. Univ. of Florida
.... .... .
UNITED STATES EPAR7SMNT OF AGRICULTURE
Bureau of Agricultural Economics
SfCTIoN, MARKET NEWS, AND DEMONSTRATION SERVICES
By t11 W. ITaylor, Marketing Specialist
I DOUMNTS T
Ef u 1m
hspecotion of tobacco according to standard grades as an aidto growers
3* arwoting their crop was inaugurated in 1929. This service is now about
P years old, bat the work has been conducted on such a limited scale that most
*bnn g4pwes are still unfamiliar with what the service is, how it is con-
S I, eat A hebw it can be of dollars-and-cents value to them.
Reasons for the inspection and market news services are readily under-
t..1Wtl every farmer who has sold a split lot of tobacco for two widely
Sbwat"=IlM,,:, pltoes, or baa taken in a basket and resold it on the same floor
III OsM by twice or three times the first price. Every tobacco grower
i' :, .10 there y 2 mach uncertainty about the price any basket of tobacco will
WI .& Ead tint there I1 a wide range in the prices paid for tobaccos of the
"M i q0 tyoI' He knows that often he has lost money because he was on the
,= = ..... j Of that price rage.
I. m...i. bfection and market news services have been developed to provide a
S "iSearing stick ftor quality and price in order that growers may protect
t 1Mives against loss in the sale of their tobacco.
Th inspection service undertakes the inspection and certification of
the PSde of tobacco, before sale, at auction markets. Packed tobacco is
also inspectd and the grade is certified upon application by interested
Te Uatted States Depoartment of Agriculture, cooperatW with State
eWNgoa, bas. made tobacco inspection service and tobacco price reports avail-
able to pr*ee at a few markets, to determine whether by Informing growers as
to the grae and acrient market price of tobacco, basket by basket, the auction-
market sutem would be Improved and thu wide r.npe in prices paid to growers
for the Sa p'cde of tobacco would be reduced.
Its Val as an aid to growers in marketing tobacco has been fully
dm sktatS.e Althomug prior to 1936 a small fee was charged for tobacco
inspection, during the years 1931 to 1935, inclusive, from 108 million to 186
million pounds of ftawr' tobacco were sold annually under standard grndes
on auction sAlta. The Tobacco Inspection Act now mftkes it possible to
xpad the service aad make It available to growers without charge. The
Act provides or tree distinct services demonstration, inspection and
The. demonstration service is educational. It acquaints fanrs with
the objects of inspection and market -news and how these services can best be
us-Bd, and instructs them in the better preparation of tobacco for market so
that it may sell at the highest price consistent with quality.
This work is accomplished through practical demonstrations on tOte
and through farmers' meetings. In cooperation with Departments of Voatlofal
Education, agricultural teachers are given special training So that tobsas
mark.-ting may be taught in rural high schools. Agricultural colleges, OSety
agents, vocational teachers of agriculture, Chambrsa of Commerce, and other
civic and farm organizations further the service.
Standard Grades fur Flue-cured Tobacco
That the operations of the tobacco inspection service may be under-
stood, it is necessary to have some knowledge of the system of grades used
in classifying tobacco according to Federal standards. These grades are
not difficult to understand.
Grades for tobacco are determined by the simple process of division
and subdivision until a point is reached at which further subdivision is
neither essential nor desirable. Each final subdivision is called a grate.
The first division is made on the basis of distinct characteristics of to-
bacco caused by varieties, soils, climate, and methods of cultivation,
harvesting, and curing. Each major division, based on distinct characteristics
caused by theso conditions, is called a class (Sec Brief of Classifieation
of Lt-f Tobacco issued by the Bureau cf Agricultural Economics pd. '& fig.l)
Fach class is then subdivided into types. A type is defined as a
division of t class of tobacco having certain common chbrrncteristics which
permit its bcing divided into a number of rrlnted grades. Tobacco that has
the s._me characteristics and corresponding qualities, colors, and lengths
is treated as a type. Class'3s and types are nccssarily btsed on rather
Thu, ntxt subdivision breaks down each typs into groups, or groups of
gr-.d:s. In thtQ case of those types usually sold .t auction, the group dirti-
;Io..:3 !o.rn clos'aly r'ldntud tL' th-E position of the lenyus on the plant. The
trad, t-rn3 for ,:uch groug, exc',pt ,Wr'.pp.rs, nm.y vary with each class of to-
b'.cco '-n. :cm.,tia ,3s trhr typ-s u'f nr. class.
It will b- s,3-rn by r,.f-rrinp to Figure 2 that the normal groups for
F'i -cir.d t.b- cc.; nr,.- Luir, Cutt'-rs, rnd Leaf. In crops of superior quality
r -r -th RTrcIp kn-mn nas 3Wr-iuppra is selected. WrL.ppurs may be from either the
L, ?f c:r t*h,' CJtti.r e.rtup.i. In Flus-cur-d tobacco must of the Wrappers ape
;.r. duc. In c, rtr.in p':rts of the. Old Beit. In thtsn areas the plants are
r :.' .r.liy tvp,'d lkw r id th crop is usur.lly harvested by cutting the whole
.:'.r4 rth.-r th'tn by priming the l,'ves r.s is done in other Flue-cured dis-
r"i' wh r" rTir.rs L'A L t. th" production of tobacco suitable for looking
BRIEF OF CLASSIFICATION OF LEAF TOBACCO
(C m ehm and typo C Scbe)
ClUEB I-fLU-CU D TYPE
Vypm II: Tha ty p ao n erd aboae. eosammly known ae
ON BDit Fhee-med. Wsem Dsmuist Bright or P-awd. Bright
TYbh la, Wae Norh Coluca. Bight. Middle Bnlt Flu-
Med. w -eld itf Flae-cued; ad produced principally in
Nfla dimut n V ig Tigna and North Crau I.i
TIP 13: Thai tym of SuSeed tUa6e0 commonly knoar -a
- um filmed, New Bet of North Carolina Flee-cued,
BooAl. Isie Brgt% cc BMsem Carca B right; and produced
|i N, tt In heei soa dia of North Carolia north so thed
Type is: That typM f Las-red sobacc commonly known as
Sam"e"m pikcued, southeeimisn BF1ht, soxth aolina Pluse-
-redr or Now Bell of South Carolina and Boatheaetern North
corallis mnd pIadned I primipd y in the coastal setios of South
Chmsla sd the sothemern counties o North Carolina, south of
Tym 14: Tla typ of les-cured tobacco commonly known a
-eths Fls-aud. Southern Bright, Soathern District Bright,
New &At f Georgia and Florida Florida Bright, Alabama Bright,
or Geau Fine-cured; Bad produced principally In the southern
sw ms~ of Goegnui and to s extantl in Florida. Alabama, ancl
CLAM 3-WIRB-CUNRED TYPES
TMp 21 TbnM ty of ie-wed tobacco commonly known -
alses FlNee-und, Viginia FNea-ured, Smoked, or Dark Fired,
or Ditt vItonk; ad produced priacpally In the Piedmont and
Mountana esmotcns of Viy wa
Tye U: ThA type of Sn-ieued tobacco commonly known -e
Wmalos D nkeeteared, Clartsva HoplsevUI@6 said Spring-
Foid tend, or Nrh-Srd, or Kmtney-T e Broadleaf;
ad pIm uDu prinpely in a action la a tego Tnee Rir.
