UNITED STATES DEPARTMENT OF AGRICULTURE SEPARATE FROM YEARBOOK 1922 No. 885 HISTORY AND STATUS OF TOBACCO CULTURE BY W. W. Garner and E. G. Moss, Bureau of Plant Industry; and H. S. Yohe, F. B. Wilkinson, and 0. C. Stine, Bureau of Agricultural Economics. Th\s book is due at the LOUIS R. WILSON LIBRARY on the last date stamped under “Date Due.” If not on hold it iJay be renewed by bringing it to the library. / \ / Extent of the industry World production . . Acreage, yield, and p States .... Influence of soil am of tobacco . . . Effect of seasonal cc yield. .! . Importance of fertili: Yield per acre in product . . . . Diseases of tobacco Cost of production . . Distribution of cost Distribution of labor Land rent . . . Barns and sticks Fertilizers. . • [lifi 1 JNCC ^KcU DATE \ RFT DUE \ RET * DATE RFT DUE , Ktl ' / / f £ v f \ / ’ > / \ / % j w / \ J * / \ / W X \ S f Form No. 513 Statement of Authorship. This article was prepared by specialists in the Bureau of Plant Industry, the Bureau of Agricultural Economics, the Bureau of Entomology, and the Weather Bureau, under the general supervision of a committee composed of W. W. Garner (chairman), E. G. Moss, Otto Olson, L. S. Tenny, O. 0. Stine, H. S. Yohe, R. H. Wilcox, M. Dorset, A. L. Quaintance, S. H. McCrory, C. F. Marbut, and J. Warren Smith. The principal contributions were made by the following: From the Bureau of Agricultural Economics: O. C. Stine, illustrative material covering world production, historical development, acreage, yield, and production of tobacco, and present geographical distribution of pro¬ duction; Albert P. Brodell, cost of production; H. S. Yohe and F. B. Wilkin¬ son, jointly, tobacco marketing and prices of leading types; Lewis B. Flohr, farm prices of tobacco; George K. Holmes, statistical scientist, digest of import duties on tobacco under the Constitution; Nat. C. Murray, chief statistican, verification of a considerable portion of the statistical data used in the article. From tlie Bureau of Entomology: J. L. Webb, insects affecting tobacco. From the Bureau of Plant Industry: W. W. Garner, general supervision and discussion relating to world production, historical development, dis¬ tinctive types of tobacco, major portion of text on production, and the sec¬ tions on extent of the industry, exports and imports, domestic consumption, internal revenue taxes on tobacco, summary and outlook; E. G. Moss and Otto Olson, jointly, portion of text on factors influencing production and international trade in tobacco; James Johnson, diseases of tobacco. From the Weather Bureau: J. Warren Smith, correlation of weather and yield of tobacco. HISTORY AND STATUS OF TOBACCO CULTURE By W. W. Garner and E. G. Moss, Bureau of Plant Industry; and H. S. Yohe, F. B. Wilkinson, and O. C. Stine, Bureau of Agricul¬ tural Economics. Extent of the Industry. rp HE size of the tobacco crop appears small when com- X pared with the enormous production of such crops as Avheat, corn, and cotton. The tobacco acreage constitutes about five-tenths of 1 per cent of the acreage devotee! to all crops. In the census year 1919 the value of the tobacco crop was about 3 per cent of that of all farm crops. Never¬ theless, the acreage and production of tobacco are large, and the value of the crop is exceeded only by that of corn, hay and forage, cotton, wheat, oats, and potatoes. Of the staple crops rye and barley, in addition to the preceding, surpass tobacco in acreage. According to census returns for 1919, tobacco was grown in 42 States, in 1,694 counties, and on 448,572 farms. The crop of 1,465,481,000 pounds was produced on 1,951,000 acres of land and was valued at $570,868,000. During the five-year period 1917-1921 the average area in tobacco was 1,702,000 acres, the production averaged 1,362,000,000 pounds, and the average value of the crop was $364,620,000, according to estimates of the Bureau 395 vO * v N ii.—The machine transplanter, which is widely used in the Cigar-leaf and Burley districts, saves labor and insures a better stand, particularly in dry weather. It is not adapted for very small fields or where the land is uneven. \ for the special merit of their tobacco. In the present state 1 of our knowledge of the subject, however, it is not possible to analyze fully the remarkable influence of these seemingly slight differences in soil on the quality of the tobacco pro- duced. * _ ~ The cigar wrapper and binder types of the ( onnecticut Valley and of the Quincy, Fla., districts are grown on sandy and sandy loam soils containing but little clay in the sub- 35896—23-4 418 Yearbook of the Department of Agriculture , 1922, soil and having a low water-holding capacity. The cigar binder-leaf soils of Wisconsin are sandy loams, loams and light clay loams, while the cigar-filler soils of Pennsylvania and Ohio are silt and clay loams, the Pennsylvania soils being largely of limestone origin. The filler soils are con¬ siderably heavier and have a higher water-holding capacity than the binder-leaf soils. Burley attains its highest devel¬ opment on the highly fertile phosphatic limestone soils of the bluegrass region of Kentucky and in southern Ohio. The dark fire-cured and air-cured tobaccos of Kentucky, Tennessee, and Virginia are grown largely on heavy silt and clay loams having a high water-holding capacity. The flue- cured type is grown on gray sandy and sandy loam soils of low natural fertility. The body and texture of the flue- cured leaf depend largely on the texture of the subsoil on which it is grown. The cigarette and granulated pipe¬ smoking grades are obtained chiefly on the lighter soils with but little clay in the subsoil, while the plug-filler and wrap¬ per grades are obtained on somewhat heavier soils with more clay in the subsoil. CULTURE OF CIGAR WRAPPER TOBACCO UNDER ARTIFI¬ CIAL SHADE. Fig. 12. —The growing of high-grade cigar wrapper leaf from Cuban seed under an artificial shade of cheese cloth or of slats is an outstanding recent development of cigar tobacco production. The field covered witl* Cloth here shown is 1J miles long. History and Status of Tobacco Culture. 419 J Effect of Seasonal Conditions on Quality and Yield. As a rule the best quality of tobacco in conjunction with * 5 satisfactory yields is obtained when seasonal conditions are such as to cause rapid, uninterrupted growth of the plant. Among the chief requirements are fairly high temperatures and a moderate, evenly distributed rainfall. The tobacco plant is not readily killed by drought, but quickly succumbs to a water-logging of the soil. A comparatively dry season tends to reduce the size of the plant as a whole and that of the individual leaves on the plant, and to produce an abnor¬ mally thick leaf of close grain, containing an excess of gum and having poor combustibility. The yield of such a crop is greater than would be indicated by the size of the plant, and the leaf is resistant to decay in the processes of ferment¬ ing and aging. A comparatively wet season, on the other hand, tends to produce large growth and thin, tender leaves, deficient in gummy matter, having free burning properties, but susceptible to injury through decay in the processes of curing and fermenting. The yield of such a crop is usually below that indicated by the size of the plant. Tobacco in the green state is seriously damaged by killing frost or freez¬ ing temperatures, and there is always the possibility of par¬ tial or total loss from early frost in northern regions. To¬ bacco is peculiarly susceptible to great injury from hail and wind storms, and locally there are important losses from \ these causes each year. ^ A study of the correlation of weather and yield of to¬ bacco in Ohio and Kentucky extending over a long period of years indicates that for best yields in tobacco districts of the Ohio Valley the weather conditions as compared with the normal climate in that region should be as follows: May should be moderately dry for a good seed bed, and cool to harden the tobacco plants. June should be mod¬ erately warm and wet to insure growth w T hen the plants are set out, although the warm and wet weather may de¬ velop injurious parasitic diseases. July rainfall and tem¬ perature should be about normal, as too much rain inter¬ feres with cultivation ; and if the rainfall is inadequate, the temperature should be below the normal. August should have rain enough to produce a good-sized leaf aitei topping, 420 Yearbook of the Department of Agriculture , 1922. Warm and wet weather makes the best growth, but is more likely to cause the development of leaf spot. Hot and dry weather is very detrimental; hence if the rainfall is less than normal the month should be cool. If the growing season is moderately wet, with a uniform supply of moisture, the best growth will be with the temperature somewhat above normal. But if drought prevails or frequently oc- MODEEN BARN FOR FLUE CURING. Fig. 13. —These barns are of small size and are provided with a system of flues for regulating temperature by radiant heat. Ventilators are provided at the base and top of barn. This system of curing is used in the bright flue-cured or cigarette tobacco districts. curs, the best results are obtained with the summer some¬ what cooler than normal. j Importance of Fertilizers. A large portion of the tobacco crop is produced on soils which are naturally rather infertile, while the tobacco plant requires a fairly generous supply of plant nutrients if it is to obtain proper growth, hence the necessity for extensive use of fertilizers. More ove r, the acre value of tobacco is sufficiently high to justify considerable expenditure for fer¬ tilizers. The rational use of fertilizers in tobacco culture is a complicated problem* because of the marked effecfwhich History and Status of Tobacco Culture . 421 they^jpay haye on the quality of the tobacco produced. Again, these effects of fertilizers on the quality of the to¬ bacco are materially modified by fluctuations in seasonal conditions, especially in amount of rainfall, thus making more difficult the problem of selecting the proper fertilizer, t frequently profitable to apply fertilizers to the tobacco crop at rates considerably in excess of the immediate re- * quirements of the tobacco itself, thus providing for an im- , portant residual effect on other crops following in the rota- t tion which in themselves would not have a sufficiently high acre value to warrant their receiving direct application of the necessary fertilizer. The best Burley soils of Kentucky and adjoining States are highly productive, and on such soils, properly handled, it is not ordinarily necessary to apply commercial fertilizers to the tobacco crop. In Pennsylvania and Wisconsin barn¬ yard manure is widely used in lieu of commercial fertilizers, while in the Connecticut Valley both manure and fertilizers are commonly used. In nearly all remaining tobacco-grow¬ ing districts much reliance is placed in commercial fer¬ tilizers. This is particularly true of the bright flue-cured districts. The rate of applying fertilizers ranges from 1 to 2 tons per acre in the Connecticut Valley, 6 00 to 1,000 pounds in the bright flue-cured di stric t amjlhe cigar-tobacco district of Ohio, and 300 to 500 pounds in most of the dark fire-cured and air-cured districts. The so-called complete fertilizers are commonly used, but their composition varies very widely in different localities. Cigar tobaccos require rather heavy applications of nitrogen, while the dark fire-cured and air-cured types and Burley require somewhat lower percentages of this element in the fertilizer. For bright flue-cured leaf only the minimum < quantity of fertilizer nitrogen required for proper growth of the plant is used. Phosphoric acid is usually applied in quantities in excess of actual requirements for growth in , order to promote proper ripening. Liberal applications of potash are usually profitable because of favorable action on the quality of the tobacco. Under certain conditions mag- ' nesia is an important constituent of the fertilizer. Lime , may be beneficial or injurious, depending on soil conditions and the type of tobacco. 422 Yearbook of the Department of Agriculture , 19&&. Yield Per Acre in Relation to Quality of Product. A characteristic feature of tobacco culture is that the returns per acre to the grower commonly depend quite as much or even more on the quality of the leaf than on the yield obtained because of the very wide range in prices for the different grades of leaf. The highest returns are usually derived from maximum yields of the finer grades of leaf rather than from maximum total yields. In some types, such as most cigar tobaccos and dark fire-cured and air-cured leaf, moderately high yields are commonly asso¬ ciated with high quality, but this is not true of some other types. In the case of bright flue- cured, now the world’s leading type, high quality of product is condi¬ tioned in such way by the physical and chemical properties fig. 14.—tobacco hornworm. of the soil that h igh y i elds are sel - dom associated with best qu ality . In substantially all types' rank, coarse growtFls incompatible with high quality and, therefore with maximum returns per acre. For these reasons highly intensive methods involving enrichment of the soil are applicable to tobacco culture only under certain condi¬ tions and limitations. Insects Affecting Tobacco. By far the most serious insect pests of tobacco in the United States are the hornworms, Phlegethontius quinque- maculata (northern tobacco worm), and P. sexta (southern tob acco worm). The hornworms feed~voraciousTy upon growing tobacco leaves and grow to a large size. They may be controlled by dusting with powdered arsenate of lead. 423 History and Status of Tobacco Culture. In the shade-grown tobacco fields of Georgia and Florida damage by the tobacco budworm, Chloridea virescens , is of primary importance. The eggs are deposited in the buds of the plant, and a single larva may eat through several leaves. As the leaves grow larger the holes likewise become larger, and the leaves are rendered un¬ fit for wrappers. For control, apply arsenate of lead and corn meal (1 pound of arsenate of lead to 75 pounds of corn meal) to the buds twice a week until the plants are topped. The tobacco flea beetle (Fig. 16), Epitrix parvula , attacks plant beds and young plants in the field and frequently injures tobacco until it is carried to the barn. The leaves are riddled with holes, and fre¬ quently young plants are killed outright. Apply arsenate of lead or Paris green. Other insects which injure the growing crop are cut¬ worms, split- worms, tobacco thrips, several species of grass- hoppers, and other minor FIG. 15.—TOBACCO BUDWORM, ADULT FORM. FIG. 16.— INJURY FROM TOBACCO FLEA BEETLE. pests. Very serious injury to stored and manufac¬ tured tobacco is caused by the tobacco beetle, Tasiodevnut serricorne. Diseases of Tobacco. The tobacco plant is subject to a number of diseases, some of which are very important factors in lowering yield per 424 Yearbook of the Department of Agriculture , 1922. acre, while others reduce the value of the leaf through ren¬ dering it unsuitable for the purpose for which it was in¬ tended. The main diseases which are concerned in lowering production are the root rots. These diseases are not so evi¬ dent to the growers as are the leaf diseases, but in the aggre¬ gate they cause average annual losses running into millions of dollars. Some progress is being made in the control of these troubles through development of resistant strains, crop rotation, and better understanding of the nature of these diseases. The wilt diseases, bacterial wilt and Fusarium wilt, have not become widespread in this country and are quite satisfactorily controlled by crop rotation. The mosaic disease, long known in tobacco in this country but usually WILDFIRE (BACTERIUM TABACUM) ON WISCONSIN BINDER LEAF. Fig. 17.—Showing characteristic symptoms of the disease. This leaf spot disease has caused serious damage in various sections in recenf years. not causing much concern, seems to be increasing in economic importance. It is not uncommon to see large acreages of tobacco very materially reduced in yield and quality by this disease. Primary infection seems in most cases to start in the seed beds. While a considerable number of leaf-spot diseases due to various causes occur on tobacco, the disease known as “ wildfire ” has recently caused most concern History and Status of Tobacco Culture. 