Senators Back Buyout for Tobacco Farmers; tobacco manufacturers to pay for the buyout

Associated Press ^ | 07-30-03

[Brian S]

NANCY ZUCKERBROD Associated Press

WASHINGTON - Tobacco-state senators have reached a consensus on a bill to pay tobacco farmers to leave a price and production control program that once guaranteed the industry economic security.

Farmers would not get the government-guaranteed high prices to grow tobacco under the bill introduced in the Senate Wednesday, although they could still grow it.

Farmers have been seeking a buyout, with many saying they want to get out of the business altogether, because they have experienced steep cuts in the amount of tobacco they can grow under the federal program in recent years.

"The current tobacco program has outlived its usefulness, and now represents a hurdle and a threat to the economic health of communities in tobacco producing states," said Sen. Mitch McConnell, R-Ky., and the lead sponsor of the bill.

The cuts are due to declining cigarette sales and an increased reliance by cigarette manufacturers on cheaper foreign tobacco. Ending the program would make U.S. tobacco prices more competitive with global markets. The program was conceived in the Depression, when regulation helped guarantee income for farmers.

The proposal would pay farmers $13 billion over six years. Legislation already introduced in the House is more generous.

The House and Senate bills would require tobacco manufacturers to pay for the buyout, which could lead to an increase in cigarette prices.

Thirteen tobacco-state senators, including Senate Majority Leader Bill Frist of Tennessee, sponsored the legislation. Most agree it will have to be linked to a forthcoming bill giving the Food and Drug Administration authority to regulate tobacco products.

Historically, tobacco state lawmakers and farmers have opposed FDA regulation of the cigarette industry. But they now say they need to forge an alliance with health advocates in Congress to get a buyout bill passed.

"We support reasonable FDA legislation that will be part and parcel of making this tobacco buyout a reality," said Larry Wooten, president of the North Carolina Farm Bureau.

Philip Morris USA, the nation's largest cigarette manufacturer, supports a buyout linked to FDA legislation. Company officials believe FDA regulation could make it easier for Philip Morris to market reduced-risk tobacco products that are in development.

Other companies have said they are concerned about the cost of a buyout and fear FDA regulation would be too burdensome.

ON THE NET

The bill is s1490. Tracking legislation:

http://thomas.loc.gov/

[My dog Sam]

This is what happens when our legislators lack the cojones for an outright ban on the "evil weed" tobacco.

Here's hoping the sheeple actual grow some backbone and start doing something about all of this PC bs.

[George W. Bush]

Just cancel the subsidies and the controls altogether.

These people act like the farmers of certain states have a constitutional right to life, liberty and the growing of tobacco subsidized by their fellow-citizens.

[greasepaint]

We need to get rid of subsidies like this.
These subsidies make Repubs look bad in the eyes
of independent voters.
Dems say they oppose subsidies.
Dems, behind the scenes, oppose the repeal of
subsidies because subsidies makes the Repubs look bad.

[TheBattman]

You know, I have often had to scratch my head in wonder ..... On one hand you have the government creating all sorts of anti-tobacco adds and programs, along with states winning lawsuits for billions of dollars against "big tobacco". All the evils of Tobacco that the government has been spending MILLIONS of our dollars on. Yet at the exact same time have been paying tobacco farmers huge subsidies to keep them in business. I just don't get it.....

[baccer]

If the general public knew the jist of tobacco they would be stunned

[Jean S]

The jist of tobacco? What does that mean?

[baccer]

it's just that most people think that the goverment just hands tobacco farmers truckloads of money.

[Jean S]

Thanks for your reply. Do you know how the tobacco subsidies work? I've never seen any details about it.

[org.whodat]

subsidized by their fellow-citizens.

You do not now are have you ever paid to subsidize tobacco. The so called tobacco subsidies were a drop in the bucket compaired to the amount of money the gov. collected on tobacco tax.

[upchuck]

The House and Senate bills would require tobacco manufacturers to pay for the buyout, which could lead to an increase in cigarette prices.

Interesting sentence. Wrong and right in the same sentence. The manufacturers won't pay for the buyout. Where do you suppose the manufacturers get their money? Make no mistake about it, the people who smoke cigarettes will pay (a bunch) for the buyout.

[baccer]

well as a tobacco farmer,we call it baccer,i have never seen any subsidies.i hope this doesn't sound to stupid..

[baccer]

the tobacco farmer will pay the highest price,considering they have cut our poundage almost 50percent since 98.

[Jean S]

You don't sound stupid at all, please don't apologize. I apologize if I appeared confrontational. I have always heard that all tobacco farmers were receiving huge subsidies. Is it the large companies that get the governmemts money?
I'm an ex smoker but I'm still strongly for smokers rights.

[baccer]

well the gov. program to help farmers out,for the loss of poundage,i recieved nothing last year and i raised over ten thous pounds .pity the smaller man..

[Jean S]

That doesn't surprise me. Government subsidies are created for the large companies.
I hope your business survives this.

[hoot2]

"Farmers have been seeking a buyout, with many saying they want to get out of the business altogether"

isn't it funny, 5 of mr n mrs bill klinton's campaign contributers, are indonesian tobacco billionaires...

[hoot2]

"You do not now are have you ever paid to subsidize tobacco"

what about milk n cheese?

[baccer]

funny is right!10 yrs.ago there was just a few brands of cigs. now there hundreds,mostly made by foreign tobacco.

[Rodney King]

I wish the government would have forced my customers to buy out my last business. This is BS.