ag-formation

SOUTH CAROLINA DEPARTMENT OF AGRICULTURE                                  Telephone (803) 734-2210

D. LESLIE TINDAL, COMMISSIONER                                        Becky Walton, Director of Public Information

P.O. Box 11280, Columbia, South Carolina 29211                                                 bwalton@scda.state.sc.us

www.state.sc.us/scda

FOR IMMEDIATE RELEASE
March 1, 2000

(RALEIGH)---The Tobacco Industry Leadership Group yesterday announced that a joint agreement, in principle, has been reached with Philip Morris and other major purchasers of U.S. flue-cured tobacco.  The agreement includes a plan to create financial assistance of up to $85 million for U.S. tobacco farmers who install new curing barn equipment.  The new equipment is designed to reduce nitrosamines on cured leaf.

The Flue-cured Tobacco Cooperative Stabilization Corporation will contribute $25 million and loan $25 million.  Philip Morris, Inc. will provide $35 million in interest free loans which will be used to make direct grants of up to $3,000 per barn through August 1, 2000 and $2,600 per barn the following year to tobacco farmers who convert their barns.  The loans will be repaid over a period of years by assessments on the purchasers.