Black Farmers Still Struggling

By Makebra AndersonNNPA National Correspondent WASHINGTON (NNPA) – White tobacco farmers stand to make 100 times more than Black tobacco farmers in a $9.6 billion Tobacco Buyout Settlement. However, if they don’t meet the June deadline, tobacco growers won’t receive a penny. Analysis by the Environmental Working Group, a watchdog organization that has been documenting the discrimination against Black farmer’s, shows that the top 1 percent of recipients (4,435 individuals, corporations, estates and other entities) will collect 27 percent of the $9.6 billion, averaging $591,212 each over five years. On the opposite end of the scale are the majority of tobacco growers, which includes all African-American farmers. The bottom 80 percent of buyout recipients (354,873 beneficiaries) will divide $1.9 billion, for an average of $5,389 apiece over five years, reports EWG. Because of a strained relationship with the federal government, Black farmers have had difficulty getting information. “We’re working around the clock to get our people signed up to participate in the buyout. It has been a problem getting the government to get the information out to the Black farmers,” John Boyd, president of the National Black Farmers Association (NBFA), said. “If we miss these deadlines, we’re not going to get the money and they [the government] know that.” U.S. Representative Sanford Bishop (D-GA.) introduced the “Tobacco Reduction, Accountability and Community Enhancement Act” better known as the “Tobacco ‘Buyout’ Bill” in 2003. According to the Georgia Second District Congressman, the measure was proposed to replace the federal tobacco quota system with a new system that financially protects tobacco growers. It will also help growers transition from tobacco more competitive crops. “Approximately 12,000 of the 436,000 beneficiaries are Black. The largest buyout of these farmers is $240,000,” said Boyd, who is working to make sure that all Black farmers meet the June 17 sign-up deadline. Monies are being regulated and distributed by the USDA, so we still have to go into the same offices we’ve complained about for years and deal with the same people we’ve had problems with in these offices for years. How can you expect people to have faith in the same system that has failed them for years?” Since the early 1900s, the number of Black farmers has been falling as the nation transitioned from rural to urban communities and corporate conglomerates began buying traditional family farms. According EWG, Blacks own only 1 percent of all farms. The number of farms run by African-Americans went from 54,367 in 1982 to 29,090 in 2002, a trend that Boyd partly attributes to USDA discrimination. A February 1997 USDA report, issued by the agency’s internal Civil Rights Action Team (CRAT), supports many of the Black farmers’ allegations. Among other things, the report found that when minority farmers applied for loans, they were often mistreated. Investigators also discovered that the USDA failed to respond to some of the discrimination complaints filed against it and that its record-keeping was so poor that some discrimination complaints were missing from agency files. This buyout is essential to helping farmer’s transition out of tobacco production according Bishop. The government had been setting a limit on domestic tobacco production to prop up prices, now cigarette companies will be taxed to compensate quota owners for losing their share. “The so-called ‘buyout’ is a fair and responsible deal for everyone,” Bishop said in a statement. “It is certainly not a give-away. Our bill proposes a new tobacco policy for the 21st century that is right for growers, right for the economy, and right for the health and well being of America’s consumers.” EWG reports that American tobacco growers have benefited from the government quota system for over three decades. Because of the quota system, farmers had been given exclusive license to a federally controlled market for their crop. Since the government is buying out tobacco farmer’s crops this year, they will no longer be allowed to grow tobacco acreage unless under contract with a specific tobacco buyer-this will hurt the profit of many Black farmers. “Anytime the real money is on the table, we either don’t hear about it on time like we did with the class action lawsuit or we don’t sign up on time and we leave all of our assets and checks on the table,” Boyd, a fourth generation tobacco farmer, said. “Some of these tobacco farmers are set to become millionaires with this buyout. Small guys like me and the majority of other Black farmers don’t get much out of it, but it’s still money that we can’t afford to leave on the table.” For every working farm that actually grows tobacco, there are nearly 8 prospective tobacco buyout recipients. Tobacco quota holders don’t have to be tobacco farmers, live in tobacco growing regions or in the U.S. to benefit from the buyout. The top state for buyout payments is North Carolina, which will receive 40 percent of the funds–totaling $3.823 billion. North Carolina is also the top state for buyout recipients among African-Americans. Approximately 3,780 Black farmers in North Carolina will receive an average $75,044,288.96. In addition to paying farmers for their crops the buyout will also include provisions that will establish a trust fund to provide payments to quota holders and traditional growers and give grants to universities for research on ways to help farmers shift to crops other than tobacco. Buyout payments won’t begin until the end of the June sign-up deadline. “We have a couple months to get our people in there, but it’s going to be pretty hard getting the word out,” Boyd said. “We plan on holding several forms in tobacco growing states to explain the buyout to Black farmers and we will continue to fight for equal treatment.”