Monday, September 28, 2020

THE PROSPECTS FOR HEAT-NOT-BURN




A farmer strips leaves from his burley in the Bluegrass of 
northern Kentucky. File photo by Christopher Bickers.

Heat-not-burn products could be a better alternative tobacco product than e-cigarettes, at least as far as American farmers are concerned. Blake Brown, N.C. Extension economist, said at the recent N.C. State virtual field day that the promising PMI product IQOS has received FDA's "modified risk" status, which increases the chance that it might achieve full marketing soon. "Heating rather than burning significantly reduces the production of harmful and potentially chemicals," Brown said. "Also, switching completely from conventional cigarettes to the IQOS system significantly reduces your body's exposure to harmful chemicals." The best thing about HNB products for U.S. farmers is that they use some tobacco, maybe a third as much as conventional cigarettes. That is a lot better than e-cigarettes which use no U.S. tobacco. Most of the nicotine in e-products is believed to come from India and China. "A scenario with HNB dominating alternative nicotine delivery is better than vaping," Brown said. But it will still accelerate erosion of sales of combustibles.

Another report from the Bluegrass indicates that an excellent burley crop is in the offing. Grower Darrell Varner of Versailles, Kentucky, says, "All the burley around here is pretty good. We have had timely rain, and from 65 to 70 percent has been harvested." Varner is president of the Council for Burley Tobacco, which will hold its annual meeting tomorrow at Varner's farms in Versailles. The meeting will begin at 10 a.m. EDT with a welcome. Advance registration is required to make sure COVID guidelines are met. Directions will be sent to registrants. To register, go to: www.council for burley tobacco.com/ and click on "2020 Annual Meeting Registration".

From USDA's September 20 Crop Progress & Condition Report:
  • Kentucky: Growers experienced below normal temperatures and much below rainfall over the past week. Farmers made substantial progress in the fields this week thanks to mild temperatures and dry conditions. As better weather presents itself, harvesting will move along steadily. Housed tobacco condition continues to improve aided by the cool, dry weather.
  • Tennessee: Cooler, drier weather in Middle Tennessee aided farmers in harvesting tobacco. In East Tennessee, drier weather toward the end of the week allowed harvest to continue.
  • North Carolina: Flue-cured growers in the Coastal Plain reported lower weights and yields than last season, say Extension personnel in Franklin, Halifax, and Nash counties. In Robeson County, farther south in the Coastal Plain, flue-cured harvest was looking good. Harvest will end soon.
  • South Carolina & Georgia: What was the damage from Hurricane Sally? The storm delivered several inches of rain on northeast South Carolina on September 17, but no crop damage from winds was reported. Ponding in fields across the Pee Dee region again this season, but very little crop damage was reported beyond preexisting damage. In the southeast and middle portions of Georgia, Hurricane Sally brought ample rainfall, but most fields were spared strong winds. Dry soil quickly soaked up much of the moisture.

Harvest progress through September 20: Flue-cured--VA--72 percent; NC--83 percent; SC--97 percent; GA--96 percent; FL--Complete. Burley--KY--80 percent; TN--83 percent; NC--34 percent.

 

REPORT FROM OVERSEAS
Brazil: How much tobacco is Brazil growing? Universal Leaf estimated earlier this year that Brazilian production of the recently marketed flue-cured crop at 1.21billion pounds, roughly the same as in the past five years. For the next flue- cured crop, ULTC projects 1.25 billion pounds. The same report estimated U. S. production for the crop ending now as 240 million pounds, about 15 percent down from the previous season, and 2021 production of 277 million pounds, up 15 percent from this season. For burley, Universal estimates Brazilian production at 155 million pounds, down 18 percent from the previous crop, with 12 percent less projected for 2021. The report estimated U.S. burley production for this season at 81 percent million pounds, up two percent.












Tuesday, September 15, 2020

A GOOD BURLEY CROP ON THE WAY

 

Cured burley in barn in Kentucky awaiting stripping. File photo.
 
