Subsidies- the money paid by the government to growers of certain crops to suppliment farmer income and influence the cost/supply of those crops- are no longer paid to tobacco farmers as of the 2002 Farm Bill. Agricultural subsidies are harmful because they make it virtually impossible for foreign growers to compete with subsidized American products, giving those products an unfair advantage. They also result in gross overproduction, resulting in waste and misuse of resources. Since tobacco farmers have not been relying on subsidies, their product has continued to florish, providing evidence for the halt of subsidies on other crops.
Yes, the US govt. still subsidizes tobacco farmers.
Tobacco Reform Act of 2004:“Section 623 of the Act provides that USDA will offer to enter into a contract with an eligible tobacco producer (Grower) under which the Grower may receive total payments of up to $3 per pound of quota in 10 equal annual payments in fiscal years 2005 through 2014 (Grower Payments)
Section 622 of the Act provides that the United States Department of Agriculture (USDA) will offer to enter into a contract with an eligible tobacco quota holder (Owner) under which the Owner may receive total payments of $7 per pound of quota in 10 equal annual payments in fiscal years 2005 through 2014 (Owner Payments).”
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