A FLUE-CURED AUCTION IN RURAL HALL, NC.

A MID-NOVEMBER FINISH FOR FLUE AUCTIONS?

There are several more weeks to go for flue-cured auctions, says Tommy Faulkner, auction manager for the American Tobacco Exchange warehouse in Wilson, N.C. "I could see us holding sales until mid November or maybe later," he says. He says the volume at sales at his warehouse continues to be good. "Volume is certainly not tailing off at this point." Prices are generally good and buyers seem pleased with the quality. 

REPORTS FROM THE FIELD 

FLUE-CURED 

North Carolina--There is still a little leaf left out in the field, though not as much as was feared a month or more ago, says Matthew Vann, N.C. Extension tobacco specialist. "But it's still more than we would like to see on the fourteenth of October." There was some concern earlier that frost might affect this crop, but that seems unlikely now, at least not on a large scale on a large scale. "So much has been harvested that there is not a lot left to be damaged," he says...Vann thinks North Carolinians are looking at average or better yields statewide this year. The Old Belt may do a little better, he says. "It had dry weather and heat like the East, but I believe the impacts were less severe, partly because the crop was planted a little later and could take advantage of timely rain"...Good news: Tropical Storm Ian did little damage to the N.C. crop when it passed through on October 6, Vann says. 

Virginia--Growers are close to finishing flue-cured harvest. "There might be five percent left in the field, if that much," says David Reed, Virginia Extension tobacco specialist. "This appears to be a good crop, with a better yield than expected and reasonably good quality. But we had significant losses to diseases, particularly black shank"...Growers will be looking anywhere for ways to reduce cost of production. "The price has just not kept up," Reed says. South Carolina, Georgia and Florida have finished harvest. 

BURLEY AND DARK 

Kentucky--Most of the tobacco in the state--about 96 percent--has been cut, according to NASS, and 20 percent is stripped. Kentucky experienced well below normal temperatures and much below normal rainfall over the past week. Tennessee--91 percent of the state's tobacco has been cut. North Carolina--70 percent of the burley crop has been harvested. 

Tip for preparing air-cured for market: If you are adding moisture to burley or dark air-cured tobacco to bring it into case, make sure you avoid pockets of excessive moisture and prevent wet spots in bales, say Extension tobacco specialists Mitchell Richmond (Tennessee) and Andy Bailey and Bob Pearce (Kentucky). In addition, tobacco bales should be delivered as soon as possible to avoid long periods of storage on the farm, they say. 

SPECIAL REPORT 

WILL BUYERS HAVE TO COMPETE FOR THIS YEAR'S BURLEY CROP?

For the first time in recent history, U.S. and global burley supply availability among manufacturers is (or at least should be) a concern for the 2022 marketing season and looking forward into 2023, says Will Snell, Kentucky Extension agricultural economist. 

Certainly, U.S. burley faces a multitude of longer-term issues such as regulatory, labor, and infrastructure challenges, along with an escalating reduction in domestic premium cigarette sales at the expense of generics and alternative tobacco products which use little or zero U.S. burley. Collectively these issues could further reduce the need for U.S. burley in the coming years. 

But for the 2022 U.S. burley market, Snell calculates that, based on buyer purchase shares from recent years and assuming the crop is graded as 50 percent #1 and 50 percent as #2, an average price for the 2022 crop in the neighborhood of $2.25 to $2.30 per pound might be generated. This would compare to the average price of $2.10 paid for the 2021 crop. 

But an average price increase in this range--seven to 10 percent--would not offset the projected 15 to 20 percent increase in production costs. “That means that yields would have to be above average to sustain profit levels from last year," he says. That's the good news. 

“Unfortunately, it will be the most expensive crop they have ever produced,” Snell says. “While the current supply/demand balance for U.S. burley is favorable for growers, the question remains if the market will boost prices even higher for the 2022 crop and for the 2023 marketing season to improve future U.S. burley supply security among a declining and discouraged grower base.” 

In other tobacco news: 

The long-awaited formation of the KY Burley & Dark Tobacco Producers Association has been achieved, and Joe Cain, formerly commodity director of the Kentucky Farm Bureau Federation, has been named executive director. Headquarters is 201 North Doctor St., Springfield, KY 40069, and the telephone number is (502) 303-3663. Farmer officers are Chairman, Al Pedigo; Vice Chairman, Darrell Varner; Secretary, Penny Greathouse, and Treasurer, Jason Wade...If you would like to be on the Association contact list, please send your contact information (including phone and email address) to Cain at KYTobaccoGrowers@outlook.com. 

