HTML _ 97-417 - Tobacco-Related Programs and Activities of the U.S. Department of Agriculture: Operation and Cost
6-Jul-1998; Jasper Womach; 6 p.

Abstract: The U.S. Department of Agriculture (USDA) has long operated programs that directly assist farmers and others with the production and marketing of numerous crops, including tobacco. In most cases, the programs themselves are not controversial. Increasingly, however, where tobacco is involved, the use of federal funds is being called into question. Since 1982, the tobacco price support program has been under a statutory mandate to operate at no net cost to the federal government. More recently, Congress has prohibited the USDA from spending funds to help promote tobacco exports and to conduct research relating to production, processing, or marketing of tobacco and tobacco products. Subsequent appropriations laws have sustained these prohibitions. Other tobacco-related activities have been subjected to congressional scrutiny. Taken together, all of the directly tobacco-related activities of the USDA generated net expenditures of an estimated $343 million in FY1998, and are budgeted at $8 million in FY1999. The net expenditures result from price support loan outlays exceeding repayments and deficit reduction assessments. The USDA does operate other programs that are not tobacco-specific, but are available to farmers that produce tobacco and other crops. These are not examined in this report. [read report]

Topics: Agriculture

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