Etheridge Hails N.C. Supreme Court Ruling on Payments for Farm Families

News Release
Congressman Bob Etheridge
North Carolina

August 19, 2005

Contact: Joanne Peters
Phone: (202) 225-4531

Etheridge Hails N.C. Supreme Court Ruling on Payments for Farm Families

Ruling on Phase II Payments Means Millions to N.C. Families

RALEIGH - U.S. Rep. Bob Etheridge (D-Lillington), a member of the House Agriculture Committee and a part-time tobacco farmer, today responded to the North Carolina Supreme Court's ruling that tobacco companies must pay Year Six Phase II payments. These payments, which total $189 million and will affect nearly 80,000 North Carolina farmers and quota holders, were originally scheduled to be paid at the end of 2004.

"Today's ruling will bring much needed financial relief and a measure of stability to many North Carolina families," Etheridge said. "Farm families have been struggling all year to make ends meet, and especially with the recent record-high gas prices, the bills can pile up. Today's ruling removes much of the uncertainty our farmers have been operating under since the cigarette companies went to court. I hope that the tobacco companies will not appeal the rulings and will move quickly to deliver the payments and promises that are due. It is time for the entire tobacco family to move forward and to begin to plan for the new future that the tobacco buyout will bring."

The tobacco buyout will trigger the termination of future Phase II payments because the buyout is funded by assessments on the tobacco companies. However, an end date for Phase II payments was not specified in the legislation. Last year, Etheridge wrote letters to R.J. Reynolds, Philip Morris and Lorillard calling on them to halt their calls for a refund and allow the payments to proceed.

In 2003, nearly 80,000 North Carolina farmers and quota holders received $154 million in Phase II payments.

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