The popularity of the loose-leaf system may be at- 

 tributed to several factors. The warehouse, under this 

 system, pays the grower on the day of the sale. Also, 

 the seller can watch the entire process and sell small 

 quantities if he likes. Both warehouse and sale are 

 located in the same area where the tobacco is grown, 

 thus affording the growers the easy opportunity to com- 

 pare prices and quality of their leaf. 



The selhng of tobacco in "loose-leaf" form is very 

 efficient and fast. An entire crop may be sold in less 

 than a minute. In 1970, 27,040,000 pounds of Maiyland 

 tobacco were sold by loose-leaf method through eight 

 auction warehouses in five markets. Hogsheads sales 

 accounted for only 299,340 pounds. Farmers received 

 about $21.5 million for the crop at an average of 79.8 

 cents per pound. 



The auction markets are open for about a twelve 

 week season starting in April and closing in June. The 

 hogshead market, in Baltimore, is open for receipt of 

 tobacco year round. After sale, the raw tobacco goes 

 into a three to four year "sleep" during which natural 

 processes age the tobacco in preparation for consumer 

 use. 



erfection of the crop 



The Maryland tobacco market is regulated by the 

 Maryland State Tobacco Authority, founded in 1947 by 

 the State Legislature. It has the power to regulate mar- 

 keting practices and to seek new markets and uses for 

 leaf tobacco produced in Maryland. The Authority is 

 supervised by a Board of Directors consisting of eight 

 men appointed by the Governor; one from each tobacco 



10 



