North Carolina
TOBACCO REPORT
1 973-7-*
North Carolina Department of Agriculture
James A. Graham, Commissioner
Number 215, May 1974
TABLE OF CONTENTS
Page
Fo r wa rd 3
1973 Flue-Cured Market Provokes Demand 4
for Changes
New Record — 1973 5
Criminal Penalties for Charging 7
Unauthorized Tobacco Warehouses Fees
State Market Summary 1973-74 8
North Carolina Tobacco Warehouse Sales 12
Report for Season — 1973
Summary of N. C. Dealer and Warehouse 14
Resales — 1973
Producer and Gross Sales of Flue-Cured 14
Tobacco by States — 1973
Flue-Cured Movement In and Out of 15
North Carolina
Burley Movement In and Out of 15
North Carolina
Flue-Cured Stabilization Receipts 16
by Types and States — 1973
Burley Stabilization Receipts for 16
N. C. and Total U. S. 1973-74
N. C. Burley Tobacco Allotments — 1974 17
N. C. Flue-Cured Tobacco Allotments — 1974 18
North Carolina Burley Crops 1928-1973 20
North Carolina Flue-Cured Crops 1920-1973 21
North Carolina Tobacco Warehouses and 22
Operators by Belts and Markets 1973
Cigarette Excise Taxes Compared 29
to Growers' Gross Receipts
State Board of Agriculture 31
Domestic Tax Paid Cigarette Consumption 32
by Kinds 1973
For free distribution by the Field Crops Section,
Division of Markets, North Carolina Department
of Agriculture, Raleigh, N. C.
Curtis F. Tarleton, Director, Division of Markets
J. H. Cyrus, Chief, Field Crops Section
J. T. Bunn, Tobacco Marketing Specialist
Foreword
The twenty-fifth annual issue of the
North Carolina Tobacco Report was
compiled and assembled under the
direction of J. H. Cyrus, Chief of the
Field Crops Section, and J. T. Bunn,
Tobacco Marketing Specialist, Division
of Markets, North Carolina Department
of Agriculture.
During the quarter of a century
spanned by the North Carolina Tobacco
Report, all segments of the tobacco in-
dustry have faced serious crises. Each
time, however, the tobacco industry lea-
dership has been successful in resolving
their problems, and each time the whole industry has emerged
from the crisis with renewed strength.
At the present time all segments of the tobacco industry are
undergoing a crisis that climaxed during the 1973 season be-
cause of inequities among growers in the opportunity of market-
ing their crops. Here again, all of the leadership from all seg-
ments of the tobacco industry have put their heads together and
have come forth with concrete plans that will give all growers in
all production areas equal opportunity in marketing their tobacco.
While these revolutionary changes in the tobacco auction system
will require patiences and adjustments by growers, warehouse-
men and buying companies, it appears that once again the tobac-
co industry will emerge with a stronger auction system that will
provide more equity and efficiency for all segments of the great
tobacco industry.
Recognition is given the following agencies for their coopera-
tion in making data available for this publication: The Coopera-
tive Crop Reporting Service; Agricultural Stabilization Conserva-
tion Service; Agricultural Marketing Service, U. S. Department of
Agriculture; and the Flue-Cured Tobacco Cooperative Stabiliza-
tion Corporation.
£%a+jl<
Commissioner of Agriculture
1973-74 Flue-Cured Market
Provokes Demand For Changes
Although the 1973 flue-cured market set new records in aver-
age prices and in gross returns paid growers, the difficulty that
many farmers experience in trying to get their tobacco sold
brought on an explosive situation, in which growers almost un-
animously called for a restructure in the method of allocating
sales opportunity to markets.
Market Restructure
Generally, the restructure of the auction market for 1974 pro-
vides for the following broad changes to give all growers a
more equal opportunity in the market:
(1) Growers must designate the warehouse or warehouses
within a limited area in which they plan to sell their quota,
in order to be eligible for price support.
(2) Market opening in all areas will be related to the maturity
of the crop and the readiness of the crop to start moving to
market.
(3) Markets will be grouped and buyers and graders will be
assigned and rotated between markets so as to provide the
necessary marketing services in each market according to
grower designations of tobacco to the market.
The details of implementing the plan will be worked out by the
Industry-Wide Flue-Cured Marketing Committee, which will be-
come a Federal Advisory Committee to the Secretary of Agri-
culture under the new plan. Thus, it appears that 1974 will see the
launching of a new era for the tobacco auction system.
New Record-! 973
Amidst all of the confusion and complaints of the 1973 tobacco
marketing season, Tarheel flue cured and burley growers re-
ceived a new record high average price and gross income from
the sale of their 1973 crops. However, there were only moderate
increases in growers' net income due to the substantial increase
in cost of production which was also at a record high level in
1973.
North Carolina flue-cured growers received a record $701 mil-
lion from the sale of 795 million pounds of tobacco. These sales
amounted to slightly more than 100% of the effective quota and
included several million pounds of old crop tobacco brought over
from the 1972 crop. This pushed the season average to a new
record of $88.20 per hundred pounds. These new records gave
North Carolina flue cured growers an increase of $131 million
in gross income compared to the previous year, with an increase
in average price of $2.60 above the 1972 season average.
North Carolina burley tobacco growers also received a record
of $17 million from the sale of 18.1 million pounds, which pushed
their average to an all-time record of $91.70 per hundred pounds.
