator prior to the holding 
of any special referendum under subsection (b) or a referendum on 
acreage-poundage quotas under this subsection, and at least 15 days 
prior to the holding of any special referendum under subsection (c). 
The Secretary shall determine and announce the national marketing 
quota, national acreage allotment and national average yield goal for 
the second and third marketing years of any three-year period for 
which national marketing quotas on an acreage-poundage basis are in 
effect on or before the December 1 with respect to Flue-cured tobacco 
and the February 1 with respect to other kinds of tobacco immediately 
70 
PUBLIC LAW 89-12-APR. 16, 1965 
[79 STAT. 
preceding the beginning of the marketing year to which they apply. 
Whenever a national marketing quota, national acreage allotment, and 
national average yield goal are determined and announced, the Secre-
tary shall provide for the determination of farm acreage allotments 
and farm marketing quotas under the provisions of this section for 
the crop and marketing year covered by the determinations. 
"(e) No farm acreage allotment or farm yield shall be established 
for a farm on which no tobacco was produced or considered produced 
under applicable provisions of law for the immediately preceding five 
years. For each marketing year for which acreage-poundage quotas 
are in effect under this section the Secretary in his discretion may estab-
lish a reserve from the national acreage allotment in an amount equiv-
alent to not more than 1 per centum of the national acreage allotment 
to be available for making corrections of errors in farm acreage allot-
ments, adjusting inequities, and for establishing acreage allotments for 
new farms, which are farms on which tobacco was not produced or 
considered produced during the immediately preceding five years. 
The part of the reserve held for apportionment to new farms shall be 
allotted on the basis of land, labor, and equipment available for the 
production of tobacco, crop rotation practices, soil and other physical 
factors affecting the production of tobacco and the past tobacco-
producing experience of the farm operator. The farm yield for any 
farm for which a new farm acreage allotment is established shall be 
determined on the basis of available productivity data for the land 
involved and farm yields for similar farms, and shall not exceed the 
community average yield. 
"(f) Only the provisions of the last two sentences of subsection (g) 
6/stat^*24^^^^' 
of section 313 of this Act shall apply with respect to acreage-poundage 
72 Stat." 291. 
programs established under this section. 
The acreage reductions re-
7 use 1313. 
quired under the last two sentences shall be in addition to any other 
adjustments made pursuant to this section, and when acreage reduc-
tions are made the farm marketing quota shall be reduced to reflect 
such reductions. 
The provisions of the next to the last sentence of 
such subsection pertaining to the filing of any false report with respect 
to the acreage of tobacco grown on the farm shall also be applicable 
to the filing of any false report with respect to the production or 
marketings of tobacco grown on a farm for which an acreage allot-
ment and a farm yield are established as provided in this section. 
In 
establishing acreage allotments and farm yields for other farms owned 
by the owner displaced by acquisition of his land by any agency, as 
72 Stat. 995. 
providcd in section 378 of this Act, increases or decreases in such acre-
7 use 1378. 
^g^ allotments and farm yields as provided in this section shall be 
made on account of marketings below or in excess of the farm market-
ing quota for the farm acquired by the agency. 
Acreage allotments 
and farm marketing quotas determined under this section may (except 
in the case of Burley tobacco, or other kinds of tobacco not subject to 
7\rs*c*i3f4b 
section 316) be leased under the terms and conditions contained in 
section 316 of this Act, except that (1) the adjustment provided for 
in the last sentence of subsection (c) of said section shall be based on 
farm yields rather than normal yields, and (2) any credit for under-
marketing or charge for overmarketing shall be attributed to the farm 
to which transferred. 
Transfers of acreage allotments for 1965 under 
section 316 on the basis of leases executed prior to the effective date of 
a program for the 1965 crop of Flue-cured tobacco under this section 
may be approved or ratified by the county committee for the purposes 
of this section, but the amount of allotment transferred shall be in-
creased or decreased in the same proportion that the allotment of the 
79 STAT. ] 
PUBLIC LAW 89-12-APR. 16, 1965 
71 
farm from which it is transferred is increased or decreased under this 
section. 
"(g) When marketing quotas under this section are in effect, pro- 
Penalties., 
visions with respect to penalties for the marketing of excess tobacco 
and the other provisions contained in section 314 of the Act shall apply, s/statf^sga'!' 
except that: 
i use i3i4. 
"(1) No penalty on excess tobacco shall be due or collected until 110 
per centum (120 per centum in the case of Burley tobacco for the first 
year for which marketing quotas are made effective under this section) 
of the farm marketing quota for a farm has been marketed, but with 
respect to each pound of tobacco marketed in excess of such percentage 
the full penalty rate shall be due, payable, and collected at the time of 
marketing on each pound of tobacco marketed, and any tobacco mar-
keted in excess of 100 per centum of the farm marketing quota will 
require a reduction in subsequent farm marketing quotas in accordance 
with paragraph (a) (8): Provided^ however^ If the Secretary, in his 
discretion, determines it is desirable to encourage the marketing of 
grade N2 tobacco, or any grade of tobacco not eligible for price support, 
in order to meet the normal demands of export and domestic markets, 
he may authorize the marketing of such tobacco in a marketing year 
without the payment of penalty or deduction from subsequent quotas 
to the extent of 5 per centum of the farm, marketing quota for the farm 
on which the tobacco was produced. 