425 among the growers. This disease, first definitely known to? occur in 1917 in North Carolina, has since spread to practi-f cally all tobacco-growing districts of the United States .1 While this disease, like most other plant diseases, is very! largely dependent upon weather conditions for its develop-' ment to a serious extent, its range of activity in this respect is sufficiently wide to make its occurrence in any field in any year a serious menace to the crop. The disease, in all certain cases known to date, originates in the seed bed, and trans¬ planting of infected plants should therefore be carefully avoided. Another disease of recent introduction to this country is known as blue mold. This disease occurred very generally in the seed beds in the Florida-Georgia district in 1921, but did not cause serious damage to the final crop, and apparently did not reoccur in 1922. Cost of Production. Tobacco is the most intensive annual farm crop grown on any considerable acreage. The amount and distribution of labor, wages paid to labor, and other items of cost vary greatly in the production of different types of tobacco. A J considerable proportion of the total acreage and production of tobacco is grown on relatively cheap land, with low-priced labor. In regions where the growing of a particular type of tobacco has been profitable land values and other costs, particularly wages paid to labor, have increased. Ihese increases have resulted in an increase in the cost of growing J an acre and a pound of tobacco. In other words, variations ! in the prices of different cost items have had greater effect on total cost of production than changes in the amounts of the items. Within a region cost studies furnish basic data for estimating the cost of a crop. Individual cost figures furnish the tobacco grower with definite information re¬ garding the amount received for his own labor when mar¬ keted in the form of tobacco. Producers have a definite basis for determining to what extent it is desirable to use hired labor in the production of tobacco. 35896—23-5 426 Yearhook of the Department of Agriculture , 192Y Distribution of Cost . 1 The principal items of cost in tobacco production are man and horse labor, land rent, and cost of upkeep and mainte¬ nance of the tobacco barns. These combined costs averaged from T5 to 93 per cent of the total costs in the three districts under discussion. Of these, man and horse labor was great¬ est, averaging from 45 to G5 per cent of the total cost. In 1920 the cost of the man labor was $113 per acre in the Burley area, $64 in the dark fire-cured area, and $67 in the Georgia bright area (Fig. 18). This difference in cost per acre was DISTRIBUTION OF COST OF PRODUCTION, THREE TOBACCO DISTRICTS, 1920. LABOR LABOR RENT & STICKS FERTILIZER COSTS. Fig. 18. —Variations in the items of cost in growing an acre of tobacco in the Kentucky Burley, Kentucky dark fire-cured, and Georgia bright flue-cured districts for 1920. Costs of man labor, land rent, and curing barns were relatively high in the Burley district, while the cost of fertilizer was rela¬ tively high in the Georgia flue-cured district. due less to variations in the amounts of labor than in the wages paid. The average rate per day paid for man labor 1 The following data on Georgia bright tobacco are for the 1920 crop and are taken from a study of the cost of producing bright tobacco in south-central Georgia by the Georgia Agricultural College, cooperating with the United States Department of Agriculture. For complete report consult Bulletin 250, Georgia Agricultural College, Athens, Ga. In Kentucky a four-year study of the cost of producing Burley and dark fire-cured tobacco was begun in 1919 and was completed in 1922. The Burley cost figures were obtained near Lexington and the dark fire-cured figures near Hopkinsville. This work was done by the University of Ken¬ tucky, cooperating with the United States Department of Agriculture. Bulle¬ tin 229, for the crop of 1919, and preliminary reports for succeeding crops have been issued by the Kentucky Agricultural Experiment Station, University of Kentucky, Lexington, Ky. 427 History and Status of Tobacco Culture. was $3.44 in the Burley area, $2.58 in the dark fire-cured area, and $1.67 in the Georgia area. The horse-labor cost for each area varied slightly with regard to cost per day and total days required. As an item of cost horse labor was of relatively more importance in the Georgia bright-tobacco area, where it was 16 per cent of the total cost, as compared to 7 and 14 per cent in the Kentucky Burley and dark fire- cured areas. Distribution of Labor. The amounts of man and horse labor required to grow and market an acre of tobacco vary considerably with regard DISTRIBUTION OF LABOR IN GROWING OF TOBACCO, THREE PRODUCING DISTRICTS. HOURS PER ACRE 0 20 40 60 80 100 120 140 O 20 40 60 0 20 40 60 80 100 120 PLANT BED FIELD PREPARATION TRANSPLANTING CULTIVATING TOPPING WORMING SUCKERING AND SPR AVING HARVESTING CURING STRIPPING AND MARKETING Fig. 19. —Distribution by districts of man and horse hours required to grow an acre of tobacco. Differences in methods of growing and handling the crop cause rather wide variations in labor requirements, especially in har¬ vesting, curing, stripping, and marketing in the different districts. MAN LABOR ^HORSE LABOR to type. Records from the three areas under discussion indicate that an average of 262 hours of man labor were required to produce an acre of Kentucky dark fire-cured tobacco, 375 hours to produce an acre of Burley tobacco, and 403 hours for the production of an acre of Georgia bright tobacco. The amount of horse labor required per acie was found to be 89 hours in the dark fire-cured area, 98 hours in the Burley area, and 90 hours in the Georgia bright area. The chief variations in labor requirements are found in harvesting, curing, stripping, and marketing. (Fig. 19.) In Georgia the leaves are pulled from the stalk, while in both Kentucky areas the tobacco plant is cut. Bulling or 428 Yearbook of the Department of Agriculture , 1922. priming requires a greater amount of labor tjian cutting, as in the former case the field must be gone over several times. In Georgia curing tobacco required an average of 59 hours of man labor per acre. In the Kentucky dark fire-cured area 24 hours were required per acre, while in the Burley area, where tobacco is air cured, the labor requirement for curing was negligible. Preparing for market and market¬ ing the crop required about 38 per cent of the total man labor in the Burley area, which was considerably more than required by any other operation. In the Kentucky dark fire-cuied area about 25 per cent of the total labor was for stripping and marketing. In the Georgia bright area, where the tobacco is picked, only 18 per cept of the total labor was for preparing and hauling the crop to market. Land Rent. The Kentucky Burley tobacco area is in the limestone region of the State. This land is high priced, especially when compared with the tobacco land in the Kentucky dark fire-cured and the Georgia bright areas. In 1920 the use of land in the Kentucky areas as determined by its cash rental value averaged $107 per acre in the Burley area and $17 in the dark fire-cured area. In the Georgia bright area the rental charge was figured at 10 per cent of the land value and amounted to $7.20 per acre. (Fig. 18.) While undoubt¬ edly land rents are lower now, especially in the Burley area, these figures reflect somewhat the rental value of the land in the three areas as measured by the type of tobacco grown and by the amount and qualitv of yield per acre. In the Burley area land rent was 34 per cent of total cost, in the dark fire-cured area 18 per cent, and in the Georgia bright area 5 per cent. Barns and Sticks. The average cost of maintenance, depreciation, and inter¬ est on investment