Tobacco Production Shifting to Larger Quotas, Fewer Growers

Source from:  March 20,2006 KAREN MCCONKEY STAFF WRITER  03/21/2006

Eastern North Carolina tobacco growers are expected to grow 20 percent more tobacco this year than last year, despite speculation that the federal buyout program would shrink production. "State projections for this year is there will be a 20 percent increase in acreage," Jones County Extension agent Franky Howard said. That increase is projected despite the fact that some growers are bailing out because of equipment and labor costs. Lenoir County farmers are expected to plant 800 to 1,000 more acres this year than in 2005, Lenoir County Cooperative Extension Agent Mark Keene said. Last year, Lenoir County harvested more than 5,600 acres of tobacco. "Most growers here have been able to get their contracts filled this year to grow about as much as they want," Keene said. Overall, the tobacco buyout has proven more profitable for the larger growers than first expected. "They're excited to get more this year than last year," Keene said. It's difficult to predict how many acres will be grown now that the Farm Service Agency is no longer a part of the accountability formula, Keene said. Acreage accountability has become less a function of government agencies and more important to the tobacco companies who contract with the growers for the season. Shifting inland Certified crop consultant Billy McLawhorn said he expects to see some fairly significant changes in the face of agri-industry over the next few years, including tobacco. In Greene and Wayne counties, McLawhorn said, "a lot of growers are doubling their acreage." McLawhorn tracks historical data from weather and soil reports that provide valuable insight to how cycles affect crop outcome. What he's seen is a combination of weather trends and some particularly virulent diseases that has forced tobacco inland from the coastal counties. "Some of it is due to weather patterns," McLawhorn said. After charting seasonal changes for more than two decades, he sees where there is a shortage of water early in the growing season, offset in late season by too much. Disease like Tomato Spotted Wilt virus has also forced coastal growers to abandon market quality tomatoes and their tobacco quotas. The disease has blighted some crops in Onslow and Craven, and is giving Jones County growers good reason to be concerned. Labor, equipment, fertilizer and fuel costs also figure into the picture of whether or not growing tobacco will remain a top choice for some growers. "Fertilizer prices are unbelievable," McLawhorn said. As a crop consultant and a farmer, those costs can quickly destroy the best of farm budgets. About half the growers McLawhorn works with have decided to get out of tobacco completely. The other half, mostly those in Greene and Pitt counties, are increasing their quotas after a good year in 2005. "But I still think there is change coming, and it's going to be dramatic," McLawhorn predicted. Howard says that some of the change is apparent this year in Jones County. There is an increase in the number of tobacco growers who are taking on more quota contracts from smaller growers who are ready to get out of the market. Contracts for 150 acres or more are considered substantial, Howard said. Smaller growers produced 50 acres or less. Lenoir County growers are already shifting toward more acreage. Growers who stayed with tobacco are feeling optimistic about its future. "I'd say there's a positive feeling here this year about tobacco," Keene said. Enditem