Etheridge Calls for Quick Buyout Payments

RALEIGH - With the tobacco buyout now signed into law, U.S. Rep. Bob Etheridge (D-Lillington) sent a letter to Agriculture Secretary Ann Veneman urging her to quickly announce a date when tobacco growers and quota holders can expect their first payments from the buyout. Getting payments out as quickly as possible is critical to help North Carolina's families plan for the future and weather the loss of Phase II payments, Etheridge said.

"Farmers and quota holders need to know as soon as possible when and how these buyout dollars will start flowing," Etheridge said. "I hope the Administration will act quickly to implement the buyout. I will keep the heat on the Administration and the USDA to make sure they get the job done right."

Etheridge reminded Veneman that farmers use the autumn and winter months to plan for the upcoming season, and that they need to hear the U.S. Department of Agriculture's (USDA) plans for implementation of the buyout. Etheridge also urged USDA to use all the resources necessary to get payments flowing as soon as possible. When the peanut program was bought out, payments began approximately 4 months after the bill became law. Etheridge recommended a similar time frame for the tobacco buyout.

Etheridge also warned Veneman that the buyout will mean the end of Phase II payments to farmers and quota holders, who were expecting a payment this winter. Payments need to be distributed in sufficient time to replace that loss and prevent a dangerous shortfall for North Carolina's farm families. North Carolina tobacco growers and quota holders were due to receive a 2004 Phase II payment totaling approximately $189 million. The buyout payment for North Carolina in the first year, whenever it occurs, should total approximately $390 million.