Tobacco Buyout Program Applauded

06/28/2004

Governor Ernie Fletcher stated has his appreciation to his former colleagues in the U.S. House of Representatives for moving forward on the $9.6 billion Fair and Equitable Tobacco Reform Act of 2004. This will allow Kentucky's tobacco farmers to transition from the antiquated federal tobacco program. During his time in Congress, Fletcher vigorously pursued this tobacco buyout initiative that will help Kentucky's family farms throughout the Commonwealth. "I would like to congratulate and show my appreciation to my former colleagues in the House who have carried on with this legislative effort that Kentucky farmers need," stated Fletcher. "It is critical that we give our family farms the support they deserve so that they can make the decision to either move on from tobacco farming or choose to stay in." An estimated 400,000 tobacco quota holders 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. In that case, the renting farmer would get $3 per pound. The bill will now go to a conference committee to iron out differences with a similar Senate Bill. Fletcher concluded, "I encourage House and Senate Leadership to appoint conferees that understand the significance of the tobacco buyout portion of the bill." n The following statement was released by Kentucky Farm Bureau on the same bill. "Passage of HR 4520 by was a progressive development for Kentucky and Marks an important step toward attainment of a tobacco buyout. Kentucky Farm Bureau applauds the Kentucky Congressional Delegation for its work to secure support for the buyout among House leadership and the Bush Administration. "Farm Bureau has worked steadily for the past two years to build support for a buyout that will compensate quota holders and producers for their equity in the tobacco business, and which will help those farmers who want to stay in tobacco production to regain their economic and competive edge. "Moving buyout legislation through the House of Representatives and straight to a House-Senate conference committee has proved to be a sound strategy, and we will begin working today to advance and possibly strengthen those provisions during the conference committee's deliberations." Enditem