n a I fletjr and ImasI. Thm
Tr-P 3: That type 4 Sre-nd tobacco commonly known a
Wamin fe-eiid. N ltelid and Paduh d Smok-ed or Wasetem
-S Dark; ad pi-ePdl iplly iD n a motion 1 btwma the
Toumes (ikes, nd M W River in western entuocky and
a m Tniroiai
Tye U: TIat type of Sire-med tobacco commonly known e
Nash.er. FB-e-, HMadeeasa [huh-d d or Smakoke the Stem-
sof Dadms, or Mase Dut or DN u-&red, finding the
betaS .the, Owmen ditic; and produced prince ally In,
Go Reaine-ss dWgi of ocftmkD.
Type 31." %0 tIM o air-mod tobacco enmacely know an
Brley. Derby Ak-md, Red Barly, White Dasy. or ULg
Abed= of K~inflt and pIodne prhncipally In mNtral and
Northeasn KEhm esansen Ot And Indians. WU#Mm W"t
Yr@, Maud amid ..--in Tmme, and sa f Virgii,
NutsI CanueW Miem, said Antenaes
Type 3: ike type of afrd tobacco Grn-many known -s
Sbeakers Wer~t Sebems, Mauylaod Ai-r-ed, or Marylan
Esport; -md isdn I~ pI Iipy in mookeor Maryhamd.
Type 1111 TWO type of k-"in tebace mal 01 on c
mmke. Onmmder Ahmired Kmamks-Tmme Onvanks.
a- d -mNeumm tm Ak-ad Onetms. Including th
Upnp (bN*0 ; d Gt w I and 1 prmiplmy
Is Wmift 1me =Ah a Nay. and swentern
Type 8S1 TINA typ Saed sisswi esh eunmcsy known cc
trmi Res. Gives ve Aks-samd, Rada Diet Airedo
Dot Aiiredwi of Oumdwen w ohr owaseur Dishle Ah-cwnd;
mid producnd I t I n 1111esa Gemes ier 35 i eselin of Eantuy,
In both the Oum6 and Babrece dim
Trpe NW: Tbat type Sf ak-adoe or ams taecso eaimoml
boaerscc Tbrlie Sonanmo Ihhlei 8mend Air-maui, or Nurt
Yblpi Ak-4mad; iad p-S I poldoly In the invted saee
S Vbhi. auth Sf the eamms SMm
CLASS 6-CIGAR FILLER TYPES
Typ 41: That type of cigar-lof tobacco commonly known a
Pnsmylvau i Seadlal. Pennsylvania Broadleaf, Penanylvanla Filer
Type, or Lanactr and York County Filer Type; and produced
principally In Lananer County, Pa.. and the adjoining oounte.
Type 42: That type of cigar-saf tobacco commonly known -
Goboardt, Ohio Seedle or Ohio Broadlea-; and produced prinl-
pally In the Miami Valley motion of Ohio and xteIding Into
Ty 43. That type of clgar-led tabaeco oImonly known a
imnm,. Ohio 3immar, or Zminer Spanish; and produced prinal-
pIlly In the Muim Valley mUtion of Ohio and extending Into
Type 44: That type of cigar-4f tobacco commonly known -
Dutch, Shoestring Duteh, or Little Dutch; and produced princlpally
In the Miaml Valley section of Ohio.
Type 4: That type of cigr-lef tobacco commonly known as
Georgia and Florida Sun-grown Cig4r-ed, or the Georgtia and
Florid Filler Type; and produced principally In southwestern
Georgia and the antral part of northern Florida.
Type 16: That type of cigar-leaf tobacco commonly known -
Puerto RiJean BSun-grown or the Puerto Rican Filler Type, Including
Primed (Deabojado) and Stalk-cut (Manojo); and produced in
CLASS S-CIGAR RBINDER TYPES
Typei 51: That type of cigar-leaf tobacco commonly known ,i
Connoecticut Broadleaf or Connecticut Valley Broadleaf; and pro-
ducled principally In the Connecticut Valley motions of Connecticut
Type U : That type of cigar-leaf tobacco commonly known a
Connecticut Valley Havana Seed, Connecticut Havana Seed, Primed
Havana, or Stalk-out Havana; and produced principally In the
Connecticut Valley ections of ConnectiUcut and Masachusette.
Type 52: That type of cigar-leaf tobacco eommonuly known as
York State Tobaooo, Havana Seed of New York, or the Binder
Type of New York and Pennsylvania; and produced principally In
the Bif Flats and Onondaga ectloun of New York State, and
extending Into Peansylvanla.