 
The three traditional tobacco types that are grown in middle Tennessee--dark fire-cured, dark air-cured and burley--are all reportedly doing well. Rob Ellis, director of the Highland Rim AgResearch Center at Springfield, Tn., said rainfall has been erratic most of this season. "But overall we have a good dark tobacco crop." The weather has been good for harvest this season, and at the research center, harvest is more than halfway complete.
 
USDA estimated that by the 14th, 65 percent of Tennessee's tobacco had been harvested and 100 percent topped.

Burley plantings are way down in Robertson County, where the center is located, says Ellis. But there has been considerable interest in Connecticut broadleaf. "We have four acres of Connecticut broadleaf here at the center," says Ellis. "In the field, it has looked very similar to the dark types." Market preparation will be a challenge, since Ellis has never done it before.
 
But dark tobacco growers may have an advantage in producing broadleaf because it hasn't been too long ago when they followed an intense market preparation program as is followed for broadleaf. "There are farmers and workers who remember how it is done," says Ellis.
 
Reports from other states:

Kentucky--Nearly all Kentucky's tobacco has been topped (98 percent) with well over half (69 percent) of it cut. Housed tobacco is reportedly in mostly good condition and markedly better than the week ending September 7, due to largely dry conditions. But in North Carolina, only 29 percent of the burley had been harvested.

North Carolina--Flue-cured was 74 percent harvested. Tobacco harvest was reportedly progressing well in Craven County and, despite the rain, leaves are holding well without excessive decay. In Virginia, 65 percent of the flue-cured crop was harvested. In South Carolina, harvest and curing drew to a close in most areas while a few producers were still finishing up their harvesting activities. The percentage harvested was set at 95 percent. In Georgia, 92 percent was reported harvested. In Florida harvest is complete.

Lugs have made up most of the offerings on flue-cured auction floors. "We have had a lot of lower-stalk tobacco," says Kenneth Kelly, owner of Horizon warehouse in Wilson, N.C. "Better quality lugs bought from $1 a pound up--from here on, the quality and thickness will determine the price." He isn't expecting cutters and leaf for several more days. Flue-cured sales resume today.
 
Two warehouses in Kentucky will be auctioning burley this season: Farmers in Danville, Ky., and Big Burley in Lexington, Ky. If you are interested in selling at either, call:
  • Darby Montgomery at Big Burley Warehouse, Lexington, Ky., (PH 859 233 9944) or
  • Jerry Rankin Farmers Tobacco Warehouse, 4540 Perryville Rd., Danville, Ky., (PH 859 319 1400).
Opening sales dates will be announced later. Note: Old Belt Tobacco Sales in Rural Hall, N.C., will auction burley tobacco if it is offered at its warehouse north of Winston-Salem, N.C. If you are interested, call Dennis White at (336 416 6262).

Bluegrass burley looks very good, both Rankin and Montgomery say. "My personal crop is the best I have had in 15 years," says Rankin. "We might get a yield of 2,700 to 2,800 pounds. That would be the best on this farm since the Eighties." But Montgomery says if the rainfall doesn't hold back, harvesting could be delayed. "We still have a lot out there that hasn't been cut yet." It's possible that labor to cut the crop could become a big problem.

CROP REPORT FROM USDA
The prospects for this crop continue to fall. The September Crop Production Report from USDA projected that volume of all types in the U.S. this year will reach 368 million pounds,, down 21.3 percent from last season and 1.1 percent from the August projection. Both flue-cured and burley are still projected down more that 20 percent since last season, as is fire-cured. Dark air-cured and Pennsylvania seedleaf are roughly the same. Note: The projection for the miniscule Maryland type crop increased noticeably since August, but it is still expected to be down 40 percent.
 
FLUE-CURED: North Carolina--173.4 million pounds, down 25.8 percent. Virginia--26.4 million pounds, down 7.3 percent. Georgia--16.56 million pounds, down 12.3 per-cent. South Carolina--nine million pounds, 42.9 percent. Total--225.36 million pounds, down 24.1 percent.
 
