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As lawyers for tobacco companies and 14 tobacco growing states continue to battle in court, Ohio farmers may have to wait several months to see if a settlement payment supposed to arrive in December will ever come.

"Folks didn’t receive the income they expected at year’s end, and that affects their financial well-being" said David White, OFBF director of commodity relations.

The disputed payment is part of the National Tobacco Growers Trust Fund, known as Phase II, in which tobacco companies committed to pay $5.15 billion over 12 years to growers and quota owners for losses stemming from the 1998 tobacco settlement.

Tobacco companies argue that a bill signed last October creating a new government buyout program ended their obligation to make 2004 payments. The tobacco states say that legislators never intended to cancel Phase II payments but to replace them when money from the buyout begins to be distributed later this year.

Farmers were struck a blow two days before Christmas when a North Carolina judge denied the enforcement of the $430 million December payment and ordered a refund to tobacco companies for 2004 payments already made to Phase II funds.

In his ruling, Judge Ben Tennille said the government buyout superceded the Phase II payments. He added that regardless of Congress’ intent, the buyout took effect when the bill was signed, not when payments begin in 2005.

"Whatever explanations they may offer, the reality is that (Congress) could have simply and easily preserved the 2004 payments by providing an effective date of January 1, 2005," Tennille said.

The tobacco states are appealing the decision, and no money will change hands until a final ruling is reached.

Although farmers will eventually receive $10.1 billion from the buyout, OFBF believes the tobacco companies should fulfill their obligation.

"We feel they ought to pay up," White said. "It’s the principle of the matter."