dgibson
New member
From my employer's handy-dandy website: <BLOCKQUOTE>quote:</font><HR>OWENSBORO- Bills have been introduced in both the U.S. House and Senate to pay tobacco farmers to get out of the business. For years the government has used a quota system, which allows farmers to grow price supported tobacco. Now both farmers and legislators say even that's not working because other countries can grow the burley cheaper.
Owensboro tobacco farmer Rod Kuegel says he's in full support of the tobacco buyout because he says the market is saturated with foreign tobacco. Kuegel says, "We were priced out of the market and it's been very difficult."
The proposed tobacco buyout bills in both the House and Senate will pay farmers to give up their tobacco quota, or the amount they're allowed to grow. Kuegel says the House Bill will actually help him recoup some losses because farmers have experienced a reduction in how much tobacco they can grow. For example, Kuegel says if he was allowed to grow 10 thousand pounds of tobacco base in 1998, that was reduced to 4000 pounds in 2002 That's a sixty percent decrease. Kuegel says, "He's got 2 and a half times the investment in that 4000 pounds than he had with 10,000, so that investment has been lost."
Kuegel says that, most importantly, either bill or a combination of both will help him take a crucial step. Without tobacco, Kuegel says the key is diversity, and he's already taking that path. This year Kuegel planted several acres in peppers. "We'll raise what we can to make a profit on it. If we can find something else to replace tobacco or make more money we will. We're not married to the tobacco. We're married to a way of life and farming. That's what we're trying to do is make it sustain."
Kuegel says he'll know if his tobacco will be bought out in September after Legislators get back from the August recess. With either the Senate or the House buyout plans, tobacco manufacturers would have to pay for the buyout. Legislators say this could hike up cigarette prices.<HR></BLOCKQUOTE>MY OPINION: Do other businesses get "bought out" if they fail due to competition? Why do these guys get a break? I don't recall Ithaca's glass business getting bought out by the gubmint when it went sour.
And what's this about making the tobacco companies pay for it? Why is it THEIR fault that they can buy the tobacco cheaper elsewhere? Or is it just because the tobacco companies are an industry pariah these days and it's easy to fleece them a little more? Bah!
Owensboro tobacco farmer Rod Kuegel says he's in full support of the tobacco buyout because he says the market is saturated with foreign tobacco. Kuegel says, "We were priced out of the market and it's been very difficult."
The proposed tobacco buyout bills in both the House and Senate will pay farmers to give up their tobacco quota, or the amount they're allowed to grow. Kuegel says the House Bill will actually help him recoup some losses because farmers have experienced a reduction in how much tobacco they can grow. For example, Kuegel says if he was allowed to grow 10 thousand pounds of tobacco base in 1998, that was reduced to 4000 pounds in 2002 That's a sixty percent decrease. Kuegel says, "He's got 2 and a half times the investment in that 4000 pounds than he had with 10,000, so that investment has been lost."
Kuegel says that, most importantly, either bill or a combination of both will help him take a crucial step. Without tobacco, Kuegel says the key is diversity, and he's already taking that path. This year Kuegel planted several acres in peppers. "We'll raise what we can to make a profit on it. If we can find something else to replace tobacco or make more money we will. We're not married to the tobacco. We're married to a way of life and farming. That's what we're trying to do is make it sustain."
Kuegel says he'll know if his tobacco will be bought out in September after Legislators get back from the August recess. With either the Senate or the House buyout plans, tobacco manufacturers would have to pay for the buyout. Legislators say this could hike up cigarette prices.<HR></BLOCKQUOTE>MY OPINION: Do other businesses get "bought out" if they fail due to competition? Why do these guys get a break? I don't recall Ithaca's glass business getting bought out by the gubmint when it went sour.
