Tobacco Transition Payment Program

 

The Fair and Equitable Tobacco Reform Act of 2004 repeals the federal tobacco price support/production control program, provides compensation payments to tobacco quota owners for the elimination of their government-created asset (quota), and provides transition payments to active tobacco producers.

Deleted 04/02/2020 (Archived.) 10.085 Agency: Department of Agriculture
Office: Farm Service Agency DIRECT PAYMENTS WITH UNRESTRICTED USE Not Applicable. Executive Order Fair and Equitable Tobacco Refrom Act of 2004, Title VI, Section 601--643, Public Law 108-357, 118 Stat. 1521-1536, 7 U.S.C 518. Eligible quota holder means only a person who, as of October 22, 2004, has either a fee simple interest or life estate interest in the farm for which FSA established a farm basic marketing quota for the 2004 marketing year. The wetlands and highly erodible land provisions of part 12 of Title 7, the controlled substance provisions of part 718 of Title 7, and the payment limitation provisions of part 1400 of Title 7 shall not be applicable to payments made under 7 CFR Part 1463 to an eligible quota holder. Eligible tobacco producer means an owner, operator, landlord, tenant, or sharecropper who shared in the risk of producing tobacco on a farm where tobacco was produced, or considered planted, pursuant to a tobacco poundage quota or acreage allotment assigned to the farm for the 2002, 2003, or 2004 marketing years. The wetlands and highly erodible land provisions of part 12 of Title 7 and the controlled substance provisions of part 718 of Title 7 shall be applicable to payments made under 7 CFR Part 1463 to an eligible tobacco producer. However, the payment limitation provisions of part 1400 of Title 7 shall not be applicable to payments made under this part to an eligible tobacco producer. Tobacco quota holders, tobacco producers, and eligible assignees. Eligible quota holder means only a person who, as of October 22, 2004, has either a fee simple interest or life estate interest in the farm for which FSA established a farm basic marketing quota for the 2004 marketing year. To be eligible for TTPP, quota holders are the owners of a farm with an established 2004 basic marketing quota on their farm as of October 22, 2004, the date the President signed the bill that ends the quota system. Eligible tobacco producer means an owner, operator, landlord, tenant, or sharecropper who shared in the risk of producing tobacco on a farm where tobacco was produced, or considered planted, pursuant to a tobacco poundage quota or acreage allotment assigned to the farm for the 2002, 2003, or 2004 marketing years. For purposes of determining if an eligible tobacco producer has shared in the risk of producing a crop in the 2002, 2003, or 2004 crop years, CCC will consider evidence presented by a producer that includes, but is not limited to: written leases; contracts for the purchase of tobacco; crop insurance documents; or receipts for the purchase of items used in the production of tobacco. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles. Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372. This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Applicants contact their local county Farm Service Agency Office or U.S. Department of Agriculture Service Center for sign-up information. CCC will make a payment to each eligible producer in an amount equal to 10 percent of the total amount due under a contract entered into except that in the case an application was filed after June 17, 2005, the applicant will receive only the TTPP payments that have not been made as of the date the contract is approved. All claims for payments on existing contracts must be received in an FSA county office by July 1, 2015 (80 FR 24230, Doc. No. 2015-10056). Contact the headquarters or regional office, as appropriate, for application deadlines. 1 to 60 days. A person may obtain reconsideration and review of any adverse determinations in accordance with the appeal regulations found at parts 11 and 780 of Title 7. Not Applicable. Not Applicable. None. No reports are required. No audits are required for this program. Tobacco quota holders or any other individual or entity receiving payment for TTPP shall maintain and retain financial books and records which will permit verification of all transactions for at least 3 years, following the end of the calendar year in which payment was received. This program has no statutory formula.
This program has no matching requirements.
This program does not have MOE requirements. The Tobacco Transition Payment Program (TTPP) provides payments to tobacco quota holders and tobacco producers beginning in 2005 and ending in 2014. Method of awarding/releasing assistance: lump sum. See Regional Agency Offices. Farm Service Agency state offices can inform applicants of county office locations where applicants may sign up. Kelly Hereth 1400 Independence Avenue, SW, Stop 0512, Washington, District of Columbia 20250-0512 Email: kelly.hereth@wdc.usda.gov Phone: 202-720-0448 Fax: 202-690-3307 http://www.fsa.usda.gov 12-4336-0-3-999. (Direct Payments with Unrestricted Use) FY 14 $924,597,511; FY 15 est $0; and FY 16 est $0 - Program ended in FY 2014. No Data Available. Program is announced through news media and in letters to agricultural producers in the county. Regulations published in 7 CFR Part 1463, 2005, 2014 Tobacco Transition Program. Not Applicable.