BURLEY: Kentucky--61.2 million pounds, down 21.4 percent. Pennsylvania--5 million pounds, down 22.4 percent. Tennessee--4.35 million pounds, down 32 percent. Virginia--680,000 pounds, down 48.8 percent. North Carolina--495,000 pounds, down 29.2 percent. Total--71.765 million pounds, down 24.1 percent.
 
FIRE-CURED: 40.49 million pounds, down 11.5 percent.
 
DARK AIR-CURED: 23.97 million pounds, less than one percent change.
 
PENNSYLVANIA SEEDLEAF: 5.52 million pounds, less than one percent change.
 
SOUTHERN MARYLAND: 960,000 pounds, down 41.7 percent.
 
ALL UNITED STATES: 368 million pounds, down 21.3 percent.

Thursday, September 10, 2020

GEORGIA-FLORIDA FLUE-CURED IS TERRIFIC

 

A harvest crew in action between Wilson 
and Raleigh, N.C. Photo by Chris Bickers.

Best crop in Georgia and Florida in many years: Buyers have been pleased with the quality of the leaf in the Deep South, said J. Michael Moore, Georgia Extension tobacco specialist. Weather was an important factor. Diseases haven't been a significant problem and the crop wasn't damaged by too much rainfall as it has in several recent years. Harvest in Florida appears complete while in Georgia, 88 percent had been gathered by the end of last week.
 
A report from the auctions: Prices on lugs were up some from last year at the first two auctions at American Tobacco Exchange in Wilson, N.C., Auction Manager Tommy Faulkner told Tobacco Farmer Newsletter before this week's sales. Lugs have made up nearly all the offerings so far. "The quality so far is good, but the crop is light. It definitely is not as heavy as normal to this point." The yield may improve with weather, he said. "But I don't see this ending up a big crop." For information about selling at American Tobacco Exchange, call Faulkner at 910 585 2708.)

Another warehouse begins sales today. Old Belt Tobacco Sales (336 416 6262) in Rural Hall, N.C., will hold its first sale of the season. Horizon Ltd. (252 292 8822) in Wilson and Coastal Piedmont Auction, Kenly, N.C. (919 284 0504) continue their sales.

Hopes dashed for sales to China in 2020: "We really had high hopes that China would be back going into this season, that they would buy some of the inventories destined for them in 2018," said Blake Brown, N.C. Extension economist. "Even if that didn't affect our 2020 contract, it might affect 2021." But there can be no more hope that this will happen this season. U.S. leaf sales to China (which are near-ly all flue-cured) had reached 60 million pounds in 2018. So the effect on U.S. growers was considerable when China stopped importing U.S. tobacco in 2018, Brown said. He believes they have largely met their needs from Brazil and to some extent from Zimbabwe. 

Now, the outlook is cloudy. "I honestly don't know what to expect for the future," said Brown. "If China comes back on our market for 2021, that could help us in either 2021 0r 2022. It might not reverse the trend we are seeing in U.S. tobacco, but it certainly would be a big help."
 
REPORT FROM OVERSEAS
 
Zimbabwe production down, price up: The Tobacco Industry and Marketing Board of Zimbabwe said farmers had delivered 179.25 million kilograms by the time auctions ended on September 1 compared to 233.6 million kilos during the same period last year. Note that much Zimbabwean flue-cured is sold on direct contract with manufacturers and dealers. Contract deliveries were still going on in early Septembers. Although this year's crop was smaller, stronger prices averaging around $2.50 per kilo helped farmers earn $460.7 million at auction, more than the $447 million they got in the same period last year.

