Friday, March 7, 2025
Caption: Farmers shop for equipment at the Southern Farm Show in Raleigh, N.C., in February. Photo by Christopher Bickers.
b>A QUICK LOOK AT CONTRACTING SO FAR
Contracting is off to a good start for burley. Darrell Varner, who grows near Versailles, Ky., in the Bluegrass, says that of the two main buyers there, demand from RJ Reynolds appears to be flat. Altria is increasing prices slightly.
Burley looking better in the Black Patch: Some western Kentucky and Tennessee farmers may switch this year from dark fired to burley, which appears to be enjoying a slight price rise. “Prices so far seem to be running in the $2.45 to $2.50 range, he adds.
Big cut on some dark contracts: Many dark-fired tobacco growers in Kentucky and Tennessee are looking at a reduction of at least 25% from one manufacturer, and perhaps more than that. But another manufacturer may offer modest increases to some of their growers…“We will definitely be down,” says Andy Bailey, K-T Extension tobacco specialist. "We had 24 million pounds of dark fire-cured in 2024 (according to USDA), but we may be down to 20 million pounds this year. That is less than half of what our average annual dark-fired production was between 2008 and 2018."
No other alternatives: “Connecticut broadleaf has apparently run its course,” says Bailey. “I don’t know if any will be grown here this year.” A few growers have grown Southern Maryland for the past three or four years for small cigarette manufacturers, he says. But the prospects for expansion for this type are not favorable, Bailey says.
Flue-cured contracting is likely to hold steady--or rise slightly--in 2025, said Jeffrey Dorfman, N.C. Extension Agricultural economist, at the recent TGANC meeting. That would put acreage at somewhere between 110,000 and 120,000 acres in North Carolina, and 185,000 to 200,000 acres nationwide, he said.
That won't be enough to lower prices, says Dorfman, which will hopefully hold in the $2.30 to 2.40 range. Unfortunately, with production costs for tobacco heavily weighted toward labor, fuel, and chemicals, the only relief on the cost side is likely to be from fuel prices.” So profitability may do little more than hold steady.
The “commish” is less optimistic. “[Recovery in N.C.] is going to take a capital infusion,” said Steve Troxler, N.C. Commissioner of Agriculture at the TGANC meeting. “The only place that’s going to come from is either the state, or the federal government, and the combination thereof. That’s what’s got to happen.” But he couldn’t predict when it might occur, if ever.
Awards and Recognitions: Two individuals were recognized by the Tobacco Farm Life Museum of Kenly, N.C. for excellence at the “Breakfast for the Commissioner” held at the Southern Farm Show.
The Innovative Young Farmer Award (sponsored Farm Credit of North Carolina) went to Preston Cave of Dobson, N.C., who owns PAC Aerial Applications, a company that provides drone aerial services to farmers and others. Much of Cave’s work is on such tasks as seeding, fertilization and fungicide application, but Cave attracted the attention of the public last September when he used his drones to help in the relief of Hurricane Helene survivors …Last season, Cave sprayed some tobacco with maleic hydrazide using a drone and will do it again this year if asked.
The Excellence in Agriculture went to Parker Phillips of the sales staff of Fair Products. Cary, N.C. Phillips is known for his nostalgic poetry about tobacco and agriculture in NC.
The Tobacco Growers Association of N.C. (TGANC) conferred a number of awards at its recent annual meeting. They were:·
· Distinguished Service Award: Chase Gaines, Director of Special Projects for the NC Chamber, Bear Creek, N.C.
· Outstanding TGANC Director: Barry Partlo, President, Agri Supply, Garner, N.C.
· Extension Service Award: Steve Lommei, Associate Dean/Director, N.C. Agricultural Research Service.
· Lifetime Century Member: Mac Bailey, Golden Leaf Tobacco Co., Keysville, Va.
· Farm Family of the Year: Jerry Tyndall Farms, Lenoir County, N.C.
· N.C. Tobacco Hall of Fame: Lawrence Davenport, J.P. Davenport and Son Inc., Pitt County, N.C.
In Passing: Eddie Johnson of Elkin, N.C., died in November as a result of injuries from an auto accident. He was a flue-cured grower and very involved in the founding of TGANC, and I should add a very good friend to me. He will be missed.
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