DATES TO REMEMBER 

Networking event for tobacco growers: Beginning at 5:30, October 21 in the Hospitality Tent at the North Carolina State Fair, immediately after the mock leaf auction. Beer, wine, and hors d'oeuvres will be served. Reservations--https://forms.office. com/r/ Z71Tu WU X6U. 

A Celebration of Tobacco Extension in North Carolina, starting at 4 p.m. on Saturday, October 29. It will start with a social hour at 4 p.m. followed by a pig pickin' at 5 p.m. at the Tobacco Farm Life Museum of Kenly, N.C., 709 Church Street, and honor retired members of the N.C. Extension Service tobacco team. Tickets are $15. You can order at this address--https://www.eventbrite.com/e/nc-state-extension-retired-tobacco-specialists-celebration-tickets-416678465507. 

EDITOR'S NOTE: I have changed my phone number. You can reach me now 984 810 9004. Mailing address remains Bickers Editing Service | 903-9 Shellbrook Ct., Raleigh, NC 27609. 

BURLEY GROWERS WRAP UP A GOOD CROP

 

Burley stalks near Nashville, Tn., have been speared and set upright to wilt in the sun. File photo by Christopher Bickers.

Tennessee--The burley and dark crops were able to recover from the period of limited rainfall earlier this year, says Mitchell Richmond, Tennessee Extension tobacco specialist. “There was some concern in early July, but I think now it will be a solid crop. But we will have to see how the weather holds out for curing.” There was some black shank throughout the season, then some angular leaf spot started popping up in some areas of dark production late in the season, he says. “I think we can expect overall average to above average yields for burley and dark tobacco in Tennessee.” NASS estimates that 86 percent of the crop has been cut. Most of the Connecticut Broadleaf in Tennessee was harvested prior to the first week of September, which is ideal for this shorter season type. No production estimate is available yet, but Richmond says, ”I have talked with some growers who are happy with their yield and quality this year.” Kentucky--92 percent of the state's tobacco has been cut, says NASS-USDA. Yields appear to be fairly normal since many producers were able to irrigate during the summer months. North Carolina--The small burley crop is projected at 65 percent harvested. In other tobacco news: Note: Two new publications from the Kentucky and Tennessee Extension Tobacco Programs could help you out in 2022. Ordering/Casing Burley and Dark Tobacco – Post-Curing Management Practices, and Barn Management for Curing Connecticut Broadleaf Cigar Wrapper Tobacco. “These are available through the University of Tennessee and University of Kentucky Extension websites,” says Richmond. Prices were up in Brazil: The average price paid to tobacco growers in southern Brazil for the crop recently marketed was up 61.5 percent to (in Brazilian Reales) BRL. That would be 17.02 (US$3.25) per kilogram. Among the three southern states of Brazil—the heart of Brazilian tobacco country—the average price was BRL17.26 ($3.21 US) per kilogram in Rio Grande do Sul, BRL17.19 (US$3.20) per kilogram in Santa Catarina and BRL16.41 (US$3.06) per kilogram in Parana. The Tobacco Farm Life Museum along with the N.C. Extension Service will host a “Celebration of Tobacco Extension in North Carolina” on Saturday, October 29, on the museum grounds. It will start with a social hour at 4 p.m. followed by a pig pickin' at 5 p.m. The guests of honor will be 12 retired members of the Extension Service: Blake Brown, David Shew, Mike Boyette, David Smith, Bill Collins, Sterling Southern, Tom Melton, Earl Wernsman, Gerald Peedin, Doug Worsham. Tickets are $15. Order via email. The address: https:// www.eventbrite.com/e/nc-state-extension-retired-tobacco-specialists-celebration-tickets-416678465507. A networking event for tobacco growers: A reception will be held in the Hospitality Tent the North Carolina State Fair on October 21 from 5:30 to 8 p.m. (right after the mock leaf auction). All tobacco growers and people supporting the industry are invited to attend. Besides networking, the program will include a panel discussion on the future of tobacco. Beer, wine, and hors d'oeuvres will be served. Reserve a place at https://forms.office.com/r/Z71Tu WU X6U. Following is a set of questions with answers about the Lewis Settlement Class action case concerning the value of memberships in the flue-cured cooperative.   Is this for all Farmers/growers? ANSWER: No. This lawsuit is for Flue Cured Tobacco growers who were members of the Flue Cured Tobacco Cooperative. Why was there a lawsuit against the Cooperative? ANSWER: The Cooperative held back funds for certain years which are now being returned to the qualifying grower members. How would a claim qualify for a payment? ANSWER: You, or the person or entity for whom you would be filing the claim for, must have been a member of the Flue Cured Tobacco Cooperative at some point between 1946-2004 to be eligible for payment consideration. An important part of the claims process is identifying your claim as one made by or on behalf of a person or company who marketed flue cured tobacco at some point between 1946 and 2004. This should be done by supplying the requested FC Number for that