Tobacco growers seek more input on 2008 contract
Dec 20, 2007—Landmark News Service has reported that some local farmers in Western Kentucky are meeting to get more input on their 2008 growing contracts with tobacco giant Philip Morris.
Joe Spalding of Marion County and Bernie Cave of Taylor County knew local tobacco farmers were not happy with Philip Morris' 2008 contract proposal.
So, they called a meeting, and about 100 farmers from Adair, Anderson, Casey, Green, Marion, Nelson, Scott, Shelby, Taylor and Washington counties gathered Wednesday, Dec. 12 in the Floral Hall at the Marion County Fairgrounds.
"My main objective is to have a voice with the respective companies we deal with," Spalding said.
He encouraged everyone at the meeting to speak up.
"I want input from you on what we need to do other than going to our local county stores and feed stores and saying, 'We need to do something,'" Spalding said.
The growers proposed creating an organization, not signing any contracts with Philip Morris and even starting a petition. No specific strategy was adopted, but they did make plans to have another meeting at 6:30 p.m. Wednesday, Jan. 16 at the Floral Hall. Spalding said any tobacco grower is welcome to attend that meeting.
Several farmers indicated they would contact burley growers in other parts of the state about possibly holding similar meetings.
"If we could expand to other farmers, then we've accomplished something," Spalding said after the meeting.
Cave stressed in his opening remarks that he and Spalding wanted to have a positive meeting, and Spalding said they weren't there to hold a Philip Morris-bashing meeting.
Nevertheless, the contract remained the primary reason for the meeting.
"If we're going to be tobacco growers, we've got to have a fair price to take care of our families," Cave said.
Spalding said repeatedly that he wants farmers to have a seat at the table when Philip Morris is putting the contract together.
David Sutton, a spokesperson for Philip Morris, said the company had hundreds of conversations with growers throughout 2007, and the input company officials received during those conversations was incorporated into the 2008 contracts.
Those conversations included discussions about labor and fuel costs and even when the contract was proposed, Sutton said.
Philip Morris presented its contract shortly after Thanksgiving, he said, because farmers asked to receive their contracts sooner for the 2008 crop. For the 2007 crop,
Philip Morris presented its contract proposal in January, according to Sutton.
"The contract establishes a base price and incentives in advance of the growing season," he said.
The 2008 contract proposed by Philip Morris includes an increase in the base price of 7 cents per pound (compared with the 2007 contract), and growers who sold to Philip Morris in 2007 are eligible for another 2 cents per pound if they sign their contracts by Feb. 29, 2008.
Other incentives include 5 cents per pound if the farmer delivers 90-100 percent of the contract and another penny per pound for big bales (500-600 pounds).
Sutton added that farmers already know what the company is offering them in 2008.
"It's a very comprehensive, up-front approach," he said.
Spalding agreed that the contract does show increases in some areas, but he said that doesn't mean farmers will receive more for their crops in 2008. He said he is glad Philip Morris held discussions with farmers throughout 2007, but he wants farmers to be at the table while the contract is being written.
"All we're asking for is for tobacco companies to sit down and talk to us and to have some input on our contract," Spalding said.
Roger Quarles, president of the Burley Tobacco Growers Co-operative
Association, attended the meeting in Lebanon last week. He said he was there to listen, and he complimented the farmers for getting together.
"You've got something going on here that I've never seen anywhere else in the state," Quarles said.
After the meeting, he said Philip Morris has never asked for input from the burley co-op. Philip Morris isn't the only buyer in the state or even in this area, but it does buy most of the tobacco grown in Kentucky, according to Quarles.
He said that the co-op buys about 1 percent of the tobacco on the market at this time. He also told the audience at last week's meeting that the co-op was in negotiations with China about purchasing tobacco in an effort to create some alternative markets for burley growers.
Cave said the years since the tobacco buyout in 2004 have been his most frustrating time on the farm.
He said he was excited that so many farmers attended the meeting. The farmers were there to help one another, he said, and he hopes they will be able to have a dialogue with tobacco companies.
"We're not trying to put tobacco companies out of business," Cave said. "We need them as much as they need us."
