Untitled Document

News Release
Congressman Bob Etheridge
North Carolina

December 15, 2003

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

Etheridge Praises Administration For Heeding His Warnings on Tobacco Quota

WASHINGTON - U.S. Rep. Bob Etheridge (D-Lillington), a member of the House Agriculture Committee, today praised U.S. Agriculture Secretary Ann Veneman for responding to his calls to exercise her discretionary authority to mitigate the cut in quota for flue-cured tobacco farmers. The U.S. Department of Agriculture announced today that the 2004 quota for flue-cured tobacco will be 471.3 million pounds, a 10.8 percent cut from last year's 526.3 million pounds. Etheridge wrote to Veneman almost two weeks ago to warn her that the 21.7 percent cut that was feared would threaten the livelihoods of farmers and the economic stability of rural communities.

"No cut in quota is good news, but today's announcement is the best news possible for North Carolina's farm families," Etheridge said. "I am pleased that the Administration has finally taken a small step to address the economic situation facing our tobacco farmers and our rural communities. Just days after the tobacco companies reached out a helping hand to the tobacco family, the Secretary's decision to exercise her authority is another shot of good news. I will keep holding the Administration's feet to the fire to make sure they don't lose sight of the needs of North Carolina's farm families."

Last week Etheridge called on U.S. Agriculture Secretary Ann Veneman to use her statutory discretion to adjust flue-cured tobacco quota by the maximum 3 percent. Etheridge has worked throughout the 108th Congress with a bipartisan group of Representatives and Senators to pass a tobacco buyout without any assistance from the Bush Administration. In response to his pleas for the Administration to support a tobacco buyout, he recently received a response stating the "Administration has not taken a position" on tobacco buyout legislation.

Tobacco quotas are established by the U.S. Department of Agriculture (USDA) on December 15th of each year based on intended purchases, average exports and the amount of tobacco needed to attain reserve stock levels. Last month Etheridge wrote the CEOs of Phillip Morris, Brown & Williamson, R.J. Reynolds Tobacco Company and Lorillard and called on them to file purchase intentions for 2004 greater than what each company filed last year. On Friday, Philip Morris and R.J. Reynolds announced they would purchase additional tobacco from the reserves of the Flue-Cured Tobacco Cooperative Stabilization Corp., which oversees the price support program and stores tobacco that doesn't bring the guaranteed price at auctions.