Senate Urged to Protect American Tobacco Growers
Slice of Agriculture Team
06/09/2025
Key highlights
- NBFA warns Senate against removing duty drawback for U.S. tobacco.
- John Boyd, Jr.: Repeal would harm farmers in key agricultural states.
- Duty drawback is vital for keeping U.S. tobacco competitive globally.
Notable Quotes
“ What logic suggests that 'making America great again' is achieved on the backs of American farmers? Growers in North Carolina, Tennessee, South Carolina, and across our nation will be jeopardized if the duty drawback incentive does not remain in place. Keeping the duty drawback incentive in place protects American tobacco growers and fulfills the Administration's promise to support, rather than punish, farmers. ”
John Boyd, Jr., President at National Black Farmers Association
“ Export growth is not just our future, it's our present. Duty drawback plays a quiet but essential role in keeping U.S. leaf attractive on the international stage. ”
Kimberly Foley, Executive Director at Tobacco Associates
Why This Matters
The National Black Farmers Association (NBFA), representing 130,000 members, is calling on the U.S. Senate to preserve the duty drawback incentive for American tobacco manufacturers in the budget reconciliation bill. Without this safeguard, U.S. tobacco farmers—already facing declining domestic consumption and global competition—risk further financial harm.
Duty drawbacks are not tax loopholes but critical components of long-standing U.S. trade policy. They help ensure American-grown tobacco remains viable in international markets, thus sustaining farm incomes and supporting broader agricultural production. The House version of the bill selectively removes this incentive for tobacco while retaining it for other industries, which NBFA argues will unfairly jeopardize farmers' livelihoods. The Senate's upcoming decision will significantly impact the future of American tobacco farming and related rural economies.