Malawi down too. Sales in Malawi ended at the beginning of September, and sales were calculated at $173.5 million, 27 percent less than the $237 million garnered from last year's crop, according to the Malawi Tobacco Commission: 
  • A total of 112.89 milli-on kgs of tobacco were sold, down from 165.67 million kgs last year. 
  • Prices per kg were higher: $1.54 com-pared to $1.43 last year.
  • Excessive rains received immediately after the second round of crop estimates contributed to the decline in production.
The Tobacco Commission's Chief Executive Officer Kaisi Sadala told Daily Times news-paper of Blantyre, "Initially we had anti-cipated producing around 154 million kgs of tobacco this season. But we ended up producing just around 112 million." 
 

Thursday, August 20, 2020

 


A migrant crew tops flue-cured near Winston-Salem, N.C. 
Photo by Chris Bickers.
A VARIABLE CROP THAT'S RUNNING LATE

An uneven crop made it difficult for N.C. flue-cured growers to decide when to top, sucker, and spray, and now it is confusing harvesting decisions. "Nevertheless, harvest is well under way," says Matthew Vann, N.C. Extension tobacco specialist. "A great many of our growers have harvested their lugs and cutters. But there are still a few fields that have not come into full flower in the western part of the Old Belt."

The cool early season and intense July heat lead to lateness in most of the N.C. flue-cured crop, says Vann. "It is fairly green in places. Take care in harvesting ripe leaf so you can put good quality on the floor." It is much to be hoped that the first frost is not too early, but that seems to be the hope every season these days.

The crop is coming off fast in South Carolina, says Matthew Inman, S.C. Extension specialist. "Sixty to seventy percent has been harvested, and farmers are struggling to stay ahead. I have seen one farmer harvest once, and then was forced to strip the rest in one pass." Inman suspects that the tobacco in his state will weigh a little light this year. "A lot of our tobacco has weak root systems," he says.

A late note: TFN may have underplayed the damage in S.C. from Hurricane Isaias in its last number. (See "S.C. escapes damage from Isaias," August I 2020.) "We here in Horry County had a lot of damage--leaf blown off the stalk and blown down and three to four inches of rain," wrote farmer Dwight Stevens of Loris.

A good burley crop appears to be developing in Kentucky, says Bob Pearce, Extension tobacco specialist. "We have a fair-looking crop just now. We have some really good-looking fields but in other areas not so good. The variability is as high as I can remember. But on average it is a good crop." 

Harvest has started in Kentucky, says Pearce, and not just by a few here and there. "Some tobacco is going to the barn." Still, it is a little behind at this point. "Almost all of our tobacco was planted a little late because of the cool wet spring." From here on, Pearce urges growers to stay aware of curing conditions. "Get your leaf to cure up to its potential," he says.
 
USDA says: Production down 20 percent: All tobacco production in the United States is forecast at 372.3 million pounds, down 20 percent from 2019, according to USDA's August Crop Production report. Both flue-cured and burley are projected down by double-digit percentage points, as is fire-cured. The small Southern Maryland crop is down a whopping 65 percent. Dark air-cured and Pennsylvania seedleaf are roughly the same. The drop in estimated production is due almost entirely to reduced plantings: Yields for most types are comparable to last season. 

Projections by type--Flue-cured: 224.2 million pounds, down 24 percent.  Burley: 77.3 million pounds, down 16 percent. Fire-cured: 39.1 million pounds, down 13 percent. Dark air cured: 24.6 million pounds, no change. Southern Maryland belt: 800,000 pounds, down 65 percent. Pennsylvania seedleaf: 5.52 million pounds, no change. United States: 372.3 million pounds, down 20 percent.
 
Auctions begin next week: Two auction warehouses plan to hold opening sales on August 26. They are Horizon Ltd., 1723 Goldsboro St. So., Wilson, N.C. (Contact Kenneth Kelly at 252 292 8822) and American Tobacco Exchange, 2101 Miller Rd., Wilson, NC.  (Contact auction manager Tommy Faulkner at 910 58 5 2708.) Two more expect to announce open-ing dates soon. They are Old Belt Tobacco Sales, 1395 Old Belt Way, Rural Hall, N.C. (Contact Dennis White at 336 416 6262 or the warehouse switchboard at 336 969 6891) and Coastal Piedmont Auction, 1291 Johnston Parkway, Kenly, N.C. (Contact Mickey Pegram at 270 932 1830, Roger Stanley at 919 628 9075 or the office at 919 284 0504.)

