Success StoryThe Burley Tobacco Growers Cooperative may be dissolved and its assets distributed back to farmers



The Burley Tobacco Growers Cooperative may be dissolved and its assets distributed back to farmers

Author: Danny Adams

Planning Unit: Wayne County CES

Major Program: KSU Small Farm Program

Outcome: Long-Term Outcome

  The Burley Tobacco Growers Co-op was formed in 1921 by a group of farmers trying to achieve better prices for their tobacco. Starting in 1940 the BTGCA helped administer a Tobacco Program that stabilized prices by controlling production. The program worked extremely well for more than 60 years. The Tobacco Program helped small farmers feed and education their families for generations.   

  In 2004 there was a Tobacco Program buyout of all quota holders and growers. Which allowed the new and existing tobacco growers to contract directly with the tobacco companies. 

  This in turn left the BTGCA trying to find its footing in the new tobacco production and grower world. The BTGCA had several million dollars in assets. The co-op board tried several new things including buying tobacco directly from farmers and making cigarettes themselves. All of the ventures they have tried have had limited success. 

  So in the past few months a group of tobacco farmers have contacted a law firm to dissolve the BTGCA and have its assets distributed back to tobacco farmers that have grown tobacco in the past five years.

  The BTGCA at its last meeting agreed to dissolve the co-op also. With that information the Extension Service and I informed the present and the past five year tobacco farmers of the co-op's plan.

   To be a member of the BTGCA according to their bylaws you have to have grown tobacco in the past five years and have something on file to prove that you produced tobacco.

  One of the forms to prove that you produce tobacco and become a member of the BTGCA is the Form 578 at the Farm Service Agency Office. I contacted all of the present tobacco farmers and the tobacco farmers of the last five years to get the Form 578 sent to Burley Co-op.

  So in conclusion I helped and informed small tobacco growers in my county of the plan of dissolvement of the BTGCA and how to make sure they are members by getting their Form 578 of their tobacco production records to the  BTGCA. 

   If the BTGCA is dissolved with its more than 30 million dollars in assets distributed back to  tobacco farmers. The Wayne County tobacco farmers should receive their fair share of the money.

  

 






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