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The acreage of Broadleaf, type 51, declined the least from 191^6-1950 to 

 1951-1955, and Southern Wisconsin, type ^k, declined the most. The next 

 largest decline was in Northern Wisconsin, type 55* Some of the cigar brands 

 using Broadleaf have increased their sales volume, while there has "been con- 

 siderable decrease in the volume of scrap chewing. This latter is the prin- 

 cipal outlet for Southern Wisconsin tobacco and for a large part of the 

 tobacco in northern Wisconsin. 



The reaction in 195& to the processed binder was greater in the Connecti- 

 cut Valley than in Wisconsin. The indications for 1957 are that the acreage 

 of both Connecticut Valley types will be reduced further. The March indica- 

 tion was 5,900 acres for 1957, compared with 7,100 acres harvested in 1956. 

 There has been additional sign-up in the Soil Bank since March, so that the 

 Connecticut Valley acreage will probably be even less than 5,900. However, 

 the indicated Wisconsin acreage for 1957 i s slightly larger, 12,100 acres 

 compared with 12,000 acres harvested in 195&. The increase in Wisconsin is 

 due to the somewhat improved prices for tobacco to be sorted for natural 

 binders and to the increased demand for stemming tobacco. This increase has 

 been the result of a smaller supply of stemming tobacco for scrap chewing, 

 caused by the lower supply of throwouts and cuttings due to the reduced use of 

 natural binders. The decrease in acreage in the Connecticut Valley in both 

 1956 and 1957 "was not only a response to the processed binder, but also to the 

 Soil Bank program. A large acreage has been placed in the Soil Bank in both 

 years . 



It is reasonable to expect that the growers of the different types will 

 react somewhat differently to the introduction of processed binders. As in 

 the past, their reactions will be influenced both by the quantity and kinds of 

 tobacco demanded by manufacturers and by the growers ' own costs in supplying 

 those requirements. Should the growers produce more than is needed, the price 

 probably will go down and the supply will be brought into balance with demand. 

 The excess supply will be eliminated when the growers whose costs are rela- 

 tively high turn to alternative uses for their resources of land, sheds, labor, 

 and other items. On the other hand, if enough tobacco of the quality required 

 for a use is not produced, the price will rise. Growers will be attracted by 

 the higher prices and will increase the supply, bringing it into balance with 

 the demand. These adjustments will be modified by the effect of the growers' 

 participation in acreage allotment, price support, and Soil Bank programs. 



