Untitled Document

News Release
Congressman Bob Etheridge
North Carolina

December 4, 2003

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

Looming Quota Cuts Prompt Etheridge to Renew Calls on Congress to Freeze Quota

RALEIGH - U.S. Rep. Bob Etheridge (D-Lillington), a member of the House Agriculture Committee, today responded to a looming cut in flue-cured tobacco quota by calling on Republican leadership in Congress to include legislation to freeze quota for 2004 at 2003 levels in the omnibus appropriations conference report. In light of U.S. tobacco companies' plans to buy 29.3 million fewer pounds of tobacco in 2004, Etheridge wrote to Speaker of the U.S. House of Representatives Dennis Hastert and U.S. Senate Majority Leader Bill Frist and urged them to reconsider including H.R. 3005, which would freeze quota, in the spending bill to be considered by the House on December 8th.

"Tobacco farmers are facing the worst quota cuts in 20 years, and the Republican leadership in Congress must act now to prevent economic disaster on our farms and in our communities," Etheridge said. "Perhaps they will finally realize the severity of our situation."

Flue-cured quota is determined each year based on intended purchases, average exports and the amount of tobacco needed to attain reserve stock levels. This drop in purchase intentions from 283.3 million pounds in 2003 to 254 million pounds in 2004 could translate into as much as a 21.7 percent cut in quota, which would be the largest percentage cut in quota in 20 years. Yesterday 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.

Tobacco quotas are established by the U.S. Department of Agriculture (USDA) on December 15th of each year. Etheridge wrote the CEOs of Phillip Morris, Brown & Williamson, R.J. Reynolds Tobacco Company and Lorillard two weeks ago and called on them to file purchase intentions for next year greater than what each company filed last year. During the 2003 flue-cured tobacco-growing season that concluded in October, tobacco farmers were allowed to grow 526.3 million pounds of tobacco, less than half of what they were allowed to grow in 1997.