Governor Ernie Fletcher’s Communication Office
Governor Fletcher Announces Mailing Date for Phase II Tobacco Settlement Payments

Press Release Date:  Thursday, June 09, 2005  
Contact Information:  Carla Blanton
Michael Goins
Jodi Whitaker

Payments to nearly 164,000 tobacco growers and quota holders will be mailed

FRANKFORT, Ky. – Governor Ernie Fletcher announced this morning during his speech at the Kentucky FFA convention that the Kentucky 2004 Phase II Tobacco Settlement payments will be mailed the week of June 20. 

The Kentucky 2004 Phase II payment made by the state to nearly 164,000 tobacco growers and quota holders is in lieu of the payment they should have received from the tobacco companies in early January of this year.

“I am pleased that Kentucky’s leaders kept our promise to our producers,” Governor Fletcher said.

During the 2005 Session, Governor Fletcher and the General Assembly worked to provide $114 million to ensure Kentucky producers received a 2004 Phase II payment. In addition, the Burley Tobacco Growers Cooperative has provided $10 million to bring this total payment to Kentucky farmers to $124 million.

To date, no other state has stepped forward to provide their producers a 2004 Phase II payment.  Also, Governor Fletcher’s JOBS for Kentucky tax modernization plan ensures that the 2004 Phase II supplemental payment will be exempt from the state income tax, including the portion provided by the Burley Tobacco Growers Cooperative.

Payment rates for the Kentucky 2004 Phase II payment are as follows:

Crop Year 2003 quota holder     $0.229 / lb
Crop Year 1998 Growing Farm     $0.029 / lb
Crop Year 1999 Growing Farm     $0.035 / lb
Crop Year 2000 Growing Farm     $0.069 / lb
Crop Year 1998 Tenant     $0.029 / lb
Crop Year 1999 Tenant     $0.035 / lb
Crop Year 2000 Tenant     $0.069 / lb

If you have questions regarding a 2004 Phase II claim, please call the Phase II call center at 1-877-549-2537.