Kentucky’s tobacco growing business continues to experience declines. Mid to late November traditionally signaled the start of the tobacco auction season.
University of Kentucky Agriculture Economist Will Snell said probably 95 to 98% of Kentucky burley is sold through contracts. And Snell said tobacco acreage is down 15 to 20% compared to last year. “Unlike in the past where we had literally 40 to 50,000 tobacco growers and the average is about five acres. The ones that are left are growing 50 or 100 acres or more. Very dependent upon migrant labor obviously and continue to depend upon Mother Nature,” said Snell.
Snell noted the last ag census a few years ago showed about 2000 burley growers across Kentucky. The ag economist says weather conditions have been favorable in central Kentucky, but there were some moisture issues in southern portions of the state.
In 1880, Kentucky produced 36% of the nation’s total tobacco crop. More recently, the Commonwealth produced an even higher percentage of the crop. Snell sa8d Kentucky once held two-thirds of the world’s burley production. He added now it’s about 5% and quality is not on the minds of buyers like it used to be. “That’s been one of the major factors that’s reduced opportunities for tobacco growers to, here in Kentucky maintain the market. It’s not necessarily the consumption is going down, even though it is, but a major factor is substitution of imported leaf due to lower labor costs,” explained Snell.
Snell said hemp production has taken a pretty steep decline this year due to prior year over production, insufficient processing, and federal regulatory uncertainty.?
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