Tobacco Farmer Newsletter: AN EARLY REPORT FROM THE MARKET

An auction scene from a past marketing season at the American Tobacco Exchange in Wilson, N.C. Tommy Faulkner (far left) lead the sale and Al Whitfield (second from left) was the auctioneer. File photo by Christopher Bickers.

Lugs sold well at the first two sales on the Wilson, N.C., flue-cured market on August 24 and August 31. Tommy Faulkner, auction manager at American Tobacco Exchange (ATE), in Wilson, says both sales went well at his warehouse on the first day and about as well on the second. “Nearly all the tobacco in both sales was lugs,” he says. “A lot of it appeared to be rejections from the company buying stations." But there was a bid for every pound. "The buyers seemed to like what they have seen so far.” The price range, he says, was from $1.20 to $1.60 a pound for most offerings...Besides ATE, the Horizon LTD warehouse is again auctioning in Wilson this year.

In nearby Kenly, N.C., Coastal Piedmont warehouse is once again conducting auctions. Like ATE, it had two sales in August, with 300,000 or so pounds moving in the second one. “It was all lugs except for a few cutters,” says one observer. “Bright lugs with no brown in them sold for $1.35 to $1.45. But this is not going to be a good year for lugs. The demand just isn't there.” But all the leaf offered at the second sale attracted a bid, he says. There was some tag turning.

In the N.C. Piedmont, the auction at Old Belt Tobacco Sales in Rural Hall will begin Tuesday. “We expect about 300,000 pounds on the floor," says Dennis White, owner of the warehouse. "That’s about half capacity." The flue-cured crop in the Winston-Salem area may be three weeks behind, he says. “About 90 percent of the leaf is still in the field. There is definitely some concern about frost. A killing frost in October could be a real problem. At this point, the Old Belt crop appears to be good quality.” Burley on the floor? Last season, about 50,000 pounds of burley were auctioned at the Rural Hall warehouse. White says he will be glad to accept burley this year, but so far he hasn’t received any commitments from burley farmers.

FLUE-CURED

NORTH CAROLINA--Farmers here are keeping their fingers crossed for the next 45 days. “The crop is way behind for the beginning of September, maybe by two to four weeks," says Matthew Vann, N.C. Extension tobacco specialist. “We are going to need a late frost to make sure the crop is ripe. But if the weather cooperates, I expect pretty good yield and some excellent quality as well, especially in the middle and upper stalk." Most growers are looking at the potential of a few hundred pounds more in yield than in last two years, but diseases could pull that down…However much they produce, it is probably going to be late arriving at the receiving stations. It is much to be hoped that the buying companies will keep their doors open to ensure that good ripe tobacco is delivered right to the end, says Vann…Black shank pressure has been tremendous, he adds. “This is the worst black shank problem in 15 years. It blew up at the end of July. There is also brown spot and frogeye leafspot, especially near the border with Virginia.”

VIRGINIA--Flue-cured in Virginia has good potential but faces an uncertain outlook. Stephen Barts, Extension tobacco agent in Pittsylvania County, Va., says the flue crop in Southside Virginia is progressing well but is two weeks behind where it should be. “Most of our growers have finished harvesting their lugs, and some are well into harvesting cutters,” he says. “At this point, it looks like we ought to get it all in by the end of the October. But too much rain would delay harvest and put us in danger of an early frost.” It’s a confusing situation, he says. “We need more rain, but we don’t need any that lasts long-term. It is hard to decide what to pray for”…Barts expects an average yield, maybe above average, but increased volume over last year is unlikely because of the reduction in plantings.

