National Black Farmers Association Condemn Proposal to Repeal Duty Drawback

"The Big, Beautiful Bill" Must Protect American Farmers, Protect Duty Drawback

WASHINGTON, June 3, 2025 /PRNewswire/ -- Representing 130,000 members, the National Black Farmers Association (NBFA) is calling on the U.S. Senate to protect all farmers, especially those who grow American tobacco, by removing the provision to repeal the duty drawback incentive for U.S. tobacco manufacturers from the budget reconciliation bill.

"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," said 4th-generation black farmer John Boyd, Jr., founder and president of the NBFA. "To some, the incentive may seem minor. However, to my members and growers across America, protecting the duty drawback is of great significance. On behalf of the National Black Farmers Association, I humbly plead that legislators do not jeopardize the current American agricultural economy nor the future generations of American farmers."

Without the support of duty drawback, the outlook for U.S. tobacco exports becomes increasingly grim. Additionally, domestic tobacco consumption has steadily declined over the past decade, adversely affecting American tobacco farmers. Kimberly Foley, Executive Director of Tobacco Associates, recently wrote to Members of Congress: "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."

Duty drawbacks are not loopholes—they are essential safeguards. Removing them would reverse over 200 years of trade policy designed to support American exports and bolster domestic manufacturing. Drawbacks stimulate domestic manufacturing in the states and ensure that U.S. leaf tobacco remains competitive in the international marketplace. If legislators remove the drawback incentive, this would lead to a decrease in US-grown tobacco crops.

"The announcement of this proposed repeal was yet another blow to our industry. American farmers are already in a state of emergency due to tariffs and cuts from USAID. Tobacco has historically been a vital "cash crop," providing the financial means for farmers to cultivate other crops, such as sweet potatoes and peanuts, and helping farm families sustain their livelihoods. Keeping the duty drawback incentive in place protects American tobacco growers and fulfills the Administration's promise to support, rather than punish, farmers," President Boyd emphasized. 

The current House version of the legislation removes the Duty Drawback provision specifically for tobacco companies while preserving it for all other industries. Eliminating this incentive for American tobacco manufacturers would severely impact the farming of American tobacco crops. 

About

The National Black Farmers Association (NBFA) is a nonprofit organization representing African American farmers and their families in the United States. As an association, it serves tens of thousands of members across the nation. The NBFA's education and advocacy efforts have been focused on civil rights, land retention, access to public and private loans, education, and agricultural training, as well as rural economic development for Black and other small farmers. For additional information, visit www.blackfarmers.org.

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SOURCE National Black Farmers Association