Etheridge calls on Bush to Reverse Prior Administration's Policies Towards Tobacco Farmers

February 2, 2001

"Thank you Graham for that kind introduction. It is an honor and a pleasure for me to be here today. I am especially humbled that you asked me to speak to you considering that you already have as your guests our distinguished new Governor and Secretary of Agriculture. You know I always enjoy coming to functions like this because it provides me with an opportunity to see so many friendly and familiar faces. And, I want to keep seeing you here, year after year. The key to that is ensuring tobacco growers, especially small family farmers, can still grow and receive a good price for their crop.

"In the past, when have met, we would discus the defensive battles that I, Walter and our colleagues in Washington have been fighting, such as opposing tobacco tax increases or trying to stop the federal tobacco lawsuit. We would lick our wounds, and prepare plans for dealing with the next attack, which we knew was just around the corner. Now we enter a new era, with a new President, a new Secretary of Agriculture. But this does not mean we can relax and rest on our laurels. Now is the time to go on the offensive -- to address issues before they become problems and to make changes that will allow hard-working, God-fearing tobacco growers to not just survive, but thrive and prosper.

"We have a real opportunity to that right now. I'd like the Bush Administration to give its commitment to three things: keeping the Food and Drug Administration off the farm, allowing tobacco exporters to take advantage of the Market Access Program, and ending the federal lawsuit against the tobacco companies.

"Ending the lawsuit is a good place for President Bush and his new Attorney General, John Ashcroft, to show us where they stand. As you know, this lawsuit not only threatens to put tobacco companies, and consequently tobacco farmers, out of business, but also threatens the funds that North Carolina receives through the settlement negotiated by Governor Easley. The U.S. Senate confirmed Mr. Ashcroft yesterday, and I call upon him to end this lawsuit now, so farmers no longer have this threat hanging over their heads.

"I'm sure many of you have either heard or read about the President's Tobacco Commission report even before you listened to Jimmy earlier. The Commission said it wasn't making any official recommendations yet, but it went on to provide a list of principles -some good, some highly questionable. On some things, the Commission hit the bullseye. Their report cited the need to protect tobacco growers from unfair trade practices and unfair foreign competition. I couldn't agree more. I have always been a strong proponent for free and most importantly fair trade. As domestic consumption continues to decline, we must gain greater access to new markets abroad. A good example is China. Our negotiations with China to allow them to join the World Trade Organization produced lower tariffs on U.S. tobacco and greater access to their market. We even straightened out a little problem we had with them concerning blue-mold. While this progress with China was good, there are other opportunities in the world marketplace. I hope the Administration will rise up to the challenge to fight for tobacco farmers.

"To that end, I call upon the Bush Administration to treat tobacco as it would other commodities during trade negotiations. I also urge the President and his Secretary of Agriculture, Ann Veneman, to push for removing restrictions upon tobacco growers' access to the USDA's Market Access Program and other export promotion programs. Since 1993, no MAP funds may be used to promote tobacco exports. I didn't like it then, and I still don't like it now. Tobacco leaf is a legal product, and tobacco exporters deserve the same opportunity to benefit from these programs - programs funded by the tax dollars you and I pay every year - as do other commodities. This discrimination against tobacco must end.

"While not calling it a recommendation, the Tobacco Commission also cited Food and Drug Administration (FDA) regulation of tobacco products as one of its principles. Throughout my career, I have opposed and will continue to oppose letting the FDA extend its reach to the farm - let there be no doubt about it. Now, the Commission says that is not what they want, and I take them at their word. However, I remain extremely skeptical that FDA regulation of the manufacturing of tobacco products is going to benefit farmers. If the FDA obtains this authority, what happens if the agency requires tobacco companies to change their products by putting something in or taking something out?

"I worry that new FDA requirements would trickle down to farmers and force them to make expensive changes to the way they grow, harvest or cure tobacco. This could add new input costs to growing tobacco, and hence price many small tobacco farmers out of the business. Folks, I won't stand for that, and you shouldn't either. The burden of proof of the benefits of FDA regulation for the tobacco industry, all the tobacco industry, rests with its proponents. But I must warn them, they have a long mile to walk before they can convince me on the merits.

"The Commission's report also talks about contracting. We've seen this coming for a while with burley, and it's now here flue-cured tobacco. I've seen some estimates that 50-60% of tobacco sales could be under contract in this growing season. If this is the way of the future, small farmers must have an opportunity to participate. To me this means obtaining a commitment by tobacco companies to include the small farmer in their contracting plans. I call upon tobacco companies and their agents to work toward a 50% small farmer representation among their contracts. Some farmers may not win contracts and some may not even want to enter into contracts, which is their right. We must work to ensure that not getting a contract does turn into getting out of tobacco. We must preserve the current auction system so these farmers, and even buyers, can have alternatives to the contract market and stay in tobacco.

"Tobacco growers are emerging from a dark tunnel that directed and controlled our path; one we believed would not end. As we approach that light at the end of that tunnel, we must realize that exiting does not mean that we are in the clear. It only means we now have new roads before us filled with both opportunities and dangers. Working together, we can find the right path for tobacco farmers and their communities so we all can succeed. I look forward to that effort. Thank you again for giving me the opportunity to talk to you today."