Type 54: That type of cigar-leaf tobacco commonly known am
Southern Wisconmin Cigar Leaf or Southern Wisconsin Binder
Type; and produced principally aouth and east of the Wislonasin
River, and extending Into Illinoisa.
Type M: That type of cigar-leaf tobacco commonly known a
Northern Wisconsin Cigar Leaf, or Northern Wisconsin Binder
Type; and produced principally north anueMst of the Wisconsin
River and to iome extent in MlUneot 1
CLASS S-CIGAR WRAPPER TYPES
Type 61: That type of cigar-leaf tobacco commonly known a
Northern Shade. Connecticut Valley Shade-srown, or Shade of
Connectimut; and produced principally In the Connecticut Valley
motions of Connecticut and Masaehusette.
Type 42: That type of cigar-leaf tobacco commonly known a
Southern Shade, Georgia and Florida Shade-grown, or Shade of
corgia end Florida; and produced principally in eouthw-er
Georgia and In the netral part of northern Florida.
MU1CMIJANEOBU TYPES OP DMZTIC TOBACCO
Type 71: Ohio nusured and Pire-surd (known a- Fases
Type 72: Louisiana Pnrique.
All other AHdom ntl types of tobacco not otherwise
Type SI: Caba. (Havana a
9Typ 02: Sumat and JavaI
Type i: Philippine Islands 'Manllasj
TypeM: Other VrWW1Hct-rw CInr-Lef
Type M: ForelB-gorwri ngartiL tobae. I Tuu rLb atiJ other p
FLtI CLRZtD TrIfs iRIE CLt-iri TYPES
03W. C+&I .. ..
uMTD STATES itnrumr
or4" E cw
aim.. w asa
.1- IT? -3-- -
TYPC CLASS 0
CIOAIR-WI "A R TYPES
,Y ClASf S
[Vw, r .; -
B --- ft-P-
an n 0.t wm4 4&A a14
FLUE-CURED TOBACCO PLANT
U. & KDEPARTMENT OF AMRCULTURE NEI 31141 BUREAUU OFCAGRJCULTURAL ECONOMICI
FIGURE 2.- APPROXIMATE STALK POSITIONS Or THE VARIOUS
GROUPS OF GRADES.
From Figure 2, it will be noted tha.t the Lug group nornully consists
of those leaves at the bottom of tht; plant. Lugs are usually thin to medium
in body and low in oil, and show a reterial amount of injury characteristic of
leaves grown near the ground. Leaves of this group aru shorter than other
leaves on the plant except the top leaves. They usually have dull finish amd
lack th- lively color characteristic of Cutters, and Choice and Fine quality
Leaf. Lugs are mnde up of ripe, grainy lower leaves. The leaves at the very
bottom of the plant aire usually harvested before they are ripe. If left to
mature tih.y may be lost. These leaves as harvested are therefore premature;
they lack grain, and are known in the trade as Primings. Primings are treated
as a subgroup of Lugi. The chief differences between Lugs and Primings are:
(1) Lugs %nr ripA whereas Primings are premature, (2) Lugs are grainy whereas
Primings lack grain, and (3) Lugs have the sweet odor characteristic of Flue-
rirnd tobacco whereas Primings hLve an earthy odor.
Cutte-r are th,.i leaves on the plant nuxt above the Lug leaves. Cutters
ari' thin to mni-diun in body. The lNaves of this group are usually the longest
'and wid-st on th,. plant. They htuve light-color shade and vary in finish from
bright to dull according to quality. Cutters are further distinguished from
Lugs by b-'ing comparatively free from injury characteristic of leaves grown
near th,- ground. The Choice aind Fine qualities of Cutters are the smoothest
lhavs on the plLnt except 1Wra.ppers. Cutters are further distinguished by
the wrinkled, crLp-i-lik4: qpperrunce of the leaf surface. In curing, leaves
of the Luig Lnd Cutter groups tend to roll up so thnt lots of Lugs und Gutters
show, on inspection, vwtry little of the stems or midribs.
Tob-cco of the Ltcf group is msdiun to heavy in body. L':vcs of this
group g..ner.lly ht.v. a higher p,:rcunt-gt of oil and wax (gum) thirn those of
the Cutter croup. Except those or Choice qut.lity, tht leaves of this group
ar-( narrower than Cutters and gen--rally hnv. lErger stuns (midribs) and
lf.t:ral v-ins. Tobacco of this group usually is not so srimooth ns Cutters,
does not have as lir'ht-color shade nor as high finish. In curing, leaves of
this group normally fold flat, thereby showing prominently thp stems or mid-
ribs. ThF 'af surface docs not have thp wrinkled, crepe-like appearance
cheract-ristic of Cutters. Tobacco of this group varies in maturity from
rirr tc fairly rip' uccordinp to quality. In sone eases the leaves become
ovr-rplr- b-"for0 b-ing harvsted.
Ov-r-rip l-uaf 13is of thinner body, has more prominent fibers, is
.c:-'."tL-, low in oil, vry grrniny, porous, and shows a considerable
"--lount of injury cheract-ristic cf leaves that have passed beyond thp normal
.3`t1i* o" mat'irity. C'nr-rip,, l"uf is described as smekinr l-af and is treated
%s3 r slhvrnup uf L:--'.f tuL'bccj in the Flue-curd types. By weight, the Leaf
vrc-up will us'-illy run.-rrin-, Wi p3rcnr.t cr ncr- of tht crop.
';,'r'pp,'r r r- s'-i, ct'"d front ,-ith'r L,,'if or .utt'-rs. 'Vrrpp,-rs art those
Sr.' *v. .t. '.rt .: Li inouoth, oIrstIc, oily, rip,, firm, and strong. They
,i-"v hbrtht e 11i:h, d.iin..'. fiLrm, A.nd not mor,- t.1r.n I. p,'rcent of injury.
