NH1 News Debates


Sep 16, 2014 4:33 AM

US tobacco growers brace for tougher competition

The Associated Press

DANVILLE, Va. (AP) Starting next month, America's remaining tobacco growers will be totally exposed to the laws of supply and demand.

The very last buyout checks go out in October to about 425,000 tobacco farmers and landowners. They're the last holdovers from a price-support and quota system that had guaranteed minimum prices for most of the 20th century, sustaining a way of life that began 400 years ago in Virginia.

Cigarette makers will have paid $10 billion to compensate growers for surrendering their quotas. Growers got another $5 billion from the companies as part of their 1998 settlement of state lawsuits over smoking-related health care costs.

When the last checks are cashed, surviving growers will be on their own, forced to find profits in a tremendously competitive global market.


--  Dealing with the Disease of Addiction? Click here for help --

More from NH1.com

NH1 News Debates
NH1 News Replay

NH1 on Twitter

NH1 SkyView Cameras

NH1 on Facebook

Check out NH1 News Rail Polls on LockerDome on LockerDome