Untitled Document

News Release
Congressman Bob Etheridge
North Carolina

December 8, 2003

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

Bush Administration: No Help on
Tobacco Buyout

WASHINGTON - As North Carolina farmers await a decision by U.S. Agriculture Ann Veneman whether to exercise her authority to mitigate what could be the largest percentage quota cut in 20 years, U.S. Rep. Bob Etheridge (D-Lillington), a member of the House Agriculture Committee, today released a response from the Bush Administration to his September 26th letter urging the President to support tobacco buyout legislation. Etheridge's 512-word letter elicited a 64-word response from the Administration. The Administration's letter, dated November 17th, was signed by a deputy under secretary at the U.S. Department of Agriculture (USDA) for J.B. Penn, Under Secretary for Farm and Foreign Agricultural Services. The text of the letter is below.

"On behalf of President George W. Bush, thank you for your letter of September 26, 2003, regarding your support for a buyout of the federal tobacco program.

"We appreciate receiving your views with respect to legislation to assist tobacco growers during this transitional period. At this time, the Administration has not taken a position on this particular issue.

"Again, thank you for your letter."

Etheridge first urged the President to support a tobacco buyout in January 2002 when he wrote to President Bush and asked him to include funding for a buyout in his yearly budget and reiterated the request for support in January 2003. 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. 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. Last year, Veneman refused to exercise her authority, allowing a 9.5 percent quota cut to go into effect.

Flue-cured quota for next year will be determined December 15th based on intended purchases, average exports and the amount of tobacco needed to attain reserve stock levels. U.S. tobacco companies recently announced purchase intentions totaling 29.3 million fewer pounds of tobacco for next year than for 2003. 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.