Farmers, Officials Fear Tobacco Production May move Elsewhere

Source from:  By Walt Reichert/Sentinel-News Associate Editor 06/23/2005

Darrell and Judy White stopped growing tobacco this year and will concentrate on their dairy cows. Nancy Wheeler will raise no more tobacco than will fit in the barns. Eddie Mathis said he has cut back production this year. He does not trust tobacco companies to treat farmers fairly. "They beat us out of Phase II money," Mathis said. "That tells you something." On the other hand, Andy Newton is expanding production; Paul Hornback will grow about the same this year as he did last year. As tobacco planting season is winding down on the first year in memory without a price support program, Shelby County farmers appear to have joined farmers across the state and cut back acreage or get out of the crop altogether. They cite distrust of tobacco companies, low prices, lack of barn space and the tobacco buyout for the reasons they are getting out or cutting back. Meanwhile, officials fear the drop in production will take a big bite out of the state's agriculture revenues, burley money that may be headed to the states of Pennsylvania or North Carolina. The Executive Director of the Council for Burley Tobacco, Dean Wallace, estimates the state could lose $172 million in tobacco production this year. "A whole lot of money could go out of here real fast," Wallace said. While Kentucky has historically produced the lion's share of burley tobacco grown in the nation, the tobacco buyout passed by Congress allows the crop to be grown anywhere in any amount. Amish farmers in Pennsylvania and farmers of flue-cured in North Carolina are planning to grow more burley this year, said Daniel Green, spokesperson for the Burley Tobacco Growers Cooperative. Green said burley may even be grown in states like Illinois this year, where it has never been grown before. While other states are getting in, Kentucky farmers are getting out. In March, the Kentucky Agricultural Statistics Service released planting intention numbers that showed farmers across the state are likely to cut back production by about 30 percent. Many, including University of Kentucky Tobacco Economist Will Snell, believe tobacco production may not drop that much. They also think the farmers that remain in production will have higher average yields. Still, they expect tobacco production to drop about 20 percent this year. Wallace said much of the cutback in tobacco production in the state appears to be coming from the central part of the state. In Shelby County, smaller growers tend to be the ones getting out or cutting back, said Cooperative Extension Agent for Agriculture Brittany Edelson. She said the higher yields gained by more efficient producers may offset the drop in number of producers "There are going to be fewer producers growing tobacco," Edelson said. "But there will be almost as many pounds grown." Wallace and Green said their organizations are pushing help for tobacco farmers -- help from the state and tobacco companies. The Council for Burley Tobacco is urging the state Agricultural Development Board to adopt a model tobacco program that will funnel Phase I dollars into cost-share programs for tobacco farmers. The money would be used to help farmers buy barns or equipment. But that initiative is controversial since Phase I money was intended to help farmers diversify into other crops. Green said the Co-op may fund some form of cost-share program to help tobacco farmers. Wallace said his organization is sitting down with tobacco manufacturers and encouraging them to offer better prices, if not this year, next year. Cigarette companies have released payment plans that show farmers this year will get paid about 50 cents per pound less than they did under the price support program. Wallace said Kentucky needs to get tobacco farmers back in production at least by next year to recoup the state's share of tobacco revenue it may lose this year. "The cigarette companies are going to get burley somewhere, if not here," Wallace said. "If Kentucky farmers get out of production for two years most of them won't come back." Enditem