This sums it up.
The federal government sued the tobacco industry in the fall of 1999, charging cigarette makers with deceiving the public regarding the safety of their product. The U.S. Department of Justice asked for reimbursement of the money it has spent treating smoking-related illnesses of Medicare patients, military personnel, and federal employees. The government's decision to sue companies like Philip Morris raised eyebrows, particularly in light of a 70-year-old federally funded tobacco subsidy program.
Since the Great Depression, the government has offered a price support program to tobacco, guaranteeing farmers crop prices if their harvest does not meet a set price at auction. Tobacco farmers also benefit from a $34 million crop-insurance program intended to protect growers from risks such as seasonal and cyclical price changes in the face of weather, production, and use variations.
On One Hand...
The federal government has a hypocritical stance on tobacco. Even since it passed a 1998 federal law forcing cigarette manufacturers to pay billions for treating tobacco-related illnesses, it continues to subsidize tobacco growers to produce the crop responsible for millions of deaths and billions of dollars worth of health problems. The government could better spend dollars intended to support tobacco growers by helping those farmers transition to growing other crops.
On the Other Hand...
Ending the program will not reduce the number of smokers or the number of smoking-related illnesses or deaths. Instead, it will be the nail in the coffin of the rural economy in many parts of the country. The tobacco program is a low-cost, efficient program that combines price supports with production control. Farmers are not directly subsidized, they are assured a fair market price by the government for their hard work.
John Rolfe began commercial cultivation of tobacco in Virginia as early as 1612.
1999's $8.7 billion emergency agriculture aid package included $328 million to compensate tobacco growers for declining cigarette sales.
In 1982, Congress mandated that the tobacco price support program operate at no net cost to taxpayers, other than for administrative expenses.
The U.S. produces over 1.4 billion pounds of toba