"(2) When marketing quotas established under this section are in 
effect the provisions with respect to penalties contained in the third 
sentence of subsection 314(a) shall be revised to read: 'If any producer 
falsely identifies or fails to account for the disj)osition of any tobacco, 
the Secretary, in lieu of assessing and collecting penalties based on 
actual marketings of excess tobacco, may elect to assess a penalty com-
puted by multiplying the full penalty rate by an amount of tobacco 
equal to 25 per centum of the farm marketing quota plus the farm yield 
of the number of acres harvested in excess of the farm acreage allot-
ment and the penalty in respect thereof shall be paid and remitted by 
the producer.' 
" (3) For the first year a marketing quota program established under 
the provisions of this section is in effect, the words 'normal production' 
where they appear in the fourth sentence of subsection (a) of such 
section shall be read 'farm yield' and the said fourth sentence shall 
otherwise be applicable. 
For the second and succeeding years for 
which a program established under the provisions of this section is 
in effect, the provisions of subsection (a) (8) shall apply when penal-
ties, if any, on carryover tobacco are computed, and the provisions 
contained in the fourth sentence of subsection 314(a) shall not be 
applicable. 
"(h) Notwithstanding any other provision of this section, for any 
^uriey tobacco. 
year subsequent to the first year for which marketing quotas are made 
effective under this section for Burley tobacco— 
" (1) the farm acreage allotment for Burley tobacco under this 
section shall not be less than the smallest of (A) the acreage allot-
ment established for the farm for such first year, (B) five-tenths 
of an acre, or (C) 10 per centum of the cropland; and 
"(2) the farm marketing quota for Burley tobacco under this 
section shall not be less than the minimum allotment provided by 
clause (1) multiplied by the farm yield established for such first 
year for such farm. 
Farm acreage allotments and marketing quotas to which the provisions 
of (1) and (2) are applicable shall be subject to adjustment for over-
marketing or undermarketing or reductions required by subsection 
72 
PUBLIC LAW 89-12-APR. 16, 1965 
[79 STAT. 
69 Stat. 24. 
Report to 
congressional 
committees. 
69 Stat. 684. 
7 u s e 1313. 
Price support. 
74 Stat. 6. 
7 u s e 1445. 
Ante, p. 66. 
54 Stat. 1210; 
65 Stat. 422. 
7 u s e 1301, 
1313. 
(f). The additional acreage and quotas required under this subsection 
shall be in addition to the national acreage allotment and national 
marketing quota. 
"Whenever the Secretary proclaims a quota on an acreage allotment 
basis (in lieu of on an acreage poundage basis)— 
"(A) the minimum acreage allotment for Burley tobacco for 
any farm shall be determined under the provisions of the Act of 
July 12, 1952, as amended (7 U.S.C. 1315) instead of under the 
preceding provisions of this subsection; 
"(B) clause (1) of the Act of July 12, 1952, shall for such 
purpose read as follows: '(1) the allotment established for the 
farm for the last preceding year for which a quota was proclaimed 
on an acreage allotment basis'; and 
"(C) the proviso of that Act shall for such purpose read as 
follows: '•Provided^ however^ That no allotment of seven-tenths 
of an acre or less shall be reduced more than one-tenth of an acre 
below the allotment established for the farm for the last preceding 
year for which a qupta was proclaimed on an acreage allotment 
basis'. 
"(i) If an acreage-poundage program for Flue-cured tobacco is 
approved by growers voting in the special referendum under subsection 
(b), the Secretary shall not later than January 1, 1966— 
"(1) Consult with representatives of all segments of the tobacco 
industry, including growers. State farm organizations, and coopera-
tive associations, in meetings held for each kind of tobacco, to receive 
their recommendations and to determine the need for a similar or 
modified program for that kind of tobacco. 
"(2) Conduct a study and report to the House Committee on Agri-
culture and the Senate Committee on Agriculture and Forestry on 
experience with and operation of the program, and make recommenda-
tions for any modifications needed to improve the program, including 
alternatives adapted to the different needs of other kinds of tobacco." 
SEO. 2. Subsection (j) of section 313 of the Agricultural Adjustment 
Act of 1938, as added by Public Law 361, 84th Congress, approved 
August 11, 1955, is amended by inserting immediately following the 
language "(g) hereof" wherever it appears in said subsection the 
language "or section 317". 
SEC. 3. Section 106 of the Agricultural Act of 1949, as amended, is 
amended by adding at the end thereof the following: 
"(c) If acreage-poundage farm marketing quotas are in effect 
under section 317 of the Agricultural Adjustment Act of 1938, as 
amended, (1) price support shall not be made available on tobacco 
marketed in excess of 110 per centum (120 per centum in the case of 
Burley tobacco for the first year for which marketing quotas are made 
effective under this section) of the marketing quota for the farm on 
which such tobacco was produced, and (2) for the purpose of price-
support eligibility, tobacco carried over from one marketing year to 
another to avoid marketings in excess of the farm marketing quota 
shall, when marketed, be considered tobacco of the then current crop." 
SEC. 4. Nothing in this Act shall be construed as affecting the au-
thority or responsibility of the Secretary of Agriculture under section 
301(b) (15) or section 313 (i) of the Agricultural Adjustment Act of 
1938 with respect to providing that different types of tobacco shall be 
treated as different kinds of tobacco, or with respect to increasing 
allotments or quotas for farms producing certain types of tobacco. 
Approved April 16, 1965.