[Congressional Record Volume 144, Number 103 (Tuesday, July 28, 1998)]
[Senate]
[Page S9149]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            OPENING OF THE TOBACCO MARKETS IN SOUTH CAROLINA

 Mr. HOLLINGS. Mr. President, I rise today to discuss the 
opening of the 1998 tobacco marketing season in my home state of South 
Carolina.
  According to the U.S. Department of Agriculture, the United States is 
one of the world's leading producers of tobacco. It is second only to 
China in total tobacco production. Tobacco is the seventh largest U.S. 
crop, with over 130,000 tobacco farms in the United States.
  In South Carolina, tobacco is the top cash crop, worth about $200 
million annually. It also generates over $1 billion in economic 
activity for my state. Tobacco production is responsible for more than 
40,000 jobs on over 2,000 farms and continues to account for about one-
fourth of all crops and around 13 percent of total crop and livestock 
agriculture in South Carolina.
  It has been a hard year for tobacco farmers in my state. In June 
1997, farmers found out about a settlement between the State Attorneys 
General and five tobacco companies. This settlement created insecurity 
in these farmers' lives, as well as in their communities, as they tried 
to prepare for the upcoming tobacco season. After learning of their 
exclusion from any type of compensation in this settlement, their 
quotas were cut by 16 percent from the previous year. This means the 
farmers' income will decrease by 16 percent in the next marketing year.
  While the Senate debated comprehensive tobacco legislation, the 
tobacco companies acknowledged to tobacco farmers that they had made a 
mistake in not including them in their original settlement 
negotiations. These companies promised farmers they would be included 
in any future negotiations. Now we hear the State Attorneys General and 
the companies are again negotiating a settlement, and once again the 
farmers have been excluded.
  In recent years, we have seen a rise in tobacco imports, as domestic 
purchases by companies have declined. This has had a direct effect on 
the economy of my state. Many of the rural towns in South Carolina have 
grown up around producing tobacco, and decreased demand for domestic 
tobacco has affected them greatly. I hope these companies see the need 
to purchase more domestic tobacco and decrease the amount of tobacco 
they import. It is imperative for these rural communities' economic 
stability that domestic tobacco purchases rise.
  I also want to take this time to recognize a man who will begin his 
50th season of auctioning tobacco. Kelly Ritter started auctioning 
tobacco in 1948, when times were a lot different. Back then tobacco was 
not seen as it is now, but rather as a way of life in the developing 
communities of South Carolina. Technology may have advanced in tobacco 
production over the last fifty years, and markets may have gone up and 
down, but it is a relief that there is still a constant in the 
production of tobacco--Kelly Ritter.
  Mr. President, in conclusion I want to wish the tobacco farmers and 
warehousemen in South Carolina the best of luck this year. I wish that 
I could be down in South Carolina for this festive occasion of opening 
day, but duty calls. Although I can't be there physically, they all 
know that I'm there in spirit. And as hard as I have worked in the past 
for them, they can expect me to work even harder to ensure farmers and 
their communities remain economically sound.

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