Tobacco Buyout Unfair to Farmers

Source from:  Kentucky New Era By CECIL HERNDON editor@kentuckynewera.com 07/05/2004

If you've ever seen two children quarrel over which got the biggest part of a shared candy bar. You'll be able to attribute similar behavior to a group now questioning the fairness of a proposed federal tobacco buyout program. The U.S. House of Representatives recently passed legislation that would pay $9.6 billion to tobacco growers over five years. It is the proposed distribution of the money that has raised the objection of the Washington-based Environmental Working Group. The group complains that growers with the largest tobacco growers would receive more money than growers with smaller quotas. The group's mindset is much like that of those who see a tax-rate cut as unfair because those who pay little or no taxes will benefit less than those paying far more in taxes. By that reasoning, a farmer who sells the government a single cow should receive as much money as the farmer who sells the government 100 cows. Ken Cook, president of the Environmental Working Group, said its study showed that the proposed buyout would result in " a tremendous windfall for a relatively small number of beneficiaries." The group said 462 individuals, companies or estates would get more than $1 million each. Of course, the group ignores the obvious reality that large growers would forfeit far greater potential profits from tobacco sales than would small-quota growers. But, then, such groups don't want to be confused by facts. Their strange concept of fairness is lost on Kentucky Farm Bureau President Sam Moore. "It's like owning stock in a company," Moore said. "The ones that own the most stock are going to get the most payments." Well, yes, in the real world. But not in the dream world of people who believe that all should share alike in benefits, no matter the differences in their contributions. Under the House bill, according to the Washington group's report last week, the top 1 percent of quota holders would get 27 percent of the buyout money. If you think you've heard similar numbers before, you're right. You hear them all the time in regard to tax cuts. It is standard fare for those who favor no tax cut for anyone over one shared by the wealthy.. That same mindset well may be fueling opposition to the House tobacco buyout proposal. Supporters of the buyout say the Washington group hopes to undermine the legislation by injecting the fairness factor. The buyout proposal should sink or swim its merits with no regard for redistributing wealth. Enditem