1、Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS Web98-133 ENRUpdated July 6, 1998Compensating Farmers for the TobaccoSettlementJasper WomachSpecialist in Agriculture PolicyEnvironment and Natural Resources Policy DivisionSummaryLegislative propos
2、als designed to reduce smoking, primarily by teenagers, are likelyto have negative economic consequences for tobacco growers and tobacco-dependentcommunities. This is because reduced cigarette consumption by Americans, particularlyyoung Americans, and thereby decrease domestic demand for U.S.-grown
3、leaf tobacco.This, in turn, likely will affect the value of tobacco marketing quotas held by farmers,and thereby the value of their land and holdings and their ability to obtain credit orcontribute to local economies. For these reasons, there appears to be growing supportfor some kind of compensatio
4、n to farmers as part of the settlement package legislation.On the other hand, a consistent downward trend in domestic cigarette consumption,which some contend is likely to continue even without the tobacco settlement, arguesagainst compensation.Compensation is not just an economic issue. Bill sponso