T'y r', th'r'fcr, lsmot r"rf'ct l5'avs. The main diff. ronce between
g,-.pp' r" ,i.', C oic, r.Jiti'-, of L'if and Cu*.ters is the digree of elasticity.
Arr.pr rc Imu' ". 1nicr wh',raa lDaf u'nr.d Cutters of first quality need te
ry *'t,'hy7. n Wrnpn,'rs rk, 'p an n 3-l-cttd rroup whr.-as Lebf, Cutters,
S".r' I.. 'a-' ,,, n urnl riro'up. which, undAr normal conditions, appear on all
r. ... ... I 'f ^ irJ -",'i v.,ritil :;
The group division is the first and basic factor of grades for tobacco.
Th nzAalnina Fluet-cured tobacco the physical characteristics detailed above
are used to determine the several groups. In addition to physical differences,
there is, as shown by Darkis V/ and his co-workers, a definite relationship
between the chemical composition and the stalk position (group of tobacco).
They have pointed out the correlation between the position of the leaves on
the stalk (group) and the usage of Flue-cured tobacco in its manufactured forms.
The next subdivision divides each group into qualities. The terms used
to describe quality are Choice, Fine, Good, Fair, Low, and Cornon. Each of
these is based on a ecambinatlon of elements that go to make up quality of to-
In Flue-cured tobacco the final subdivision is on the basis of color.
Vech quality of the several groups is divided into colors as required. The
teas used to describe color in Flue-cured tobacco are Lemon, Orange, Red,
Dark-red, and Green.
The group, quality, and color are combined to form the grade which
describes a lot of tobacco. Below are listed the groups, qualities, and
colors used in grades for Flue-cured tobacco:
Grous qualities Colors
Wrappers Choice Lemon
Leaf Fine Orange
Cutters Good Red
Lugs Fair Dark-red
Nondescript Low Green
Any combination of group, quality, and color can be made to form a
grade. For example, Cutters of Good quality in Orange color constitute a
grade. As this method of expressing grades is too cumbersome for practical
. purposes, symbols are used for each group, quality, and color. This simpli-
fies the use of this system of grades. The symbols and the words they stand
for (groups, qualities, and colors for Flue-cured tobacco) are given as
Groups qualities Colors
A Wrappers 1 Choice L Lemon
B Leaf 2 Fine F Orange
C Cutters 3 Good R Red
I Lugs 4 Fair D Dark-red
N Nondescript 5 Low G Green
S Scrap 6 Commnon
Substituting symbols for words, Cutters of Good quality in Orange color
would be written C3F. The first symbol, C, indicates the group, the second
symbol, 3, denotes the quality and the third symbol, F, describes the color.
Each symbol used in a Fqderal grade for tobacco has therefore a definite and
known mean Lag.
- - - -a---
2/ Industrial and Engineering Chemitstry, Vol. 28, October 19356
To wtka this clear, assume that we are to determine the grade of a
single lot of tobacco. Upon examination we find that it is clearly a Lug,
so we know that the first symbol of the grade should be "X". Examining it
more closely we find that it is thin to medium in body, is fairly grainy,
has a &ull finish, and is unrouph. This indicates it is a Good Lug, or in
other words, third quality. If it had been thoroughly ripe, fairly smooth,
and or normal finish, it would have been Fine or second quality. If it bad
been n smooth lug of clear finish end fairly oily, it would have been Choice
or first quality. Going the other way, we might have found that this Lug
was only Fair, or fourth quality; or just Common, or fifth quality. But
taking -ill the factors into consideration we have found it to be Good or
third quality, so we cdd a "3" as the aeond symbol and have "X3". Thisa
still is not complete for it does not IndicLte the Color. This particular
lot we find to be a light or Lemon color, so we add the symbol "L" making It
"XSL". How we have L. complete description of the tobacco. As we shall find
later, it is possible to consult the market news reports fnd see whet prices
are being paid for other tobacco of the same description.
The Fedral system of grades for tobacco differs from private system
in twc. respects. In thr first place the Federal system ais, and must be,
more comprehensive since it must describe any and all lots of tobacco offered
for sale, whereas any private system applies only to the grades of tobam o
purchased by the pcrticulir firm thnr.t uses the system. In the second place,
each prade symbol has a definite meaning which is known to the general public.
The cbove groups, qunlitie.s, and colors, in combination, do not always
describe Eccurctely a lot of tobteco thr:t has some unusual characteristic or
some particular phase of quality or color. To describe such lots of tobaOcco,
special factors ,re used in addition to the usual grcde symbols. For example,
B4FW describes Leaf tob'scco, of Fair quality, Orunge color, in doubtful keep-
Figure 3 glves details of the groups, qualities, colors, end special
fYrtors us-'d in connection with the grades for Flue-cured tobacco.
Frnners aro sometimes confused by the fact that the several groups,
qualitit-s, colors, and zpei'cal factors can be combined to form a large
irw.ber of grades. Thiey say that too many grades are recognized because
thc tot.t1 number cannot be epplitd to their particular crops. It should
be remenber"d that grades are used only as required. These farmers say
that thu Federal oystun uses many more grades than are used in private
syat.pis. This does not app-ar to be correct. For the week ending October
.,, 19?6 thi tobacco sold on the market at Oxford, N. C. uas classified into
83 F-de-rrl gtridcn of which PO lots or more were sold. During the same period
ono, company vi3d 127 grads to describe: its pure.*ses which did not include
25 p'rc-nt of th. totftccco sold dtrinC the week.
...... ..... ."
- -i -'I IIIIII r -* -
CLASSIFICATION OF TOBACCO, TYPES II, 12, 13, 14
TNpCO CLASS 41VLJUECD'jTVp15
I'Q G. i~i L.UE-CURED [$
lI 11) OLD BELT
N.C. AND VA.
II (b) MIDDLE ELT
N.C AND VA
II NEW BELT N.C.
13 S5C AND SOUTH-
LASTER N N.C.
