Settlement Payment Released to State Tobacco Growers

Source from:  bizjournals.com 10/21/2005

Georgia's tobacco growers are set to get an $18.5 million settlement from the Georgia Tobacco Community Development Board. The board today approved the release of $18.5 million in Phase II Tobacco Settlement Payments to tobacco growers and quota holders, who had been scheduled to get about $24 million in Phase II Tobacco Settlement Payments in 2004. Distribution of those funds was delayed when a lawsuit was filed to determine whether enactment of the Fair and Equitable Tobacco Reform Act of 2004 relieved tobacco companies of their obligations to the Tobacco Grower Settlement Trust for 2004. On Oct. 5, the court ruled in favor of the tobacco farmers and directed the distribution of three quarterly payments for 2004. "Tobacco farmers are an important part of Georgia's agricultural community and major contributors to our economy," Gov. Sonny Perdue said. "I'm pleased that recent court decisions enable us to provide tobacco farmers the assistance they need." The settlement payments come from the 1998 Master Settlement Agreement signed by 46 states and the nation's four largest tobacco companies. Enditem