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Good season gives leaf growers bountiful crop, but less demand
 


By TIM THORNBERRY
Kentucky Correspondent

FRANKFORT, Ky. — In a season that saw burley tobacco move from a sellers’ market to one for the buyers, supplies seem to be at adequate levels for tobacco companies for the first time in the last few years.
If predictions that the current crop is larger than last year’s come to fruition, producers may be faced with the same situation for a second season. The USDA announced last week Kentucky burley production is expected to increase by 10 percent over the 2013 crop and should increase by 11 percent for the entire Burley Belt. Kentucky burley yield is also expected to increase this year by about 150 pounds per acre, over the 2013 crop.
Dark tobacco production will also see an increase, and if USDA estimates are correct, it should be large. The latest crop information noted dark fire-cured production should be up by 30 percent over the previous crop, while dark air-cured production could increase by as much as 28 percent.
So far, those who have grown a contracted crop are faring well. For those with leaf not covered by a contract, the price is much lower; that was the case before the holiday break and appears to be the same scenario now.
Todd Clark is a producer from Fayette County. He said this year’s crop may be the best he has grown in all his years in the burley business. “In general the season went well. We had some issues in the end with hail, but as far as my personal crop, it’s probably one of the best ones I’ve had in the 20-some years I’ve been raising tobacco,” he said.
Labor still remains one of the biggest hardships for tobacco producers. Clark said he uses H-2A workers but knows finding enough help can be a big problem for producers, especially at certain points in the season.
“I was concerned when there was trouble getting it in the barn that it would carry over getting it back out of the barn, but I’m pleased in general that that doesn’t seem to have been a problem,” he said. Clark, who has served on the Council for Burley Tobacco board in the past, said there seemed to be enough help this year during the stripping stage of production, something that was a bit of surprise to him.
While the current crop is larger than in 2013, and a lot of good tobacco is making it to the market, that doesn’t mean all is well. He said there has been concern voiced at receiving stations that some areas in the Burley Belt will have less-than-stellar crops caused by some curing problems, muddy tobacco and plants affected by the drop in temperatures last November.
“I wonder, even with a bigger crop, how the companies view that. There’s a lot of pounds out there, but do they consider them useable pounds?” he asked.
In a year when the demand is not as high, the price producers are receiving is reflective of the kind of tobacco the companies are getting, a fact ag economists have been warning growers about most of the season. But the volatile burley market can change – and quickly. Clark said coming out of a good sellers’ market last year, he thought the same would be true for the current crop.
“Last winter it appeared that we should have another decent marketing season this year, and by the time we had transplanted tobacco, it was evident that that probably wasn’t going to be the case.”
While contract cuts are part of the tobacco environment these days, uncertainty makes it difficult at this time of year to make decisions for the coming season. Clark, who grows plants for other producers as well as himself, said in 45-50 days he will start to seed the early plants. He has people who purchase from him who aren’t sure if they will have contract cuts of one extent or another, or if they will have their labor issues resolved.
He also thinks this crop has been later than in past years in getting to the buyers, a factor that may make companies hesitant to issue new contracts for next season until this one has come to a close.
1/22/2015