In fact, this is the highest average price ever recorded in the Tar-
heel State for any crop of tobacco, flue cured or burley. Burley
growers marketed only 74% of all their effective quota in 1973.
The unused poundage will be added to their 1974 quotas.
Outlook For Record 1974
For tobacco growers, the market outlook for 1974, as it relates
to supply and demand, is probably the best that it has been since
the late forties. It is the first time in more than twenty-five years
that flue cured growers have gone into a new market year without
a surplus hanging over their heads.
The carryover stocks of flue cured tobacco on July 1, 1974,
estimated to be about 1.6 billion pounds, will be the lowest since
1951. Also, the carryover Stocks at the beginning of the new bur-
ley year on Oct. 1, 1974, estimated at about 1.0 billion pounds, will
be the smallest since 1952.
A substantial increase in both domestic and export demand
during the latter part of 1973 and early 1974 was responsible for
the drain on the stocks. In other words, during the 1973-74 market
year, buying companies bought more than 1,300 million pounds
of flue-cured tobacco from both the warehouse floor and from
Flue-Cured Stabilization stocks. Of this amount only 1,158 million
pounds was marketed from the 1973 United States flue-cured
crop.
This supply situation points to the critical demand on flue-cured
growers to produce a substantially larger crop in 1974. For in-
stance, based on the 1973-74 demand, United States flue-cured
growers need to market approximately 1,300 million pounds in
order to supply the market demand and maintain a normal re-
serve stock of around 2.4 years supply.
The increase in demand for burley tobacco in both the domestic
and export market paralleled the increases for flue-cured during
the 1973-74 year. This rise in demand plus a short crop of burley
in 1973 will result in the smallest carryover stock of burley tobac-
co on October 1, 1974 in 22 years.
Thus, based on the current supply and demand situation, the
outlook points to a strong market demand in 1974 for both flue-
cured and burley tobacco. The price support on flue-cured and
burley tobacco for 1974 is up 8.7 percent above 1973. This pushes
the average flue-cured price support for 1974 to 83.3 cent per
pound and burley to 85.8 cent. Therefore, it is very likely that
both flue-cured and burley growers will receive average prices in
the 90's for their 1974 tobacco crops. However, because of the
tremendous increase in the cost of producing the 1974 crops,
growers must concentrate on producing and offering to the mar-
ket mature, ripe tobacco of reasonably good quality. The key
to the highest prices and greatest net returns in 1974 will
be found in the production ripe tobacco of medium to heavy body
with true color. Improving quality is the growers best alternative
in coping with the record high cost of production.
Criminal Penalties For Charging
Unauthorized Tobacco Warehouse
Fees
During the 1974 Session of the General Assembly, the Ware-
house Penalty Act in General Statute 106-454 was rewritten to
make it a criminal offense for tobacco auction warehouse oper-
ators or employees to charge any fees related to the sale of tob-
acco at auction, except those authorized in G. S. 106.452.
Authorized fees and charges are as followers: "For auction
fees, fifteen cents on all piles of one hundred pounds or less, and
twenty-five cents on all piles over one hundred pounds; for
weighing and handling, ten cents per pile for all piles less than
one hundred pounds, for all piles over one hundred pounds at the
rate of ten cents per hundred pounds; for commissions on the
gross sales of leaf tobacco in said warehouse, not to exceed two
and one-half per centum; provided that tobacco warehouses sel-
ling burley tobacco only may charge commissions on the gross
sales of burley leaf tobacco not to exceed three and one-half per
centum, and there may also be a basket fee of twenty-five cents
per basket on all burley leaf tobacco sold in such warehouse."
The provisions and penalties of this amended act is as follows:
"The owner, operator, or person in charge of each warehouse
shall render to each seller of tobacco at the warehouse a bill
plainly stating the amount charged for weighing and handling,
the amount charged for auction fees, and the commission
charged on such sale, and it shall be unlawful for any other char-
ges or fees to be made or accepted. Any person, firm, corporation,
or any employee thereof, violating the provisions of this section
shall be guilty of a misdemeanor and fined not less than one hun-
dred dollars ($100.00) nor more than two hundred and fifty dollars
($250.00) and / or imprisoned not to exceed 30 days for the
first offense, and for the second or additional offenses fined not
less than five hundred dollars ($500.00) nor more than one thou-
sand dollars ($1,000) or imprisoned for not less than 30 days or
more than six months, or both fined and imprisoned, in the dis-
cretion of the court."
State Market Summary 1973-74
The failure of the 1973 flue-cured marketing system to provide
sales opportunity where the tobacco was produced and when the
crop was ready for sale resulted in a season of frustration and
discontent among tobacco growers. The untendable situations
that were manifested by the inequities of the marketing sched-
ule provoked farmers to demand major changes in the tobacco
marketing program. Even before the close of the 1973 season,
policy changes were executed that permitted Border Belt farmers,
that had not been able to sell their crop before buyers were with-
drawn from the area, to place all their remaining tobacco under
loan with stabilization at support price level, provided the tobacco
was eligible for price support. If the auction system is to survive,
more major changes must occur in the near future to give
North Carolina farmers a more equitable opportunity to market
their tobacco.
Flue-cured average price for North Carolina markets reached a
new record high of $88.37 per hundred pounds, up $2.54 per
hundred pounds from the 1972 record average. Value of the 1973
crop sold in North Carolina markets was $649,652,913 an in-
crease of $116,245,425 from the 1972 crop sales. Volume also
increased to 735,182,978 pounds, up 113,688,441 pounds from
1972 sales.
