Tobacco is not subsidized in the same way as wheat or corn, where the government makes payments to farmers. Tobacco farmers and manufacturers pay into a fund that stabilizes tobacco prices. Each year the government sets production quotas tailored to demand. Altman said he could support the tobacco program even if this federal financing continues, while Ballin said any federal money definitely has to be eliminated. Both, however, say that it is a relatively small amount of money and that some in the farm community think it would not be difficult to find alternative ways of paying for it.
Tobacco farmers prefer the status quo.
But in a nod to political reality, burley co-op leaders recently started developing an alternative plan for keeping the production quotas without any government involvement or funding. None of the details of their discussions have been made public. Altman suggested that the tobacco manufacturers should pay for any additional cost. Ballin also said he'd work with farmers on another contentious issue, the Food and Drug Administration's regulation of cigarettes. Ballin said he would have no problem with prohibiting the FDA from banning smoking.