Lexington Herald-Leader | August 4, 2001 | By Janet Patton
Kentucky tobacco farmers will get a third round of federal aid.
The $ 5.5 billion agriculture assistance bill sent to President Bush yesterday after a Senate compromise contains about $ 129 million for tobacco growers.
Kentucky's share will probably be between $ 40 million and $ 50 million.
"After the last few years of staggering quota cuts, this funding will help our tobacco farmers get back on their feet," U.S. Sen. Mitch McConnell of Kentucky said in a press release praising the bill, which averted a threatened veto by dropping an additional $ 2 billion in aid favored by Democrats.
In the last three years, tobacco farmers have gotten more than $ 1.4 billion in federal aid, largely to offset the shrinking amount of tobacco they've been able to sell.
The crop of burley tobacco, the type primarily grown in Kentucky, had been cut to about a third of its 1997 size before rebounding this year.
"Tobacco farmers have had a hard time in recent years, and this is another shot in the arm to try to help them get back on their feet," U.S. Sen. Jim Bunning, R-Ky., said in a press release.
In addition to about $ 700 million in direct payments since 1999, an additional $ 650 million in loan relief earlier this year allowed tobacco farmers to write off the drought-stricken 1999 crop, which cigarette makers refused to buy.
After urging from farmers, the Senate hustled this aid bill through before the August recess.
That means checks will go out by Sept. 30, when the fiscal year ends.
The compromise also means that the emergency aid bill avoided dipping into the money set aside for next year's agriculture appropriations bill, Rep. Ernie Fletcher, R-Lexington, said in a press release.
The House Agriculture Committee Fletcher sits on passed a $ 168 billion, 10-year farm bill last week that proponents say could end the yearly rounds of emergency farm aid.
This is fourth straight year that Congress has provided a multibillion-dollar bailout of the farm economy to compensate for low crop prices.
Yesterday's $ 5.5 billion bill will largely go to shore up farmers hurt by falling commodity prices.
"This vote is a victory for our nation's farmers at a time when they need it most," President Bush said, promising to sign the measure.
This latest measure is expected to boost U.S. net farm income to $ 47.9 billion, $ 2.7 billion above last year and the highest level since 1997.
After meeting with the president yesterday, Agriculture Secretary Ann Veneman said the farm crisis is ebbing, particularly when it comes to milk, livestock and even grains, where prices are improving.
Overall for farmers, she said, "There is some easing in the downturn of pricing we've seen in recent years."
The first $ 4.6 billion in the legislation sent to the president would go to grain and cotton farmers to supplement the fixed annual payments they get from the government.
There's also $ 423 million in payments to growers of soybeans, sunflowers and other oilseeds; $ 169 million in grants to states to promote sales of fruits, vegetables and nuts; the $ 129 million for tobacco growers; and additional payments to peanut and wool producers.
The Senate bill contained $ 5.5 billion for direct payments to grain and cotton farmers, almost $ 900 million more than the House measure, plus $ 542 million for conservation programs and $ 150 million for apple growers.
The Associated Press contributed to this report.
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