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issue_20050101


Usda Annunces Nearly $1 Billion In Tobacco Transition Payments

Usda Annunces Nearly $1 Billion In Tobacco Transition Payments

The U.S. Department of Agriculture has announced that tobacco quota holders and producers have received more than $900 million under the Tobacco Transition
  • Written by American City & County Administrator
  • 25th November 2005

The U.S. Department of Agriculture has announced that tobacco quota holders and producers have received more than $900 million under the Tobacco Transition Payment Program (TTPP), concluding the first of ten annual payments.

“Since the sign-up period closed in mid-June, USDA has quickly and efficiently delivered close to $1 billion in payments to tobacco quota holders and producers,” said agriculture Secretary Mike Johanns. “These payments are important to helping quota holders and producers transition from the old marketing quota system to the free market.”

The Fair and Equitable Tobacco Reform Act of 2004 (P.L. 108-357), signed by President Bush on Oct. 22, 2004, ended the Depression-era tobacco quota program and established the TTPP, which provides annual transitional payments for 10 years to eligible tobacco quota holders and producers.

Payments occur annually from 2005 through 2014 and are funded through assessments of approximately $10 billion on tobacco product manufacturers and importers.

TTPP payments for 2005 have been completed and 2006 and subsequent year payments will be made every January 15th.

Quota holders and producers who wish to sell their remaining nine annual payments to a successor in return for a lump-sum payment must do so by Dec. 2, 2005.

Quota holders and producers who did not sign-up for the 2005 payment must enroll by Dec. 2, 2005 to receive future year payments.

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