1b GA AND FLA.
r .,A~ s o" o -" ,. G K r. s t .- .. o .,
1-CHOICo LJ -LMON I'a "V-a
IAGRUWRAPPERS QUALITIES I1-FINE coolFOAG CaLUUnSON
I00 I n nogDMv
i-ED OR FACTORSDE
S-GOOD L I MAOGANtY oRDER
R-RED OR FACTORS
LEAF i i
(P- n m ,S QUALITIES
t 1-1 m-m m
i' L- LEMuO,,
a-GOOD COLORS F-S c
U S DEPARTMENT OF AGRICULTURE
NEC32036 BUREAU OF AGRICULTURAL ECONOMICS
NEG 32036 BUREAU OF AGRICULTURAL ECONOlINICS
9perntlmon orLfZnssctios Sserfse
-- a0 mm-
On nv.rketo where the inspection s:rvite opeates, the procedure Is
(1) Growers deliver th+. ir tobacco to the nkeut of their
choicu- nd tu _ny wart house, they my select.
(2) Thu. tobacco is Lrr.ng.-.d for sale on flat bmskats.
(.3) Etch lot, or basket, is then weighed rind a warehouse
ticket is plcrc.d on the lot. Th.e ticket shews the name of the
sell,-r and the number of pounds of tobacco in the lot, and ay give
other inform. tion for the purpose of identificEtlun. Space is pro-
vidc-d Om tht ticket fcr the naoe of the buyer, thu grade symbol of
th's buyer, and the price at which thu tobacco is sold. It also ha
n spUc'. in tha upper-rlght corner for the Fedt.rwl grcdu (fig. 4).
(4) Th- lots, or baskets, are pl-ced in line on the ware-.
(5) As soon as there is good light, the oaficiil inspeatorn
start at the beginning of the "brbak" ahead of the sale, and mya
a proper ex.miint ion of each basket of toba-cco.
(6) having mde n crroful txrjmint.tion, thu insptctur writes
on the ticket, in thu spc.c. provided, the Ftdrol gmdo that correctly
describes thc tobacco in thu lot, and signj his Initials. If the to-
bucco Insp-cted is Loif uf Fr:ir q'lrlity in ,i'..d color, the inspector
v.rites B4R. If the tobacco is made up of Cutters of Fine quality in
Lunon color, the grade symbols are C2L. If the lot is mde up of
Lugs of Good quality in Orange color the grade mark is X3F. The ware-
house ticket then becomes a certificat" of grade and shows the type of
tobt.cco as well as its group, quality, and color.
(7) WVhun the auction stt.rts on each lot, *be grade of the lot
is announced for thbr informntlon of all parties interested in the
Tobac-o lArktt !Jws Srvice
Farmers arp primarily concerned with production. 7hu preparation of
:ni'j ror SF1-." is a rmjor part of tobacco production and reTJires much
',*". The nv.?run- former cannot spcnd enough time on warehouse floors to
:LU.T po:.td or. t", nipprcxirute valun of the ditff.rt-.t rr d-s'a of tobacco.
:. trv past, inforrmtionn!i s.rvLco has not been supplied rrcwe'rs to acquaint
.*", *'rI* prIc'Is b'-ir.n paid fcr tobacco although '.is kn swl-dgg is essentlil
!o the -.tAnitr b, s of thnir tubncvo.
TOBACCO INSPECTION CERTIFICATE
BLA N K %- L--"p A & K'--S" -a
-m Im *w V IM lamllem Aml. In me-
Basket .20.^?2y6.?.. ---------
Planter .......... .. -
Price $.....................----- .. ........... Q.../..............- Lbs.
Buyer ......................---------- ---....... ------------------------ ---
TOBACCO INSPECfION CERTIFICATE
B | A *LI"am ft& I Ab *<-**'' bw an V. &. mpitefgs or
BLANK'S rk u- -" gnaw t" U esmfinl & C
19 ^H f% 11 fV ^9 .ctflt nfc tl Teltaw I-ntlr Art., t.e *M
tlflS to brn
Type 12 v
No ---- Grade ---A L?----------
.7 1,, Z/ 7"Z S! By -,-- --e"
Planter ...... .... ..
Price $.2.... ...................... .... 6........ ....-... <... .........Lbs.
Buyer ......jA --- -- --... ---------------------------------- x ..... .. ..... ..
FIGURE 4.- TOBACCO WAREHOUSE TICKETS:
UPPER BEFORE INSPECTION AND SALE
LOWER AFTER INSPECTION AND SALE
Studies rade by the Bureau of Agrlculturel Economics show that the
rrenter part of the tobacco sold ut buc'uion is sold at prices within the
rr:n..i r.:po for each grads and are therefore in line with equitable prices
as ,Ut.i ishod by salns. The studies also show that some lots sell con-
siderbbly higher than the normal price ringe for th,- prcde, end about the
s3=c or a lurpeor percentage sells in the price rance of tobacco that is
two qu.liti,: lower in Prnde. In both cases these prices are entirely out
of lin- with e-luit,.blt- sdes. In the one case the seller receives too
much for hii tobr.cco i,-.d in the other ie receives far too little. It is
tlhrdfcr.? -v'z:,nt thnt whereas one grower, for sone unexplained reason, is
paid u prnr.1.... for his tobacco another growt-r is likely to be penalized.
Tt is tlhV sit'A.tion which cbuies so much dissatisfaction and which could
:.e 'lilrnLted by proper und consistent use of the inspection service.
The vLlue of the inspection service lies in the fLct that the certifi-
r-at of -rtdo- on the wrehouso ticket provides tobacco growers with unbiased
4nfor-rtion regtrdlng thn gride or quality of each lot of tobacco offered
for sal-. Inr conn'-ction with the price reports, this information gives them
t besis for rzakinv en intellig.-nt decision on whether or not to accept a bid.
