Tobacco Buyouts Mean Change in Growers' Market

Source from:  PHILIP D. BROWN/HERALD STAFF WRITER 06/30/2005

The date to sign up for tobacco buyout money from the U.S. Department of Agriculture has come and gone, and in 10 years there will be no more money to be made on quotas for tobacco. At least that's the perspective among many experts as the tobacco buyout becomes reality. According to Halifax County Agricultural Agent Arthur Whitehead, some growers are already getting out of tobacco. He explained that now a grower will sign a contract for the acreage they grow directly with a company. "It's probably not (going to be) a significant reduction in acreage, but there's not going to be as many farmers," he said. "The farmers who are staying in tobacco have gotten contracts that they feel are favorable (to continue growing). Some have gotten to a place where they can quit, maybe retire and those will probably sell their equipment if they can get anything for it, and some are going to wait to see how the contracts are next year and if they can't get what they want, then they'll sell their equipment." He expects that this year in Halifax County, there will be a slight reduction in acreage of tobacco being raised from about 1,800 to 1,500. He said there has been a mixed bag reaction from people signing up for the buyouts. "It's a take it or leave it kind of thing; some are very pleased with what they're getting and some are upset with it." Now contracts are the way things are going, according to Whitehead. He said that swine and poultry already operate that way and tobacco and peanuts are becoming that way. "The companies are going to be selective who they sign a contract with. They're only going to give a contract to the growers with the most quality crop on a consistent basis," Whitehead said. "We don't have that many acres over here anyway," Northampton County Agricultural Agent Craig Ellison said. The Farm Service Agency said there were about 130 acres of tobacco in the county last year and this year there will be 115.2 acres raised, according to a preliminary acreage report. "I've talked to four or five producers," Ellison said. "I know one family that is not going to grow anymore, then there are two others that are growing tobacco this year." He said there are a couple of growers who are trying to secure a contract before planting. Enditem