USDA ANNOUNCES PROVISIONS OF THE
1997-CROP FLUE-CURED TOBACCO PROGRAM

Release No. 1430.96
Dann Stuart (202)690-0474 [email protected]

WASHINGTON, December 16, 1996 -- The U.S. Department of Agriculture today announced the provisions of the 1997 flue-cured tobacco program. The national marketing quota for the 1997 crop is 973.8 million pounds, up from the 1996 quota of 873.6 million pounds, and is based on the following:

Million pounds
-- Purchase intentions by domestic cigarette manufacturers: 535.5
--Unmanufactured exports (3-yr. average): 343.3
--Reserve stock adjustment: 125.1
--Discretionary adjustment: -30.1.

The national average yield goal remains unchanged at 2,088 pounds per acre. The price support level for the 1997 crop is $1.621 per pound, up 2.0 cents from 1996. The national acreage allotment for the 1997 crop is 466,379 acres, up from the 1996 allotment of 418,391 acres. For each farm, the 1997 basic quota and allotment will increase about 11.5 percent from 1996. The effective quota is expected to be about 1.02 billion pounds, or 8 percent above 1996. The marketing assessment will be .8105 cent per pound, which is paid by both growers and buyers, for a total of 1.621 cents per pound for the 1997 crop of flue-cured tobacco. Importers of flue-cured tobacco will be responsible for the full 1.621 cents per pound marketing assessment for imported tobacco. The no-net-cost assessment will be announced later. For further program information, contact Verner Grise, telephone (202) 720-8839, E-mail address [email protected]

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