in barns and sticks varied from 7 to 10 per cent of the total cost of producing tobacco in these areas. In Georgia relatively small tobacco barns are required. They are constructed principally of logs and fitted with fire boxes and flues. The flues are short lived, and the fire boxes 429 History and Status of Tobacco Culture . require constant repairs, which add materially to the cost of upkeep. In the Burley area the barns are well built and are larger and more expensive than in the Georgia area. Burley tobacco is an air-cured type and requires greater space and better ventilation, so that the barns must be rela¬ tively large. In the dark fire-cured area of Kentucky the barns are similar to those in the Georgia area, with the exception that flues and fire boxes are not used. The tobacco sticks are sometimes produced on the farm and sometimes purchased. A charge for sticks for each region is included in the total barn charge. f Fertilizers. The records indicate that in both Kentucky areas very little expense was incurred for commercial fertilizer and barnyard manure. During the relatively high prices of 1920 the cost for commercial fertilizer and manure averaged less than $2 per acre in the Burley area and slightly over $5 per acre in the dark fire-cured area. (Fig. 18.) In Georgia bright tobacco is grown on thin sandy soil and requires a large amount of complete commercial fertilizer. Very little barnyard manure is used in this area, as its use tends to produce a rough, coarse plant. During 1920 the average ap¬ plication of fertilizer in the Georgia bright-tobacco area cost slightly over $24 per acre. Fertilizer costs constituted 1 per cent of the total cost in the Burley area, 4 per cent in the fire-cured area, and 17 per cent in the Georgia bright area. Other Costs. These costs are made up of machinery, insurance, a charge for hiring a tobacco demonstrator, and miscellaneous cash costs. Tobacco farms as a rule have a relatively small investment in machinery. Tobacco-transplanting machines were used to a limited extent in each area and represent a considerable part of the machinery charge. Including interest, depre¬ ciation, and repairs, the machinery cost averaged only 1 to¬ per cent of the total cost of producing tobacco in 1920. In both Kentucky areas a charge for hail and fire insurance was made for each farm. The rate used in calculating this charge was determined from the farms having an actual cadi 430 Yearbook of the Department of Agriculture , 1922. cost for such risks. This item represents from 4 to 5 per cent of the total cost of tobacco production in these dis¬ tricts. In the Georgia area no charge was made for hail and fire insurance. Miscellaneous costs are made up of minor items, such as canvas, spray material, wood or coal for bed preparation and curing, and small cash payments for plants or tobacco seed. While these items are absolutely necessary in the production of the crop, they represent a relatively small proportion of the total cost of growing an acre of tobacco and averaged from 2 to 3 per cent of the total costs in the various areas. In the Georgia bright-tobacco area an experienced to¬ bacco man was hired for 1920 to instruct the farmers in methods of growing and handling the crop. Such men were hired by only a part of the farmers included in this study. In certain instances the demonstrator received 10 per cent of the net receipts from the tobacco crop after deducting warehouse charges, in other cases a flat rate of $8 per acre was paid for his assistance. The average for all farms in 1920 was $5.15 per acre, which was about 4 per cent of the total cost of growing the crop. Relation of Yield to Cost. # Costs vary not only on different tobacco farms for a partic¬ ular season, but also on the same farm from year to year. Such variations may be due to unfavorable weather, to diseases, to insect pests, or to the management of the oper¬ ator. Variations in the cost of producing a pound of tobacco are due to variations in the cost expended per acre and in the yield obtained. A grouping of the tobacco records ac¬ cording to an increase in yield per acre shows that the cost per acre increased with yield and the cost per pound de¬ creased. (Fig. 20.) It was found that in the Kentucky Burley area for 1919 the farms producing from 600 to 1,000 pounds per acre had an average cost of $237 per acre and 30 cents per pound, while those that yielded over 1,500 pounds per acre (averaging 1,580 pounds) produced at a cost of $330 per acre and 24 cents per pound. In the Kentucky dark fire-cured area cost increased from $118 per acre for the farms having an average yield of 393 pounds to $136 History and Status of Tobacco Culture . 431 for tlie farms averaging 1,306 pounds per acre, but the cost per pound for the low-yielding group was 30 cents as com¬ pared to 10.5 cents for the high-yielding group. It must be remembered, however, that a rank, coarse growth is quite often associated with poor quality and low returns per pound. Therefore a reduction in cost per pound through larger yields should not be encouraged to the extent of sacrificing the quality. Financing Tobacco Production. Tobacco is a cash crop of high acre value, requiring much hand labor but little machinery, and therefore is well adapted to a tenancy system. In some northern tobacco- RELATION OF YIELD PER ACRE TO COST OF PRODUCTION, THREE TOBACCO DISTRICTS. COST Fig. 20.—Influence of yield per acre on the cost of producing a pound of tobacco. While the cost per acre usually increases with the yield the cost per pound tends to decrease. TTigh yields involving a rank, coarse growth, however, are often associated with poor quality and low returns per pound. growing sections most of the tobacco farms are operated b\ owners, while m other sections probably as much as half of the total production is under some form of tenancy. In some sections considerable tobacco is grown on a cash lental basis in which the owner furnishes only the land. Under the share rental system, which is rather common in several dis¬ tricts, the tenant may operate the entire farm or lie may be simply a “cropper," growing only tobacco. In both cases 432 Yearbook of the Department of Agriculture , 192.1 the tenant usually receives half the value of the crop. The principal item furnished by the tenant is hand labor, the division of most other items between landlord and tenant varying considerably. Under ordinary circumstances prob¬ ably a majority of tobacco growers owning their farms re¬ quire no financial aid in producing the crop. When such aid is needed it is usually extended by local banks on per¬ sonal notes without indorsement. Mortgages on live stock or crop liens are not commonly given as security for cash advances during the crop year. The tenant in some cases is financed entirely by the farm owner, who is reimbursed when the crop is sold. In many cases, however, the tenant borrows from local banks on his personal note, which is to be retired when the tobacco is sold and which usually must bear in¬ dorsement. In some sections merchants and dealers extend credit to growers for fertilizers and implements. In the Burley district of Kentucky the majority of the farms are operated by the owners, but the tobacco crop is produced largely by croppers, who usually receive half the proceeds, except where the owner furnishes teams and ma¬ chinery, in which case the cropper’s share is one-third the proceeds. Similar conditions exist in western Kentucky and Tennessee, except that a somewhat larger proportion of the crop is produced by farm owners. Financing tobacco production in these States is accomplished in much the same way as in northern tobacco-growing districts. In the South Atlantic States, more particularly in the Coastal Plains region, the percentage of tenancy is very high on tobacco farms, with a large proportion of owners nonresident on the farm. The tenant’s share of the crop is one-half or two-thirds, depending on whether the land¬ lord furnishes all or only one-third the fertilizer used, the tenant in both cases furnishing labor, teams, and machinery. The tenant is