Burley farmers had a fantastic marketing year. The season av-
erage price reached $91.62 per hundred pounds for tobacco sold
at North Carolina markets.
Type 13. Border Belt markets began the 1973 selling season on
July 24 and remained open for 53 sale days with final sales held
on November 1.
Quality was down slightly from the previous year's sales with
a noticeable drop in the quality of good leaf grades offered for
sale.
Grade price averages were up $1.00-$7.00 per hundred pounds
for most offerings with the greatest increases going to leaf
grades. Nondescript and unripe lug grades were down $1.00-$5.00
per hundred pounds. Border Belt markets established a new re-
cord of $87.09 per hundred pounds, up $1.71 per hundred pounds
from the 1972 record average.
8
Producer sales for 1973 increased to 119,020,272 pounds and
sold for $103,655,142. In 1972, producers sold 107,710,183 pounds
for $91,966,941. Stabilization receipts were exceptionally small in
Border Belt markets. Only 1,065,791 pounds went under loan, a-
mounting to 0.09 percent of producer sales. In 1972, Stabilization
received 623,101 pounds or 0.6 percent of producer sales.
TYPE 12. Eastern Belt markets began sales July 31 on a lim-
ited basis, with all markets being in operation by August 28.
Markets operated over a period of 64 sale days with final sales
occurring on December 3.
Quality of offerings was unusually good with an increase in the
volume of mature lemon and orange grades being sold and a
decrease in the volume of variegated tobacco.
Grade price averages increased $1.00-$14.00 per hundred
pounds for most grades and the strongest demand being for
heavy bodied leaf. Some of the primings, lugs, and cutters were
down $1.00-$3.00 per hundred pounds. Eastern Belt markets av-
eraged $89.00 per hundred pounds, a record high for flue-cured
belts, up $1.66 per hundred pounds from the 1972 average.
Producer sales for 1973 increased substantially to 379,505,519
pounds, returning farmers $337,751,016. In 1972, producers sold
316,441,050 pounds for $276,394,101.
Stabilization receipts amounted to 17,101,561 pounds or 4.51
percent of producer sales, an increase from 1972 receipts when
8,206,770 pounds or 2.6 percent of producer sales went under
loan.
TYPE 11B. Middle Belt markets opened on September 4 and
continued operating for 43 sale days. Final sales were held on
November 20.
Quality improved considerably over the previous year's crop
with larger amounts of mature ripe leaf being offered for sale and
less unripe variegated tobacco being sold.
Grade price averages were up $1.00-$17.00 per hundred
pounds for most grades, with heavy bodied tobacco being in
strong demand throughout the season. However, low quality lugs
and primings and thin nondescript were off $1.00-$9.00 per hun-
dred pounds. Middle Belt markets averaged $88.17 per hundred
pounds, a new record high, up $3.21 per hundred pounds from
the 1972 average.
Producer sales increased in 1973 to 120,816,592 pounds and
sold for $106,528,148. In 1972, producers sold 104,963,197 pounds
for $89,176,792.
Stabilization receipts were 4,273,657 pounds or 3.54 percent of
producer sales. In 1972, Stabilization received 3,123,560 pounds
or 3.0 percent of producer sales.
TYPE 11A. Old Belt markets held limited openings on Septem-
ber 4 and all markets began operating on September 17. North
Carolina markets operated for 48 sale days and concluded the
flue-cured season on November 29.
Quality increased favorably with more good ripe leaf grades be-
ing marketed and a noticeable decline in the amount of unripe
and immature offerings.
Grade price average increased $1.00-$23.00 per hundred
pounds with the greatest advance going to leaf grades. Some
primings and nondescript dropped $1.00-$10.00 per hundred
pounds. North Carolina Old Belt markets averaged a new record
high of $87.81 per hundred pounds, up $3.21 per hundred pounds
from the 1972 average.
Producer sales advanced to 115,840,595 pounds and returned
farmers $101,718,607. In 1972, producers sold $92,380,107 pounds
for $75,869,654.
Stabilization received 3,355,988 pounds or 2.9 percent of pro-
ducer sales. In 1972, Stabilization receipts amounted to 6,048,814
pounds or 6.6 percent of producer sales.
TYPE 31. Burley markets opened November 26 and operated
for 18 sale days. Final sales for North Carolina's season were held
on January 10.
Quality was very acceptable as all grades were in strong de-
mand. The volume of mixed grade did increase during 1973.
Grade price averages were up $10.00-$15.00 per hundred
pounds and most grades averaged above $90.00 per hundred
pounds. North Carolina markets averaged $91.62 for the season,
an increase of $14.09 per hundred pounds over the previous sea-
son's average and a new record for the State.
Producers sold 16,654,550 pounds for a value of $15,258,630
on North Carolina markets. In 1972-73, producers sold 17,092,489
pounds for $13,251,867.
Burley Stabilization receipts were very small, only 4,804
pounds or 0.03 percent of producer sales went under loan. In
1972-73, 236,976 pounds or 1.3 percent of producer sales went
to the burley pool.
