Tuesday, November 02, 1999
Area tobacco growers get OK on settlement claims
The Cincinnati Enquirer
FLORENCE Kentucky tobacco growers who applied for compensation under a national tobacco settlement received verification Tuesdaythat their paperwork was in order.
The state released lists, by county, of those eligible to receive a portion of the $112.7 million settlement between Kentucky's tobacco-growing industry and cigarette manufacturers.
Tobacco growers have until Nov. 12 to make changes to their applications.
This does not indicate how much money they would receive, said Jerry Brown, agriculture agent at the Boone County Cooperative Extension Service. They already know what to expect. This list says we got your application and we have you down for these particular categories.
Boone County's register was 48 pages long, with about 30 names on each page, Mr. Brown said.
Growers can apply for settlement money as landowners, crop growers and tenants. Most in Kentucky will fulfill all three roles. The money will help growers deal with this year's 30 percent quota cut and the summer drought.
There are 1,790 tobacco farms in Boone County. Campbell County has about 800 tobacco farms and Kenton County has about 1,000.
The Kentucky Tobacco Settlement Trust Corp. is expecting to pay about 24 cents for every pound of tobacco in an individual quota, which is the amount of tobacco the federal government allows the farmer to grow and sell. Farm service agents said that will amount to about $800,000 for farmers in Boone, Campbell and Kenton counties.
The $112.7 million is the first installment of a 12-year settlement that ultimately will generate about $1.5 billion for Kentucky's tobacco-growing industry.
The Kentucky settlement money is an outgrowth of a national settlement, under terms of which tobacco companies are paying states for the health-related costs of tobacco use.
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