Ky. burley tobacco co-op votes to invest in hemp - Entrepreneur Generations

A Kentucky tobacco co-op, facing a declining market, has opted to go into hemp.

The Burley Tobacco Grower's Cooperative, formed in 1921, has almost $35 million in assets, but "has struggled to find a role since the ending of the federal support program in 2005. It is now sitting on thousands of pounds of unsold tobacco in a declining market and is operating at a loss, losing almost half a million dollars a year since 2014" according to a report commissioned by the co-op, Janet Patton reports for the Lexington Herald-Leader.

Former chairman Roger Quarles, who still serves on the board, has proposed that the co-op to dissolve itself and distribute its assets to members before the money dries up. In a July guest editorial in The Farmer's Pride, he suggested tobacco farmers could each get up to $14,000 in payouts if the co-op dissolves now, Patton reports.

Instead, the co-op's executive committee voted to buy up to $1 million worth of hemp from Kentucky farmers and plans to sell hemp oil. Quarles told Patton that the co-op has tried many other alternatives to tobacco, including dairy, hay, and cigarette production, and that none of them were successful.

Though board members Patton spoke to declined to discuss specifics about the hemp plan, they said they planned to ship the harvest to a Tennessee plant for pressing, then sell it. Current board chairman Pat Raines said they may already have a buyer lined up.

Ryan Quarles, the son of Roger and the state agriculture commissioner, has advocated for the growing hemp industry but declined to comment on the co-op's move. "I always say it's a high-risk commodity," he told Patton.

from The Rural Blog https://ift.tt/2zagcXH Ky. burley tobacco co-op votes to invest in hemp - Entrepreneur Generations

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