The Honorable George W. Bush
President of the United States
The White House
1600 Pennsylvania Avenue Northwest
Washington, DC 20500-0003

Dear Mr. President:

I want to commend you for your tremendous efforts in prosecuting the war against the terrorists. All Americans stand behind you and our military in this vital effort. As you prepare to submit your budget request to Congress, I am writing you on behalf of thousands of tobacco farmers in North Carolina and across the nation. We seek your assistance in changing the federal tobacco program.

For decades, the federal tobacco quota system has permitted only quota holders to grow tobacco in the United States. Thousands of quota holders usually rent out their quota to farmers interested in growing tobacco. This relationship has benefited farmers and quota holders for generations. Farmers were able to grow a profitable crop while quota holders received a supplemental income from quota rents.

Unfortunately, the growth of cheap foreign tobacco has placed a great strain on the quota system. From 1997 to 2000, tobacco quota plummeted by 50%, cutting in half the incomes of both tobacco growers and quota holders. Even the modest quota increases of the past two years have not come close to restoring the value the system generated only a few years ago.

As you know, the President's Commission on Improving Economic Opportunity in Communities Dependent on Tobacco Production While Protecting Public Health was established in 2000 to address the crisis in tobacco communities. Last May, the Commission issued its final report, "Tobacco at a Crossroad: A Call for Action." In this report, the Commission - comprised of tobacco farmers and public health representatives - unanimously recommended that current tobacco quota holders be "bought out," of the current program.

I believe a tobacco quota buyout should be structured similarly to the Commission's recommendation. It should fairly compensate quota holders who depend on income from renting out quota for their economic security; allow any tobacco growers seeking to leave the business to do so; and provide compensation for growers who want to keep growing tobacco. However, I do not support the Commission's recommendation of financing such a buyout on the backs of hard-working Americans through an increase in tobacco excise taxes. I trust you will not require a tobacco tax increase to fund this new policy.

As your Administration prepares to release your budget plan for fiscal year 2003, I strongly urge you to include full funding for a buyout of tobacco quota in your budget. Based on the Commission's report, a minimum of $17 billion is necessary to ensure all quota holders and tobacco farmers could take advantage of a buyout.

My colleagues in Congress and I are working on buyout legislation, but this requires your support and leadership. Your Administration has yet to comment substantively on the Commission's report or whether it would support or oppose the concept of buying out the federal tobacco quota system. Full funding is critical to making a buyout work and including it in your budget will send a clear signal to the Congress that this Administration stands with tobacco communities in their time of need.

Tobacco farmers are looking for leadership, and this is an opportunity for Democrats and Republicans to work together and put the people's interest ahead of political party. I look forward to hearing from you on this matter.

Sincerely,

Bob Etheridge
Member of Congress

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