The U.S. Department of Agriculture has announced the provisions of the 2003 crop flue-cured tobacco program. The flue-cured tobacco no-net-cost assessment will be five cents on each pound of 2003-crop flue-cured tobacco that is marketed. USDA set the no-net- cost assessments at 2.5 cents per pound for the producer and 2.5 cents per pound for the purchaser for crop year 2003.
The national marketing quota for the 2003 crop is 526.3 million pounds, down from the 2002 quota of 582 million pounds, and is based on the following:
In Million Pounds
- Purchase intentions by domestic cigarette manufacturers: 283.3.
- Unmanufactured exports (three-year average): 254.7.
- Reserve stock adjustment: 11.7.
- Discretionary adjustment: 0.0.
The national average yield goal remains unchanged at 2,088 pounds per acre. The price support level for the 2003 crop is $1.663 per pound, up 0.7 cents per pound from 2002. The national acreage allotment for the 2003 crop is 252,059 acres, down 9.6 percent from the 2002 allotment of 278,736 acres. For each farm, the 2003 basic quota will decrease approximately 9.5 percent from 2002. The effective quota is expected to be about 540 million pounds, or 6 percent below 2002.
The Flue-Cured Tobacco Cooperative Stabilization Corporation, the producer-owned association through which price support is made available for flue-cured tobacco, was consulted before the no-net-cost assessments were set.