Tobacco Auctions

[Bullbuyer]

Tobacco farming seems to be fading into the sunset but I guess a few folks still raise it. I raised a small patch a few times and helped some buddies with their allotments. Tough, dirty and very hot job! When we sold (several years ago) it seems to me that we got around $1.80 a pound. Does anyone know what kind of price tobacco is selling for now?

 

[dun]

Tobacco farming seems to be fading into the sunset but I guess a few folks still raise it. I raised a small patch a few times and helped some buddies with their allotments. Tough, dirty and very hot job! When we sold (several years ago) it seems to me that we got around $1.80 a pound. Does anyone know what kind of price tobacco is selling for now?

About 3 and half bucks a pack

 

[Bullbuyer]

DUN !!! You kill me! I never really look at smoke prices but snuff is out of sight. Over $3/can for the premium brands and chewing tobacco is around $2 - if you can find something with a discount coupon on it. Just like everything else, the farmer is not the one making big money on this...

 

[Phil in Tupelo]

I don't smoke or use any tobacco products. What really gripes me about this is that over the last few years American farmers have had strong reductions in quotas for tobacco, so to make production the companies have to buy foreign tobacco. Now I don't know about you guys, but who knows what some of these third world countries put on their tobacco which is then shipped to the states because our PC government doesn't want our farmers to grow it. But we still sell it and will continue as long as someone is willing to buy it.

 

[hrbelgians]

Tobacco farming seems to be fading into the sunset but I guess a few folks still raise it. I raised a small patch a few times and helped some buddies with their allotments. Tough, dirty and very hot job! When we sold (several years ago) it seems to me that we got around $1.80 a pound. Does anyone know what kind of price tobacco is selling for now?

About 3 and half bucks a pack

:lol: :lol: :lol: EDIT: That would relate to how much per pound??

 

[john250]

I don't smoke or use any tobacco products. What really gripes me about this is that over the last few years American farmers have had strong reductions in quotas for tobacco, so to make production the companies have to buy foreign tobacco. Now I don't know about you guys, but who knows what some of these third world countries put on their tobacco which is then shipped to the states because our PC government doesn't want our farmers to grow it. But we still sell it and will continue as long as someone is willing to buy it.

The quota system ended 5 or 6 yr ago. Now, if you want to grow you sign a contract with Phillip Morris or take a chance on the few auction markets still around.

 

[john250]

Tobacco farming seems to be fading into the sunset but I guess a few folks still raise it. I raised a small patch a few times and helped some buddies with their allotments. Tough, dirty and very hot job! When we sold (several years ago) it seems to me that we got around $1.80 a pound. Does anyone know what kind of price tobacco is selling for now?

About 3 and half bucks a pack

:lol: :lol: :lol: EDIT: That would relate to how much per pound??

Last I knew, a pound made about 1300 cigarettes. Last crop I sold averaged around $2/lb.
That is 227.50 at retail. Most of that goes to government.

 

[hrbelgians]

About 3 and half bucks a pack

:lol: :lol: :lol: EDIT: That would relate to how much per pound??

Last I knew, a pound made about 1300 cigarettes. Last crop I sold averaged around $2/lb.
That is 227.50 at retail. Most of that goes to government.

They should pay pretty good wages; maybe I ought to fill out an application??

 

[dyates]

Sold some yesterday. $1.71 a pound. More will come later in the form of an incentive once the contract has been filled. Sounds terrible, but take home is approximately the same as before the buyout. No quota system means I don't have to pay someone else 40 cents a pound for the right to grow their crop. Many folks have quit where the land/management is marginal. 2400 pounds/acre is about break even. I can't remember a year when our yields dropped below 3200 pounds/acre.

 

[HerefordSire]

Last I knew, a pound made about 1300 cigarettes. Last crop I sold averaged around $2/lb.
That is 227.50 at retail. Most of that goes to government.

How much goes to the government?

 

[Earl Thigpen]

$3.50 a pack? That's a bargin. If you can find a single pack for less that $4.85 in Texas that's a bargin. I usually get mine from La. at $2.80 ($28.00/carton).