Tuesday, August 4, 2020

S.C. ESCAPES DAMAGE FROM ISAIASA flue-cured grower in the Piedmont of North Carolina revs up his mechanical harvester.

No significant issues resulted from Hurricane Isaias in South Carolina. "We had a one inch rain last night in Florence which is not as much as was predicted," says Matthew Inman, S.C. Extension specialist. Most S.C. farmers had harvested their crops at least once by the time the hurricane arrived. "We will be light on our lugs," he says. "Many are not being harvested."  The big issue now is poor root systems, thanks to heat in June. "The plants have struggled to handle the heat."

A late note: It looks like TFN jumped the gun in its report on hurricane damage in S.C. A reader wrote, "We here in Horry County [S.C.] had a lot of damage--leaf blown off the stalk and blown down and three to four inches of rain," said farmer Dwight Stevens.

Harvested so far: According to USDA's Crop Progress Report, Georgia has harvested 45 percent of its crop, South Carolina 41 percent, North Carolina 16 percent and Virginia 19 percent. No harvest of burley is known to have taken place.

The consequences of the coming dissolution of the Burley Tobacco Growers Cooperative Association are not yet clear. But the Lexington (Ky.) Herald Leader newspaper estimated that if 4,000 grower-members turn out to be eligible to receive a share of the money, liquidating investments and selling assets might bring in a total of about $28 million. That would be paid out evenly to farmers who were members between 2015 and 2019. "A pot of $28 million would mean about $7,000 each," the newspaper said.

There is still room for tobacco in Kentucky's economy, says Al Pedigo, a burley grower from Scottsville, Ky., and current president of BTGCA. "But after 100 years, the cooperative found it hard to find a place for itself."

One leading Kentucky grower, who requested anonymity, told Tobacco Farmer Newsletter that this may be his last year in burley. In recent years he has grown as much as 200 acres but is down to 15 for 2020. It might get down to zero next year. But he won't exit tobacco--he will continue to grow dark air-cured. The relationship between growers and buyers is better for dark than for burley, he says.

 
Cover crops are not traditionally used in tobacco production. Why is that? There are concerns with unpre-dictability of nitrogen supply and the possibility that extended N minera-lization might compromise the quality of the cured tobacco leaf, says Alex Woodley of the N.C. State Department of Crop and Soil Sciences. "Our re-search did not support these concerns and found evidence supporting the potential use of cover-crop N as a cost-effective management strategy in the production of flue-cured tobacco." See more details from Woodley and from other N.C. State University tobacco specialists at tobacco.ces.ncsu.edu/2020/07/2020-virtual-tobacco-field-day/.

CROP REPORT FROM USDA 
  • KENTUCKY: Farmers finally saw some reprieve from intense summer heat as cooler temperatures and precipitation moved in, relieving a moderate drought. Tobacco is doing fairly well with 55 percent of the crop in good condition, and 64 percent blooming and 40 percent topped.
  • TENNESSEE: Welcome rain improved overall crop conditions in East Tennessee. Before, the crop was suffering from heat. Statewide, 63 percent of the crop had been topped.
  • NORTH CAROLINA: Farmers prepared for the arrival of tropical storm system Isaias. That included tobacco harvest, according to a report from Craven County. Shortly before the storm, excessive heat and low soil moisture in most areas slowed crop growth. Tobacco harvest continued in Robeson County as Isaias approached. Crops have benefited so far from scattered showers across the county. 
  • SOUTH CAROLINA: 82 percent had been topped.
  • GEORGIA: Tobacco was being harvested. Some drought pressure was apparent.
  • VIRGINIA: 19 per cent of the crop had been harvested.
 
