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/

[org.whodat]

what about milk n cheese?

Can you read? I think the subject was tobacco????

[Bluntpoint]

Did the government come into your business year after year and tell you that you could not stock the same amount as last year?

That is what baccer is talking about having his poundage reduced over the years.

[Bluntpoint]

As I am sure you will agree, most farmers would love to truly have an "arm's length" contract with consumers of his goods.

But it is the consumers that brow beat the politians into subsidizing the price of the goods they buy.

[samuel_adams_us]

That's interesting, my cousin, "Moot" Truluck was hand picked by Bush to get the farmers to go for the buyout, and I come from a long line of tobacco growing family so I too wonder what you are talking about.

[Bluntpoint]

I thought Bush chose "Dash Riprock?"

[baccer]

i am surely for the buyout aslong as they go back to the years before they cut us to pieces!