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FRANKFORT, Ky. — Agriculture Commissioner Richie Farmer today praised the tobacco quota buyout that President Bush has signed into law.
The buyout, part of a corporate tax relief package, will put approximately $2.5 billion into the pockets of Kentucky tobacco quota holders and growers out of a total of $10.1 billion for all U.S. tobacco farmers. The buyout will be paid for by cigarette manufacturers over the next 10 years. The bill eliminates the tobacco quota and price support system, which supporters say will reduce the price of American tobacco and make it more competitive on the global market.
"This bill will enable Kentucky tobacco farmers to either upgrade their tobacco operations or get out of tobacco and pursue other farm products, as they choose," Commissioner Farmer said. "It also settles the issue so that farmers can plan for the future. I want to commend our entire congressional delegation for their efforts to get the buyout through Congress.
"It is more important than ever that Kentucky lawmakers stay the course on dedicating half of Kentucky's tobacco settlement funds to agriculture," Commissioner Farmer continued. "The buyout will lead to dramatic changes in Kentucky agriculture. Our legislators have chosen wisely to fund agricultural diversification in the past, even in tough economic times. These investments have helped Kentucky farmers and food producers upgrade their beef cattle operations, open and expand businesses and explore non-traditional products to help them make a living on the farm. I call on the General Assembly to continue to invest in the future of Kentucky agriculture."
Under the legislation, quota owners will get $7 per pound and growers will get $3 per pound based on 2002 quotas.
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