The tobacco mrrk-?t news service operates ir connection with the in-
spection service. After a lot of tobacco haLs beed sold, and has been so
entered on thi: wmrehouso books, a coupon is taken from the warehouse ticket
on each bLsket of tobacco. Those coupons, showing the Federal grade and
the price ft which F-ach lot ha3 been sold, are forwarded to a central office
whb're th'y wre sort'-d r according to grade End the pricE for each grade is
celul.ht-d. Thusc pric.)s arc then issued in the form of daily end weekly
price reports (figs. 5 and 6, p:-.ges 135 and 14).
ThW. combination of insp action service "nnd rT.rket news service gives
farnrr. Informnntion %s to the grt.de of ,.ch lot of tobacco offered for
selt ind th*i ELvrag'. price ut which e1rch grr-de htis actu-.lly been selling.
T -v- r--P priCL. is nscertalned by combining the prices of all lots of
Sr.,h grr.d.- '.nd calcul, ting the average for the whole number of lots sold.
Scr.- of t!F- lotc hr.d piobt-bly been sold at prices nbove the average nnd
c.th rs '.t pric,-'z b-lovw the .vtrrig,. Eoch grt.de will have n high sido and
low .:i so thrt ron- rrngl: in price cc.n hb renson'tbly expected. Just
,,' r..ic:. r, ri 1ion th r should be dupcnds upon the nprar.d in prices between
r-.'- ;. ?y turning to th. wt. kly price report (fig. 6) it will be seen that
h. LV.r,' pric',.s for LAi,3 durin.- thz t w,..k wvTre as follows: XUL, $39 per
'. pou-lr.; X'.L, C'. ; XZL, $'7; X.L, 314; nnd XSL, $7.75.
On b. o th V iE s)-- :-ic.-.:; .AhAt would b-- th.' cxpoctcd rt.ne in
pric'- o. Lug:-, AIn q',r.lity, L-nun rolor (XDL)? This is found by a simple
rt.i-Al. FI tcr,.. Th r,' will b, llttl. ciff' r-.ncu in the prices for tobacco
K tw- ", ].- 3IJJ f X:L *nd th. hirh side of X2L. The difference
r.:*;.. r "; v-.r prilc', of th'su tv% grr.dvts is ($39 $35 $4) $4.
Cr. -hml:" ," 'h, diff-. r.c- is $2. If $2 is nddi.d to the iv, rae' price of
XPI (' a :.7) th" !ilh uide uf the gp.d.' should bL worth approximately
.'7 ,r h J:.ir A r', -id T.
MNiTED STATES DEPAi1 iNT OF AGRICULTURE
Bureau of Agricultural Economics
Raleigh, N. C.
Nov. 2, 193G.
DAILY TOBACCO MAPJLET I10S RETORT TYPE 11 (b)
The following table shows daily average prices for e*tL color
grades in each group on the Oxford, N. C. Market Monday November 2. These
average quotations are coamputed on the basis of a limited number of lots and are
intended to reflect only the general trend of the market.
Orange Orange Orange Orange
Leaf Smoking Leaf Cutters Lugs
U.S. U.S. U.S. U. S.
Grade Average Grade Average Grade Averag Grade Average
$ $ $ $
BELF 47.00 HlF 44.00 CIF --- XIF 38.00
BF 40.00 H2F 40.00 C2F -- X2F 33.00
Bf 31.00 H3F 36.00 C3F 45.00 X3F 21.50
B o20.00 HUF 27.00 C4F 42.00 X4F 10.00
B5? 9.50 H5F 14.50 C5F 3P.O0 XSF 5.25
B6F 4.50 H6F 5.50 ____ _____11 1
OMnta: Blocked sales. Offerings chiefly second to fifth quality leef end
smoking leaf, third to fifth quality cutters and first to fourth quality lugs.
Leaf (B group) predominated.
KEY TO STANDARD CIAE MARKS FOR FLIZ-CURED TOBACCO
H Smoking Leaf
P Priming Lugs
- First Quality
- Seccnd "
- Fourth "
L Dark Red
K Off color
V Greenish Tinged
1 DoubtLful keeping
For example: 34F d'3signat-3s leaf, fourth quality, and orang, color.
Iisrae 3:00 P.M.
(SEE OT0-.R SIDE FOR IEEULY FPIC2;: iJOTATTO!;S)
Fi-o 5. Sample of Daily Pric- Rfport
NITEaus S7?A72 DEPArMElf OF AEUcICCLnoiE
Bureau of Agiricultural Zconomiics
Raleija, N. G.
Oct. 31, 1936
WflfY TOBACCO MAi- 11 :,S kORT TYPE 11 (b)
The following table thovsa Vr. !C pric-s by grade for tobacco on the
Oxford, I. C. L.ari.it this we lk and thi Z(-.son through Thursday October 29.
Avernges Based on k0 or More Lots of Each Grade -
Price Quotations are in Dollars pcr 100 lLbs.
U. S. Oct.29 Oct.2S
Gradel 196 I 1936
U. S. Oct.29
'vk 3S,.rfion IP Wu(k
j A ::g1.; 7r. u ghi End i n
,S. 3. t"t.29, Oct.'1"U. S. O0ct.2S
'srdIn 1936 1 1936 IGrade1 1936
I .... I hi 1 I i -
rF Ipp rs
31L 50. 0 1 50.30
:E!f 47.,O 146.00
--. 'i4 -
BL 44.'300 43. uO
sBLF 42.X) 41.00
BP2R 38. )0 j36.0O
IB2L 38.00 36.00
$B2LV 29.00 1C6.00
BAF 34.OU i3ao00
iFK 3t2 1e.00
B337 27.3I0 2 .o00
i3?P 30.0I ?17. -0
i 3L ~16.50
13g ---- 19.C0
341, 270.Q0 1.5. C,
.34LV 19., 11.00
B3 F 2,- _:
3B4Fir 12.-.2 11.7?
5r -'i: 1I. 7f
34K- i-.-- r
35.r.' ':-. "'.D i7.I.
