Tobacco Buyout Called Milestone for Farmers Looking to Stop Growing

Source from:  Associated Press RALEIGH, N.C. 06/21/2004

Tobacco buyout legislation that passed the U.S. House on Thursday will go a long way toward calming fears of farm families in North Carolina, said the head of a tobacco farmers' association. "This is a tremendous milestone for our farm families," said Graham Boyd of the Tobacco Growers Association of North Carolina. "They've been nervous and apprehensive about the political reality of the House passing anything related to tobacco. The attitude out there is not very pro-tobacco." Buyout legislation was attached to a tax bill and contained nearly $10 billion for farmers. The legislation passed on a 251-178 vote and it was sent to the negotiations with the Senate over the final version. An estimated 400,000 tobacco quota holders in the Southeast would receive a share of the buyout, based on their "allotments," which dictate how much they can grow each year. Owners who farm using their own allotments would get $10 per pound of quota, or $7 per pound if they rent it to someone else to farm. The renting farmer would get $3 per pound. "This would be an opportunity to help our farmers make a decision: are they going to continue to farm tobacco or are they going to get out?" said Rep. Mike McIntyre, D-N.C. "Our farmers in our rural, regional and state economies have suffered enough. It's time for this uncertainty to end. "Today, we count our victory in the House because this is a day we were told we would not achieve." North Carolina Agriculture Commissioner Britt Cobb said the buyout gave farmers a sense of cautious optimism about their future. Many farmers have said the buyout money would be used to pay off debts on farm equipment they bought just before the industry began sliding after the national tobacco settlement was approved. "We know obstacles remain, but we will continue to work with our senators and representatives to carry this momentum forward in seeking full congressional approval for this critical measure," Cobb said. The tobacco quota has been cut in half already and another 30 percent cut is expected for next year. The buyout would eliminate the price support system that established the government's authority to set a tobacco quota. Cobb said the legislation would let U.S. farmers sell their product cheaper and compete on an even footing with foreign growers. Rep. Bob Etheridge, D-N.C., said the buyout would "give struggling farm families an honest chance to survive." Etheridge, the only tobacco farmer in Congress, said the tobacco community still faced an uphill fight in the Senate and White House before the legislation is final. The Senate has been less open to a buyout unless it comes along with regulation of tobacco. North Carolina's two major U.S. Senate candidates -- Democrat Erskine Bowles and GOP Rep. Richard Burr -- both said more work had to be done. Enditem