financed chiefly by the landlord or the local supply merchant, who is also a fertilizer dealer. Crop liens and chattel mortgages are commonly taken as security. In the Piedmont section the farms are smaller, and a larger proportion of owners operate their farms. Under the rental agreement chiefly employed, the tenant furnishes teams, ma¬ chinery and labor and three-fourths of the fertilizer and receives three-fourths of the crop. The tobacco crop is History and Status of Tobacco Culture . '433 grown more largely on a cash basis. Larger landowners borrow from local banks and furnish their tenants, so that crop liens are not extensively employed. Tobacco Marketing. The marketing of tobacco varies considerably in different tobacco-producing sections of the country. In general there are three methods—the auction system, farm selling, and co¬ operative marketing. The auction system is practiced principally in Maryland. Virginia, North Carolina, South Carolina, Georgia, Tennes¬ see, Kentucky, West Virginia, southern Ohio, Indiana, and Missouri. Most tobacco produced in the cigar-leaf sections of Wisconsin, Ohio, Pennsylvania, Florida, Georgia, and the Connecticut Valley is marketed on the farm. Cooperative marketing is practiced more or less in every tobacco-produc¬ ing section of the country. There is only a small amount of tobacco that is not marketed by one of these methods. Preparation of Tobacco for Sale Under Auction System. In preparing tobacco to be sold at auction, as soon as the tobacco is cured it is brought into a soft, pliable condition and assorted according to quality, color, length, and other factors. Where the tobacco is cured on the stalk the leaves must first be stripped from the stalks for assorting. The number of lots made by each producer varies considerably, depending upon the accuracy with which the tobacco is as¬ sorted and also upon the size and character of the crop. From 5 to 12 lots are usually made from each curing or barn of tobacco. Except for a general knowledge of the qualities of tobacco farmers have no guide in this assorting process. In most cases they separate their tobacco into lots of similar character without knowing to what grades the tobacco be¬ longs or for what use the tobacco is suited. This being tiue, the farmer is at a loss to know the market value of his to¬ bacco even after carefully assorting it. The principal reason ' for this condition is due to the fact that theie aie no g en erally recognized standard grades for tobacco. After the tobacco is assorted into various lots by the farmer it is tied into hands, or bundles, as they are some- 434 Yearbook of the Department of Agriculture , 1922. times called, each hand containing 5 to 25 leaves. The hands are then hung on laths or sticks so that they can be handled easily without breaking or tangling the tobacco. The to¬ bacco is then conditioned for market. Tobacco is usually conditioned on the farm in one of three ways, (1) by hang¬ ing it loosely in an open shed during a warm moist day, (2) by hanging it in a damp cellar or steam room, (3) by sprinkling it lightly with water and packing it into a bulk. In conditioning for market the general tendency is to put too much moisture in the tobacco, especially when it is sprinkled, and sometimes it is delivered wet and badly bruised. To be in the best marketable condition the to¬ bacco should contain from 15 to 20 per cent of moisture. The Auction Methods of Selling. Tobacco is sold at auction in three ways—by publicly selling loose or unpacked tobacco to the highest bidder, by publicly selling in packed form to the highest bidder, and by closed-bids auction of packed tobacco. The loose-leaf auction system .—The first method, often re¬ ferred to as the loose-leaf auction system, is the method by which the majority of tobacco produced in the United States in the past two decades has been sold. Practically all of the auction markets of the country operate on the loose-leaf auction plan, with the exception of Baltimore, Md., which is a packed-tobacco market operating under the closed-bid auction plan, and Louisville, Ky., which is a packed-tobacco market operating on the public-auction plan. The market at Cincinnati, Ohio, is operated principally on the loose-leaf auction plan, but it has also a public auction market for packed tobacco. As a rule the tobacco is taken to the loose-leaf auction market on the laths, where each lot is stripped from the laths and placed into a large flat-bottomed basket. The baskets containing the tobacco are then weighed and ar¬ ranged according to quality in rows on the floor of a loose- leaf auction sales warehouse. In some markets, instead of using baskets, the lots are merely weighed and placed in piles on the floor of the warehouse. On each basket or pile is placed a ticket showing the name of the farmer who owns the tobacco, the number of pounds contained in the lot, and r 435 History and Status of Tobacco Culture. the consecutive number given to the lot. The tobacco is then sold in piles or lots ranging from 10 to 1,500 pounds to the highest bidder at public auction. As the sale pro¬ ceeds from basket to basket a clerk of the warehouse enters on each ticket the price per pound at which the tobacco is sold, the name of the buyer, and the grade assigned to the lot by the buyer. As a rule, the buyers for the large com¬ panies are governed in their bids entirely by their private grades, so it becomes largely a matter on the auction floors Fig. 21.— weighed, accordin baskets, cession, the net 'he different lots of tobacco as brought in by the farmer are properly tagged, and arranged in piles on the warehouse floor to grade, usually after having first been placed in flat-bottom At the appointed hour the piles are auctioned off in rapid suc- The warehouseman, after deducting certain fees, pays to the farmer roeeeds and collects this amount from the buyer. for the buyer first to determine to which of his grades, if any, a certain lot of tobacco belongs. Having determined the grade, he knows the limit that his company allows him to bid on the lot. Each buyer or manufacturer has for his own use a private system of grades. After the tobacco once leaves the farmer’s hands it is handled almost entirely by 436 Yearbook of the Department of Agriculture , 1922. In some of the larger markets the sales proceed very rapidly. In many markets the local board of trade requires the auctioneer to sell as high as 240 lots of tobacco in an hour’s time. After the sale is over the farmer has a right to refuse the price offered, in which case he can either have the tobacco put up at auction the second time or have it re¬ moved from the warehouse for sale elsewhere. If the price offered is accepted, the auction-sales warehouseman renders the farmer an account, showing the number of pounds and the price of each lot sold, and gives him a check for the total amount of the sale, less the warehouse charges, which usually include an auction fee, a weighing charge, and a commission for selling. Each buyer removes the tobacco purchased by him from the auction-sales warehouse to a redrying plant or packing house, where the tobacco is placed in a safekeeping condition and packed into hogsheads, ready for storage or shipment. A large percentage of the tobacco is bought direct by the manufacturer, in which case the tobacco, after being condi¬ tioned and packed, is usually shipped to the private-storage warehouse of the manufacturer, where it remains in storage until it is ready to be manufactured. The large amount of tobacco bought for export trade is shipped abroad for stor¬ age. Most of the independent buyers have their tobacco stored in public storage warehouses, where the tobacco is held for resale. In such cases tobacco is usually resold on samples which are taken from the hogsheads of tobacco while in storage. Selling in packed form at public auction. —Tobacco to be sold at public auction in packed form is prepared by the farmers in the same way as tobacco to be sold under the loose-leaf auction system, except that it is packed into hogs¬ heads or tierces containing from 500 to 2,000 pounds and then shipped to sales warehouses. When tobacco is offered for selling, the packages are arranged in rows on the floor of the warehouse in very much the same manner that the bas¬ kets are arranged on the floor of a loose-leaf auction ware¬ house. The packages are then opened up in a manner that will not disturb the form of packing. The tobacco is then sold at public auction as the buyers pass from lot to lot examining and. bidding on the tobacco. When the sale is History and Status of Tobacco Culture. 