Just looking for clarification on a few things...

[Alhefner]

I know that the responses to this can't be considered 'legal advice' but, there is a huge wealth of information here and I still am a bit confused on a few things.

A bit of background. I plan on starting to raise tobacco in the high desert of Nevada next year beginning on an experimental scale, not more than 2 acres and only three varieties. In the mean time, I'm planning on selling whole leaf at the retail level in order to produce a bit more funding to start the thing off with. To do that, I've officially formed my one man LLC and obtained the business license.

Now for the questions! I forst gt interested in whole leaf as a way to save $$$ for my own smokes and bought from a company that says they sell whole leaf but, from what I see, it looks more like leaf scrap... not really a whole leaf in the entire 12.5 pound bag. They sell this as a 'combo deal' to customers consisting of the tobacco, shredder, and tubes. From what I've found so far, doesn't that make them a seller of cigarettes or at least a seller of RYO tobacco product subject to federal excise tax?

I may be wrong but, from what I can tell, leaf pieces (scrap) is a 'product' and not just an agricultural commodity anymore since the mid-rib has been stripped out. Add to that the fact that they are selling it with the advertised purpose of making your own cigarettes and supplying the tubes as part of the package, I would think that it would move them into the 'tobacco products' side of things.

Let me be clear, I do NOT want these folks to get into trouble! I just want to make sure I avoid trouble in my own business.

 

[DGBAMA]

The leaf they sell is known as "threshed tobacco", majority of stems mechanically removed. The reason it is sold in only large bags is this type of leaf is not considered a "product" if sold in bulk (10kg or larger amounts).

In smaller quantity, say if they offered 1lb bags, it is considered a tobacco product and subject to taxation.

 

[Alhefner]

Oh, so leaving the leaf whole with stems in place it's OK to sell in slammer quantities such as by the pound but a seller would have to sell large quantities of leaf if the stems were removed to avoid it being a "tobacco product". Interesting... a bit nonsensical (sort of hard for me to imagine threshed tobacco as a product ready to use) in my personal opinion but interesting.

 

[Knucklehead]

The founder of this forum owns www.wholeleaftobacco.com. You could check with Don to see if he needs a distributor in your area. He was using distributors for a while, but I can't find the links on the WLT site right now.

 

[deluxestogie]

I sense that you are looking at tobacco growing in the high desert of Nevada as a source of income. Many tobacco growers in areas far more amenable to that crop, many with decades of experience, suitable equipment and ready sheds and barns are going out of business as I write.

You may want to consider a trial crop of, say 200 plants, rather than 2 acres, to get a feel for the quality of crop you can grow there, the labor demands, the water demands, the harvesting and curing conditions, etc. If you can get a decent crop at a manageable cost, cure it, and finish the leaf for use, then you've got a business plan. I wouldn't mortgage the house to subsidize such a project until you can demonstrate to yourself that it will work there (or anywhere).

BigBonner, a member of this forum, is a long-time commercial tobacco grower in Kentucky. You might want to PM him to discuss the wealth one can hope for in growing tobacco in the US.

If this post sounds discouraging, it's intended to be at least cautionary.

Bob

EDIT: Welcome to the forum.

 

[Ben Brand]

Iv`e got to agree with Bob. Farming is not for the faint hearted, doesn`t matter which country your`e in.

 

[Chicken]

Well;;;; whatever direction you go in i wish you luck...

It would be nice if a lot of people did this to offer the consumer a choice..

But right.now the only choice most have is paying high prices for thier bacca in a store....,, most dont know about growing thier own smoke..and saving a lot of $$$$$... Im glad i entered the realm of growing my own..

Its a good hobby that saves me a lot of money...

 

[Knucklehead]

Oh, so leaving the leaf whole with stems in place it's OK to sell in slammer quantities such as by the pound but a seller would have to sell large quantities of leaf if the stems were removed to avoid it being a "tobacco product". Interesting... a bit nonsensical (sort of hard for me to imagine threshed tobacco as a product ready to use) in my personal opinion but interesting.

If you are planning to enter into a business dealing with any kind of tobacco or tobacco product, it would be wise to know the laws inside and out before you get started. The @%$&# Fed. Gov't doesn't play around anymore when it comes to tobacco and (what they think of as) their share of the taxes.

 

[Alhefner]

Yep, want to know the laws as best as I can!

As for mortaging the house to start off on a gamble... nope! Not gonna happen! I've got 80 acres bought and paid for... I'm a Navy retiree so, I've got that income for life. This whole thing IS to experiment and discover. If I come up with a tobacco that has a unique property because of being grown in a harsh environment... that could be very good... or not. Curing will require specialized sheds be built to control heat and humidity since the daytime humidity drops to about 15% quite often!

This little 'enterprise' will also assist me in working out the kinks of irrigation too along with the use of compost and mulch to conserve water with my subsurface drip irrigation (not water being sprayed into the air!)

 

[bryonlr]

After smoking 2 packs per day for 45 years, I quit Jan 1 this year. As Knucklehead stated, Don, the owner of this site also sells Whole Leaf Tobacco, which I can honestly say, after using his products for over a year, sells the best tobacco available. I have not purchased any tobacco from Big Bonner, also a member in here, but his reputation speaks for him. If I were going to start a business in growing and selling whole leaf tobacco, these two gentlemen would be the people I would want in my corner. Goodluck, hope you do well.

 

[Alhefner]

I actually have 150 pounds of tobacco from "Whole Leaf Tobacco" on the way now. They were the ones with the best small quantity wholesale deal.