Tobacco Commission Makes Recommendations

May 16, 2001

The President's Commission on Tobacco has called on government to replace tobacco quotas with production permits and compensate quota owners and growers who decide to stop growing tobacco. Compensation would be for the loss in value of quota assets. Those who choose to continue tobacco production would be helped to offset current costs and make a transition to the production permit system.

Production permits could be held only by active tobacco growers. The commission says the permits would not become assets that could be marketed, "because they cannot be bought, sold or leased and will not contribute to artificial production costs for tobacco growers. Technical assistance also should be provided to tobacco farmers and communities that depend on tobacco revenues "to diversify their crops and local economies."

Other recommendations include supporting state tobacco prevention and cessation programs and regulate manufactured tobacco products to improve the public health and reduce health care costs and ensuring the quality of U.S. grown-tobacco as well as imported foreign-grown tobacco, which is rapidly replacing U.S. tobacco in cigarettes.

"The new production permit system will mean that fewer people depend on tobacco production, either directly or indirectly, for their livelihoods. The resulting leaner, more competitive tobacco-growing industry will be better positioned to compete successfully and take advantage of new technologies and alternative uses for tobacco that do not harm the public health. Our proposals should benefit U.S. tobacco farmers in their efforts to compete with foreign growers as well. They will lower the cost of production," the commission report said.

Justifying their recommendations, the commission said tobacco farmers and their communities "are in the midst of an unprecedented economic crisis. At the same time, public concern over the health hazards of using tobacco products is at an all-time high. Resolving these two crises will require new, visionary tobacco policy in this country."

The full report is on the Internet at http://www.fsa.usda.gov/tobcom/FRFiles/FinalReport.htm.