10
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13
SUMMARY OF N. C. DEALER AND
WAREHOUSE RESALES - 197 3
Percentage
Belt Pounds Dollars Resale
Border Belt
Dealer
Warehouse
Eastern Belt
Dealer
Warehouse
Middle Belt
Dealer
Warehouse
Old Belt
Dealer
Warehouse
Total Flue-Cured Resales
Burley Eelt
Dealer
Warehouse
Total Burley Resales
PRODUCER AND GROSS SALES OF FLUE-CURED
TOBACCO BY STATES - 1975
379,752
$ 313,581
0.31
2,622,956
2,254,907
2.15
1,037,171
855,335
0.27
4,439,017
3,823,772
1.15
329,850
274,543
0.27
2,367,242
2,048,209
1.92
446,785
359,547
0.38
2,797,653
2,427,347
2.35
14,420,426
12,357,241
1.92
322,844
304,891
1.80
958,193
889,604
5.34
1,281,037
1,194,495
7.14
Producer
Sales
Cross Sa
les
State
Pounds
Average
Founds
Average
N. C.
735,182,978
88.37
749,603,404
88.31
Va.
128,136,651
88.76
150,278,518
88.69
S. C.
144,201,107
86.61
148,084,006
86.59
Ca.
123,921,027
87.64
129,144,891
87.60
Fla.
23,459,084
88.32
24,113,809
88.28
Total
1,154,900,847
88.11
1,181,224,628
88.06
14
FLUE-CURED MOVEMENT IN AND OUT
OF NORTH CAROLINA
N. C. Tobacco Sold Out of State Out of State Tobacco Sold in N. C.
(Pounds) (Pounds)
State 1973 1972 1973 1972
Va.
24,849,000
20,850,000
7
489,000
6,383,000
S. C.
23,777,000
15,234,000
11
462,000
7,845,000
Ga.
23,182,000
18,685,000
70,000
16,000
Fla.
4,863,000
5,461,000
3,000
Ala.
25,000
Total
76,671,000
60,230,000
19
049,000
14,244,000
BURLEY TOBACCO MOVEMENT IN AND OUT
OF NORTH CAROLINA
N. C. Tobacco Sold Out of State Out of State Tobacco Sold in N. C.
(Pound
s)
(Pounds)
State
1973
1972
1973
1972
Tenn.
3,163,749
3
334,308
477,771
523,875
Va.
844
2,342
1,170,780
1,178,309
W. Va.
40,236
32,306
Ga.
25,856
38,719
S. C.
968
2,146
Total
3,164,593
3
336,650
1,715,611
1,775,355
15
FLUE-CURED STABILIZATION RECEIPTS
BY TYPES AND STATES - 1973
Producer Stabilization Percentage
State Type Sales (lbs.) Receipts (lbs.) Stab. Received
Va. Total
11A
128,136,651
4,013,126
3.31
N.
C.
11A
115,840,595
3,355,988
2.90
N.
C.
11B
120,816,592
4,273,657
3.54
N.
C.
12
379,505,519
17,101,561
4.51
N.
c.
13
119,020,272
1,065,791
0.90
N. C.
Total
11-13
735,182,978
25,796,997
3.51
S. C.
Total
13
144,201,107
816,803
0.57
Ga. Total
14
123,921,027
123,032
0.10
Fla.
Total
All Types
14
23,459,084
28,318
0.12
Total
11-14
1,154,900,847
30,778,276
2.67
Burley Stabilization Receipts
For N. C and Total U. S. - 1973-74
Producer Stabilization Percentage
State Type Sales (lbs.) Receipts (lbs.) Stab. Received
N. C. 31 16,654,554 4,804 0.03
U. S. Total 31 450,957,067 663,391 0.15
16
C. BURLEY TOBACCO ALLOTMENTS*
1974
Number
Base
Effective
County
Farms
Poundage
Poundage
Rank
Alleghany
570
645,398
719,542
9
Ashe
2,660
2,662,601
3,200,476
4
Avery
248
294,128
375,489
10
Brunswick
1
190
366
31
Buncombe
2,986
3,293,189
4,128,054
2
Burke
17
8,604
14,593
21
Caldwell
20
12,293
21,432
20
Cherokee
195
151,414
247,342
14
Clay
230
179,908
272,840
12
Cleveland
8
5,243
7,906
22
Davidson
2
1,555
1,650
27
Gaston
1
792
1,525
28
Graham
692
684,816
938,070
8
Granville
1
286
551
30
Haywood
1,937
2,085,066
2,676,369
5
Henderson
120
88,356
152,985
16
Iredell
3
3,137
6,042
24
Jackson
280
232,907
396,678
11
McDowell
73
53,906
87,448
17
Macon
246
166,480
274,277
13
Madison
2,929
5,042,495
5,686,853
1
Mitchell
967
1,260,264
1,593,158
7
Polk
4
2,252
4,336
26
Rutherford
54
32,672
57,854
19
Stokes
2
648
1,132
29
Surry
7
2,764
3,621
25
Swain
207
146,068
255,022
15
Transylvania
71
52,541
84,192
18
Watauga
1,709
1,891,119
2,383,677
6
Wilkes
6
3,712
4,594
23
Yancey
1,854
2,670,637
3,234,798
3
TOTAL
18,100
21,675,441
26,832,872
1-31
♦Source: USDA Agricultural Stabilization and Conservation Service.
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19
North Carolina Burley Crops
1928-1973*
Yield Per
Year
No Acres
Acre
Production
Value
Average
(Pounds)
(1,000 lbs.)