GEORGIA/FLORIDA--As of September 1, 85 to 90 percent of the Florida crop had been harvested, with Georgia not far behind at 70 to 75 percent harvested, says Moore. “Some will finish Saturday,” he says. “Most of the rest will be finished in two weeks.” It appears to be a fair yield, perhaps as much as 2,200 pounds per acre. Quality is definitely better than last year, and prices should be good compared to the price sheet,” says Moore. But it has been a costly crop to grow. “Especially where farmers had to re-fertilize after excessive rain fall, it got very expensive,” he says…Brown spot has been increasing in Deep South fields, with high humidity encouraging its spreads up the stalk. There’s not a chemical control for brown spot now. Quadris helps a little but it is not meant for brown spot and doesn’t really control it…Tomato spotted wilt has been the worst field problem at this end of the tobacco belt. “It has been much worse than in recent years,” says Moore.

BURLEY

KENTUCKY--Kentucky farmers are smack in the middle of burley harvest, says Bob Pearce, Kentucky Extension tobacco specialist. “It is not spectacular but is a good solid crop,” he says. USDA’s August estimate of 61.2 million pounds of burley production in Kentucky may be a little pessimistic, he says. “Our yield may be higher than what USDA projected (6,200 pounds per acre). But plantings were down”…As of September 1, Pearce estimated that 40 percent of the burley had been cut. “We will probably get it all in the barn in good time,” he says…Field problems in Kentucky this year included target spot and frogeye leafspot.

TENNESSEE--All but about four percent of the Tennessee crop had been had been topped by the end of August, according to USDA-NASS. Just over a third had been cut. Tobacco harvest began the week ending August 21 with growers going all out in excellent weather conditions.

NORTH CAROLINA-- Two more mountain counties have apparently gotten out of burley production. In the northwestern North Carolina counties of Ashe and Alleghany, burley is nowhere to be seen, says grower Robert Wurth of Lansing. Not too long ago this was a major burley-producing area, but that era seems to be over. Some growers, however, have taken up wrapper production (see below).

DARK AND WRAPPER

BLACK PATCH-- Maybe a third of the tobacco has been harvested in the dark-producing areas of Kentucky and Tennessee, says Andy Bailey, Kentucky - Tennessee Extension tobacco specialist. “That would be 80 or 90 percent of the wrapper types (Connecticut broadleaf and a little Pennsylvania seedleaf), 40 percent of the burley and 30 percent of the dark. Wrapper harvest should be over by the first week of September”…“We had some major wind damage in early August. Some areas east of the Tennessee River got a lot of lodging. Farms in the western district/Purchase Area got off easier with less twisting of stalks"…Some black shank is showing up and dark fields in some areas are showing angular leafspot along with late-season flea beetles...A rough estimate from Bailey is that in the traditionally dark tobacco areas, farmers have planted maybe 500 acres of the two wrapper types. About 400 of that would be Connecticut broadleaf, and average yield of 1,750 pounds might be possible, giving total production of around 700,000 pounds. Some of the earlier 0f Connecticut broadleaf harvested in mid- to late-July is nearly cured now. Color and quality in the barn looks excellent.

NORTH CAROLINA--There was no big leap in Connecticut broadleaf plantings in North Carolina this year, says tobacco specialist Vann. “We had 20 to 25 growers last year and probably about the same this season. A few growers didn’t plant again but a few new ones started”...Most Connecticut broadleaf is grown along the Virginia border in the mountains and in some Old Belt counties, he says. “Only a trickle is growing in the East and the Sand Hills”...In northwest N.C., early drought produced a shorter crop for the early plantings. "But wetter weather as of late has really improved the later plantings," says grower Wurth in Lansing. "It appears to be a good crop, but drier weather would help in the harvest and would improve curing.”

VIRGINIA--There is little burley left in Pittsylvania County, says Extension agent Barts, but there is some Connecticut broadleaf, mainly in the northern part. There is also some planted in Charlotte, Campbell and Appomattox counties, which are north or east of Pittsylvania. Conditions have been good. “We are on track for a pretty good wrapper crop,” he says.

Flue-cured down, burley way down, projects USDA. The USDA August Crop Report estimated production (shown here by type with percentage change from a year ago) as follows: