Tobacco Farmers v United States of America, Secretary of Agriculture
Two Tobacco Farmers Sue Government for Tobacco Buyout
Two Virginia farmers who claim they are owed money from the federal government's $10 billion tobacco buyout are seeking to have their lawsuit against the USDA certified as a class action.
The lawsuit, filed last year in federal court in Abingdon on behalf of two Southwest Virginia burley tobacco farmers, claims that U.S. Secretary of Agriculture Mike Johanns overstepped his authority by changing the formula to calculate buyout payments.
The changes will result in smaller payments to the two growers than they would receive under a formula approved by Congress, the lawsuit contends.
If the court approves the request for class-action status, the lawsuit could involve thousands of farmers.
Some of the farmers are from Virginia, wihile others are from other states. Some North Carolina tobacco farmers also claim they have been cheated out of thousands of dollars from the tobacco buyout.
About 380,000 quota holders and 181,000 producers participated in the buyout, which will pay out $951 million a year for 10 years. Tobacco companies and importers are footing the bill for the buyout, which eliminates price supports in place since the 1930s and allows companies to buy tobacco at a cheaper price.
