U.S. Tobacco Export Promotion Daniel J. Stevens Agricultural Economist

U.S. Tobacco Farmer Export Council A farmer initiative to increase demand for all types of U.S. Leaf Tobacco

The initiative will create a Board to oversee export promotion that will be funded by a grower check-off.

Purpose of the Initiative: Strengthen Export Demand for U.S. Leaf Tobacco Maintain Current Markets Develop Strategic Marketing Plan

Promotion: These programs are intended to strengthen the commodity’s position in the world marketplace. Education is a key component of the programs. Develop a strategic international marketing plan for U.S. Leaf Tobacco.

PotatoesMilk WatermelonsSoybeans MushroomsEggs MangosPeanuts CottonPopcorn BlueberriesAvocados LambBeef RaspberriesHoney PorkSorghum The following commodities have programs:

Market Promotion Background USDA Foreign Agricultural Service: FMD Programs Industry Cooperators Tobacco Participated Dated back to late 1940s Tobacco Excluded in the 1990s Burley and Dark Leaf Export Association Tobacco Associates Leaf Tobacco Export Association Other Groups (Tri-County Council)

The process was initiated at a meeting in Kentucky In April The group that met included representatives from most tobacco producing states. After getting guidance from USDA, this group met again in August of 2008 to clarify some of the questions surrounding the initiative. The process has continued into 2009 and hopefully we are near the point we can move forward with a submission to USDA.

The Process for Creating a Program Clarify Goals, Develop Concept Gain Industry Consensus Develop Justification Submit Proposal to USDA

Development Steps : 1.Industry Submits Draft Program Components 2.USDA Finalizes and Publishes Proposed Rule 3.Secretary of Agriculture may Hold Public Meetings 4.Following Proposed Rule USDA will: Review Public Comments Respond to Comments Modify Proposed Rules Based on Comments Decide to Implement or Not 5.Publish Final Rule

The Tobacco Program will be established under the Generic Statute; “Commodity Promotion, Research and Information Act of 1996”. This means that it can be done under the rule making process by USDA’s AMS and will not require legislation.

There are two groups that are currently working on this project. The Steering Committee is the group that met previously to outline the program. They will make the decisions on how the program is structured and clear the proposal before it goes to USDA. The other group is the Working Group. This group writes the justifications and compiles the the packet that will be presented to USDA.

The Steering Committee is made up of representatives from the tobacco states. They will determine the direction of the order and approve it before it is submitted to USDA. The Working Group is made up of myself, Dr. Blake Brown, Dr. Will Snell and Daniel Green. We write the order based on the guidance from the Steering Committee and insure it follows both the law as set forth in the Statute and also the Steering Committee’s wishes.

Consensus that has been reached: 1.Name of Board 2.Size and makeup of the Board 3.Types of Tobacco Coverer 4.Activities Limited to Export Promotion 5.Check-off not to exceed 20 cents /100# 6.Assessment collected at first point of sale 7.There will be no exemptions 8.There will be a Refund Provision 9.Permanent with 10% Petition Provision Approval of full Steering Committee still needed. 10. Approval required by 2/3 of producers 11. Will not apply to Imports

In Addition to rule making.…… Has an Oversight Role. Is Reimbursed for all costs Participates in all Board Meetings Conducts Referendums Insures Compliance Approves Budget & Projects Liaison with Other Agencies USDA’s Role:

We have made a lot of progress but still have some challenges that need to be worked through before it is officially presented to USDA. We have good liaison with AMS and they have been very helpful.

The Growing Industry needs to come together on this project and work as a team in the interest of promoting the export of U.S. grown leaf tobacco.

Thank You! Dan Stevens