Dec 20, 2007—Landmark News Service has reported that some local farmers in Western Kentucky are meeting to get more input on their 2008 growing contracts with tobacco giant Philip Morris.
Joe Spalding of Marion County and Bernie Cave of Taylor County knew local tobacco farmers were not happy with Philip Morris' 2008 contract proposal.
So, they called a meeting, and about 100 farmers from Adair, Anderson, Casey, Green, Marion, Nelson, Scott, Shelby, Taylor and Washington counties gathered Wednesday, Dec. 12 in the Floral Hall at the Marion County Fairgrounds.
"My main objective is to have a voice with the respective companies we deal with," Spalding said.
He encouraged everyone at the meeting to speak up.
"I want input from you on what we need to do other than going to our local county stores and feed stores and saying, 'We need to do something,'" Spalding said.
The growers proposed creating an organization, not signing any contracts with Philip Morris and even starting a petition. No specific strategy was adopted, but they did make plans to have another meeting at 6:30 p.m. Wednesday, Jan. 16 at the Floral Hall. Spalding said any tobacco grower is welcome to attend that meeting.
Several farmers indicated they would contact burley growers in other parts of the state about possibly holding similar meetings.
"If we could expand to other farmers, then we've accomplished something," Spalding said after the meeting.
Cave stressed in his opening remarks that he and Spalding wanted to have a positive meeting, and Spalding said they weren't there to hold a Philip Morris-bashing meeting.
Nevertheless, the contract remained the primary reason for the meeting.
"If we're going to be tobacco growers, we've got to have a fair price to take care of our families," Cave said.
Spalding said repeatedly that he wants farmers to have a seat at the table when Philip Morris is putting the contract together.
David Sutton, a spokesperson for Philip Morris, said the company had hundreds of conversations with growers throughout 2007, and the input company officials received during those conversations was incorporated into the 2008 contracts.
Those conversations included discussions about labor and fuel costs and even when the contract was proposed, Sutton said.
Philip Morris presented its contract shortly after Thanksgiving, he said, because farmers asked to receive their contracts sooner for the 2008 crop. For the 2007 crop,
Philip Morris presented its contract proposal in January, according to Sutton.
"The contract establishes a base price and incentives in advance of the growing season," he said.
The 2008 contract proposed by Philip Morris includes an increase in the base price of 7 cents per pound (compared with the 2007 contract), and growers who sold to Philip Morris in 2007 are eligible for another 2 cents per pound if they sign their contracts by Feb. 29, 2008.
Other incentives include 5 cents per pound if the farmer delivers 90-100 percent of the contract and another penny per pound for big bales (500-600 pounds).
Sutton added that farmers already know what the company is offering them in 2008.
"It's a very comprehensive, up-front approach," he said.
Spalding agreed that the contract does show increases in some areas, but he said that doesn't mean farmers will receive more for their crops in 2008. He said he is glad Philip Morris held discussions with farmers throughout 2007, but he wants farmers to be at the table while the contract is being written.
"All we're asking for is for tobacco companies to sit down and talk to us and to have some input on our contract," Spalding said.
Roger Quarles, president of the Burley Tobacco Growers Co-operative
Association, attended the meeting in Lebanon last week. He said he was there to listen, and he complimented the farmers for getting together.
"You've got something going on here that I've never seen anywhere else in the state," Quarles said.
After the meeting, he said Philip Morris has never asked for input from the burley co-op. Philip Morris isn't the only buyer in the state or even in this area, but it does buy most of the tobacco grown in Kentucky, according to Quarles.
He said that the co-op buys about 1 percent of the tobacco on the market at this time. He also told the audience at last week's meeting that the co-op was in negotiations with China about purchasing tobacco in an effort to create some alternative markets for burley growers.
Cave said the years since the tobacco buyout in 2004 have been his most frustrating time on the farm.
He said he was excited that so many farmers attended the meeting. The farmers were there to help one another, he said, and he hopes they will be able to have a dialogue with tobacco companies.
"We're not trying to put tobacco companies out of business," Cave said. "We need them as much as they need us."