3,5 -,F : $
B-i- L .I ,. i ;..
3,;' "j ^ V 1 ,~
,A ; L i j *.
' 1 .7
Ht F 4--D.00 '3'. C
2 33 5
i2N 38.2 Vt ': _u ji
i!'F 1Z. b. 34- C
*2R 32C *' ^ 9.:
I4 )_ 25. 3Z.
L 2:1.50 29.QC
IW... 5.C 14.52
2H. 1i C5O 1_.7C
c.F] ] (.. '15 6. 1 :.,
iH : i .. r
i~li* i --- c,.
irn i '^ 1 l'I .- i
Cutters Cont'd $
C3L 46.00 45.00
C3F 45. O0 44.00
- I a
- I 9 lI-I Cn
"i ";~' '';F
I :3. .'U
2'I. 5 -
v n r)
24i. '>2 -
PSL --- 6.50
P5F 5.!.0 5.25
P5G j--- 3.75
iB3 1.75 1.75
_3 ---- 1.75
I P: 1 z.zO 3.00
I121 --- 1.75
M:rG 1.75 1.50
S A.-s' r.*,: H' .vv 1- ,:1it; r :I '. bl :,'.-d o-. !Mnd-iy Cand Pucsriay. Bulk
-: .: ,.-. ~"l *:'. 2'. ..-.-1!l .f I',''., 21r ':i,,, !2 f ,nrii lur:1. Off'rng.'-. ccntaincd
-r,,,:,M w !., i. *i*:'* !,:. :ro:*-r : 1 f, c:r-r-rvd with volunr.& o similar
rr. r:-: f. r :.1 v : wI ,;. U..Li t :-ith t,ua-it:v 1 7.f B (:r)up) prudoSln:,ted.
*. *o rr"
J '.--* + : i r: i fr-r. t." .. to $ ..... nd i Icv:-.ral lotr choice and
f.' .. i': "., ,. Av .Z,, "r! -s Lc;:tinutrl flm t.k,''.n -ncrella y.
?;,-.- *.. S :
o i. i.. C :-t.
lIWiillil/l llll L q"
Likewise, the difference in price between X2L and X3L ($35 $27 -
$8) is $8. One-half of this is $4. If $4 is subtracted front $35, the
low side of X2L is found to be approximutPly 331. At these prices X2L
would have e. rnn-o in price from $31 to $37 per hundred pounds. The range
for other grades cun be found in the sane way.
This inonaltion v-ill enable every former to know when his tobacco
is sold whether the prices, lot by lot, are in line with those already
established, on a grade basis, by the buyers. No further information is
necessary to enable fLrmers to nwr.rket their tobacco on a basis of fair
c ue t it ion.
The any in which this information is used determines its value to
lndividucl tobacco growers. Actual instances will provide the best il-
lustn:tions. In the first instance, a farmer had several lots of tobacco
nlasected. Two lots were placed in the same grade by the inspector. When
sold, both were bid in by the sane buyer and placed in the sane "company"
gr.de. The price bid for one lot was $28 per hundred pounds and for the
otter $15 por hundred pounds. The first price was in line with the average
for the grade and the second w-s far below the average. The fatrer was
dissatisfied but accepted the prices bid for both lots. Obviously the in-
spection rand market news services were of no value to him because he made
no use of the information supplied.
In the second case, n former hcd several lots of tobacco inspected.
Ont lot of 250 pounds was bid in at $22.50 per hundred pounds which was
a=iterially blow the n.veragu price for the grade. The bid vws rejected
and the lot was resold at $40 nor hundred pounds. This price was above
the average for the grade :-nd "vaS accepted. This farmer profited from
th- services beeacuse he. us3d thu information as it should be used.
Inst-tnces could b_ cited r.t length. Thu point is thr.t if farmers
Lr to bunvfit from the inspection service fnnd m-rket news service they
must apply the informna-tion obtained. No one can successfully refute the
staten-nt thc-t infor--tion thr.t enables fTrmers to reject abnormally low
bids and resell their tobacco ct substrintially higher prices is of great
potential valu- in r.rketing tobr-.cco.
Thu- so-rvices cun also be used to prevent rejections when bids are
ccuit-ble, as Indic ted by the scalu of tobacco of the sane grade. Usually
when the price bid is cqu-'. to or higher th-,n the average shown for the
grade in the price re-ort, rejection is unwise, nnd often leads to disap-
p'intmcnt Ls well r.s loss of money by the fL.rnjr.
In brit.f, then, these services are designed rind optr- tod to supply
tobacco growers with Infoar.tion thi.t will enE.bl. then to s-11 their crops
rA.t tb; hightcst pric-s consistent with quality ".nd m-rkut requlr-nMunts.
IfI 1tht !-uovuj-m_4n.tlAc.ts
It muy be asked, Why cannot warehouse ::tarters and buyers determine
the grdu of tobacco as well as 3overnmunt inspectors? Studies show that
in the majority of canes they can, and do, since the bulk of sales are uade
at prices '*itbin the normal range for the several grades. But there are
the saLjsa &t abnornmlly low prices to be explained.
Cne orplanation may be found in the rate at which tobacco is sold
at auction. Thf'; normal rzte at which flue-cured tobacco is auctioned is
360 lots an hour, or 1 lot for each 10 seconds. IWen sales are unusually
heavy the route is faster and when sales aro light the rate is slower.
Under nonm.l conditions the warehouse started rs Lnd buyers nust determine
the ground, quality, and color of a lot of tobncco ever; 10 seconds. It
is extremely doubtful whether these determinations ciu be nccur'itely and
consistently made et this rtu of speed during the wholt period of smiles
rnd under varying light conditions. To u litrge extent the ineqiw.lity in
prices for the scmu sr-de of tobacco nmay be explained by errors in Judg-
rent on the pert of starters nnd buyers, because of the speed it which
tobLeco ii *old.
An"OtlL0:" Importrnt factor is thi light under which tobacco is sold.