437 Over the lots are placed back into the same containers and returned to storage, where the tobacco is held for resale or manufacture by the new owner. The closed-bid auction method. —Under the closed-bid auction plan the packages are prepared in the same form as when the tobacco is sold in packed form, but the containers are opened up and sampled when they are received at the warehouse. Samples are made up of from four to nine hands drawn from different parts of the package and are labeled to preserve the identity of the sample and sealed to prevent substitution. At some warehouses these samples are drawn and sealed by per¬ sons who are licensed under the United States ware¬ house act for the purpose. The samples are then dis¬ played by the broker or commission merchant to whom the tobacco was con¬ signed for sale. Each bliver enters on a slip of paper, opposite the number of each sample, the price per pound which he is will¬ ing to give for the lot rep¬ resented by the sample and drops it into a box. At the end of the day the box is opened and the tobacco is sold to the buyer who offers the highest price. The distribution of principal markets for the first-hand sale of leaf tobacco is shown in Figure 22, Farm Selling of tobacco. Possibly next to the auction-sales method of selling to¬ bacco the most general practice is to sell the tobacco on 1 10 farm to buyers who visit producing districts. In most sec¬ tions in which tobacco is thus sold the farmer makes little Fig. 22.—Market centers for first-hand sales of leaf tobacco are located mainly within the principal produc¬ ing districts. Where the loose-leaf auction system of selling prevails there are usually numerous smaller markets, in addition to the laigei market centers. 438 Yearbook of the Department of Agriculture , 1922. attempt to assort his tobacco with respect to quality. As soon as the tobacco is cured, the farmer watches an oppor¬ tunity when lie can find the tobacco in a natural condition, soft enough to be handled without breaking. He then takes the tobacco down from the barns or sheds, strips the leaves from the stalks, and ties them roughly into large hands, which are packed into bundles of approximately 100 pounds each. Usually before the tobacco is taken down from the barns or after it has been placed into bundles it is examined by country buyers and bought, but very often it is bought at a general average price without being examined. The tobacco is then delivered to a place designated by the buyer, where the bundles are opened up, the hands untied, and the tobacco assorted according to the buyer’s grades. The tobacco is then retied into hands and conditioned for storage. After conditioning the tobacco is ordinarily packed into cases averaging about 300 pounds and placed in storage warehouses. After the tobacco has passed through the spring sweat the cases are opened up and sampled, at which time it is offered for sale to the manufacturer. The tobacco is usually sold by the dealers according to the quality of each lot, Avhereas the farmer sells the tobacco unassorted for a gen¬ eral average price. In some instances the tobacco is bought by representatives of the manufacturer direct from the farmer, in which case the manufacturer has the tobacco assorted and packed for storage in the same manner as is ordinarily practiced by the independent country buyer. The contract method of buying is practiced to a large extent in many of the cigar-leaf producing sections. Very often the country buyers purchase a large percentage of the year’s crop before it is harvested, the farmer agreeing to deliver the tobacco after it is produced, cured, and packed into bundles. In all sections in which farm selling is practiced the farmers have practically no conception of tobacco grades, and very few realize the wide variation in the prices of tobacco of different qualities. Their main source of infor¬ mation as to the value of tobacco is the price received by neighbors, which is usually a flat price of so many cents per pound for all qualities of tobacco. The farmer who 439 History and Status of Tobacco Culture. sells his tobacco at an average of 30 cents has very little idea what proportion of it has a market value of from 3 to 5 cents per pound and what from 80 to 90 cents per pound. This is due to the fact that there are no standard grades by which the farmer can be governed. With tobacco varying in price from 1 cent to $2 per pound, it is not practical for a farmer to estimate with any degree of accuracy the market value of his tobacco without the use of some uniform system of grades. Neither is it possible for market quotations to be of much value without standard grades. Cooperative Marketing. Cooperative marketing has followed principally three gen¬ eral lines: Cooperative packing, cooperative sales agencies, and cooperative pooling. C ooperative packing .—In many sections farmers have found that it was impracticable for them to pack their indi¬ vidual crops for storage, due to the fact that they were unable to employ expert assorters and also on account of the small size of the lots of tobacco of a particular quality that would be produced on a single farm. To own and operate cooperative packing houses where the tobacco could be assorted into lots of like qualities by trained men has proved of advantage. In this way the farmeis veie abh to pack complete cases or hogsheads of tobacco of similai quality, whereas in individual packing it would be neces¬ sary in most instances to mix the different qualities in ordei to fill cases of commercial size. 1 he packing houses as a rule have not been altogether successful, due, perhaps, to the fact that they were not able to operate continually from year to year. In years in which there was little demand for tobacco the packing houses had more tobacco than they could conveniently care for, while in other years when the demand and prices were good the farmers would sell their tobacco direct to the dealers and manufacturers without packing, leaving the packing houses idle. Ordinarily no special pi<>- visi'ons were made for the sale of the tobacco which was jointly packed in this manner. Each farmer or group o farmers interested in a particular packing was required to be his own sales agent. 440 Yearbook oj the Department of Agriculture , 192%. Cooperative sales agencies. —In some sections farmers or¬ ganize cooperative sales agencies in connection with their packing houses. These agencies sell the tobacco that is co¬ operatively packed by the farmers. In practically all cases the individual farmer reserves the right to accept or reject the price offered to these agencies, and in most cases the individual farmer is allowed to sell his packing independent of agencies. However, this is limited to some extent in some agencies by requiring the individual producer when selling his tobacco independent of the agency to pay a fee to the agency. In other sections the agencies were formed inde¬ pendent of the cooperative-packing plants. In these sections the individual farmer usually does his own assorting and packing and ships his tobacco to a storage warehouse under consignment to the cooperative-selling agency. The coopera¬ tive agency in this particular instance performs the function of a commission merchant. Cooperative pooling. —The most common form of coopera¬ tive marketing that is practiced is cooperative pooling. Pools have been formed in practically every section of the country in which tobacco is produced. Until recent years the pooling idea has been worked out on a small scale in most sections, but during the last two years several very large pools have been formed. These large cooperative pools have absorbed a number of the smaller pools, and one of the principles on which they are formed is to control a large percentage of the production in certain areas. In organizing a pool of this kind, from 50 to 75 per cent of the tobacco pro¬ duced in a particular section is determined upon as a goal, and the organization is not put into operation until this percentage of the tobacco has been pledged to the pool by individual farmers who sign contracts. In these contracts the farmers agree to sell and deliver their entire crops of tobacco for a certain number of years to the pool, or co¬ operative association, which will sell the tobacco and make returns to the farmers after deducting all operating expenses. These cooperative associations are organized without capital stock. To secure the necessary funds to pay for the operating expenses of the association and to make advances to its mem¬ bers the association borrows money on its notes, which are History and Status of Tobacco Culture. 