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E N Q U I R E R   L O C A L   N E W S   C O V E R A G E
Thursday, November 27, 1997
Burley going unsold
Some farmers spurn low bids

BY BRUCE SCHREINER
The Associated Press

>LOUISVILLE, Ky. - Some Kentucky farmers have left burley tobacco auction warehouses without paychecks, having rejected prices offered by suddenly pickier buyers during the opening three days of sales.

Farmers who failed to separate burley into three distinct grades have been penalized with lower prices. Instead of accepting those prices, many unhappy growers decided to hold over their burley for another sales day in hopes of a better price later.

''It's getting crowded,'' said Raymond Jessup, owner of the Growers Warehouse in Mount Sterling, where farmers rejected sales on about 200,000 pounds of burley between Monday and Wednesday.

It marks a drastic change in buying patterns. This time last year, no tobacco was left on his auction floor after sales, he said.

Much of the burley will go overseas, and tobacco companies are demanding quality leaf, said Tommy Bale, owner of tobacco warehouses in Horse Cave, Glasgow and Greensburg. Separating burley in the tobacco barn makes it easier for the companies to blend the leaf, he said. Farmers who lumped all their burley together have been getting $1.76 to $1.80 a pound at the Mount Sterling market, Mr. Jessup said. Producers who took the time and expense to separate their tobacco into three grades of quality during the stripping process are averaging $1.88 per pound, he said.

Unsold burley was accumulating at the tobacco warehouse in London as well. Farmers turned down sales on about 100,000 pounds during the first three days, said Will Brownlow, owner of the warehouse.

''Last year, every crop of every character brought $1.92,'' he said. ''The quality made absolutely no difference, and the grade in each pile of tobacco made no difference. Every pile brought the identical price.''

The new buying trend has produced widely varying prices.

Warehouse operators said the coveted tips of tobacco leaves were bringing $2.05 per pound this week - the first time prices topped $2 a pound ever in Kentucky. The lower stalks were fetching $1.92 a pound and middle stalks $1.86, they said.

''If you took care of your tobacco and three-graded, you'll be all right,'' said Hart County farmer Hermie Stith. ''But if you one-graded tobacco or if it's wet, you'll taking your whipping with it.''

Mr. Stith was picking up his check at Growers Tobacco Sales warehouse in Bowling Green after selling about 20,000 pounds of burley Wednesday. His burley - carefully separated - brought from $1.86 to $2.05 per pound.


 
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