1,000 Dollars)
Price
1928
3,600
650
2,340
S 690
S29.50
1929
5,500
730
4,015
863
21.50
1930
7,200
750
5,400
853
15.80
1931
7,100
710
5,041
464
9.20
1932
6,500
735
4,778
726
15.20
1933
9,200
785
7,222
715
9.90
1934
5,500
870
4,785
809
17.50
1935
5,200
925
4,810
1,025
21.30
1936
6,000
900
5,400
2,095
38.80
1937
9,000
975
8,775
1,787
21.40
1938
8,600
900
7,740
1,308
16.90
1939
8,100
1,070
8,667
1,447
16.70
1940
6,500
1,050
6,825
1,242
18.20
1941
6,200
1,075
6,665
2,093
31.40
1942
6,600
1,150
7,590
3,211
42.30
1943
8,500
1,225
10,412
5,102
49.00
1944
12,000
1,390
16,680
8,157
48.90
1945
13,000
1,500
19,500
7,568
38.30
1946
9,800
1,475
14,455
5,999
41.50
1947
9,600
1,560
14,976
6,335
42.30
1948
10,300
1,680
17,304
8,012
46.30
1949
10,800
1,440
15,552
6,750
43.40
1950
10,500
1,700
17,850
9,175
51.40
1951
12,200
1,750
21,350
11,572
54.20
1952
12,000
1,680
20,160
9,818
48.70
1953
11,400
1,800
20,520
11,019
53.70
1954
12,700
1,920
24,384
12,680
52.00
1955
9,800
1,900
18,620
10,651
57.20
1956
9,400
1,850
17,390
10,747
61.80
1957
9,600
1,975
18,960
11,073
58.40
1958
9,300
2,000
18,600
11,978
64.40
1959
9,800
2,060
20,188
11,426
56.60
1960
9,500
1,940
18,430
12,016
65.20
1961
10,400
2,090
21,736
14,346
66.00
1962
11,000
2,185
24,035
14,421
60.00
1963
11,000
2,285
25,135
13,573
54.00
1964
9,700
2,165
21,000
12,054
57.40
1965
8,900
2,030
18,067
12,159
67.30
1966
7,900
2,320
18,328
12,371
67.50
1967
7,800
2,010
15,678
11,037
70.40
1968
7,900
2,385
18,842
13,868
73.60
1969
7,900
2,570
20,303
13,928
68.60
1970
7,300
2,545
18,579
13,544
72.90
1971
7,000
2,065
14,455
11,535
79.80
1972
7,700
2,450
18,865
14,658
77.70
1973 * *
7,800
2,400
18,720
17,222
92.00
* Source: N. C. and USDA Crop Reporting Service.
** Preliminary for 1973.
Note: Since 1972, production is pounds produced and does not reflect pounds
not sold or pounds carried forward to the next season.
20
North Carolina Flue-Cured Crops
1920-1973*
Yield Per
Year
No. Acres
Acre
Production
Value
Average
(Pounds)
(1,000 lbs.)
(1,000 Dollars)
Price
1920
621,900
681
423,703
88,271
20.80
1921
414,900
594
246,540
60,402
24.50
1922
444,000
611
271,170
74,572
27.50
1923
544,300
728
396,354
81,998
20.70
1924
473,500
585
276,819
62,597
22.60
1925
536,200
696
373,352
83,756
22.40
1926
546,700
69?
378,274
96,762
25.60
1927
639,600
755
482,982
100,414
20.80
1928
712,400
69?
493,132
93,450
19.00
1929
729,300
665
484,630
89,470
18.50
1930
768,000
757
581,200
74,733
12.90
1931
688,500
69?
476,382
42,024
8.80
1932
462,500
624
288,750
34,949
12.10
1933
667,800
794
530,133
85,530
16.10
1934
486,500
847
412,055
117,999
28.60
1935
612,500
635
572,625
116,418
20.30
1936
591,000
765
451,975
101,856
22.50
1937
675,000
883
595,815
143,058
24.00
1938
603,500
844
509,470
115,428
22.70
1939
843,000
964
812,540
123,893
15.20
1940
498,000
1,038
516,835
85,792
16.60
1941
488,000
928
452,825
132,291
29.20
1942
539,000
1,052
566,810
221,538
39.10
1943
580,000
935
542,200
219,074
40.40
1944
684,000
1,077
736,990
317,628
43.10
1945
722,000
1,100
794,310
349,148
44.00
1946
802,000
1,138
912,970
451,639
49.50
1947
783,000
1,139
892,205
374,513
42.00
1948
594,000
1,239
739,380
368,040
49.80
1949
621,000
1,178
731,530
352,508
48.20
1950
640,000
1,441
858,140
477,508
55.60
1951
735,000
1,331
978,375
523,358
53.50
1952
735,000
1,222
898,090
448,582
49.90
1953
674,000
1,235
832,305
447,076
53.70
1954
686,000
1,204
889,490
483,003
54.30
1955
653,000
1,499
978,775
520,845
53.20
1956
579,000
1,661
961,495
496,324
51.60
1957
443,000
1,469
650,780
358,442
55.10
1958
429,000
1,718
736,855
427,307
58.00
1959
458,500
1,533
702,942
407,055
57.90
1960
457,500
1,836
839,870
512,731
61.10
1961
463,000
1,797
832,215
541,468
65.10
1962
483,000
1,890
912,810
549,594
60.20
1963
460,500
1,999
920,660
535,622
58.18
1964
416,000
2,282
949,450
549,875
57.90
1965
375,000
1,840
690,050
442,796
64.20
1966
409,500
1,859
761,360
506,605
66.50
1967
395,400
2,071
818,997
523,809
64.00
1968
350,500
1,850
648,533
430,613
66.45
1969
378,500
1,838
695,665
502,305
72.20
1970
383,800
2,076
796,941
571,211
71.70
1971
339,000
2,102
712,960
552,544
77.50
1972
332,000
1,993
661,520
566,267
85.60
1973 * *
376,000
2,113
794,515
699,506
88.10
* Source: N. C. and USDA Crop Reporting Service.
