Don’t pull the plug!

The N.C. House’s version of the state budget proposes to permanently eliminate the Tobacco Trust Fund Commission, putting that money into the General Fund to help cover the budget shortfall. Since 2001, the Tobacco Trust Fund has received an annual appropriation of several million dollars from the General Assembly. These funds were awarded to the state under the 1998 Tobacco Master Settlement Agreement (in the current version of the House budget, these moneys are called Tobacco Master Settlement Agreement Funds). Now that this has become a hot topic in the budget debate, some have been wondering what the Tobacco Trust Fund actually does for small farmers and local, healthy food. The name of the fund doesn't describe the breadth of work it supports.

The independent Tobacco Trust Fund Commission, comprising 18 appointed members, makes grants to farmers and nonprofit organizations to develop new agricultural products, study new opportunities for growth, and create innovative operational methods on farms. The Tobacco Trust Fund doesn’t operate as a subsidy to former tobacco farmers: It makes grants, not direct payments. Those grants enable farmers to risk investing in new, unproven technologies. The lessons learned from the grants are then shared with the rest of the state’s farming community, allowing North Carolina's agriculture industry to grow and adapt faster than it otherwise would.

Western N.C. has seen particularly significant local-food growth thanks to the Tobacco Trust Fund. Farmers and food entrepreneurs using Blue Ridge Food Ventures, a shared-use food-processing facility in Candler launched with funding from both the trust fund and the Golden LEAF Foundation, have increased their sales by close to $4 million since 2005. Carolina Ground, a small-scale, cooperatively run flour mill in Sylva that buys organic wheat from North Carolina farmers, was started with Tobacco Trust Fund money. The new WNC Regional Livestock Center (which is increasing marketing opportunities for small cattle farms), New River Organic Growers in Boone (a vegetable-marketing cooperative) and the successful local-food campaigns of the Appalachian Sustainable Agriculture Project, Buy Haywood and RAFI-USA's WNC AgOptions program have all received significant trust fund investments.

Over the past nine years, the Tobacco Trust Fund has invested more than $45 million in grants to increase the diversity and resilience of the state’s farm economy. From 2001 to 2006 alone, Tobacco Trust investments were leveraged into $62 million in farm income and more than $3 million in state tax revenue — all without a dime of taxpayer money. Moving N.C.'s agricultural economy away from a lucrative cash crop like tobacco toward new high-value crops and markets is a challenge that the state’s farmers have met with determination, creativity — and the help of the Tobacco Trust Fund. As a result, N.C. is recognized as a national leader in both local-food markets and diversified, small-scale agriculture. If we lose the Tobacco Trust Fund, we will lose opportunities to continue to innovate and lead the nation.

Those who want to see more North Carolina foods on grocery-store shelves and farmers' market tables should urge our state representatives and senators to carry on the wise tradition of investing our tobacco-settlement funds in our agricultural future through the Tobacco Trust Fund.

— Roland McReynolds is executive director of the Carolina Farm Stewardship Association.

SHARE

Thanks for reading through to the end…

We share your inclination to get the whole story. For the past 25 years, Xpress has been committed to in-depth, balanced reporting about the greater Asheville area. We want everyone to have access to our stories. That’s a big part of why we've never charged for the paper or put up a paywall.

We’re pretty sure that you know journalism faces big challenges these days. Advertising no longer pays the whole cost. Media outlets around the country are asking their readers to chip in. Xpress needs help, too. We hope you’ll consider signing up to be a member of Xpress. For as little as $5 a month — the cost of a craft beer or kombucha — you can help keep local journalism strong. It only takes a moment.

About Webmaster
Mountain Xpress Webmaster Follow me @MXWebTeam

Before you comment

The comments section is here to provide a platform for civil dialogue on the issues we face together as a local community. Xpress is committed to offering this platform for all voices, but when the tone of the discussion gets nasty or strays off topic, we believe many people choose not to participate. Xpress editors are determined to moderate comments to ensure a constructive interchange is maintained. All comments judged not to be in keeping with the spirit of civil discourse will be removed and repeat violators will be banned. See here for our terms of service. Thank you for being part of this effort to promote respectful discussion.

Leave a Reply

To leave a reply you may Login with your Mountain Xpress account, connect socially or enter your name and e-mail. Your e-mail address will not be published. All fields are required.