06/12/2026
LEGISLATIVE UPDATE
Representative Mitch Whitaker
From cash crop to community investment
The legacy of to***co in Kentucky runs deep, leaving an indelible mark on our state's history, economy, and culture. For more than two centuries, to***co was a vital part of our agricultural landscape and shaped the lives and livelihoods of many Kentucky families.
Our fertile soil and favorable climate made this an ideal place to cultivate the crop. Burley to***co was abundant in the rolling fields of Central Kentucky, while the fertile farmland of the West produces dark-fired and dark air-cured to***co. The cash crop still plays a role in our agricultural economy today, as well as helping shape the future as we invest to***co settlement funds. The to***co settlement resolved lawsuits filed by states against to***co companies to recover the costs associated with treating smoking-related illnesses and to curb to***co use.
This November marks the 28th anniversary of the day that representatives of 46 states signed a comprehensive agreement with several of the nation’s biggest to***co companies. Even today the agreement is the largest civil settlement in American history, forcing a minimum payout of roughly $206 billion over 25 years. And, while the suit stipulates a 25-year minimum, payments will continue as long as ci******es are sold by the companies engaged in the settlement. States received their first payment in April of 2000, and Kentucky received the 2026 payment of $94.4 million earlier this year. Since 1998, the Commonwealth has received almost $3 billion.
The legislature determines how the money will be invested. Half of the total funds are allocated to grants for agriculture programs with an eye towards filling the gap left by a cash crop that once accounted for a major portion of agricultural receipts; 25% for early childhood development programs; and 25% for public health care initiatives, such as cancer screenings, and research revolved around smoking cessation and prevention.
In addition to allocating the funds, the legislature monitors spending and specifically reviews agricultural grant applications made through the Kentucky Office of Agricultural Policy. Our To***co Settlement Agreement Fund Oversight Committee met on June 11 to receive an update on how master settlement agreement (MSA) funds are being spent at the state and county level, and I thought I might use this week’s column to share a bit about the agricultural programs that help get settlement funds into communities to strengthen agriculture.
Most of Kentucky’s MSA agriculture programs are managed by the Kentucky Office of Agricultural Policy. There are currently five different county-level funding programs administered by the KOAP, they are:
County Agricultural Investment Programs (CAIPs): CAIP provides Kentucky agricultural producers with cost-share assistance that allows them to improve and diversify their current farm operation. It also covers a wide variety of agricultural enterprises in its 11 investment areas, including, but not limited to: bees and honey; equine; forage; beef and dairy cattle; goats and sheep; horticulture; poultry; swine; timber and technology; efficiency and production; farm infrastructure and water enhancement; marketing; and value added production.
Deceased Farm Animal Removal Programs (DARs): DARS serves as a means to facilitate the coordination of environmentally sound and cost effective disposal of deceased livestock for Kentucky farmers.
Next Generation Farmer Programs (NextGen): NextGen addresses the ever present need for specialized programming that benefits agrarian producers between the ages of 18 and 40 who have been engaged in an agricultural operation for at least three years.
Shared Use Equipment Program, which assists communities with the purchase of farm equipment. The equipment purchased by the authority in which the funds were issued, become available for use by producers in their respective counties. These programs are accessible through local government to assist farmers who may need an implement but do not have the need to purchase one. This is an incredibly popular and successful use of MSA funds and earlier this year the legislature voted to expand it to include heavy equipment.
Youth Agricultural Incentives Programs (YAIPs), which are in place to encourage youth to engage in agricultural activity and opportunity through different local facets such as FFA or co-ops with farms across the region.
As always, I can be reached anytime through the toll-free message line in Frankfort at 1-800-372-7181. You can also contact me via email at [email protected] and keep track through the Kentucky legislature’s website at legislature.ky.gov.