The settlement was given preliminary court approval on Friday.

Growers had taken out a lawsuit against the big tobacco companies alleging that they had rigged prices at tobacco auctions and undermined a tobacco quota and price support system.

RJ Reynolds, whose brands include Camel cigarettes, was the only defendant that did not join the settlement.

The settlement agreement expressly provides for no admission of wrongdoing Philip Morris

The other companies agreed to buy at least 405 million pounds in weight of US tobacco, subject to certain adjustments, for at least the next 10 years, said legal firm Howrey Simon Arnold & White, representing the growers.

That commitment should boost revenues for growers and quota holders by more than $7bn, increasing profits by $1bn, the lawyers said.

The tobacco companies also agreed to pay $200m in cash to the growers taking the action.

Going to trial

Philip Morris was one of the firms that agreed to the settlement.

It said that while it "vigorously denies the allegations in this lawsuit," it entered into the settlement to avoid litigation with the growers.

"The settlement agreement expressly provides for no admission of wrongdoing," Philip Morris said.

The other companies that agreed to the settlement are Lorillard Tobacco, a unit of Loews Corp; Brown & Williamson Tobacco, a unit of BAT; Standard Commercial, Dimon, Universal Leaf Tobacco and two of its subsidiaries.