underproduced their allotments (table 1). Due to less 

 than normal supplies, USDA terminated quotas on 

 cigar binder (types 51-52) in 1970. Growers of 

 Pennsylvania filler (type 41) never approved quotas, 

 so that type has never been under allotment. Quota 



legislation does not include cigar wrapper produced 

 in Connecticut, Massachusetts, Georgia, and Florida 

 (types 61-62). However, a marketing agreement 

 which limits leaf harvest per plant has applied for 

 many years in Georgia and Florida (type 62). 



GENERAL ECONOMIC TRENDS 



Conditions are unique in each tobacco-producing 

 area, but some general trends prevail. For many 

 years, farmers and farm workers have been attracted 

 to nonfarm jobs by higher wages and more desirable 

 working conditions. With the high labor 

 requirements and the lack of mechanization, tobacco 

 production has become a less attractive farm 

 alternative (table 2). 



During 1950-71, in the seven States producing cigar 

 leaf tobacco, the increase in nonfarm employment 

 ranged from 18 percent in Pennsylvania to 214 

 percent in Florida. Many farmers and farm workers, 

 including young people, have left the farms for 

 nonfarm jobs (table 3). 



Farm employment also declined in six of the seven 

 States during 1950-71. Declines ranged from one- 

 third in Wisconsin to 70 percent in Massachusetts 

 and Georgia. The number of farm workers in Florida 



increased 25 percent from 1950 to a peak in 1958 but 

 declined 14 percent from 1958 to 1971. 



Tobacco is a labor-intensive crop that requires 300 

 or more hours of labor per acre for filler and binder 

 and about 1,300 hours for wrapper. Many producers 

 hire labor, especially at harvest. In each of the seven 

 States, farm wages more than doubled from 1950 to 

 1971. Increases ranged from 105 percent in Ohio to 

 210 percent in Georgia. 



Nonfarm wages normally average more than farm 

 wages (table 4). From 1950-71, the comparative 

 advantage of nonfarm wages increased in 

 Connecticut, Massachusetts, Pennsylvania, Ohio, 

 Wisconsin, and Florida but declined in Georgia. In 

 Connecticut and Massachusetts, 1950 wages in 

 manufacturing plants were 59 percent higher than 

 farm wages; in Georgia, 134 percent higher. By 1971, 

 this percentage had increased to 80 percent in 

 Connecticut and 73 percent in Massachusetts. In 



FRRM URGE RATES (COMPOSITE) 



O 

 o 

 c\j-t 



PENNSYLVANIA 

 OHIO 



-X CONNECTICUT 

 -A WISCONSIN 



o- 



1 



1951 53 55 57 59 61 63 65 67 69 71 



U.S. DEPARTMENT OF RGRICULTURE 



NEG.ER5 8556-71 CI 1 J ECONOMIC RESEARCH SERVICE 



Figure 2 



