The U.S. Department of Agriculture is reminding tobacco quota holders and producers not currently enrolled in the Tobacco Transition Payment Program (TTPP) they have until Nov. 1, 2006, to sign-up in order to receive a 2007 TTPP payment.
The TTPP, also known as the "tobacco buy-out," provides approximately $10 billion in 10 annual installments to eligible tobacco quota holders and producers from 2005 through 2014. Payments for 2007 through 2014 will be issued annually in January.
Tobacco quota holders and producers are also reminded they have until Nov. 1, 2006, to sell their remaining eight annual payments to a successor in order to receive a lump-sum payment. Certain requirements must be met to qualify for lump-sum payments.
More information on lump-sum payments is available online at http://www.fsa.usda.gov/tobacco/Default.htm or by calling the National Tobacco Processing Center at 1-800-673-2331.
Contract holders who do not complete this process by Nov. 1, 2006, can arrange for the sale of their remaining seven payments beginning Jan. 16, 2007.
The TTPP marks the end of federal tobacco marketing quota and price support loan programs. This new program helps American tobacco quota holders and producers transition to the free market.
Payments are made from assessments on tobacco product importers and manufacturers.
For more information about the TTPP, visit the FSA Web site http://www.fsa.usda.gov/tobacco/Default.htm