Kentucky Farm Bureau News

   

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Congress hears testimony
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KFB working on burley grower's concerns
John Hendricks, Hal Teegarden, Marshall Coyle & Craig Stariha

   PHILIP MORRIS OFFICIALS HAL TEEGARDEN (SECOND FROM LEFT) AND CRAIG STARIHA (RIGHT) MET WITH KFB LEADERS TO DISCUSS GROWERS’ CONCERNS.  THE KFB CONTINGENT INCLUDED SECOND VICE PRESIDENT JOHN HENDRICKS (LEFT) AND PRESIDENT MARSHALL COYLE, A LONG-TIME GROWER AND FORMER CHAIRMAN OF KFB’S TOBACCO ADVISORY COMMITTEE.

   KFB has been working to resolve some issues that have burley tobacco growers fuming at their largest customer, Philip Morris.
   David Chappell, an Owen County grower and KFB Director who chairs the organization’s tobacco advisory committee, summed up the situation when he explained to committee members why they had been summoned for a special meeting last month.
   “There are a lot of disgusted farmers,” Chappell said. “A lot of farmers are just saying there’s not enough money in it to do it this year. We need to see what we can do.”
   The concerns are so widespread that KFB Executive Committee members Marshall Coyle, Mark Haney, John Hendricks and David S. Beck attended the meeting and then followed up, along with Chappell, by meeting with Philip Morris officials Hal Teegarden and Craig Stariha to discuss the problems.
   Growers generally are dissatisfied with the price levels on PM contracts this year and some are upset with delays in getting their 2007 crops sold at the receiving stations. Philip Morris, which is far and away the leading buyer of Kentucky burley, has five receiving stations in the state.
   Several of the advisory committee members were quick to voice their frustrations. And according to the comments made, the frustration is statewide, from the Purchase Region to the Appalachian foothills.
   “We can’t live with these prices with labor, chemical and barn costs rising like they are,” said David Wimpy of Christian County. “Everybody’s unhappy with burley.”
   Spencer County’s Scott Travis said many were irate because they couldn’t get their crop sold before Christmas, as is the norm. “It’s disappointing that they would cut people off before Christmas when they know we have bills to pay,” said Travis, who is a KFB Director.
   The advisory committee agenda focused on: (1) Scheduling and advance announcing of sale dates; (2) Encouraging the companies to pay producers a reasonable return on their investment based on real costs of production; (3) Revamp the price incentives program to pay for quality and build producer loyalty; (4) The future of the cost-share program; (5) The possibility of a program to help offset rising production costs; (6) Improving the partnering program to encourage growers.
   Coyle said the Philip Morris officials agreed to consider the recommendations for change and to continue discussions.