Kentucky Farmers Waiting for Tobacco Money

Source from:  LEXINGTON, Ky. (AP) 01/06/2005

A dispute over money that Kentucky farmers have not received under a settlement with tobacco companies may end up being a hot-button issue for the General Assembly during the 30-day legislative session. The head of the governor's agricultural policy, Keith Rogers, spoke at a meeting of fruit and vegetable growers in Lexington Monday. He said some legislators are discussing using state money from the 1998 master settlement agreement to cover separate payments due farmers in 2004. Kentucky law requires the state to cover so-called Phase Two payments from tobacco companies if they fall short of 114 million dollars a year. Kentucky farmers and owners of quota -- the license to raise tobacco -- had counted on Phase Two payments of about 124 million dollars at the end of last year. They haven't received any money because North Carolina Judge Ben Tennille ruled that tobacco companies don't have to make the last of the payments, which are being halted under a federal buyout. Enditem