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Etheridge Fights for the Best Deal for N.C.'s Farm Families in Buyout

Lawmaker Distributes Survey to Prepare for Negotiations

RALEIGH -- U.S. Rep. Bob Etheridge (D-Lillington), the only flue-cured tobacco farmer in Congress, today began distributing surveys on tobacco buyout legislation to farmers, quota holders and friends of tobacco in the Second District to help him fight for the best deal for North Carolina's farm families. Etheridge, who has long-advocated for a tobacco buyout to boost North Carolina's economy, has been working for several months to line up support for the H.R. 245, the Fletcher-Etheridge bill.

"As negotiations begin on a final buyout package, I need North Carolinians' input regarding what tobacco farmers and quota holders want, what they will accept, and what should be rejected in any buyout deal," Etheridge said. "We will need to move quickly when Congress returns from recess in September to get a buyout bill moving and signed into law. We have a narrow window of opportunity to get a buyout done this year, but that window is quickly closing. The Republican leadership in Congress and in the Administration needs to get on board."

Etheridge will distribute the survey throughout August and use the results to push for the best deal for North Carolina when Congress returns to session in September. Constituents can access a copy of the survey at Etheridge's website at www.house.gov/etheridge.

This year, tobacco quota was cut 9.5 percent, the largest cut in a generation. Farmers were allowed to grow 526.3 million pounds, about half of what they were allowed to grow in 1997. There are over 12,000 tobacco farmers in North Carolina, and more than 250,000 jobs in the state are tied to tobacco. A tobacco buyout would inject nearly $6 billion into rural North Carolina's economy.

Under the Fletcher-Etheridge Bill, quota owners would receive payments based on $8 per pound, and producers would receive payments based on $4 per pound. The bill also would preserve a safety net for tobacco farmers by maintaining price support for tobacco and establishing a licensing system for farmers wishing to continue to grow tobacco. Those growers willing to forfeit forever their eligibility for a license would get an additional payment based on $2 per pound.

The Fletcher-Etheridge Bill would make payments based on the 1998 quota totals. Both producers and quota owners would receive payments in proportion to an average of 2001 and 2002 quotas. Payments will be made in equal sums during the 2003-2007 crop years; however, individuals who own less than 1,000 pounds of quota would get the total payment in the first year.