Saturday, January 30, 2021

BURLEY EXPECTATIONS CONTINUE TO DROP

 

There's not much U.S. burley to put in storage, as shown here in a file photo of one of Burley Stabilization's Warehouses in Springfield, Tn.



No additional supplies of burley are likely to show up between now and when marketing winds up in a few weeks, so the 2020 crop will be a small one. Jerry Rankin, farmer and warehouseman from Danville, Ky., says he estimates Kentucky production at 41 to 42 million pounds, a little less than he estimated in early November.

Attrition among growers could significantly affect U.S. burley production next year, as some leading growers are leaving the type. This past season will be the last one for Rod Kuegel of Owensboro, Ky. A decline in yields was the main reason, he said. “2020 was our fourth season in a row of under 2,500-pound yields,” Kuegel said.

He doesn’t know why. "The declines seem timed to the effective climate we have had. We have had a lot of rain the last three seasons.”

He will continue, however, to grow some dark air-cured. The rains have lowered yield for that type too, but the price has remained higher than it has for burley. “The companies that buy dark tobacco have been more responsive to the needs of the growers,” Kuegel said.

In Cox’s Creek, Ky., south of Louisville, Scott Travis quit growing burley, his only tobacco type, after 2019. Like Kuegel, declining yields and stagnant prices were the main factors in Travis’ decision. “If you are hiring a significant portion of your labor, you can’t grow burley for $1.80 a pound,” he said.
 
With the 2020 flue-cured crop in Virginia marketed and in processing or beyond, Extension tobacco specialist David Reed believes production was about 10 percent below expectations. The quality of some of the down stalk tobacco was not good, but some cutters turned out well.

In passing: Long-time Extension plant pathologist and professor Chuck Johnson of the Southern Piedmont Agricultural Research and Extension Center in Blackstone has retired.

But the quality is very good, he says. "Here in our area, we have the best burley crop in 15 years."

What makes a contract valid? According to the Risk Management Agency, it must be a written agreement between you and a processor or manufacturer of tobacco, and it must contain at a minimum:
  • Your commitment to produce tobacco on your farm operation during the insurance period and deliver the production to the processor or manufacturer,
  • The processor or manufacturer’s commitment to purchase the tobacco stated in the contract; and
  • The total number of pounds of tobacco to be delivered.

The January II, 2021, issue of Tobacco Farmer Newsletter: This issue ran a little late because of illness. In the next few days TFN will produce a special issue related to machinery...If you haven't signed on to receive the newsletter regularly, please email your subscription request to TFN at chrisbickers@gmail.com. Include phone number and your affiliation with tobacco, such as farmer, buyer, dealer or Extension agent.

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Welcome to the January I, 2021, issue of Tobacco Farmer Newsletter. If you haven't signed on to receive the newsletter regularly, please email your subscription request to TFN at chrisbickers@gmail.com. Include phone number and your affiliation with tobacco, such as farmer, buyer, dealer or Extension agent.

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