The grower receives payment for his tobacco from the warehouseman on the 
same day it is sold. Pricing and calculating clerks figure the amount due on 
each basket, immediately after sale, according to the price bid and the weight 
of the basket. After selling charges have been deducted, a check is issued the 
farmer against the warehouse account. Buyers usually settle with the warehouse- 
man within a few days after the sale. Selling charges vary by types of tobacco, 
ranging from about 2 3/4 to 4 percent of the value. 
Loan program on auction markets. Government price support is offered for 
all types of tobacco sold at auction unless growers disapprove marketing quotas. 
Under the program a price support level is established foreach 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 (which handles the tobacco after receiving it 
under loan) with funds borrowed from the Commodity Credit Corporation. Tobacco 
which cooperative associations receive from farmers under the loan program is 
sold through reguiar trade channels. If any net profits are realized, they go 
to the growers, but any losses are assumed by the Commodity Credit Corporation. 
Figure 35.--Federal tobacco inspector certifying grade of burley tobacco 
being sold from loan holdings. 
COUNTRY SALES - FIRE-CURED 
In addition to sales of fire-cured at auction, a small quantity in the 
Kentucky and Tennessee area (averaging around 6 percent of the crop in the last 
few years) is sold directly atthe farms. In earlier years, this farm or "barn 
door" buying of the leaf was practiced to a much greater extent than it is 
today. Buying is done mainly by large concerns looking for choice crops at 
advantageous prices. 
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