441 usually secured by warehouse receipts showing the type, form, grade, weight, and condition of the tobacco, and the obligations assumed by the warehouseman. The grade or other class of the tobacco shown on the warehouse receipts, if issued under the United States warehouse act, are usually taken from an official inspection, grade, and weight certificate issued at the conditioning plant. This is done in order to save opening up the tobacco after being received into storage, which is not only expensive but causes considerable damage to the tobacco. The associations found that in many cases the number of public storage houses available was not sufficient to take care of their storage requirements, and it became necessary to organize subsidiary warehousing corporations to perform this function. These corporations are organized as a rule with sufficient capital stock to purchase, own, and operate storage warehouses. In some cases these subsidiary corporations own „ and operate redrying and conditioning plants in connection with the operation of storage warehouses, and in other cases they own and operate assorting and packing houses in which the tobacco is prepared for storage. Under the pooling plan the tobacco is assorted and tied into hands by the individual farmer and delivered to the receiving warehouses of the association at such times and places as it directs. As the tobacco is received into the ware¬ houses of the association it is weighed, placed into baskets, and tagged in the same manner as in the case of the auction system, but instead of selling it at auction the baskets are graded by expert graders who are employed by the associa¬ tion. Each farmer is given a statement showing the grades of the tobacco delivered to the association with the weight of each grade. At the same time an advance payment is made on the tobacco delivered. The amount of this advance is governed by the association and proportioned accoiding to "the particular quantity of each grade delivered to the association. The association has full jurisdiction over the tobacco after it has been received and may condition, warehouse, or sell it at will. A certain percentage of the tobacco as a iule is sold direct to dealers and manufacturers from the loose-leaf receiving floors of the association. The remainder oi the 442 Yearbook of the Department of Agriculture , 1922. tobacco is shipped by the association to conditioning plants, where it is conditioned and packed into hogsheads or cases for storage. As the tobacco is packed it is inspected, re¬ graded, sampled, and weighed by competent and reliable per¬ sons, many of whom are licensed for the purpose under the United States warehouse act. It is then delivered to public storage houses, many of which are also licensed under the same law. Prices of Tobacco. Under the systems used in marketing tobacco, what may be called a wholesale market for unmanufactured tobacco PRICES OF LEADING TYPES OF TOBACCO, 1909-1921. CENTS Fig. 23. —In recent years the bright flue-cured type has maintained the highest price level because of increased demand for this type in the domestic manu¬ facture of cigarettes and in export trade. The lowest price level is shown by the dark fire-cured and air-cured types, the greater portion of which is exported. has not been developed as has been for other commodities. As a rule, when tobacco is sold in large quantities sale is effected through private methods, and limited data are avail¬ able as to prices received. The only prices are the general prices received by farmers. These are based as a rule upon the average price received for all qualities of tobacco. It has not been practicable to compile prices by grades, owing to the absence of any uniform system of grading. In secur¬ ing data as to the average prices by types it has been neces¬ sary to follow the line of geographical division rather than of type characteristics. 443 History cmd Status of Tobacco Culture. In the graph showing tobacco prices by principal types (Fig. 23) it has been necessary to group all tobacco into four divisions: First, the cigar types cover wrapper, binder, and filler tobacco of Wisconsin, Ohio, Georgia, Florida, Penn¬ sylvania, New York, and the Connecticut Valley, on which the farm prices range from 3 cents to $4 per pound; second, the Burley type covers all grades of Burley tobacco grown in Indiana, Ohio, West Virginia, Kentucky, and Tennessee, on which the price ranges from 14 cents to $1 per pound; AVERAGE PRICE OF TOBACCO, UNITED STATES, 1863-1921. Fig. 24—From 18(55 to 1879 there was a fairly steady decline in average farm price, followed by a somewhat higher price level, for the most pait, up to the outbreak of the World War. The abnormally high price level of 1919 was due mainly to the extraordinarily high price of the bright flue-cured type for that year. third, the flue-cured type covers the “ old belt ” of Virginia and North Carolina and the “ new belt ” of North Carolina, South Carolina, and Georgia, on which the price of the various qualities range from b| cents to $1.25 per pound, and, fourth, the dark-fired and air-cured types cover all grades of Maryland and eastern Ohio export, Virginia dark- fired and sun-cured, dark-fired types of Kentucky and Ten¬ nessee, and the one-sucker and air-cured types of Indiana, Kentucky, and Tennessee, on which the prices range from 1 to 65 cents per pound. The following table shows the average farm prices for all types and grades, as far as records are obtainable, from 1618 to 1853: 444 Yearbook of the Department of Agriculture , 1922. The accompanying graph (Fig. 24) shows the prices from 1863 to 1921. The World War caused the abnormally high average farm price of 39 cents per pound in the year 1919, which had not been previously equaled with the exception of the English Government prices of 1618, 1619, and 1620. The general price for half a century, from 1866 to 1915, was 8.5 cents per pound. During the five years from 1917 to 1921 the general average price was 26.4 cents per pound. Average farm price of tobacco in the United States (cents per pound). Year. Price. Year. Price. Year. Price. Year. Price. 1618. 54. 75 1684. 4.12 1730. 1.52 1765. 2.03 1619. 54.75 1688. 3.08 1735. 4.2 1771. 4.56 1620. 54. 75 1695. 3.09 1743. 3.04 1780. 3.04 1639. 6.08 1697. 3.09 1744. 4.06 1790. 3.4 1640. 6.08 1698. 3.62 1762. 4. 56 1847. 5.0 1647. 6. 08 1699. 3.13 1763. 4.56 1849. 7.0 1664. 3.09 1703. 2.03 1764. 4.06 1853. 10.0 Financing the Marketing of Tobacco. Tobacco is not suitable for manufacture until it has aged properly, which ordinarily means that it must be in storage from two to three years. In recent years the tendency has been to shorten the aging period by artificial sweating or by using a larger percentage of new tobacco in the blends, which are ordinarily made up of tobacco 1, 2, and 3 years old. In the manufacture of most tobacco products the tobacco jised is, on an average, 18 months old. This makes it necessary for the trade to carry large stocks of tobacco on hand. The burden of carrying these stocks has been, for the most part, placed upon the dealers and manufacturers, as the farmer usually disposes of his tobacco as soon as pos¬ sible after it has been produced. In the cigar-leaf pro¬ ducing States and in Maryland some farmers have held their tobacco on the farms or in public storage warehouses for considerable periods awaiting more favorable markets. When tobacco is placed in a warehouse a warehouse re¬ ceipt is issued therefor. This receipt is frequently used by the depositor as collateral for a loan. Comparatively few History and Status of Tobacco Culture . 