Tobacco settlement money spurs rural developmentPublished on 03/22/2007![]()
Times have changed in tobacco country, as witnessed by fewer farms growing the product in southern Ohio. Farmers have been exiting the business due to cheap imports, high labor costs and a decrease in demand. The Southern Ohio Agricultural & Community Development Foundation (SOACDF) was created close to seven years ago after the 1998 Tobacco Master Settlement Agreement. In November 1998 the Ohio Attorney General, along with the attorneys general of 45 other states, five U.S. territories, and the District of Columbia, entered into an agreement with the major American tobacco manufacturers to settle state lawsuits against the industry. Under the agreement, Ohio could receive almost $10.1 billion in payments from the industry during the years from 2000 through 2025. The act does not address payments that may be made by the manufacturers to the state after 2025. But, there is no guarantee that the money will be available until then. "We're supposed to receive funding through 2014. But at any time the legislature could change where those funds are spent and then it could be over," said Don Branson, SOACDF's executive director. "The reality is it's a year-to-year program." OFBF will work with Gov. Ted Strickland's administration and cabinet as well as state legislators to keep funding programs that promote economic development, help farmers diversify operations and provide educational assistance to former tobacco farmers and their families. According to OFBF Trustee and SOACDF board member Eric Wolfer, the tobacco foundation is "a great example of what Farm Bureau does and how it impacts communities." He said that Ohio is about the only state to give money back to its farmers. SOACDF has spent nearly $13 million between 2002 and 2006 in helping with agricultural diversification in 22 southern Ohio counties. "We've helped build close to 500 miles worth of fences for tobacco farmers to diversify and bring in animals," Branson said. And that's not all--the foundation gives scholarships for family members of tobacco farmers and helps create other businesses such as vineyards and horticulture programs on farms that once only sold tobacco. All of these programs rely on the tobacco settlement money. "If Farm Bureau is behind it, it will happen," said Branson. "Never underestimate the impact of the organization." Caption: OFBF Trustee Eric Wolfer (left) stands with SOACDF Executive Director Don Branson. Branson recently explained the progress made by the foundation at a Farm Bureau trustees meeting. | |