** Preliminary for 1973.
Note: Since 1965, production is pounds produced and does not reflect pounds 2"j
not sold or pounds carried forward to the next season.
North Carolina Tobacco Warehouses and Operators
By Belts and Markets - 1973
BORDER BELT
Chadbourn (one set buyes)
Jimmy Green Whse. - Jimmy Green
Producers — Jack W. Garrett, Cricket Garrett
Clarkton (one set buyers)
New Clarkton — Maynard Talley, Cecil Hartley, W. W. Marlowe
Bright Leaf — Jimmy Green
Fair Bluff (one set buyers)
Powell — B. A. Powell, Albert H. Powell
Planters — Randolph Currine, B. W. Currin, C. W. Shaw, S. Lawrence,
H. E. Dunn, H. B. Dunn
Fair Bluff Whse., Inc. — J. G. McNeill, Gen Mgr.
Fairmont (four sets buyers)
Big Brick-Carolina — A. W. McDaniel, A. D. Lewis, Jr.
Liberty-Twin States — Lynn Floyd, Hoke Smith, Jr., Clarence Joyce Estate
Holliday-Frye — E. H. Frye, J. W. Holliday, J. M. Holliday
Square Deal — Mrs. W. G. Bassett, C. L. Smith
Planters-Mitchell — Harry Mitchell, Morris Daniel
Fayetteville (one set buyers)
Big Farmers — P. L. Campbell, A. R. Talley, Jr., Dan Talley
Planters — J. C. Adams, Billy Adams, Jimmy Adams
Lumberton (three sets buyers)
Carolina — J. L. Townsend, Sr. & Jr., J. E. Johnson, Jr., Sam Dunn
Smith-Dixie — Jack Pait
Hedgpeth — E. H. Collins, Albert Thornton, Jr.
Liberty — H. D. Goode, R. H. Livermore
Star — D. T. Stephenson, Hogan Teater, Russell Teater
Cooperative — Mrs. V. H. McLaurin, L. D. West
Tabor City (one set buyers)
R. C. Coleman Co. — R. C. Coleman, Sr. & Jr., Joe Coleman, Joey
Coleman, Ricy Coleman
Planters — Don Watson, Mgr.
22
Whiteville (three sets buyers)
Gray & Neal — A. Dial Gray, J. L. Neal
Crutchfield — G. E. Crutchfleld, Jimmy Dale Smith
Lea's Big Dixie — William Townes Lea, Louis Love
Liberty — J. W. Hooks, C. B. Barefoot
Moore's — C. C. Mason, C. E. Jeffcoat
Nelson's — Jim Smith, Lennox Long, Milton Gore
Planters — A. O. King, Jr., Cliff Stephens
Smith's — Ernest Smith, Joe T. Smith
EASTERN BELT
Ahoskie (one set buyer)
Basnight No. 1-2-3 — L. L. Wilkins, Jr., H. G. Veazey, H. Jenkins
Farmers 1 & 2 — W. M. Odom, S. S. Pierce, J. L. Morris
Clinton (one set buyers)
Carolina — L. D. Herring, C. J. Strickland, N. L. Daughtry, L. D. Starling,
J. P. Gore, Mrs. M. L. Bethune
Ross — Clarence Kirvin, Jr.
Dunn (one set buyers)
Lee's Planters, Inc. — Leland Lee
Big Four Whse. — Jack Calhoun, John Calhoun, Cleo Jones
Farmville (two sets buyers)
Bell's — R. A. Bell & Bros.
Fountain & Monk — John F. Fountain, J. I. Oakley, Robert Pierce
Planters — Chester Worthington, W. O. Newell, B. S. Correll, David Jones,
Mark Mozingo
New Blue — W. A. Allen
Goldsboro (one set buyers)
Carolina — Guy Best, D. M. Price
Farmers — Rudy Hill
Big Brick — J. R. Musgrave, Sr. & Jr., Helen Musgrave
Victory — Richard Gray
Greenville (five sets buyers)
Cannon's — W. T. Cannon, Carlton Dail
Farmers — W. Arthur Tripp, T. P. Thompson, Harold Watson, Jack Warren
Star-Planters — B. B. Suggs, Harding Sugg
Kell — J. A. Worthington, J. B. Worthington, Fenner Allen
23
New Independent — T. W. Pruitt, W. A. Pruitt, James Belcher, W. E. Pruitt
Raynor-Forbes-Clark — Noah Raynor, A. A. Forbes, Billy Clark, Betty Casey
New Carolina — Laddie Avery, Larry Hudson
Kinston (four sets buyers)
Knott's 1 & 2 — Graham Knott, Billy Brewer
Farmers-New Dixie — John Jenkins, Sr. & Jr., Lee Jenkins
New Central — W. I. Herring, Billy King
H & H — Dempsey Hodges, Virgil Harper
Central — W. I. Herring, Bill King
Robersonville (one set buyers)
Grays-Red Front-Central — J. H. Gray, Jack Sharp, James E. Gray
Hardee Whse., Inc. — Edwin Lee
Rocky Mount (four sets buyers)
Cobb & Carlton — W. E. Cobb, Jr., J. C. Carlton
Mangum, Inc. — W. H. Phipps, General Manager
Planters — S. S. Edmondson, Sr. & Jr.
