First Quotas

When Congress passed the second Agricultural Adjustment Act last month, most complex of its many complexities appeared to be the means whereby marketing quotas were to be established by a nation-wide vote of farmers. Last week, first two referendums held under the new bill indicated that at least this part of its machinery was in good working order. Farmers in 20 States went to filling stations, schools, grange halls to cast ballots on whether or not the Department of Agriculture should impose quotas on 1938 crops of cotton and tobacco. Counted by AAA County Committees and forwarded to the Department of Agriculture ballots showed that of the 2,700,000 farmers eligible to vote, about 1,700,000 had done so.

A Wallace quota on any crop can only be imposed if a two-thirds majority of voting farmers favor it. Last week, 1,189,496 cotton farmers voted for, 97,456 against a quota. Biggest majority was South Carolina's (96%), smallest Oklahoma's (76%). Dark tobacco growers voted for a quota 38,209 to 8,746, flue-cured tobacco growers 213,349 to 33,908.

This year's cotton quota has already been set at 26,300,000 acres, to produce a 10,125,000 bale crop (8,621,000 under last year's). Dark tobacco quotas will be 145,000,000 Ibs., flue-cured tobacco 705,000,000. Fines for over-productive farmers, whether they voted for or against quotas, will be two cents a pound for cotton, 50% of the market price for tobacco. Said Administrator H. R. Tolley, "We consider the vote an overwhelming endorsement of the new farm program."

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