Carolina Farm Bureau Federation. Do you have some others here with you? Mr. RUSSELL. Not officially. There are others here, but not officially. Mr. ABBITT. Mighty pleased to have you here. Appreciate your taking the time and trouble to come and give us the benefit of your views. STATEMENT OF CHARLES E. RUSSELL, NORTH CAROLINA FARM BUREAU FEDERATION Mr. RUSSELL. Mr. Chairman, members of the committee, we appreciate very deeply this opportunity to appear. I am Charles Russell with the Farm Bureau. I express Mr. Mangum's regrets. Mr. ABBITT. We missed him. We looked forward to having him here. Mr. RUSSELL. He said to send you and the rest of the committee members his best regards. In April of this year, the board of directors of the North Carolina Farm Bureau discussed the matter of selling Flue-cured tobacco allotments and after careful consideration, took a position in opposition to the selling of tobacco allotments. We do, however, support provisions for long term lease arrangements for tobacco and believe it would be a much better solution to the problems pointed up by those who wish to use selling allotments as the solution to these problems. Three years ago, Flue-cured tobacco farmers voted to make the first major change in the tobacco marketing program in many years, going from a strictly acreage program to an acreage-poundage program. This new program has worked extremely well and just last month, by an overwhelming vote of 96.5 percent, tobacco farmers voted to continue this program for another 3 years. With this type of support, we do not believe it would be wise to make another major change this early, and certainly not, without going back to the tobacco farmers and giving them an opportunity to vote on such a major change as this. Until farmers are given an opportunity to vote on a change such as this, later on, I might add, we believe that it would be in the best interest of the tobacco producers to just have long term lease arrange ments. As all of us well know, we have historically contended that the tobacco allotments always go with the farm and are not separate. When acreage allotments were first started, they were based on the individual farm production and have continued so until the present acreage-poundage program, and even that is based primarily on the individual farm's past production history. In our opinion, if tobacco allotments were put up for sale, the first few allotments sold would bring a good price and after that, the value of allotments would drop considerably, as well as the value of the farms with allotments. Even though several of the proposals primarily call for the sale of allotments only within county lines, pressure would build in a very short period of time to sell allotments across county lines and then across State lines, and it is important that we realize that many of the people who are now supporting the sale of allotments within county lines are strictly opposed to the sale across county and State lines. Therefore, Mr. Chairman and members of the subcommittee, we would hope that after your careful consideration on this matter, you would, in your wisdom, see fit to take no action on selling allotments but would recommend provisions for long-term lease arrangements. Thank you. Mr. ABBITT. Thank you very much, Mr. Russell, for that statement, Again, we want to express our appreciation for you coming here today. Mr. Wampler? Mr. WAMPLER. Mr. Russell, do you consider 5 years as being a reasonable long-term lease? Mr. RUSSELL. This is the most often mentioned and as far as the board of directors is concerned, this would work fine. Mr. ABBITT. Mr. McMillan? Mr. MCMILLAN. I have no questions. Mr. STUBBLEFIELD. No questions. Mr. ABBITT. Mr. Jones? Mr. JONES. I want to commend the gentleman for a very fine statement and welcome him to the committee and the fine organization he represents. I send my personal regards to Mr. Mangum, your president. Has your organization taken a stand with regard to leasing, as to leasing across county lines, perhaps to the adjoining counties? Mr. RUSSELL. Mr. Jones, at the meeting at which this was discussed, it was primarily talked in terms within county lines. However, there was no specific position taken on this. In other words, I think they would be glad to give consideration to contiguous county lines. Mr. JONES. You lease within counties now? Mr. Russell. Right, but I was talking about the long-term lease, up to probably a 5-year lease. Mr. JONES. Thank you. Mr. RUSSELL. Thank you, Mr. Chairman. Mr. ABBITT. We have Mr. Jimmy C. Greene of Clarkton, N.C. Mr. Greene, do you have someone with you? Mr. W. D. Linkshaw, Lumberton, N.