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CALIFORNIA GRAPE INDUSTRY PLAN
More than 85 per cent of the grapes produced in California are handled under a surplus and industry control plan which has been developed by cooperatives with the assistance of the Federal Farm Board. During 1930 more than 16,000 growers signed a 10-year contract with the California Grape Control Board (Ltd.), of San Francisco, Calif., agreeing to deliver their grapes to cooperatives and share in the costs of a system to stabilize the grape industry.
Under this control plan the efforts and resources of five cooperative grape organizations are coordinated through the control board. They are: The California Raisin Pool, Fresno, Calif.; the California Vineyardists' Association, Sacramento, Calif.; the Fruit Industries (Inc.), San Francisco, Calif.; the San Joaquin GrowerShipper Association, Fresno, Calif., and the California Fruit Exchange, Sacramento, Calif. Each one of these organizations is represented through directors serving on the control board.
RAISIN POOL HANDLES DRIED GRAPES The California Raisin Pool, Fresno, Calif., handles only dried grapes, or raisins. The raisins are delivered to the pool by vineyardists and are marketed through a grower-owned cooperative and commercial packers of California. One half the raisins is sold by the Sun-Maid Raisin Growers Association with headquarters at Fresno, Calif. The other half is sold by various Pacific coast commercial packers.
The vineyardist who does not dry his grapes but sells them fresh has the choice of delivering them to either one of three grower-owned and controlled organizations. One of these organizations is the California Vineyardists' Association, which receives fresh grapes and markets them through commercial shippers. The San Joaquin Grower-Shipper Association and the California Fruit Exchange are the other two grower organizations that handle fresh grapes.
It is planned that through the Fruit Industries (Inc.), numerous by-products will be developed so that ultimately the surplus of grapes will be absorbed.
85 PER CENT OF GRAPES UNDER CONTROL PLAN Through collective effort more than 85 per cent of the grape crop of California is to-day under cooperative control. An annual fund estimated to be approximately $2,000,000 will be provided by growers and will be used to control the surplus of grapes and to balance the supply with demand. This fund, known as the stabilization fund, is made possible through the payment of $1.50 a ton on fresh grapes and $5.25 a ton on raisins or dried grapes. The fee is collected as the grapes and raisins are delivered by the vineyardists to the various
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cooperative associations. The associations turn this money over to the control board.
With the control board's annual stabilization fund of approxi. mately $2,000,000, surplus grapes will be bought wherever and whenever they are interfering with the maintenance of reasonable market conditions with respect to the sale of the balance of the crop. The control board is a cooperative marketing association organized under the laws of California.
The total average crop of grapes grown in California amounts to approximately 2,000,000 tons a year. The 85 per cent of the crop under contract with the control board amounts to an average of about 1,700,000 tons of grapes.
The grape industry is financed by intermediate credit banks and the Federal Farm Board.
The 10-year contracts between growers and the control board became effective June 16, 1930. Growers are permitted to withdraw from this contract after the third year.
More detailed information may be obtained by writing direct to the California Grape Control Board (Ltd.), San Francisco, Calif.
TOBACCO GROWERS RENEW INTEREST IN COOPERATIVE
Tobacco growers have renewed their interest in cooperative marketing since the passage of the agricultural marketing act.
Almost half the tobacco grown in the United States was handled by cooperatives in 1924. At that time nearly every tobaccogrowing district of importance in the country had a cooperative marketing association. “At the time the Federal Farm Board was created only two of these associations were still in actual operation. These were the Northern Wisconsin Cooperative Tobacco Pool and the Maryland Tobacco Growers Association. Another, the Burley Tobacco Growers Cooperative Marketing Association, had completed a successful operation under a 6-year contract which the growers had signed, but the contract was not renewed. However, the Burley Association still exists in nucleus form, and its members, through stock ownership, control and operate their warehouse property under an auction-market plan. The association is considering a new plan of marketing. If this plan is put into operation, the Federal Farm Board will loan money to the Burley Tobacco Growers Association.
The Federal Farm Board has made a study of the tobacco growers problem in several sections and has aided in organization work. The board assisted farmers in organizing the South Carolina Tobacco Growers Marketing Association with headquarters at Florence, S. C. Five thousand growers signed contracts pledging to deliver to the association, beginning with their 1930 tobacco crop, approximately 17,000,000 pounds. The new association was organized in April, 1930, and began receiving its members' tobacco on August 5, 1930. Substantial loans have been made by the Farm Board to the South Carolina Tobacco Growers Marketing Association, not only on tobacco itself for advances to member growers but also for operating expenses. Loans have been made by the board to the Maryland Tobacco Growers Association.
STATES START ORGANIZATIONS
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Virginia growers, with the aid of the Farm Board, began in October, 1930, an active campaign to organize two associations, one to handle bright tobacco and the other to handle dark tobacco.
During the latter part of 1930 North Carolina growers started the work of organizing two associations for the marketing of tobacco, one in the western belt and one in the eastern best. The Federal Farm Board is aiding the North Carolina growers.
Farm Board representatives are also working with the tobacco growers in Tennessee, Kentucky, and Georgia. The Farm Board advises tobacco growers to proceed carefully and deliberately in their present plans for organization. It also suggests that the growers learn what cooperative marketing can do and what it can not do, urging them not to expect the impossible from an association and to realize their own responsibility in making their association a success. Tobacco associations are encouraged to recognize as one of the fundamental principles of success in marketing that friendly relationship should be established and maintained with the people to whom they are to sell their tobacco.
GROWERS RAISED 1,500,000,000 POUNDS
In 1929all types key, Virginthio, Conia, Misso must ore
In 1929 there were more than a billion and a half pounds of tobacco, all types, grown in the tobacco States including North Carolina, Kentucky, Virginia, Tennessee, Georgia, South Carolina, Pennsylvania, Wisconsin, Ohio, Connecticut, Maryland, Indiana, Florida, Massachusetts, West Virginia, Missouri, Minnesota, New York and Louisiana. Growers in these States must organize if they are to receive benefits of the agricultural marketing act.
The board is ready to assist any of the tobacco territories interested in organizing and working out a marketing program.