#United States #Washington DC #National Black Farmers Association #tobacco farmers #duty drawback

National Black Farmers Association Raises Alarm on Duty Drawback Repeal

The National Black Farmers Association (NBFA), which represents over 130,000 farmers, has voiced strong opposition against a proposal in the U.S. Senate aiming to repeal the duty drawback incentive for American tobacco manufacturers. This proposal comes at a critical moment when U.S. farmers are already facing various challenges affecting their livelihoods and profitability.

The Duty Drawback: An Essential Incentive

The duty drawback system is designed to incentivize domestic manufacturing by allowing companies to recover duties paid on imported goods that are later exported. For tobacco farmers, this incentive holds significant importance as it enhances the competitiveness of U.S.-grown tobacco in the global market. John Boyd, Jr., the founder and president of the NBFA, emphasizes that the repeal of this provision would not only harm tobacco farmers but also threaten the broader agricultural economy. "What logic suggests that 'making America great again' is achieved on the backs of American farmers?" Boyd questions, highlighting the disconnect between legislations and the realities faced by farmers.

Without duty drawbacks, U.S. tobacco exports are likely to decline, exacerbated by a steady decrease in domestic tobacco consumption over the past decade. This decline has put additional pressure on growers who rely heavily on tobacco for their income. Kimberly Foley, Executive Director of Tobacco Associates, has articulated the necessity for export growth, stating, "Duty drawback plays a quiet but essential role in keeping U.S. leaf attractive on the international stage."

Economic Consequences

The potential repeal of duty drawbacks presents a significant risk for tobacco farmers, already grappling with the ramifications of tariffs and cuts from the USAID. Tobacco historically stands as a vital cash crop for many farmers, facilitating the cultivation of other crops like sweet potatoes and peanuts. Boyd points out that this transitional crop often serves as a financial buffer, allowing farm families to sustain their livelihoods amid fluctuating market conditions.

As the current legislation seeks to target tobacco companies by removing the duty drawback, this exclusion creates an uneven playing field when compared to other industries still benefiting from this incentive. The farming community fears that such legislative action could lead to diminishing tobacco crops and a detrimental impact on those who directly depend on the crop for their survival.

A Call to Action

In light of these concerns, the NBFA urges legislators to reconsider the damaging proposal to repeal the duty drawback. President John Boyd Jr. advocates that preserving this incentive is crucial not only for tobacco farmers but for the integrity of the entire American agricultural economy. He implores that Congress does not jeopardize the current agricultural stability and the welfare of future generations of farmers.

The NBFA, as a nonprofit organization dedicated to representing African American farmers and their unique challenges, has been at the forefront of advocating for civil rights, land retention, and access to necessary resources for agricultural progress. As discussions around the budget reconciliation bill progress, it becomes increasingly vital for lawmakers to listen to the voices of farmers who understand the repercussions of their legislation.

For additional information about the National Black Farmers Association and their advocacy efforts, visit www.blackfarmers.org.