Č. Mr. W. F. Marshall, Danbury, N.C. Anybody with you, Mr. Marshall? Mr. MARSHALL. I thought there was going to be someone with me, but I do not see them. Mr. ABBITT. That is all right. I just thought we would invite them up here with you. We are indeed pleased to have you here. We want to hear from you now. STATEMENT OF W. F. MARSHALL, DANBURY, N.C. Mr. MARSHALL. Mr. Chairman, gentlemen of the committee, we appreciate the opportunity of expressing some views on this bill or this proposed legislation. My name is William Marshall. I am from Stokes County. I live in Warren Cove rather than Danbury. I am cochairman of the Old Belt Tobacco Farmers. We are having quite a fight on the opening of the market. It seems like we are losing, too. Anyway, I do not, and I do not think the majority of the people in our county, want to sell allotments. We certainly would not go alongwe certainly would not want to sell it outside of the county. Mr. ABBITT. Which is your county, just for the record? Mr. MARSHALL. Stokes County. We certainly would not want to sell it outside of the county. And I am afraid if we let down the bar, the first toprail, the fence will be torn down and it will go all to pieces. We think a lot of our tobacco program. This leasing business just about takes care of that this whole bill is trying to do, and we talk about long-term leases. I think 3 years would be ample in leasing, calling it a long-term leasing of tobacco. We certainly hope that you will not promiscuously allow us to sell tobacco acreage across county lines just anywhere. As the last resort and reluctantly we would go along with selling tobacco within the county, tobacco acreage within the county, but not outside the county. Mr. ABBITT. But, you would prefer as I understand it, not to have any sales. Mr. MARSHALL. That is exactly right. I have come to that conclusion and I think the majority of our people in the county, and we think a 3-year lease would be long term. Mr. ABBITT. That is mighty nice to have your statement and I appreciate it. Mr. Wampler? Mr. WAMPLER. No questions. Mr. MCMILLAN. No questions. Mr. JONES. One question. Mr. Marshall, would you have any objections to leasing across county lines? Mr. MARSHALL. We do. Mr. JONES. For a 3-year period? Mr. MARSHALL. We do. Mr. JONES. Adjoining counties? Mr. MARSHALL. We do not think they should be leased across county lines. Mr. JONES. On what do you base that? Mr. MARSHALL. Well, you have got to maintain or try to maintain your economy in your county, and we think that this tobacco should be grown in the county that it is allotted to and not moved out. If you move it out, you are doing by leasing outside the county just about what you are going to do if you sell it. We need it in the county for economic purposes. Mr. ABBITT. Thank you very much. Mr. MARSHALL. Thank you, gentlemen. Mr. Whitford Hill, Pink Hill, N.C. Come around, Mr. Hill. We will be glad to hear you at this time. Mr. ABBITT. Mr. Jones? Mr. JONES. Mr. Chairman, Mr. Hill is a citizen of Lenoir County, N.C., former county commissioner and district commissioner. And í am delighted and happy to welcome him here before this committee. STATEMENT OF WHITFORD HILL OF PINK HILL, N.C. Mr. HILL. Thank you. I appreciate the opportunity, Mr. Chairman and members of the committee. I am just a tobacco farmer as of now. I live in Lenoir County, Pink Hill. I do favor a long-term lease within a county and adjoining counties. I see it on a 5-year basis. I think a sale of allotments within a county has some merit based on certain conditions. If industry should come in to purchase land, I think some consideration should be given with the sale of tobacco within the county or a farm with a small lot, one-half acre or there abouts, some consideration should be given with opportunity to sell maybe within the county. As I say, I have no prepared statement, but I am highly in favor of an opportunity to lease from adjoining counties. Mr. ABBITT. Well, that is mighty nice of you to come here and give us this information pertaining to your views. I gather from what you are saying that if a man is going to lose part of his farm for industry that you would think maybe it would be proper for him to sell his allotment within the county? Mr. HILL. Right. Mr. ABBITT. Or if eminent domain took over? Mr. HILL. Right. Mr. ABBITT. But, so far as the chairman is concerned, regular average allotments you would oppose. Mr. HILL. Right. Mr. ABBITT. Any questions? Mr. HILL. In my particular county, in my particular area, we feel very, very strong about our tobacco program. In fact, it is our economic salvation actually. We feel very strong about the success of it and we are grateful for it and hope a continuation can be as successful as the history of it in the past. Mr. ABBITT. Mr. McMillan. Mr MCMILLAN. No questions. Mr. JONES. No questions. Mr ABBITT. Thank you very much. Nice of you to come up here. Mr. Charles R. Reeves, Garland, N.C. And you have someone with you, Mr. Reeves? Mr. REEVES. I have Mr. John Lrkamy, Mr. Chairman, who is Southeastern U.S. area director of the association that I represent this morning. Mr. ABBITT. Be glad to have both of you. STATEMENT OF CHARLES R. REEVES, PRESIDENT, NORTH CAROLINA ASSOCIATION OF FARMER ELECTED COMMITTEEMEN; ACCOMPANIED BY MR. JOHN LRKAMY, SOUTHEASTERN U.S. AREA DIRECTOR OF THE ASSOCIATION Mr. REEVES. My name is Charles R. Reeves, Garland, N.C., Sampson County. I am a tobacco farmer and also president of the North Carolina Association of Farmer Elected Committeemen for whom I appear today. The North Carolina Association of Farmer Elected Committeemen is a newly chartered organization in North Carolina with over 2,200 members. The membership is made up entirely of farmers elected to serve as community and county ASC committeemen; and has a potential of 10,000 members. On August 7, 1967, the executive committee, which represents all the counties in North Carolina, met to discuss and make recommendations to the House Subcommittee on pending tobacco legislation. The following recommendations were made: I. That subsection (a) of section 318 of the Agricultural Adjustment Act of 1938 be amended as follows: a. To permit the owner and operator of any farm for which a Flue-cured acreage-poundage quota is established under this act to sell or lease all or any part or the right to all or any part of such allotment or quota to any other owner or operator of a farm within the same county for transfer to such farm. b. That the owner of a farm be permitted to transfer all or any part of such allotment or quota to any other farm owned or controlled by him within the same county. These recommendations are made with the following reservations: 1. Maintain the family-size farm. However, we all recognize that the family-size farm is growing larger in order to maintain desirable income and at same time purchase needed equipment. 2. Prevent the possibility of speculation. a. No owner or operator be permitted to purchase more than 25,000 pounds of quota within a 3-year period. b. No owner or operator be permitted to sell any amount of quota within a 3-year period from date of purchase beginning with the 1968 crop. c. That the county ASC committee approve and consider market value to their satisfaction that the sale is fair and equitable. II. We recommend that the owner or operator of any farm be permitted to sell within the county any portion of his poundage quota during any one marketing season. III. We recommend that a transfer of allotments or quota for both burley and Flue-cured tobacco by lease be made to a farm in another county if this county is contiguous to the county from which the transfer is made. IV. We recommend that lease and transfer be made for such term of years, not to exceed 3, as the parties thereto agree, pursuant to present regulations governing leases under the 1-year provision. V. We recommend and endorse the proposal previously recommended by the North Carolina Grange that the Agricultural Act of 1938, as amended, provide for the sale of pooled allotments by the owner to any farmowner in any county within the State in which they are pooled. Mr. Chairman and members of this committee, I appreciate the opportunity of appearing before you representing the North Carolina Association of Farmer Elected Committeemen. Mr. ABBITT. Mr. Reeves, I appreciate very much your giving us these suggestions. I will assure you that the committee is going to consider them very carefully. Did you want to add something to Mr. Reeves' statement? Mr. LRKAMY. No, sir, Mr. Chairman. I just came as a farmer and representative of this organization to wholeheartedly back up my friend's testimony. Mr. ABBITT. Any questions? Mr. JONES. I have one question, Mr. Reeves. I want to direct your attention to page 2, item 2, recommendation of your organization. You recommend that the owner or operator of any farm be permitted to sell within the county any portion of his poundage quota during any one marketing season. Do I take it the recommendation is for å temporary sale for that 1 year only? Mr. REEVES. For that 1 year's quota. Mr. JONES. You are further to infer perhaps this is being done to legalize that which is now being illegally done in some sections? Mr. REEVES. To some extent. |