The threat of new Chinese tobacco tariffs may be gone--for now. A special envoy of China's President Xi Jinping said over the weekend that talks with U.S, officials ended with a pledge by both sides not to engage in a trade war, according to a Chinese news agency. The agency said China agreed to "meaningful increases in U.S. agriculture and energy exports," But tobacco was not specifically mentioned. Hopefully, that means no increases in tariffs on flue-cured exports, which is the type mainly imported by China.
But burley growers have had no relief from Alliance One International's (AOI's) decision to cease purchases of American burley. Eric Walker, Tennessee Extension specialist, says the big burley-producing counties of middle Tennessee -- Macon,Trousdale and Smith -- will clearly take a major hit. For the state as whole, he thinks we might possibly see an 80 percent crop, and it could certainly be smaller. The effect on burley plantings is still unclear, but no one doubts that Tennessee will be the state most affected.
It has been a wet season in Tennessee up till now, he says, though it dried in some parts the past week. Walker advises growers not to start (or resume) transplanting too soon, especially if you are planting strip-till or no-till. "It is especially easy to set no-till too soon. Give the ground an extra day or two to make sure it is ready."
There doesn't seem to be a groundswell of Tennesseans planning to plant tobacco without a contract. And there is no news of any auction warehouses springing up that might sell "wildcat" tobacco. There haven't been any auctions in Tennessee in a number of years.
Macon County has been the number one burley county in Tennessee since soon after the buyout. It probably still will be this year, but it is facing a big cut in contracts. "We had 5,000 acres last year," says Extension agent Keith Allen, who is stationed in the county seat of Lafayette. "I am going to guess we will have 3,000 to 4000 acres this year, maybe closer to 4,000 than three. But that may be too optimistic. It is very hard to put a handle on it."
Efforts are going on to get a new company to contract from Holder's Tobacco Warehouse in nearby Hartsville, Tn, which had served as AOI's burley receiving station in Tennessee. But so far, no candidate has emerged, says Allen.
Setting has started in Macon County but is not far along. It was slowed by spotty rains that were heavy in some spots Thursday and Friday, Allen says.
In Kentucky, farmers have had a slow start on transplanting. A challenging transplant production season was part of the reason, says Bob Pearce, Kentucky Extension tobacco specialist. "We had more issues in the greenhouse than normal, primarily pythium and rhizoctonia damping off."
By the end of the season, there should be enough plants to supply the full Kentucky crop, but some growers may not get plants at the time they prefer, Pearce adds. Few plants are ready now, but some setting has taken place in Kentucky, though at a very slow pace.
News from the Carolinas and Virginia from the USDA's Crop Progress and Conditions report for May 13:
--In
South Carolina, transplanting was 94 percent complete by May 13. "With warmer-than-normal temperatures and dry conditions, tobacco is beginning to grow off well," says Extension agent Kyle Daniel in Georgetown County. But inadequate topsoil moisture has been a concern
.