Search

The article focuses on the future of the tobacco production in the U.S. Blake Brown, North Carolina State University Extension ag economist, calls it a year of transition. He sees consolidation and specialization of farmers into medium-sized units. Brown sees an average of between $1.35 to $ 1.50 per pound for flue-cured. Burley could fetch $1.40 to $I.55 per pound. Companies will provide incentives for quality and upper-stalk leaves. There was some indication at the end of the 2004 that prices could shift out faster than the expected increases in acreage.

The article presents information on Phase II tobacco ruling on that is due on December 20. A judge expects to rule before Christmas whether U.S. cigarette companies will have to make another payment to tobacco farmers now that the tobacco buyout is final. At issue is the cigarette companies' contention that last month's passage of a tobacco buyout should negate the payments required under Phase II. An attorney representing the companies said they are entitled to refunds. An attorney for the Phase II board said farmers are counting on the checks, scheduled to go out on December 30, and that the money in the escrow account belongs to growers.

Reports on an opinion that the United States Food and Drug Administration (FDA) is at the center of tobacco buyout war. Regulation of cigarette as drug delivery device by the FDA; Master Settlement agreement between states and tobacco companies in 1998; Disagreement of major tobacco companies over the FDA regulation; Role of MSA in decreasing the market share of major cigarette manufacturers; Expectation of a continued escalation in the market share for regional cigarette manufacturers.

Reports on the effect of the U.S. Food and Drug Administration (FDA) regulation of cigarettes on the tobacco buyout bill in Congress. Failure of the attempt to link the buyout with FDA regulation; Plan to move the buyout in an omnibus budget bill; Possibility that the FDA talks could be revived.

Reports the difficulties faced by tobacco warehousemen from the tobacco auction system in the U.S. Court ruling regarding the right of the Flue-Cured Tobacco Cooperative Stabilization Corp. to operate marketing centers; Choices given to the farmers in relation to the auction system; Rejection of some tobacco at receiving stations.

Deals with the issue of tobacco buyout in North Carolina. Importance of a buyout to the tobacco industry; Reason that industry experts and farm leaders see 2003 as the year for a tobacco buyout to happen; Elements of a tobacco buyout legislation.

Explains that tobacco producers who were not party to the actual lawsuit against major tobacco companies will benefit from the settlement. Details of the settlement; Basis for the amount of money which tobacco growers can receive; Options of tobacco growers.

Reports on the class-action suit against major tobacco companies in the U.S. Allegations that the tobacco companies fixed prices at an auction; Agreement of the tobacco companies to settle out of court.

Analyzes the need to address the price situation in the tobacco industry. Effect of the cuts in quota production; Impact of putting more tobacco under loan; Loss of market share by the U.S. growers; Decline in cigarette consumption; Increase in the price of the U.S. leaf.

Reports on the increase of flue-cured tobacco prices in the U.S. in 2003, according to the Flue-Cured Tobacco Cooperative Stabilization Corp. Increase in prices of fine and good quality tobacco; Total tobacco sales for the year as compared to that in 2002; Total loan receipts.

Reports on the cancellation of the tobacco buyout for the year 2003. Reaction of tobacco farmers to the issue; Disagreements over Food and Drug Administration (FDA) regulation of cigarettes; Tobacco companies that support the FDA regulation; Plan of tobacco-state senators after the FDA regulation train stalled.

Reports the buyout bill introduced by U.S. senators intended for the tobacco industry. Support given by Philip Morris USA for a buyout and regulation of the Food and Drug Administration (FDA); Purpose of the H.R. 140 bill; Argument of Brennan Dawson, vice president of Brown and Williamson Tobacco Corp., regarding the impact of FDA regulation on the company.

Focuses on the decision of Philip Morris USA and other tobacco companies to settle a class action lawsuit in the U.S. Benefits of the decision to the tobacco industry; Amount paid by the companies for the settlement; Decision of the companies to purchase grown leaf in the country.