Tobacco Auction Will Be Smallest, May Be Last, in Md. History
By JENNIFER FU
Capital News Service
COLLEGE PARK - Maryland officials say
tobacco farmers are preparing to sell the smallest crop recorded
in state history and that this year's annual tobacco auction
could be the last.
In a three-day auction starting March
21, farmers are expected to sell 300,000 pounds of tobacco,
compared to 1.4 million pounds last year, and 12.7 million
pounds in 1992, said David Conrad, a tobacco specialist with the
Maryland Cooperative Extension.
Maryland's tobacco crop has been
sharply declining since former Gov. Parris N. Glendening
spearheaded a program in 1999 that gives tobacco farmers money
to voluntarily stop growing the crop. They must grow an
alternative crop in its place.
The buyout program, funded by the
state's Cigarette Restitution Fund, was designed to end tobacco
production and decrease sales of the cancer-causing product.
Farmers who stop producing tobacco to take the 10-year buyout
receive $1 for every pound of tobacco they would have produced.
Some in the industry, including Ray
Hutchins, executive secretary of the Maryland Tobacco Authority,
have speculated that the auction this month at Farmers warehouse
in Hughesville could be Maryland's last, and that attendance by
buyers will be sparse. It's the warehouse owners' call on
whether or not they'll open again.
"With that little bit of tobacco, I
don't see there'll be more than three buyers" this year,
Hutchins said. A few years ago as many as six buyers attended,
he said.
The owner of a second warehouse in
Hughesville, Gilbert Bowling Sr., said he will not open this
year. Last year he did.
"I don't feel there's enough tobacco to
warrant me to open and the other one to open, too," Bowling
said. "There's not enough for the both of us."
Warehouse owners make a commission from
the tobacco sold at auction, but because profits have been
decreasing, "the commission isn't enough to pay the property
tax, fire insurance, labor," Conrad said.
As of February, 854 Maryland tobacco
farmers, representing nearly 7.65 million pounds of tobacco, had
signed up for the buyout, according to the Maryland Tobacco
Authority.
About 150 tobacco farmers remain in the
state; about 90 percent of them are Amish or Mennonite, Conrad
said. He said if they continue to grow the crop after the
auctions in Maryland end, they could sell directly to Philip
Morris, the nation's largest cigarette company.
Not all farmers sell tobacco every year
and some grow as little as seven acres, Conrad said. Many
farmers grow tobacco in addition to other crops.
Most of the tobacco being grown in
Maryland is now found in St. Mary's, Charles and Cecil counties,
Conrad said.
He said he does not anticipate the
decline in tobacco production to have a drastic affect on the
state's economy. "Over the years the position of tobacco from
the standpoint of contributing to total agriculture has become
less and less important," he said. "As [the tobacco] economy has
weakened, others have strengthened."
Maryland sold a gross total of $19.9
million worth of tobacco in 1997 - about 1.5 percent of all
agricultural sales in the state. By 2002, that figure had
dropped to $2.7 million, making tobacco sales only 0.2 percent
of the total for Maryland agriculture, according to data from
the U.S. Department of Agriculture.
Meanwhile, nursery and greenhouse
products increased in importance, moving from 9 percent to 14.6
percent of the total agricultural sales in Maryland in those
five years, USDA data shows. Conrad said some farmers have also
turned their land into tourist spots, featuring hayrides and
corn mazes.
Poultry and eggs were the top-grossing
agricultural products in the state in 2002, making up 45 percent
of agricultural sales.
Hutchins said the tobacco buyout has
helped the older farmers retire with some money as they left the
industry.
"In a way the buyout was good, because
most young ones just didn't want to farm," he said. "They could
make more money out somewhere with easier work."
Hutchins said he stopped growing
tobacco before the buyout - when the cost of production became
prohibitive. "I just couldn't get the labor to handle it," he
said.
Norman Bennett, director of the
Maryland Agricultural Statistics Service, estimates that 1,000
acres or less still exists in tobacco production. In the
mid-'90s, Southern Maryland cultivated 7,000 to 10,000 acres of
tobacco farmland, he said. Still, he said, "It's an important
part of the identity of Maryland."
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