Thursday, September 18, 1997

Statement of
Tommy Irvin
Georgia Commissioner of Agriculture

For the United States Senate Committee on Agriculture, Nutrition, and Forestry

On the Tobacco Settlement and the Future of the Tobacco Industry

Thursday, September 18, 1997

I am privileged to appear before you today to address an issue which has already had a profound effect on millions of Americans and can have an equal one on thousands of farmers in a major region of this nation - the national tobacco settlement and America's tobacco industry.

Mr. Chairman, I am not a consumer of tobacco, but I represent more than 2600 allotment holders and nearly 1600 tobacco farmers in Georgia, whose livelihood will be dramatically impacted by your decision. Nationally there are 124,270 tobacco farmers. This issue is of great concern to all of America's farmers and consumers of tobacco products, and what you decide in the coming weeks or months will affect both. In my home state of Georgia, families in some of the most rural, economically depressed communities will be negatively affected financially, if what you decide does not include a safety net for tobacco farmers.

There have been strong attacks against the tobacco industry. I read of litigations, lawsuits and negotiated settlements. However, we all must remember that tobacco is still a legal crop and in this region, enjoys a long tradition. There is still a demand for good tobacco. Tobacco is part of the United States' commerce. And, as long as there is a demand for high-quality cigarettes or other tobacco products anywhere in the world, America's farmers will be ready with the best quality tobacco that is produced.

Nationally, we all realize that tobacco consumption is declining, but worldwide—and we do live in a global economy—the market is continuing to expand. In Georgia, 60 percent of our leaf tobacco is exported and our tobacco is blended into finished products that are sold all over the world.

These farmers are working hard to earn an honest living, giving back to their communities and depending on Mother Nature for the success of their crops. They did not create this controversy. Therefore, today, I ask you to remember these individuals as you work with the tobacco companies on any settlement or negotiation.

The quota system is working extremely well and should be maintained. I ask that you include in any settlement a requirement that funds be set aside so farmers will have a choice to voluntarily retire their allotments.

To retire (5) five percent of the allotment annually over a 3-4 year period should cost no more than (1) one percent of the settlement figure that has been mentioned.

Secondly, for those farmers who have substantial investments in land and equipment and want to continue to grow tobacco, there should be specific mandatory language in the settlement that the American tobacco industry will be required to give priority to the purchase of domestically produced tobacco. Since most tobacco will be sold worldwide, and there is a strong demand in the world market for American cigarettes, this will afford our farmers an opportunity to share in the growth of this market.

I want to clearly state that I thoroughly understand the magnitude of this issue on both sides. But I hope you will agree with me, that as representatives for all the people and a guardian of both the farmers and consumers of tobacco products, our challenge is to reach a settlement that will be as inclusive as possible, protecting and respecting the rights and privileges of all concerned. Thank you for allowing me this opportunity to speak on an issue of such vital importance to the economy of a major region of America and Georgia. I pledge my support to you in reaching a fair settlement.