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2 <br />Tobacco programs have both acreage allotments and marketing quotas. The allotment specifies <br />the maxinnnn acreage of tobacco that may be planted on the farm during the year. The <br />marketing quota specifies the pounds of tobacco that may be sold from a qualifying farm without <br />penalty during the marketing year. A farm can market up to 3% more than its stated quota, but <br />the excess is deducted from the following year's quota. <br />Section 105 - 289(x)(5) of the General Statutes also directs the UVAB to recommend adjustments <br />to the net income per acre ranges (of (lie income schedules) for the growing of crops subject to <br />acreage or poundage allotments. The UVAB determined that the price - support program for <br />tobacco warranted such adjustment. <br />Although the tobacco program has acreage allotments, the primary means for controlling output <br />is quota. Producers accept quotas under the program by referendum vote and in return obtain <br />commodity program - determined support prices paid through market prices. The quota, specified <br />in units of the commodity, restricts the amount that may be sold with the support price benefit. <br />Since quotas are specified in pounds, the net income adjustment is stated on a per pound basis <br />and should be applied, after capitalization, to the total pounds of quota owned by the taxpayer. <br />The adjustment per pound for Orange County is 15.4 cents per pound. <br />Figures are provided by the North Carolina Use -Value Advisory Board (NVAI3). Section 105- <br />277.7 establishes the Board and directs it to annually submit a recommended use -value manual <br />to the Department of Revenue. Tile manual establishes for the use by each assessor information <br />for determing the present -use value of qualifying land in revaluations. <br />Quotas are assigned to a particular farm. To be eligible for quota, a farm must have established a <br />production base of the commodity during the period of the program's beginning, or subsequently <br />have been granted an allotment or quota by the Agricultural Stabilization and Conservation <br />Service, USDA, or, except for allotments and /or quotas of burley tobacco, have purchased a <br />quota (by the farm's owner) from another quota holder in the county. The owner of a farm's <br />allotments and /or quota of flue -cured tobacco may produce the farm's quota on that farm or rent <br />it to a producer with the right to grow the tobacco on the owner's farm. In addition to the <br />options for producing the commodity, the owner of a farms allotment and /or quota of burley <br />tobacco can, by use of a lease, transfer part or all of it to be grown on another farm within the <br />same county. <br />Samce: 1997 Use —Value Mam al for Agricultural, Horticultural and Faust Land. <br />Pages 26, 203, 2C4 <br />