The Vol. 2.4  September 1999
Tobacco Communities Project


To Allow Farmers to Keep Farming and to Sustain Rural Communities

UPCOMING COMMODITY CONFERENCES


Thinking about a new enterprise? Annual commodity conferences are the best chance talk with and learn from the experts in the field: farmers, extension agents, researchers, and marketers. Call the numbers listed for further information.

North Carolina Greenhouse Vegetable Growers Association Conference
Raleigh
October 27-28
919-772-2204

Carolina Farm Stewardship Association Sustainable Agriculture Conference
High Point, NC
November 12-14
919-542-2402

Southeast Strawberry Expo
Raleigh
November 3-5
919-542-3687

Southeast Vegetable & Fruit Expo
Greensboro
December 13-15
919-772-2204

North Carolina Aquaculture Development Conference
New Bern
January 13-15, 2000
919-733-7125

North Carolina Herb Association Winter Conference
Hickory
February 2000
252-589-1957

Southern Sustainable Agriculture Working Group
Jekyll Island, GA
January 21-23, 2000
Gerry Cohn (RAFI)
336-376-0592

MEETING THE NEEDS OF RURAL AND TOWN COMMUNITIES: THE COLUMBUS COUNTY COMMUNITY FARMER'S MARKET

Milton Parker
Cooperative Extension Agent
Columbus & Robeson County


Efforts for developing a community, county-wide farmers' market began in June 1998 with the formation of a planning committee, a group of growers creating guidelines and providing direction to the market. Surveys were conducted in the fall of 1998 that showed strong positive support for the farmers' market by citizens and growers alike from across the County. The market was determined to be particularly important at this time due to the changing tobacco situation. The new farmers' market is given direction by a 15 member advisory commiteee, which consists of a diversity of interested growers and community leaders from Whiteville and across the county.

This past winter, the committee received the support of the County Board of Commissioners and the Whiteville City Council for the proposed Columbus County Community Farmer's Market (CCCFM). Additional support for the market has come from Cooperative Extension, the local Farm Services Agency, the Downtown Whiteville Development Association, the Columbus County Health Department, and the Whiteville Chamber of Commerce.

The CCCFM is strongly supported by many downtown Whiteville businesses and churches as a stimulus to local economic development and community. The Chamber of Commerce has donated the market site in the parking lot across from the Depot. The CCCFM received financial assistance to plan, develop, and promote the market from a number of sources, including RAFI's Tobacco Communities Reinvestment Fund.

At the new Farmers' Market opening in May, Gene Wilson, Chairman of the Columbus County Board of Commissioners and a member of the North Carolina State Extension Advisory Council, stated that the new market comes at a crucial time for agriculture in Columbus County and offered a unique opportunity for farmers and consumers to work together for the benefit of everyone.

21 vendors/growers have participated since the opening of the market, with more anticipated as the harvest season progresses. Come by the market on Saturday, Tuesday, and Thursday from 6-12 a.m. to support your local growers and enjoy the finest in fresh local farm products.

CONCERNED ABOUT CONTRACTS?


With increasing concentration throughout agriculture and Philip Morris' proposal to begin buying tobacco on contract, many farmers are wondering about a future in which many farm products will be raised and sold on contract. Agricultural producers across the country are finding fewer buyers for their farm products. This concentration in food and fiber processing requires producers to join together to receive fair prices for their products. However, many farmers and cooperatives are operating under contracts with little protection against unfair and deceptive practices by processors and handlers.

The passage of the Agricultural Fair Practices Act of 1967 provided some protection to farmers attempting to improve the terms of their production and marketing contracts, but it failed to provide farmer cooperatives the clear authority to become equal partners in negotiations with processors and purchasers.

However, a new bill currently being introduced in the U.S. Congress by Rep. Marcy Kaptur (D-OH), the Family Farmer Cooperative Marketing Amendment (FFCMA) to the Agricultural Fair Practices Act, would strengthen producers in their dealings with processors by providing good faith bargaining opportunities for voluntary cooperatives of commodity producers.

The FFCMA would provide the following protections for farmers producing under contracts:
1. Mutual obligations for good faith bargaining between processors or handlers and cooperative associations of agricultural producers.
2. Mediation by the Secretary of Agriculture to resolve impasses in bargaining.
3. Investigative and enforcement authority for the Secretary of Agriculture.
4. Accreditation of associations to represent producers by the Secretary of Agriculture.


With the continued talk of direct contract purchase of tobacco, the Burley Tobacco Growers Cooperative in Kentucky passed a resolution in support of the FFCMA in July. For more information on this bill, contact RAFI at 919-542-1396.

MARKETING RESOURCES

1. Your local cooperative extension office. County agents are a constant store of information about supply and demand close to home.

2. North Carolina Department of Agriculture. Marketing Division (Raleigh): 919-733-7912.
Don Thompson (Eastern North Carolina Specialty Crops Program): 252-527-7125.

