Tobacco farmer Denny Lee worries about the upcoming tobacco season,after getting word that production quotas may drop by 20 percent.
Tobacco quotas were established after the depression of the 1930's as ameans to control prices.They just needed a safety net
Each farm is assigned a quota based on how much it has historicallyproduced. Each year the government determines how much domestic tobaccocan be grown without a big price drop. That either brings an increase ora decrease in a farmer's quota.
This coming year, quotas will go down because of an oversupply of leaffrom last year, and lower demand from cigarette manufacturers in lightof the recent tobacco settlement.
Lionel Edwards represents the Tobacco Stabilization Corporation. Hesays the anti-tobacco sentiment in this country is hurting the industry.
One way to ease situation for tobacco farmers, accordingto Lee, would be for the federal government to actually buy them out ofthe tobacco quota system
The idea, proposed in Washington last year, would give each tobaccofarmer a lump sum to compensate for the end of price supports. It wouldalso help farmers who have spent money on the purchase of tobaccoquotas from other farmers no longer using theirs.
Price quotas are already being phased out for other crops, includingcotton and peanuts.
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