Smith's James D. Smith, Sr. & Jr.
Works — R. J. Works, Jr., A. B. Raynor
Peoples — Guy Barnes, Gene Simmons, James Walker
Farmers — Joe W. Coleman, Allen C. Cooper
Fenners — J. B. Fenner
Smithfield (two sets buyers)
Farmers — N. Leo Daughtry, Bill Kennedy
Planters-Riverside — Joe Stephenson, Jerry Stephenson, Gilbert Stephenson
Gold Leaf — R. A. Pearce, Sr. & Jr.
Wallace — Bobby Wallace, Larry Wallace
Tarboro (one set buyers)
Clark 1 & 2 — J. F. Wilson, Jr., George L. Proctor
Farmers No. 1 & 2 — Walter Walker, W. G. Maples, Fred Walston
Victory — W. V. Leggett, C H. Leggett
Wallace (one set buyers)
Blanchard & Farrior — O. C. Blanchard, Sr. & Jr., W. H. Farrior, R. H. Lanier
Hussey — Joe Bryant
Sheffield's — Homer M. Boney, Jr.
Farmers — H. G. Perry
Washington (one set buyers)
Sermon's — W. J. Sermon, Harry L. Roberts
Talley — W. G. Talley
Hassell — Malcolm P. Hassell
24
Wendell (one set buyers)
Liberty — H. H. Eddins, Berdon Eddins
Northside — Graham Dean, Bill Sanders
Farmers — Carson Jones, Mgr.
Growers — Clyde Holmes, C. M. Pate, W. H. Richards
Williamston (one set buyers)
Rogers — Urbin Rogers, H. L. Barnhill, Rossell Rogers
New Dixie — C. Fisher Harris, J. Elmo Lilley
Wilson (five sets buyers)
Big Dixie — W. Cecil Thompson, W. C. Edmondson
Centre-Brick — S. M. Cozart, U. H. Cozart, III, Fred Eagles
Bob's and Clark's — C. R. Clark
Growers — Clifford Aycock, Mgr.
Liberty — J. T. Worthington, W. Cecil Moore, Robert D. Oldham
Nichols & Scott — A. B. Nichols, Clay Scott
Smith-Planter — S. Grady Deans, John F. Deans
Wainwright's — George L. Wainwrlght, Sr. & Jr.
Windsor (one set buyers)
Planters No. 1 & 2 — C. B. Griffin, B. U. Griffin, Dave Newson
Farmers — Bill Davis, Norman Swain
Center Whse. — Jerry Shackelford, J. R. Freshwater, R. H. Morton
MIDDLE BELT
Aberdeen (one set buyers)
Planters — W. Fentress Phillips
Hardee's — Hugh T. Hardee
Carthage (one set buyers)
McConnells — E. C. Layton, Earl J. Ennis, George W. Mabe
Victory — E. C. Layton, Earl J. Ennis
Farmers — Bill Carter, Sr. & Jr.
Durham (three sets buyers)
Liberty — Walker Stone, Sr. & Jr., K. O. Bishop
Roycroft-Currin-Mangum — Randolph Currin, J. K. Roycroft, Estate
Star Brick 1 & 2 — W. W. Cozart, W. L. Currin, A. L. Carver
Farmers-Planters — J. M. Talley, Bob Dale, Sam Mangum
Ellerbe (one set buyers)
Farmers — Cecil Moore, Bobby Oldham, Ralph Duncan
Richmond County — Ashton Richardson, R. P. Brim, Jr.
25
Fuquay-Varina (two set buyers)
New Deal — Dan Talley, Dan Brisson
Gold Leaf — J. W. Dale
Carolina — E. E. Clayton, Larry C. Knott
Roberts — Joe Roberts
Five Points — Billy Adams
Henderson (two sets buyers)
Jeff's Big Banner — C. E. Jeffcoat
Farmers — W. J. Alston, Jr.
High Price — C. B. Turner, R. E. Tanner, R. E. Fleming
S. P. Fleming, J. K. Parks, M. D. Abbott
Dixie — C. B. Turner, R. E. Tanner, R. E. Fleming, S. P. Fleming, J. K.
Parks, M. D. Abbott
Liberty-1 & 2 — George T. Robertson, S. E. Southerland, John Wilson
Ellington — F. H. Ellington, John Ellington
Alston's — W. J. Alston, Jr.
Big Dollar — M. L. Hight, James H. O'Brien
Louisburg (one set buyers)
Big Franklin — S. T. Cottrell, James B. Cottrell, L. D. Cottrel
Ford's — Charlie Ford
Star — James Speed, Gus McGhee, Clemmon Pearce
Foster — John Foster, S. E. Southerland
Oxford (two sets buyers)
Banner-Mitchell — David Mitchell
Fleming — F. O. Finch, D. T. Currin, Jr.
Johnson-High Price-Owen — C. R. Watkins, Jr., John S. Watkins, Jr.
T. J. Currin, Joe Hamme, C. B. Wilkins
Yeargin-Granville — R. W. Crews, W. W. Yeargln
Sanford (one set buyers)
Twin City — W. M. Carter, T. W. Mansfield
Morgan's — Jimmy Morgan
Warrenton (one set buyers)
Centre — M. P. Carroll, E. W. Radford, E. M. Moody
Farmers — E. G. Tarwater
Thompson — C. E. Thompson, M. P. Edwards, Jr.
