It will be the last for more than half of Maryland's estimated 1,100 tobacco growers who have signed up for the state buyout program, which pays farmers not to grow tobacco. 

But thanks in part to increased rain, Maryland's tobacco yield is up 7 percent from 1999. That ties the all-time-record from 1997 for highest yield since 1886, according to data from the Maryland Department of Agriculture.

In addition, tobacco quality is better this year. Test results indicate low alkaloid levels, meaning that Maryland tobacco has less nicotine, said David Conrad, executive regional tobacco specialist for the  Maryland Cooperative Extension.

That bodes well for the marketplace, which is seeking low-tar, low-nicotine cigarettes, Conrad said. "The consumer is switching away from your full-bodied cigarette," he said.

Unfortunately, even increased quality won't guarantee increased prices.

“The ball is in the court of the tobacco companies,” said Conrad. “And there’s no incentive for them to raise the price.”

The summer of  '99 drought affected the quality of the tobacco auctioned last year, keeping average prices down at $1.68 per pound.

Those farmers accepting the state buyout will receive $1 per pound of their average yearly tobacco production from 1997, 1998 and 1999 in return for agreeing not to be involved in tobacco production. For a variety of reasons, annual tobacco production has dropped about 30 percent since 1994.

Not all Maryland tobacco farmers are ready for change. The warehouses are full of bails of tobacco awaiting sale.

Five tobacco companies are expected at this year’s auction, including Export Leaf Tobacco Co. and Standard Commercial Corp. in Wilson, N.C., Diamond International Tobacco Co. in Farmville, N.C., and Philip Morris and Universal Leaf Tobacco Co. in Richmond, Va. 

The auctions will be held in Maryland’s five operating tobacco warehouses, in Upper Marlboro, Hughesville and Waldorf.

Copyright © 2001 University of Maryland College of Journalism.