Some tobacco mny be placed on the warehouse: floor where the light ia un-
satisf.ctory. It x.y be in a dtrk corner, or under n skylight through whish
the sun shines directly on the tobacco. Both con'itiods render accurate
deternminrtions very difficult, i.nd oft-n r.ditersely affect the sales price
of tob'.cco. Naith,-r of th.sc unfi.vort bl conditions nte of series or
unf- vortbl- light c'n t; dir ctly attributed to ,Ath;r the starters or
tte buyers-, but th, ill ff, ct3 of both crn bj r,,ucd rmtturi:lly by in-
Undcr Fcadcn:! Insixction, to tlimin'.tc errorss in judgrm:nt ce:used
by speed .%-d unf,-vorcble lipht, at leist three inspectors ::rs provided
fcr :,.ch m.lL -.nd during rush sUles four instructors -re required. Fur-
thtrsor, :.s th .y burin ins', ctins toba coo some' timnu bcford thi sr.le starts
th y .r :.ot rush-jd nd r(. cbl._ to jr.ka mort thorough r-x-jalnations, end
cons,5J..- ntly .orl L.ccar'.t,' r.nd conl::istunt dotermaint,.tions of grxde, lot by
lot. In. addition, s-ipl..;' of thosL lots of tobLCCo muidur ujnslstilaftctory
ligit ,':: b2 c:-rrild to pro -r llr:it for inpuction crnd dt-rmin"rr.tion of
-" .ion cf [rLccs
Farmtrs frepicntly ask wh~t.,r the price of tobacco is increased
thrnmuh th,. operations of the inspt ctlon nnd nt.rket news services.
In' c, rtr.in inn.:tnnc(; th" price is increased and in others it is
"It. C. vy: i, -n to'-rTicc) i.- d't-'rnined by the soil rind climate under
which tL obt.cco I:: .rown, hL, cultun.rl prncticts used, the stegL' of
m atur'l.y It ,-.:ich th, tol'cco i hFri-vested, the skill with *hA.Ich it is
cure-i, ".Iti tli. V,,y in .ich it is pr,'pured for market. The grade mark
U.o'i1 ., ,.r' ir'.x "o r-.r.i:'t pricm', Fis, it describes the rroup, quality,
b.-n r'ol"-.r th'-A h.lv a'ilt,,d ;'r r: th, fic'ors m'ntiond. In the case of
tho-' in'ts :j: htch t : t- : ",I .in Ith price n.r-e for their grade or
hi. ,.'r, It c,-. i, ,. "'w:-.L.,] tf I th,, tch.cco is nitelling at or above es-
t',.bll h I vul- i l 9 h F '. n.F.. ,';- L x-.:ounced has not increased the sell-
But there are exceptions. Sometimes the announcement of the grade
my attract attention to a lot which otherwise would be overlooked; In
such cases prices are thereby directly increased. In the case of lots that
are bid in at prices materllly below the average for their grade, the price
can be materially Increased by the proper use of the information supplied
by the inspection and market news services. If the bids are rejected and
the tobacco is resold, the lots generally sell within the price range for
their grades and the sales price is materially increased in such cases.
Farmers should realize that both services are informational. The
inspection service does not promote sales. The market news service does
not establish prices; it only records current average prices established
by sales of tobacco. If the service is properly used it will go far toward
preventing the losses now suffered by growers through tobacco that is knocked
dowm at less than its current market value. If the information is not ap-
plied it will have no influence on prices.
Farmers often say that the services have helped them, when their to-
bacco sells at average prices or higher per grade, as shown in the price
reports. This is especially true when the grades assigned to lots are
higher than the farmers expected. On the other hind, they ere prone to
eomplaln that the services have been of no value when their tobacco is bid
in at prices below the averages for the several grades.
Such conclusions are not entirely justified. It is often true that
the announcement of the grade to the buyers helps the sale, but it is also
true that in many cases, possibly in most cases, the price would have been
about the sane even if the tobacco had not been inspected. Thb'? important
point to bear in mind is that the object of inspection and market news
services is to let the farmnner know whetherthe price offered is right or
whether it is too low. The tobacco probably would huve sold at the sane
price if it bed not been inspected so thut direct assistance cannot be
attributed to the Inspection service. Conversely, when tobacco is in-
spected and the lots are bid in at prices materially below the averages
for their grades, farmers are disappointed and inclined to find fault
with the inspection service. In the letter case they have unbiasud in-
foarmtion that their tobacco has been undersold. The trouble here is
not with the service but with themselves. The service mndd it possible
for the farmers to know that they were not getting a frir price for their
tobacco, but they failed to use the information.
This kind of information can now be obtained only through the in-
spection End market news services. If used properly it is of direct com-
mercial value to ferrers but if it is ignored the benefits of the inspec-
tion end market news services are largely lost.
In addition to the practical benefits that individual growers should
"erive ro inspection and market news services, it has often been found
tiat these services contribute to smoother running sales Gnd a nore even
xml version 1.0 encoding UTF-8
REPORT xmlns http:www.fcla.edudlsmddaitss xmlns:xsi http:www.w3.org2001XMLSchema-instance xsi:schemaLocation http:www.fcla.edudlsmddaitssdaitssReport.xsd
INGEST IEID EDLL0SXJS_ZK8VRT INGEST_TIME 2014-04-21T22:58:56Z PACKAGE AA00017380_00001
AGREEMENT_INFO ACCOUNT UF PROJECT UFDC
xml version 1.0 encoding UTF-8
REPORT xmlns http:www.fcla.edudlsmddaitss xmlns:xsi http:www.w3.org2001XMLSchema-instance xsi:schemaLocation http:www.fcla.edudlsmddaitssdaitssReport.xsd
INGEST IEID ESNBSNQHY_4USF3A INGEST_TIME 2014-04-25T02:12:03Z PACKAGE AA00017380_00001
AGREEMENT_INFO ACCOUNT UF PROJECT UFDC