US
Kentucky’s Burley Tobacco Growers Cooperative Association will be paying out millions to several thousand tobacco farmers.
The co-op board approved a plan to try to keep the century-old co-op, which has lost money on tobacco sales in recent years and struggled to keep its footing going after more than 200 members signed petitions to dissolve the co-op through a vote by members and distribute its assets to them while others filed a lawsuit seeking to dissolve the co-op and divide the assets among members.
Under the turnaround plan, the co-op will liquidate investments, leaving about US$15 million to pay out to members, an estimated 4,000 growers in Kentucky, Ohio, Missouri, Indiana, and West Virginia, by the end of this year after settling a large line of credit. The co-op will also be selling 4.1 million pounds of tobacco it owns, as well as selling its office building.
The board expects to liquidate investments and selling assets ultimately will bring in a total of about US$28 million to pay out evenly to people who were members between 2015 and 2019. After the payouts and settling its credit line, the co-op is expected to have US$3.5 million left for continued operations. It will also cut the co-op board from 20 members to between 5 and 15.
And, the co-op will stop buying tobacco from members, instead focusing on advocating for farmers and supporting research, education, and programs to benefit farmers, including helping them shift to other types of farming as the market for burley declines.