445 farmers have used warehouse receipts because of the quite general practice on the part of farmers of selling their product as soon as possible after it is harvested. The manu¬ facturer and dealer, on the other hand, are quite familiar with the use of these receipts. With the development in the past two years in cooperative tobacco marketing organizations, the use of the warehouse receipt on the part of those who control the tobacco before it passes into the hands of dealers and manufacturers has FEDERAL BONDED WAREHOUSE FOR STORING TOBACCO. Fig. 25. —When tobacco is placed in a warehouse, licensed and bonded under the United States warehouse act, a negotiable warehouse receipt of pre¬ scribed form is issued therefor. This receipt is generally acceptable as collateral for loan purposes. become quite general. These associations, almost without exception, have placed their tobacco in warehouses licensed under the United States warehouse act. They have found receipts issued under this act to constitute a high type of collateral, which is acceptable to the War b inance Corpora¬ tion and generally acceptable to the leading banks as col lateral for loan purposes. The value of these receipts is apparent from a study of the following copy of the fmm in use; Form T-6 __ TOBACCO 446 Yearbook of the Department of Agriculture , 1922 < * HistoTy and Status of Tobacco Culture . 447 Back of W. A. Form T-6. STATEMENT OF OWNERSHIP AND ENCUMBRANCES. Each of the undersigned hereby certifies on the date stated that he is the owner of the tobacco covered by this receipt and that, other than the warehouseman’s lien evidenced on the face of this receipt and the following, there are no liens, mortgages, or other encum¬ brances on said tobacco: _, 192— (Signed)- _192— (Signed)- INDORSEMENTS. Upon demand, deliver the tobacco covered by this receipt to _or his order. __, 192— (Signed)- Upon demand, deliver the tobacco covered by this receipt to _ or his order. __ 192— (Signed)- Received delivery of the tobacco covered by this receipt. __ 192— (Signed --— 448 Yearbook of the Department of Agriculture , 1922. » In Figure 26 are shown the locations of United States licensed warehouses and the points at which are functioning inspectors, graders, and weighers licensed under this act in connection with these licensed warehouses. Exports and Imports. Tobacco was the first article of export of the colonies, and 20,000 pounds were sent to England from Jamestown in 1618. Exports had reached 100,000,000 pounds just prior Fig. 26.—Licensed storage warehouses, and inspectors, graders, and weighers are now (1922) to be found in most of the principal tobacco-growing sec¬ tions, thus affording approved facilities for placing tobacco in storage when growers do not wish to immediately sell their crop. to the Revolutionary War, and by 1870 the average was in excess of 200,000,000 pounds. In the last three decades there has been a fairly uniform increase in average exports of leaf tobacco from 250,000,000 pounds in 1891 to 460,000,000 pounds for the 10-year period ending with 1921. At the close of the World War exports temporarily Were in excess of 750,000,000 pounds. Exports of manufactured tobacco, though considerable, normally aggregate less than one-tenth of the leaf exports, the principal items being cigarettes, plug, and smoking tobacco. During and immediately following the World War, however, exports of cigarettes were greatly increased, the maximum of about 48,000,000 pounds having been reached in 1919. The United Kingdom is much the history a/nd Status of Tobacco Culture . 449 largest purchaser of American tobacco, taking more than a third of the total exports, while France, Italy, and Germany each take about 10 per cent, the Netherlands about 6 per cent, Spain 5 per cent, Australia and Canada each 4 per cent, Belgium 3 per cent, and China 2 to 5 per cent. Exports to China have increased decidedly in recent years. The increase in exports of leaf tobacco have not kept pace with increased production. Originally the bulk of the crop was exported, and in 1790 over 75 per cent of the total went abroad, while by the middle of the last century the fraction exported was two-thirds. At the close of the century exports averaged only about 38 per cent of the pro¬ duction, but since that time there has been no further permanent decline in the portion of the crop exported. Statistics of exports by types are not available, and only estimates can be made. It is well known that the dark fire-cured and air-cured types and the bright flue-cured furnish the bulk of leaf exports. The quantity of cigar leaf sent abroad is relatively unimportant, and perhaps not more than 10 to 15 per cent of the Burley crop is exported. It is estimated that about 75 per cent of the combined dark fire-cured and air-ci\red types goes to foreign countries. Since the production of these types is not increasing much, it is apparent that the increased exports of leaf are being derived largely from the bright flue-cured cigarette type. This indicates a foreign as well as a domestic increase in demand for the cigarette. Available information indicates that somewhat more than half the production of flue-cured leaf is exported. Imports of leaf tobacco averaged 5,000,000 pounds at the outbreak of the Civil War and at the outbreak of the World War averaged about 60,000,000 pounds, or somewhat more than 14 per cent of the exports. .Three principal types are imported, namely, cigar-wrapper leal liom Su¬ matra and Java, cigar filler and wrapper from Cuba, and cigarette tobaccos from Turkey and Greece. Considerable quantities of leaf have been imported from Cuba for a century, and Cuban tobacco largely formed the basis of de¬ velopment of the great cigar-manufacturing industry. For the period 1891-1895 imports from Cuba averaged 20,000,000 452 Yearbook of the Department of Agriculture , 1922. graphically the distribution of leaf in the manufacture of cigars, cigarettes, and tobacco and snuff. The figures in¬ clude most of the imported leaf, which constitutes 5 to 10 per cent of the total leaf consumed in manufacture. So far as concerns comparison with production on the basis of farm weight, however, these imports are fully offset by the shrink¬ age in weight which tobacco undergoes during the aging process, which amounts on the average to about 10 per cent. With an average total consumption of leaf amounting to about 370,000,000 pounds for the five-year period 1897-1901, 26 per cent of this total was used for the manufacture of cigars, 4 per cent for cigarettes, and 70 per cent for tobacco and snuff. For the period 1907-1911 the total leaf consumed averaged 507,000,000 pounds, with cigars accounting for 28 per cent, cigarettes 5.2 per cent, and snuff and tobacco 66.8 per cent. For the five years ending in 1921 the total leaf consumed averaged 672,000,000 pounds, of which 25 per cent was used for cigars, 26.3 per cent for cigarettes, and 48.7 per cent for tobacco and snuff. The remarkable increase in quantity of leaf used for manufacture of cigarettes, as well as the accelerating rate of this increase, which began after a period of decline from 1897 to 1902, are seen in Figure 27. TREND IN CONSUMPTION OF LEAF TOBACCO: CIGARS, CIGARETTES, TOBACCO, AND SNUFF, 1897-1921. POUNDS MILLIONS 700 CIGARS- TOBACCO AND SNUFF CIGARETTES- I 1 m II v,|v & & 3 •V' -V. §♦: ,V A V «>. §•; ¥ 8 :: S' V- ♦> Iv $ § & & & >:* >:• •: : : >: :* III .*» •*•. .V. * >y ,v vv * SAW him lilili i PH i ill S ■* I >: I '*«*, »V I vt* I *j» mim iy I I:* Nc00)O*“0jr0'tmU3NC0