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Putting Tobacco Settlement Funds to Use

by Lynn Snyder

When Gov. Bob Taft signed Ohio's tobacco settlement spending bill – Senate Bill 192 – on March 3, 2000, money became available through the Tobacco Master Settlement Agreement to create seven trust funds, one being the Southern Ohio Agricultural and Community Development Foundation. Its mission is to voluntarily replace the production of tobacco with other agricultural enterprises by enhancing economic opportunities for tobacco farmers and rural communities. Tobacco farmers in 22 southern Ohio counties are being served by the Foundation, which has funding through 2012.

The Foundation is governed by a 12-member board: six farmers (three are tobacco producers) and six economic and agricultural development leaders. ODA Director Fred Dailey is chairman and Don Branson is executive director. Ohio Farm Bureau member farmers on the board include Ken Davis, Joe Foster, Larry Hall, Pat Raines, Ron Rudd and Eric Wolfer. The Foundation is working with the Farm Service Agency, Soil and Water Conservation Districts, Natural Resource Conservation Service, OSU Extension, Ohio Farm Bureau and others to provide avenues for communication and interaction within the tobacco-growing region.

Pilot Programs

Branson said he was impressed with the response to the Foundation's first program – the Livestock Systems Pilot Program. The Foundation approved 1,157 applications totaling $2.7 million for fencing, corrals and other livestock handling systems.

"This tells me our planning committee came up with a good program," Branson said. With these funds, farmers have the means to add to or upgrade their fencing or livestock handling facilities. This program and three others are designed to help Ohio's tobacco farmers offset losses by creating new, value-added profit opportunities. The next program is the Livestock Genetic Improvement Pilot Program, which offers up to $2,000 in cost-sharing for beef and dairy producers and $500 for swine and sheep producers who desire to improve their herd genetics. Money is available to producers who have animals with Expected Progeny Differences in two categories at rates higher than the national average. Funds are available for producers who use artificial insemination and want to purchase semen or for those who want to purchase animals.

The Foundation is working in cooperation with Ohio Cattlemen's Association to administer the program which will be implemented March 1 through April 30. Applications will be available from the Foundation, Ohio Cattlemen's Association, county Extension offices and FSA offices in tobacco producing counties.

Branson said the two other pilot projects under development will focus on educational assistance for tobacco growers, their spouses and dependent children and farmland preservation.

For more information on the Southern Ohio Agricultural Community Development Foundation, call 937-393-2700.

 
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