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Tobacco buyout isn’t what farmers expected 

Jump to full article: AP, 2005-10-06
Author: Stephanie Stoughton Associated Press

Intro:

But in March, the 52-year-old farmer from Abingdon was stunned to learn that he would receive only a third of what he had expected from the $10.1 billion buyout.

Other longtime growers were getting similar unwelcome surprises.

Now Mr. Neese and another Virginia farmer have sued the U.S. Department of Agriculture, accusing it of steering away from Congress’ directives and effectively slashing their payments.

For Mr. Neese, that means he would receive about $190,000 rather than the $563,000 he expected.

The other burley farmer, Daniel Johnson of Meadowview, would get $217,000 versus $503,000.

The farmers say the agency replaced a simple calculation approved by Congress with a complex formula that cuts payments to many farmers.

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