The grower receives payment for his tobacco from the warehouseman on the 

 same day it is sold. Clerks figure the amount due on each basket immediately 

 after the sale. Selling charges are deducted and a check is issued the farmer 

 against the warehouse account. Buyers usually settle with the warehouseman 

 within a few days after the sale. Selling charges vary by types of tobacco, 

 ranging from 3 to 6 percent of the value. 



L oan program on auction markets . Government price support is offered 

 for all types of tobacco sold at auction where growers have approved market- 

 ing quotas. Under the program a price support level is established for each 

 grade of tobacco. If the buyer's bid price on any basket of tobacco is not 

 more than the Government loan rate for the grade, the grower may accept the 

 loan rate. In this case he is paid in the usual way by the warehouseman, who 

 is in turn reimbursed by the applicable cooperative association receiving the 

 tobacco under loan. The cooperatives operate with funds borrowed from the 

 Commodity Credit Corporation. Tobacco which cooperative associations receive 

 from farmers under the loan program is sold through regular trade channels. 

 If any net profits are realized, they go to the growers, but any losses are 

 assumed by the Commodity Credit Corporation. 



Figure 33. -A sample of "strips" held by the Fhte-eured Grov 

 Cooperative ready for inspection by buyers. 



Country Sales - Fire-cured 



In addition to sales of fire-cured at auction, a large quantity of this 

 tobacco in the Kentucky and Tennessee area (averaging over 20 percent of the 

 crop in the last two years) is sold directly at the farms. In earlier vcars, 

 this farm or "barn-door" buying of the leaf was practiced to an even greater 

 extent than it is today. Buying is done by large concerns looking for choice 

 crops at advantageous prices. 



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