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CED-82-70 1 (1982-04-23)

handle is hein.gao/gaobabdfd0001 and id is 1 raw text is: RES T?,CTID - Not to be relesed ot': 2 'ie Ac-C , ntg 3fflce u3v~ ont Xs tVP;0,udV8i~~~ by the Office of Ccngresaional Relation. / REPORT BY THE Comptroller General OF THE UNITED STATES Tobacco Program's Production Rights And Effects On Competition The Department of Agriculture's tobacco pro- gram, through its acreage allotment, marketing quota, and price-support provisions, is affecting the competitiveness of the U.S. tobacco industry in world and domestic markets and the income of those farmers who grow tobacco. GAO found that 68 percent of the allotment and quota owners in 32 counties selected for review were not active farmers. Instead, they leased or rented their production and marketing rights to producers at rates ranging from 25 cents to 90 cents a pound. While the United States still enjoys a highly favorable balance of trade in tobacco ($2.2 billion in 1981), the high price of U.S. tobacco and the improved quality and increased production of foreign tobacco have helped cause the U.S. share of world tobacco trade and domestic use to decline. Insufficient markets for U.S. flue-cured tobacco have resulted in a 32.1 -percent reduction in the national flue-cured tobacco quota since 1975. Reductions in individual farm quotas in turn require tobacco producers to lease or rent quo- tas from others to maintain existing production levels. (,b,'D S T4' , 7 CED-82-70 tccou'1. APRIL 23,1982

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