3. ATTRA (Appropriate Technology Transfer for Rural Areas):
800-346-9140. Free research service, funded by the USDA. You can call and request information on any subject related to agriculture,
and you'll receive a packet in the mail in a couple of weeks.
http://www.attra.org

4. USDA
http://www.ams.usda.gov/directmarketing/

5. Sustainable farming connection
http://metalab.unc.edu/farming-connection/growmark/home.htm
http://metalab.unc.edu/farming-connection/links/market.htm

6. Farmers Market Online
http://www.farmersmarketonline.com/

7. Organic Farmers Marketing Association
http://web.iquest.net/ofma/

8. Growing for Market.
Fairplain Publications
P.O. Box 365
Auburn, KS 66402

9. Sell What You Sow. by Eric Gibson
New World Publishing
3037 Grass Valley Hwy #8185
Auburn, CA 95602
916-823-3886

10. An Overview of the North Carolina Organic Industry
NCSU Dept. of Agricultural and Resource Economics
ARE Report No. 17. June, 1999.
919-515-3107

11. The Packer
Primary newspaper of the commercial produce business.
800-255-5116

12. "Farming for Profit, Stewardship, and Community"
Series of tipsheets for profitable and sustainable family farming.
USDA Sustainable Agriculture Research and Education (SARE) Program
(301) 405-3186
http://www.sare.org/san/tipsheet/

13. Making it on the Farm.
Value-added processing and marketing stories from Southern farmers.
Southern Sustainable Agriculture Working Group.
501-587-0888.

 

MARKETING

For most farmers, marketing has long been a way to get rid of the commodity they have grown, regardless of the price; the farmer is a "price taker." Over the past 50 years, improved production practices by farmers has resulted in greater output, but shrinking returns on sales of raw products. In today's increasingly specialized, global, and vertically integrated agricultural system, a profit and product oriented approach to marketing is essential to determinethe success of an enterprise.

Here are the ten rules of successful marketing in todays environment:
1. Creativity and an open mind are the first steps to success. No question or conversation around marketing is wasted. Be open to what pops up.
2. If you let someone else do your marketing, you're letting someone else make your money. The less hands the product passes thru before reaching the end consumer, the more left over for you.
3. Marketing begins before the first seed hits the ground or hoof hits the pasture.
4. Think "consumer" first; what products can you produce to satisfy a need that's out there?
5. Marketing isn't just for produce growers; field crops, livestock, and ornamentals all present opportunities to increase your return on your hard work.
6. Marketing isn't just selling; it's planning, production, promotion, pricing, and distribution; once you get feedback from your customers, it
starts all over again.
7. A good marketing approach spreads out your risk; just as in the field, you don't want all your eggs in one basket.
8. Read, talk, look, and ask questions; magazines, stores, neighbors, and family members are all good sources of inspiration. Look at changing lifestyles in your area and beyond.
9. You're selling yourself and your farm, as well as your product. Do what it takes to make you and your product stand out from the crowd. Educate your customers.
10. There's no clear path to success. Marketing takes time, but it can be the most cost-effective use of your time (or another family member's time) of any activity on the farm.

 

MATERIALS LIST

The Tobacco Communities Project has collected a library of information packets on the topics below. If you would like a free copy of any of these packets, please call either Charles (910-947-5107), Gerry (336-376-0592), or mail the list below, with desired packets checked, to:
Tobacco Communities Project
P.O. Box 640
Pittsboro, NC 27312



___ Alternative Livestock Production
___ Aquaculture
___ Blueberry Production
___ Bramble Fruits
___ Churches and Tobacco
___ Deer Farming
___ Direct Marketing
___ Farmland Protection Tools
___ Fiber Production
___ Funding Opportunities
___ Greenhouse Lettuce
___ Greenhouse Tomatoes
___ Organic Certification
___ Organic Markets
___ Specialty Grains
___ Value-Added Marketing

SETTLEMENT WATCH


PHASE I -

On July 7th, the N.C. House passed the Tobacco and Health Trust Funds Bill (HB 1431), after little debate and only three votes in
opposition. However, the bill must be approved by the Senate to become law, and the Senate will not take up the bill until next year.

This bill dictates that payments to the Tobacco and Health Trust Funds would be front-loaded so that the bulk of money designated for them in earlier tobacco settlement legislation would come to the trust funds in the first years. In turn, most of the funding for the Tobacco Dependent Communities Foundation would come in later years: From 1998-2005, 45% of settlement funds would be paid to each trust fund and 10% to the nonprofit foundation for tobacco dependent communities. From 2006-2025, 62.42% would go to the foundation and 18.79% to each trust fund. The 10% for the foundation will be designated for those displaced or about to be displaced from employment in tobacco product manufacturing or tobacco-related industries.

The Tobacco Trust Fund will compensate growers, allotment holders, and tobacco-related businesses for economic losses related to the Master Settlement Agreement and to declining market conditions. Grower and allotment holder losses will be based on l998 baseline, and record of quota loss will be the primary factor.

The Tobacco Trust Fund Board, yet to be appointed, would include fifteen members: six flue-cured and two burley tobacco farmers, one flue-cured and one burley allotment holder, two persons in or displaced from tobacco-related businesses, and three at-large appointees.


PHASE II -

On August 2nd, Governor Hunt convened the first meeting of the Phase II Board, known officially as the Tobacco Trust Fund Certification Entity. This 15 member group, appointed and chaired by the Governor, will determine how payments from the major cigarette manufacturers will be divided amongst growers and quota owners, along with the mechanism for dispersing this money. Farm groups making presentations before the board agreed that the money should be paid out as quickly and simply as possible; the farm groups made no recommendations on how the money should be divided.

The board decided that FSA records of October 1, 1998 would be the date of reference for determining payouts. If you owned (or rented, or
sharecropped) acreage on that date, then you would be entitled to Phase II payments for that acreage. They didn't make any decisions yet on how much would go to each group. It's going to be a huge job to sort out who producers, owners and tenants were on that date, and the committee expressed a commitment to create a process that would work quickly enough to get the first checks sent out on December 31st.

 

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