<b>By TIM THORNBERRY<br> Kentucky Correspondent</b> </p><p> LEXINGTON, Ky. — The long-awaited settlement between the Burley Tobacco Growers Cooperative Assoc., Inc. and a group of producers has ended with more than 198,000 past and present burley tobacco growers in four states and their attorneys sharing an estimated $100 million under a final judgment, entered the week before Christmas.</p><p> The four-year-old lawsuit against the co-op was started initially by eight growers in 2003 to recoup money from the sale of 1982 pool tobacco by the association for approximately $25 million. After Congress passed quota buyout legislation, an amendment was added to the suit claiming that approximately 66 million pounds of tobacco given to the co-op by Congress via the buyout belonged to producers.</p><p> The original suit also called for the dissolution of the association. Earlier this year, Judge Pamela R. Goodwine, while dismissing the original claim, ordered the co-op to pay farmers proceeds from the sale of the “buyout tobacco.”</p><p> In a press release from the co-op, the group said an initial net distribution of approximately $50 million dollars is expected to be mailed in early January, with one or two additional distributions of smaller amounts to be made later. According to the agreement, the eight original plaintiffs will receive $10,000 each, while $9.5 million will go for attorneys’ fees.</p><p> All told, the remaining money will amount to just over $400 for each grower.</p><p> Brian Furnish, general manager of the co-op, said now is a time for the association to move forward.</p><p> “Hopefully, it’s a new day for the co-op, and it’s time to move on,” he said.</p><p> “One thing that should be noted is the co-op board voted in 2005 to distribute these funds to the growers. The thing now is, approximately 15 percent will go to the attorneys. We’re not happy about that or the $10,000 going to the original plaintiffs.”</p><p> Furnish also said the group is trying new things and focusing on exports, especially to China.</p><p> “This year is the first time ever we have bought tobacco straight from the producers. Right now, we’re looking only to buy enough tobacco to sell to China, which is our biggest customer; they’re everybody’s biggest customer. There are more smokers in China than the entire population of the United States,” said Furnish. “We hope to grow and continue working with our true members, the people actually growing tobacco. I have a stack of numbers to call, from farmers who want to deal with us.”</p><p> In the co-op’s statement, Burley Assoc. President Roger Quarles said its board of directors is committed to return to its original marketing cooperative function now that the federal quota and price support system is gone. Hereafter, only active tobacco producers will be eligible to be voting members of the association. “The association has been out buying tobacco from members and over time, we intend to help producers see more stable prices,” said Quarles. “We have been working hard to attract foreign buyers for burley tobacco, and we are in the process of concluding our current sale of co-op burley to China, and are cultivating relationships in Thailand and Indonesia, among other places.”</p><p> The statement also noted “Quarles was optimistic that the end of the lawsuit should restore tobacco producers’ confidence in the future of the association, and will enable its directors to focus on ways to serve tobacco growers who need help with crop insurance, legal immigrant farm workers, tobacco research and other matters.”</p><p> The co-op got its start in 1922 as an agricultural marketing cooperative providing a voice for small farmers. With the inception of the federal price support system in 1940, the association’s role became one of administrator of the program for its members. |