Burley buying closes early; Philip Morris’ move riles some growers
Jan 2, 2008—A recent article in the Lexington Courier-Journal reported that cigarette maker Philip Morris USA shut down its 2007 tobacco-buying operations in Kentucky a half-day earlier than expected, leaving some growers without a place to sell leaf ready for market.
The move upset some farmers. Hugh McBurney had planned to sell 10,000 pounds of burley tobacco at a receiving station in Carrollton, Ky. Now, he said, he'll have to wait until the warehouses reopen after Jan. 1.
"This was my yearly income," said McBurney, who grows tobacco and raises beef cattle in Henry County.
Philip Morris learned December 19 that it had met its annual purchase requirement of burley tobacco and attempted to inform growers with appointments to sell leaf that the receiving stations would close early, company spokesman David Sutton said.
Sutton said some farmers must not have received the message and arrived at warehouses yesterday only to find them closed. He apologized for the short notice.
"We will absolutely honor the contract purchases that we couldn't accept today when we reopen the warehouses after the first of the year," Sutton said.
The early closures underscore the tensions between farmers and the tobacco giant since the free-market buying system replaced federal price supports and quotas several years ago, said Brian Furnish, general manager of the Lexington-based Burley Tobacco Growers Cooperative Association.
Furnish said that farmers he talked with yesterday were upset because they were counting on getting paid for their crop before Christmas.
"In my mind it's like a one-sided partnership. It's what they (Philip Morris) need," Furnish said. "They're not taking into consideration what the farmer needs."
Philip Morris, a leading buyer of burley tobacco, has five receiving stations in Kentucky. Growers contract with the company to sell a certain amount of leaf and make appointments to take their crop to market.
McBurney said he had had an appointment at the Carrollton warehouse for weeks and was going to use his tobacco income to make a farm payment. He said he knew of "a whole lot of people who couldn't sell."
Jan 2, 2008—A recent article in the Lexington Courier-Journal reported that cigarette maker Philip Morris USA shut down its 2007 tobacco-buying operations in Kentucky a half-day earlier than expected, leaving some growers without a place to sell leaf ready for market.
The move upset some farmers. Hugh McBurney had planned to sell 10,000 pounds of burley tobacco at a receiving station in Carrollton, Ky. Now, he said, he'll have to wait until the warehouses reopen after Jan. 1.
"This was my yearly income," said McBurney, who grows tobacco and raises beef cattle in Henry County.
Philip Morris learned December 19 that it had met its annual purchase requirement of burley tobacco and attempted to inform growers with appointments to sell leaf that the receiving stations would close early, company spokesman David Sutton said.
Sutton said some farmers must not have received the message and arrived at warehouses yesterday only to find them closed. He apologized for the short notice.
"We will absolutely honor the contract purchases that we couldn't accept today when we reopen the warehouses after the first of the year," Sutton said.
The early closures underscore the tensions between farmers and the tobacco giant since the free-market buying system replaced federal price supports and quotas several years ago, said Brian Furnish, general manager of the Lexington-based Burley Tobacco Growers Cooperative Association.
Furnish said that farmers he talked with yesterday were upset because they were counting on getting paid for their crop before Christmas.
"In my mind it's like a one-sided partnership. It's what they (Philip Morris) need," Furnish said. "They're not taking into consideration what the farmer needs."
Philip Morris, a leading buyer of burley tobacco, has five receiving stations in Kentucky. Growers contract with the company to sell a certain amount of leaf and make appointments to take their crop to market.
McBurney said he had had an appointment at the Carrollton warehouse for weeks and was going to use his tobacco income to make a farm payment. He said he knew of "a whole lot of people who couldn't sell."
