Untitled Document

News Release
Congressman Bob Etheridge
North Carolina

November 19, 2003

Contact: Sara Lang
Phone: (202) 225-4531

With Buyout in Limbo, Etheridge Calls on Tobacco Companies to Purchase More American Tobacco in 2004

WASHINGTON - U.S. Rep. Bob Etheridge (D-Lillington), a member of the House Agriculture Committee, today called on the four largest American tobacco companies to stand by struggling flue-cured tobacco farmers by agreeing to purchase more American tobacco next year. Tobacco farmers, who have suffered from declining quota in recent years, have faced disastrous drought followed by wet weather during harvesting this year on top of uncertainty over a federal tobacco buyout.

"American tobacco farmers are struggling to survive in the midst of uncertainty and instability," Etheridge said. "With farmers waiting desperately for a buyout, the companies' purchase of more American flu-cured tobacco will provide stability in the tobacco market until Congress and tobacco communities determine the future of the tobacco program. I hope these companies will stand with tobacco farmers in their time of need."

Tobacco quotas are established by the U.S. Department of Agriculture (USDA) on December 15th of each year based on expected exports, the amount of tobacco being held for future sale by the Flue-cured Tobacco Stabilization Cooperative and the purchase intentions of domestic tobacco manufacturers. With the manufacturers' purchase intentions for 2004 due into USDA December 1st, Etheridge wrote the CEOs of Phillip Morris, Brown & Williamson, R.J. Reynolds Tobacco Company and Lorillard today and called on them to file purchase intentions for next year at levels greater than their minimum commitments under deals reached with tobacco farmers.

Etheridge has also cosponsored legislation, H.R. 3500, that would lock in the 2004 crop of flue-cured and burley tobacco at the 2003 level. Furthermore, it would allow surplus tobacco that comes into Stabilization Co-ops to be forfeited to the Commodity Credit Corporation (CCC) at no cost to the Co-ops.

During the 2003 flue-cured tobacco-growing season that concluded last month, tobacco farmers were allowed to grow 526.3 million pounds of tobacco, less than half of what they were allowed to grow in 1997. Experts have predicted that quota could be cut as much as 15 to 30 percent for 2004.