We had an Attorney General who sued "big tobacco" and "won". The populace didn't find out what "won" meant until a couple of years later when the state imposed a $1.00 a pack MORE tax.

 

[john250]

Last I knew, a pound made about 1300 cigarettes. Last crop I sold averaged around $2/lb.
That is 227.50 at retail. Most of that goes to government.

How much goes to the government?

HS, I don't know exactly. If Dun gets his smokes for 3.50/pack, at least $2 is going to state and federal taxes. Those are the direct taxes. The tobacco companies pay billions/yr into a deal called the "Master Settlement Agreement" on top of those direct taxes.
When the "Master Settlement Agreement" was struck, the tobacco companies were, for practical purposes, nationalized. Politicians love to bash tobacco, but darned few Governors could balance a budget without that settlement money.

 

[john250]

They should pay pretty good wages; maybe I ought to fill out an application??

They do pay good. Before it closed, the PM plant in Louisville was considered a $25/hr job. I think that was including benefits.
The higher you go, the better the money gets.
A lot of farmers around here did quite well with tobacco. There are only a few of them now. I know of lots of diplomas paid for with that money.
There is a good book, written in the 80's, called "Barbarians at the Gate". I forget the author.
The book details the takeover of RJ Reynolds by a group of investment bankers. I found it fascinating, but of course that may just be me.
The local paper just printed a story today, indicating that worldwide demand for tobacco is strong.

 

[greatgerts]

Last I knew, a pound made about 1300 cigarettes. Last crop I sold averaged around $2/lb.
That is 227.50 at retail. Most of that goes to government.

How much goes to the government?

HS, I don't know exactly. If Dun gets his smokes for 3.50/pack, at least $2 is going to state and federal taxes. Those are the direct taxes. The tobacco companies pay billions/yr into a deal called the "Master Settlement Agreement" on top of those direct taxes.
When the "Master Settlement Agreement" was struck, the tobacco companies were, for practical purposes, nationalized. Politicians love to bash tobacco, but darned few Governors could balance a budget without that settlement money.

We have a wholsale company, and deal with cig taxes ALL the time. Missouri is $.17 a pack tax, while Illinois is $.985 a pack tax. We find a lot of Illinoisans (sp?) coming across the river to buy cigarettes because it is so much cheaper.

 

[newrancher]

Aguy I know sells his tobacco for 1500$ a pound, and doesnt charge tax.

 

[Jogeephus]

Last I knew, a pound made about 1300 cigarettes. Last crop I sold averaged around $2/lb.
That is 227.50 at retail. Most of that goes to government.

How much goes to the government?

Last stat I read was the government brings in $50 per pound in taxes on domestic tobacco. This is only $50 billion which is hardly enough money to fund a war or anything useful so I imagine they just give this money away or something.

 

[1982vett]

Last stat I read was the government brings in $50 per pound in taxes on domestic tobacco. This is only $50 billion which is hardly enough money to fund a war or anything useful so I imagine they just give this money away or something.

Probably used to do a study to find out if enough money is collected in taxes to do a study to see if it would be beneficial to do a study to see how much they would benefit if they did a study to see if they should subsidize a study to find out how much money was spent on feasibility studies. :???: Findings so far have been inconclusive. ;-) More studies need to be done. :dunce:

 

[Angus Cowman]

Last stat I read was the government brings in $50 per pound in taxes on domestic tobacco. This is only $50 billion which is hardly enough money to fund a war or anything useful so I imagine they just give this money away or something.

Probably used to do a study to find out if enough money is collected in taxes to do a study to see if it would be beneficial to do a study to see how much they would benefit if they did a study to see if they should subsidize a study to find out how much money was spent on feasibility studies. :???: Findings so far have been inconclusive. ;-) More studies need to be done. :dunce:

I think we need a study to study this reply to see if a study needs to be done

 

[1982vett]

:lol: :lol: :lol:

 

[Jogeephus]

:lol: :lol: :lol:

:lol2: :lol2: My head feels like I jumped off the whirly jig! :lol2: :lol2: