WILSON, N.C. – Tobacco has long held the title of North Carolina’s number one field crop.
While most tobacco is sold immediately to major corporations, the secondary market is taking a cue from the past when it comes to getting selling its product.
About three years ago, Kenneth Kelly started up a tobacco auction in one of his warehouses in Wilson, giving farmers options to get the highest price for their crop.
“If that primary contractor does not accept that tobacco that they bring in, they have to have somewhere to take that tobacco, they don’t want to destroy that tobacco, so they have to have somewhere to take it. So the feedback is generally very good,” Kelly said.
Kelly coaxes the buyer, squeezing out every last penny per pound. Rick Smith, president of Independent Leaf Tobacco Company, participates in the auctions. He agrees to the terms because with the state of the economy, there’s a demand for North Carolina tobacco.
“My sales are up because of Covid,” Smith said. “I mean, the only place you can legally smoke is at home. And people are home. So the small manufactures, the ones making the generic products, their sales are up," Smith said. "Although contracting changed the game, it’s hasn’t eliminated this secondary market past time.
“You’re seeing people, they are actually my competition, but they are friends too," Smith said. “All of us have been in this a long time, but that’s what I enjoy about it really is being out here, being part of the whole thing.”
The auction in Wilson has been taking place for about six weeks and since the tobacco harvest can last through November, there is not a current closing date.
It’s expected to wind down by early December.