AUCTION WAREHOUSE OPENINGS 
--August 26--Horizon Ltd., 1723 Goldsboro St. So., Wilson, N.C. Live & silent auctions. Contact Kenneth Kelly at 252 292 8822.
--August 26-American Tobacco Exchange, 2101 Miller Rd., Wilson, NC. Live auction, 9 a.m. Contact auction manager Tommy Faulkner at 910 585 2708.
--Opening Date to be Announced--Old Belt Tobacco Sales, 1395 Old Belt Way, Rural Hall, N.C. Live auctions. Flue-cured and burley will be sold. Contact Dennis White at 336 416 6262 or the warehouse switchboard at 336 969 6891.

 
Good crop in Zambia: Through July 7, flue-cured growers in Zambia had sold 20.6 million kilos at an average price of US$ 2.55 per kilo. Burley growers had sold 4.5 million kilos at an average price of 1.64 per kilo. Total volume for all tobacco types was 25.1 million kilos.
       

 


Friday, July 10, 2020

USDA PROJECTS FLUE-CURED PRODUCTION WILL FALL 22%

One of the last: A grower wraps up burley transplanting on his farm near Ripley, Ohio.


Flue-cured production for all U.S. states is forecast at 231 million pounds, down 22 percent from 2019, according to USDA's July Crop Production report. Acreage at 120,500 acres is 19 percent below last year. Yield for the 2020 crop year is forecast at 1,919 pounds per acre, 71 pounds below last year. Once again, if these projections are realized, this will be the lowest flue-cured tobacco harvested acreage and production on record. Among the individual states:
  • NORTH CAROLINA: 174.8 million pounds, down 25 percent from 2019, on 92,000 acres, down 25,000 acres from 2019. Yield is projected at 1,900 pounds per acre, down slightly from 2019.    
  • VIRGINIA: 28 million pounds, down one percent from 2019, on 14,000 acres, down 1,000 acres from 2019. Yield is projected at 2,000 pounds per care, up 100 pounds per acre from 2019.
  • GEORGIA: 16.5 million pounds, down 12 percent from 2019, on 7,500 acres, 1,500 fewer acres than 2019. Yield is projected at 2,200 pounds per acre, slightly higher than 2019.
  • SOUTH CAROLINA: 11.9 million pounds, down 24 percent from 2019, on 7,000 acres, down 1,300 acres from 2019. Yield is projected at 1,700 pounds per acre, down 200 pounds per acre from 2019.
  • FLORIDA: USDA did not estimate production for the Sunshine State and has not for several years. But one reliable estimate of planting puts Florida acreage at 1,000.
First projections for other tobacco states will appear in future editions of USDA's Crop Production.
 
Suit against Lexington co-op settled: All parties involved a lawsuit seeking the dissolution of the Burley Tobacco Growers Cooperative Association have reached an agreement on a partial settlement. The terms include the liquidation of the Co-op's assets and distribution of net proceeds equally among members (those active in any crop year from 2015 through 2019) after payment of administrative costs, and fees and expenses of the plaintiffs' attorneys. The first distribution should occur before the end of 2020. The dissolution of the Co-op will be managed by a six-member dissolution committee made up of Penny Greathouse, Mitch Haynes and Gregg Craddock, who are Cp-op members involved in the litigation, and Al Pedigo, Eddie Warren and Donald Mitchell, who are Co-op directors. $1.5 million of the Co-op's assets will be designated for the creation of a new agricultural-related non-profit entity whose mission will include:
  • Serving as liaison for tobacco growers with leaf dealers and tobacco purchasers;
  • Advocating for producers/growers and land-owners in production of tobacco;
  • Providing services and support for education and research beneficial to growers of all types of tobacco.
A hearing seeking preliminary approval has been set for July 29. Detailed notices will then be sent to past and present members, and a settlement website will be established. Watch for further details as they arise.
 
Who will represent growers in Kentucky until the new association is established? "We want burley growers to know they still have an organization they can reach out to as issues arise," said Darrell Varner, president of the Council for Burley Tobacco. "We encourage them to check out our website at  www. councilforburleytobacco.com for up-to-date information on all burley issues."
 