person or company. If you do not have that number, then you must provide information sufficient to identify, in the sole judgment of the trustees, who that person or company was, which would include the name and all addresses they used during the period they marketed flue cured tobacco. A claim cannot be eligible without adequate proof that the person or company, for whom the claim is made, marketed flue cured tobacco at some point between 1946 and 2004. My family member(s) were a grower member(s) but they are deceased. Can an heir (if there was no will) or beneficiary (if there was a will), file a claim? ANSWER: Please consult your personal attorney in these situations. Only Personal Representatives for the Estate of your family member can file a claim. Certain documents will need to be submitted to prove that the claim is being filed by the Personal Representatives for the Estate. If the Estate for your family member has been closed, it will need to be re-opened by the court which handled the Estate. I am the spouse of a deceased grower member. Would I need to provide information on the Estate? ANSWER: Yes. I have multiple siblings or I am the only child. Would I still need to provide information on the Estate? ANSWER: Yes. What information do I need to provide to submit my claim? ANSWER: Answer all the questions on the claim form and submit the requested documentation supporting the claim which must be received before the Settlement Claim Bar Date. I want to file a claim for more than one grower member. Can I fill out one claim form for more than one member? ANSWER: No. Only one claim form can be submitted for a flue cured member number. There cannot be multiple owners of a flue cured member number. If there are multiple beneficiaries of a member’s estate, that claim is filed by the personal representative for the estate. What documents do I need to prove the claim? ANSWER: Examples are documents that establish the Flue Cured member number, such as, a Flue Cured member card or a stock certificate, documents that establish the mailing addresses of the grower member at the time of membership. If you marketed tobacco from 2000-2004 by direct contracting, documents that establish pounds marketed during any of those years. If your claim is for the 1967-1973 crop years, documents such as certificates of interest from any of those years. The Claims Administrator and the QSF Trustees will determine if the submitted documentation adequately supports the claim. I have no documents. Will completing the form be enough to prove my claim? ANSWER: Generally, without some documentary support, claims will not be approved. However, providing the Flue Cured member number and the mailing address of the grower member at the time of membership may assist the claims administrator in determining if there are documents that support your claim. Claims without documentation will be reviewed on a case-by-case basis. Can you fill out the claim form for me? ANSWER: No. Neither the Claims Administrator nor the QSF Trustee can complete the claim form for you. Can you provide me with information or documents about my membership or pounds of tobacco grown to help fill out the claim form? ANSWER: No. You should complete the information requested in the Claim Form to the best of your ability and provide copies of any documentation that you have to support your claim. However, even if you do not have documentation, you may still submit your claim, and it is possible that you may still be able to participate in the settlement based on the Cooperative’s records. The claims administrator will review those records to determine if there is data to support your claim. What is the deadline for submitting a claim form and documentation? ANSWER: All claims and supporting documentation must be received by the claims administrator no later than 5 p.m. EDT on December 12, 2022. How much money is this about? ANSWER: See the confirmation order found here and the Qualified Settlement Fund Claims and Distribution Procedures found here for the amount of the settlement and For how claims will be determined. How soon may the claim be paid? ANSWER: All claims must be reviewed before any single claim is approved and paid. The Court has allowed 120 days to submit all claims; and 120 days for the QSF Trustee to review each claim. If the QSF Trustee has objections to the claim, the QSF Trustee has 90 days to informally resolve any objection to the claim before objections are filed with the court. What if I need to amend my claim before the claim deadline? ANSWER: Please resubmit your claim if you need to add additional information or documentation.  Will I have the opportunity to amend my claim form or submit additional documentation if the QSF Trustee determines that my claim is not valid? ANSWER: Yes. If the QSF Trustee asserts an objection to your claim, you will receive written notification with the reason that your claim was rejected. At that point, you may be requested to submit additional information by a specified deadline. If you submit the requested information and the QSF Trustees still objects to your claim, the QSF Trustee will file a written objection to your claim and submit it for judicial resolution.