Loan program in the cigar-leaf areas. Price support loans are also 

 available in the cigar leaf areas (except shade-grown J where marketing quotas 

 have been approved. The cooperative associations, operating under contract 

 with the Commodity Credit Corporation, arrange for receiving, grading, pack- 

 ing, and sorting the tobacco. Any eligible grower may deliver his tobacco to 

 the receiving point, where a Federal inspector places a grade on it. If he 

 accepts the loan rate for the grade, he receives the proceeds of the loan 

 from the association, payment being made with funds borrowed from the Commod- 

 ity Credit Corporation. In case he decides not to accept the loan, he may 

 withdraw his tobacco. As explained under the auction system above, tobacco 

 which cooperative associations receive under the loan program is sold through 

 regular channels. Any net profits realized go to the growers, but losses are 

 assumed by the Commodity Credit Corporation. 



Figure 34 -Farm bales of Connecticut binder being delivered to the 

 Conn-Mass Cooperative. 



37 - 



