Operation: TRENCH

"TO RECOUP EVERY NECESSARY COST TO HOLD ON!"

Dear Tobacco Producer:

With the elimination of the tobacco quota system and the emphasis now placed upon contract production, profits margins in the production of flue-cured tobacco can be expected to be significantly reduced in the future. With reduced profits, it will be critical for tobacco farmers to closely evaluate every aspect of production in order to maximize their returns to management.

According to Dr. David Smith, Crop Science Specialist at North Carolina State University, being successful in a post-buyout tobacco environment, will be dependant upon the following strategies.

These are as follows:

"SUCCESS IN THE POST-TOBACCO BUYOUT ENVIRONMENT"

(Production Strategies in a Post-Buyout World)

  • Obtain and keep a contact
  • Produce quality tobacco that is of good value to purchaser
  • Maximize leaf quality
  • Minimize pesticide residues and NTRM (Non-Tobacco Related Materials)
  • Produce the highest economic yield possible
  • Reduce production costs

    This webpage is the official announcement of an educational effort known as "TRENCH" - To Recoup Every Necessary Cost to Hold On. Each of the following production practices represents areas of production which can mean "dollars saved and dollars made" on the farm. In addition, "TRENCH" also helps to promote a safer environment.

    Tobacco farmers of the future can remain "TRENCHED" through the adoption of the following cultural practices.

    1. Avoid seeding greenhouses too early! - February 15th is early enough for April 15th transplanting
    2. Use the recommended rate of Admire/Platnium for the control of insects - For Admire, 1.0 ounce per 1000 plants can be used if the perceived threat of TSWV is lessened and there is ample soil moisture in April.
    3. Avoid combining systemic insecticide products - If Admire or Platnium is used in the greenhouse, avoid applying a systemic insecticide in the field for insect control.
    4. Rotate tobacco fields - Avoid fields with high disease pressure to reduce fumigant costs and yield losses suffered from disease.
    5. Apply recommended lime to tobacco fields - 25% of coastal plains tobacco fields have pH levels less than 4.9. Fields which have pH levels less than 5.0 should receive special attention.
    6. Based mixed fertilizer selection on soil phosphorus requirements - Switching to 8-0-24 reduces one of the most expensive fertilizer ingredients which reduces costs and protects the environment. Research has shown that on tobacco soils which have "high" soil index levels of phosphorus, there is virtually no chance of a yield response to applying phosphorus in the fertilizer. Growers wishing to boost early season grow through phosphorus applications can add five pounds of phosphorus in the transplanter water barrel.
    7. Apply 20-30 pounds of sulfur to tobacco fields which are considered to be deep sands. Sulfur makes nitrogen more available for plant growth.
    8. Use Ridomil Gold properly - The best time to apply Ridomil Gold is no earlier than one week before transplanting or even at transplanting. Tobacco fields which have no more than 20% black shank with a tobacco variety which has the Ph gene (ex. NC 71, Speight 168) can continue to have these varieties to be planted without the need for Ridomil Gold to be applied. (VALUE PER ACRE: $354).
    9. Avoid resetting tobacco unless stands are less than 85%.
    10. Use liquid side dressers - Using 30% and 25S as side dressers does not adversely affect yield and quality of tobacco if used at similar rates. (VALUE PER ACRE: $17.70)
    11. Top early and apply sucker control chemicals in a timely fashion - Once tobacco reaches the full flower stage, the crop has been found to lose 25 pounds of yield per acre per day.
    12. Properly identify tobacco diseases - Choosing a resistant variety can mean an increase of $600 per acre versus using a suseptible tobacco variety.
    13. Take nematode samples - Before you disk those fields this fall which are to be tobacco fields, make a point to sample them for the presence of nematodes. Nematodes can cause diseases like black shank to be greater. (VALUE PER ACRE: $60)
    14. Harvest ripe tobacco
    15. Use economic thresholds for insecticides - Basing pesticide sprays on econonmic thresholds can mean an additional $75 per acre versus scheduled sprays. For budworm infestations when growing conditions are good, treatment is likely not recommended.
    16. Evaluate crop insurance needs - Provide enough coverage for one-half of the cost of producing tobacco ($1500) - Multi-peril option for coverage is considered to be a better choice for insuring a tobacco crop due to the fact that hail insurance is already included in the coverage. Selecting 10% deductable in hail coverage is recommended. NOTE: Remember that growers in 2005 are expected to maintain their own tobacco production records! February 28, 2005 is the last day to make policy changes to crop insurance.
    17. Have curing barn burners checked for efficiency
    18. Use a wet bulb thermometer - Replace wicks on existing wet bulbs.
    19. Manage labor efficiently - Labor costs represents more than one-third of total production costs.
    20. Match machinery to the size of your operation and explore opportunities for increased mechanization.
    21. Keep better records - Good records are the best way to determine the successfulness of a farm business. Enterprise budgets are available through your local Extension Center.
    22. Harvest ripe tobacco
    23. Load boxes uniformly - Consider a set of box scales in order to weigh boxes to promote consistency.
    24. Visit your tax preparer to minimize tax consequences of tobacco buyout payments. Consider financial institutions carefully to handle buyout funds.

      Mitch Smith, County Extension Director

      This page (http://www.ces.ncsu.edu/pitt/ag/tobacco/trench.html) was created by Mitch Smith on February 9, 2005 and updated on February 10, 2005