Tobacco is fading away in East Tennessee: As far as Bennie Davis of Sur-goinsville, Tn., can tell, only one acre of burley has been planted this year in his home county of Hawkins. And that acre is being grown on his upper east Tennessee farm by his 17-year-old grandson as a school project. As recently as a year ago, there were three adult tobacco grow-ers in the county (see TFN November II 2020), but they have all given up on the crop. Reason? The price offered in recent years has been too low to allow a profit under the growing conditions of the Blue Ridge. "You can't afford to grow it at the current price if you have to hire any labor at all," says Davis. "You lose money."
 
On the bright side, Davis' grandson's one-acre patch is looking good now, even though it got off to a late start. "It should have been up already when he decided to plant it," Davis says. Fortunately, the weather was good after setting.
 
Kentucky burley setting was probably completed this week, says USDA. Steve Pratt, general manager of the Burley Tobacco Growers Cooperative Association in Lexington, said, "From what I have seen, the crop looks good and has good potential." Transplanting was slowed by heavy rains early on. "But once it was in the field, the weather has been better. Farmers have been able to plant all the acres they wanted to."

REPORT FROM OVERSEAS
 
Brazil--Nicotine levels high. Harvesting of the 2020 flue-cured Virginia crop has been completed, according to a report from Star Tobacco, and expected crop size is 550 million kilos. Production was negatively affected by drought, and nicotine levels appear to fall around five percent. To decrease that level in blends, buyers plan to use most Brazilian lugs and cutters in leaf grades. A short supply of filler grades for the export market can be expected.
 
Zimbabwe--As of July 1, Zimbabwe farmers had sold 116 million kilograms of tobacco, substantially more than at the same point in the 2019 sales, according to media reports. Prices were roughly 30 percent higher. Flue-cured Virginia production has been estimated at 225 million kilos in 2020 which is 13 percent lower than the previous year, according to a report from Star Tobacco. The irrigated crop is down in volume compared to recent years, but the dryland crop has exceeded the earlier forecast yields. As a result, the overall production level of commercially grown flue-cured tobacco should be slightly less than they were than in 2019.

Malawi--The growing season here was characterized by heavy rainfall, according to a report from Star Tobacco. Rain that extended from February and into March left crop stands slightly uneven, and the leaf is thinner than the previous year. Expected burley crop size is 120 million kilos, 15 percent lower than 2019

Wednesday, July 1, 2020

TRANSPLANTING ENDS AS HARVEST KICKS OFF IN GEORGIA & FLORIDA

Nearing the end: A Kentucky farmer wraps up setting. 
Transplanting will probably be complete by the weekend, in Kentucky, if not sooner, says Bob Pearce, Kentucky Extension tobacco specialist. "Most of the crop has been in the ground for two weeks and looks good." Al Pedigo of Scottsville, Scottsville, Ky., hoped to finish transplanting on Saturday the 27th. "It's definitely been a late crop so far," he told TFN.
 
That was largely due to rains. And the dark types in western Kentucky and Tennessee were affected by the same weather. Andy Bailey, Extension dark tobacco specialist, thinks about 98 percent of the dark tobacco has been set out and the rest will be by the weekend. Normally it would be complete by now. "This could prove to be a problem for dark tobacco growers who are trying to double crop their barns," he says.
 
Mountain burley lags: In Virginia, planting of burley was completed last week. In Tennessee, all but five percent of the crop was reportedly set. But in North Carolina, 18 percent of the state's burley crop was yet to be transplanted. In the N.C. Mountains, rainfall near average and temperatures slightly lower with cloudy conditions for most of the period in Jackson and Swain counties.
 
