Posted: 01.13.2010

Tuesday Wisconsin tobacco buyers found out that higher taxes and consumer trends are impacting the price they'll pay or get for their 2009 tobacco crop.

Jim Koltes, a tobacco buyer, told Pam Jahnke that the announced price came in at $1.90 per pound, unchanged from last years price.

Koltes says that industry representatives said higher imposed taxes on tobacco nationwide have lead to a steep decline in both cigar and pipe tobacco.  In Wisconsin, during quality years, farmers could expect a quality premium for cigar "wrapper" tobacco.  Koltes says that premium is apparently gone. Wisconsin's traditional tobacco crop is usually channeled to chew tobacco.

Wisconsin has been experiencing a decline in tobacco producers, not just because of economics, but because of the incredible amount of physical labor required to plant, harvest, and process the crop.  It is one of the only crops that still is largely unmechanized.The state had about 1,000 acres of the crop spread out over fewer then 200 farmers. The state had about 1,000 acres of the crop spread out over fewer then 200 farmers. At one time the state boasted more then 30,000 acres of the leafy crop.

Koltes says that "case weather" - or the ideal weather for stipping the ripened leaves off of the stalk, was very dry and uncooperative over the past few weeks.  That could turn into a quality issue or at least a handling issue.

Koltes says with the small number of growers he deals with on an annual basis - he expects the entire crop in southern Wisconsin, at least, may be delivered to manufacturers by the beginning of March.

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