Currin's — D. G. Currin, Jr., David Tillotson, B. W. Currin
26
OLD BELT
Burlington (one set buyers)
Carolina — C. R. McCauley
Newman & Robertson — N. C. Newman, Joe Robertson
Farmers — Bill McCauley, Alpha McCray
Greensboro (one set buyers)
Greensboro — R. C. Coleman, Jr., Mgr.
Guilford — J. R. Pell, H. P. Smothers, W. B. Hull, J. E. Pell
Madison (one set buyers)
New Brick — Mrs. Lloyd Webster, Ray White
Carolina — Lee McCollum, Ray White, Mrs. Lloyd Webster
Sharpe & Smith-Farmers — W. S. Smith, George Denham, Jr.
F. S. Williams, S. H. Price, Jr.
Mebane (one set buyers)
Farmers — Jule Allen, Bill Allen
Piedmont — Billy Hopkins, Jimmy Hopkins
Mt. Airy (one set buyers)
Dixie — Tom Jones, Boyd Cain, F. V. Dearmin, Jr.
H. Y. Hodges, Fred Chilton
New Farmers — Tom Jones, Boyd Cain, F. V. Dearmin, Jr.,
H. Y. Hodges, Fred E. Chilton
Hunters — Mrs. Ola S. Hunter
Reidsviile (one set buyers)
New Farmers — G. E. Smith, Steve Smith, P. D. McMichael, Phillip Carter
Smothers-Watts-Leader — A. P. Sands, Larry Sands, Tom Kimbro,
T. Garland Smothers
Roxboro (one set buyers)
Farmers — Lindsay Wagstaff, Kenneth Wagstaff, R. A. Hester,
Larry C. Hester
Hyco — F. J. Hester, H. J. Hester, III
Foacre — H. W. Winstead, Jr., Pres.
Planters — T. O. Pass, Sr. & Jr.
Growers 1 & 2 — Elmo Mitchell, Roy Carver
Stoneville (one set buyers)
Joyce's — O. P. Joyce, Sr. & Jr., W. R. Joyce
Farmers-Piedmont — R. N. Linville, Clarence Peeples, W. Q. Chilton,
Robert Rakestraw, Garland Rakestraw
27
Winston-Salem (four sets buyers)
Carolina-Star — Ken Chilton
Growers — R. J. Harris, J. T. Harris, Paul Draughn, Roger Nichols
Peppers — C. F. Hutchins, Dan Hutchins
Taylor — L. E. Pope
Big Winston — Taylor Carter, Jack Carter
Cook's — Claude Strickland, Jr., P. Thomas, Doug Cook
Yadkinville (one set buyers)
Northwest N. C. Farmers — R. A. Owen
BigYadkin — Cecil E. Humphries
Millers — J. A. Miller, Sr. & Jr., J. W. Flinchum, Bill Wall
Liberty — J. W. Flinchum, Bill Wall
Courtney — J. W. Flinchum, Bill Wall, Howard Pegram
BURLEY BELT
Asheville (two sets buyers)
Dixie-Burley — R. A. Owens
Planters — J. W. Stewart
Day's — Charlie Day
Boone (one set buyers)
Mountain Burley — Joe Coleman, Joey Coleman, Ricky Coleman, Lavelle
Coleman
West Jefferson (one set buyers)
Tri-State Burley — Rex Taylor
Farmers Burley — Mrs. Tom Fulkner
28
Cigarette Excise Taxes Compared to Growers'
Gross Receipts
As indicated on the accompaning chart, the three levels of
government exacting revenues from cigarettes through taxes are
currently collecting $5.5 billion annually. These taxes represent
nearly six times the gross receipts of farmers for the tobacco leaf
used in the manufacture of domestically consumed cigarettes.
The overall taxes imposed at the three levels of government oper-
ates to double the price of cigarettes.
The federal tax on a package of cigarettes is currently 8 cents.
This tax grossed a total of $2,221,019,000 for the fiscal year end-
ing June 30, 1973.
The states impose taxes at rates ranging from 2 cents per pack-
age in North Carolina to 21 cents in Connecticut, giving an aver-
age cigarette tax imposed by the states of 12 cents per package.
This yielded the states a total revenue of $3,171,091,000 during
the 1972-73 fiscal year.
There are 370 cities, towns and counties in ten states that im-
pose additional local cigarette taxes, ranging from 1 cent to 10
cents per package. These Municipal taxes grossed $116.4 mil-
lion during the fiscal year ending June 30, 1973.
The magnitude of the burden of cigarette taxes causes grave
concern regarding their effect upon the economy of the tobacco
grower, the manufacturer and the allied industries. While it is
true that these excise taxes are passed on to the consumer, it
follows that the market for cigarettes depends upon the price the
consumer is willing to pay for his smoking pleasure.
29
30
STATE BOARD OF AGRICULTURE
James A. Graham, Commissioner,
Ex-Officio Chairman
Evelyn M. Hill Edneyville
Donald R. Kincaid Lenoir
George P. Kittrell Corapeake
Charles F. Phillips Thomasville
J. H. Poole West End
Henry Gray Shelton Speed
James D. Speed Louisburg
James L. Sutherland Laurinburg
Windell L. Talley Stanfield
Sherrill Williams Newton Grove
31
DOMESTIC TAX PAID CIGARETTE CONSUMPTION
BY KINDS - 1973
Total Domestic Consumption
588 Billion Cigarettes