Coastal Plain heats up: In North Carolina, farmers in the east went from wet and cool weather to hot and dry weather very quickly. "Our crops could use a little shower of rain in the evenings at this time," said a USDA source covering Franklin, Halifax and Nash counties. Soils have reportedly dried out in Johnston County south of Raleigh due to very little rainfall and windy and hot conditions. Near the ocean, in Craven County, the lack of rainfall has allowed field work, but crops are still behind normal growth stages. Farmers have been forced to make difficult decisions regarding management priorities--adjust for nutrient loss, manage weeds or remedially treat for tobacco budworm? In South Carolina, crops benefited from frequent rainfall last week. However, some areas experienced ponding in fields. Topping was going on full speed, with 31 percent of the crop topped
 
Old Belt makes adjustments: North of Raleigh, flue-cured growers in Granville County are trying to apply nitrogen without causing the leaf to stay green into the fall, another USDA source says. Growing conditions have been good, but some foliar diseases are starting to show up. In Virginia, fieldwork had been slowed by wet conditions two weeks ago, with some fields flooded. But the weather dried and allowed growers to get in the fields. To "leaching adjust" or "not to leaching adjust" was the big question. Transplanting was complete for flue-cured and nearly complete for fire-cured.

Deep South: Harvest will get going in earnest in Georgia and Florida next week, says J. Michael Moore, Georgia Extension tobacco specialist. Some may have taken place already. Some irrigation is going on, especially in Florida. "It has been very hot," Moore says. "The quality looks good, but the leaf is thin." Moore estimates that a little over 8,000 acres of flue-cured have been planted in Georgia and perhaps 1,000 acres in Florida.

Still another type of tobacco in the Black Patch? The same dealers who contracted with farmers to grow Connecticut broadleaf last year are now contracting for limited plantings of the Pennsylvania Type 41 tobacco in the dark tobacco areas of western Kentucky and Tennessee. It is primarily a cigar wrapper type like the Connecticut type but has some other uses. Type 41 may have a little higher yield potential than Connecticut, says Bailey. He believes there are a few hundred acres of Type 41 growing in the Black Patch now, along with a few thousand acres of Connecticut.
 
REPORT FROM OVERSEAS
 
Argentina's tobacco market was disrupted by the country's coronavirus lockdown. When it began in March, roughly a third of the flue-cured and virtually all of the burley in the country remained to be delivered. "Purchases of burley were just beginning when COVID-19 broke out," said José J. Aranda of the Cámara del Tabaco of Salta. "[The delays] and the slower pace of purchases has had a greater impact on the quality of burley leaves than flue-cured." As a result of the lockdown, points of sale experienced a shortage of cigarettes. "This, in turn, means cigarette sales are down." But the lockdown ended in early June and there is hope that its effects on growers will not be pronounced.
 
Names In The News: Mark Stewart has been named the new President of Drexel Chemical Company, replacing Ben Johnson, who is retiring.
 
ACREAGE PROJECTION FROM USDA SHOWS
FLUE-CURED DOWN 19%, BURLEY DOWN 10%

THIS JUST IN: USDA released its first estimate of 2020 tobacco plantings yesterday. Acreage was estimated at 149,300 acres, two percent below last year. Following are USDA's planting projections divided by types and by state for flue-cured and burley, with percentage change from 2019:

FLUE-CURED
  • North Carolina--92,000 acres, down 21 percent,
  • Virginia--14,000 acres, down six percent,
  • Georgia--7,500 acres, down 16.7 percent,
  • South Carolina--7,000 acres, down 15 percent,
  • United States -120,500 acres, down 19 percent 
BURLEY
  • Kentucky--36,000 acres, down 12 percent,
  • Pennsylvania--2,100 acres, down 16 percent,
  • Tennessee--4,700 acres, up 17 percent,
  • Virginia--400 acres, down 42 percent, and
  • North Carolina--300 acres, down 25 percent,
  • United States--43,500 acres, down 10 percent.
SOUTHERN MARYLAND (PENNSYLVANIA)--400 acres, down 60 percent.
FIRE-CURED--13,450 acres, down 17 percent.
DARK AIR-CURED--9,300 acres, down six percent.
PENNSYLVANIA SEEDLEAF--2,300 acres, up six percent.