Company History

Flue-Cured Tobacco Cooperative Stabilization Corporation established-1946. Tobacco farmers in the states of Florida, Georgia, North Carolina, South Carolina, and Virginia established the cooperative, widely known as Stabilization, both to administer the price support program of the Federal Tobacco Program, and to sell member-farmers' tobacco to buyers around the world.

Tobacco Growers Services, Inc. established-1967. The Stabilization board authorized the purchase of Brown Tobacco Company for the purpose of future redrying and storage capability. It was renamed Tobacco Growers Services, Inc.

Capital Reserve Fund established-1975. The board establishes the fund: 1. To fund projects that could not be paid for by the Federal Tobacco Program; and 2. For continuing operations in the event of the abolishment of the Federal Tobacco Program.

Proposal for continuation of Stabilization in absence of Federal Tobacco Program-1979. U.S. Department of Agriculture's Farmer Cooperative Service presents a proposal-"Stabilization and Farm Organizations"-as to how Stabilization could continue to benefit farmers in the event the Federal Tobacco Program were abolished.

No Net Cost Tobacco Program passed in Congress-1982. Congress enacts legislation to ensure that the U.S. government recovers all the money it spends on the price-support programs for tobacco.

Barn retrofit program-2000. Stabilization contributes $26 million and administers an industry-wide effort to assist flue-cured tobacco farmers in converting their curing barns to reduce tobacco-specific nitrosamines.

First two Marketing Centers established-2001. With direct contracting threatening the traditional tobacco auction system, and in turn, price support; and with the Federal Tobacco Program and the asset value of quota both in danger, the board authorizes the establishment of a Marketing Center pilot program.

Marketing Center program expanded to total of 14-Fall, 2001. Based on the success of the pilot program, the board authorizes the expansion of the Marketing Center program for 2002.

Investigation into feasibility of cigarette manufacturing-2002. Realizing the end of the Federal Tobacco Program is near, Stabilization's board authorizes staff to investigage future business opportunities to protect farmer-members.

Vector Tobacco manufacturing facility purchase okayed-June 3, 2004. Stabilization gives final approval for the purchase of the processing and manufacturing facility in Timberlake, North Carolina.

Vector Tobacco purchase completed-2004. The facility is renamed for the new subsidiary created to operate it: U.S. Flue-Cured Tobacco Growers, Inc.

Federal Tobacco Program ends-October 22, 2004. President George W. Bush signs FETRA into law, ending the Federal Tobacco Program.

New beginning for Flue-Cured Tobacco Cooperative and tobacco buyers worldwide-July 1, 2005. The official beginning of the 2005 crop year and, with the end of price supports, a more competitive world market for flue-cured tobacco growers in the United States. Buyers worldwide anticipate lower prices on flue-cured tobacco from the United States, widely considered the finest in the world; while Flue-Cured member-farmers celebrate the end of quotas limiting the tobacco acreage they can plant.

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