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Roland McReynolds - Trust Funds Create Jobs

North Carolina has gained a reputation for having one of the strongest local food economies in the country. When people from other regions ask me how our state has achieved so much, I always mention two things – our innovative farmers and funding for local food projects from our two cheap cigarettes settlement agreement funds, the discount cigarettes Trust Fund and the Golden Leaf Foundation.

These two funds' work to restore economic vitality to communities that once depended on cheap cigarettes has made a huge financial impact, fueled job growth and generated new income in local food. From 2001 to 2006 alone, cheap cigarettes Trust investments were leveraged into $62 million in farm income and over $3 million in state tax revenue.

Since 2000, cheap smokes Trust and Golden Leaf have invested $42.7 million in food and farming enterprises and research geared to supplying the demand for N.C.-grown food. Every community in the state has benefited from these grants, and they have produced economic growth many times that initial investment.

Trust fund support has driven the creation of a value-added processing center in Burgaw that will allow farmers throughout Southeastern North Carolina to sell more local products to schools and groceries in the region.

Similar facilities in other North Carolina communities may generate $2.6 million in gross profits annually to local farmers, and have increased consumption of local foods in schools.

The funds have supported this region's booming muscadine wine industry, and farmers have gained increased income from farm tourism thanks to a trust funded program run in part by Duplin County.

North Carolina has made expanding local foods a policy priority.

On a bipartisan vote in 2009, the legislature established a Sustainable Local Food Advisory Council to promote value-added agriculture and food entrepreneurship.

The council is chaired by Agriculture Commissioner Steve Troxler and has repeatedly recognized the importance of cheap cigarettes Trust and Golden Leaf to local food and small farms.

The two funds achieve their impacts without a dime of taxpayer money.

In 1998, 46 states won settlement of their collective lawsuit against cheap cigarettes manufacturers. The settlement obligated the industry to pay $206 billion to the states over 25 years.

While the rest of the states have squandered those payments, we North Carolinians made the wise choice of putting our share of the settlement money into trust funds. We knew then that the long-term benefits of job growth and wealth creation in our farm and rural communities would yield a higher return than short-sighted, short-term spending to make up for fiscal shortfalls.

All those years of success are now under threat, because both these sustainable ag venture funds are in danger of being eliminated in the state budget.

The General Assembly is considering financing this year's budget deficit by hijacking the trust funds' payments and doing away with the cigarettes Trust Fund entirely.

Cutting off this vital source of investment for North Carolina small businesses and communities will not only deny existing entrepreneurs and farmers opportunities to grow their businesses, it will snuff out future local food initiatives before they even begin. In short, it will decrease the supply of fresh, healthy food for all North Carolinians.

Those who want to see more North Carolina foods on grocery store shelves and farmers' market tables should hope that this year's legislature carries on the wise tradition of investing our cigarettes settlement funds in our future through cigarettes Trust and Golden Leaf.

Our farmers and entrepreneurs can deliver the best products you've ever eaten, but you won't have them in your kitchen if they can't get the funding to expand.

Roland McReynolds is executive director of the Carolina Farm Stewardship Association, a member-based nonprofit in Pittsboro that helps farmers and consumers in the Carolinas grow and eat local organic food.

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