The U.S. Department of Agriculture reminds tobacco quota holders and producers not currently enrolled in the Tobacco Transition Payment Program (TTPP) that they have until close of business on Nov. 1, 2010, to sign up in order to receive a 2011 TTPP payment.
The TTPP, also known as the “tobacco buy-out,” provides approximately $10 billion in 10 annual payments to eligible tobacco quota holders and producers from 2005-2014. Enrollment for TTPP must be completed at the Farm Service Agency (FSA) county office where the contract holder’s or producer’s farm records are maintained.
TTPP contract holders also are reminded they have until Nov. 1, 2010, to sell their remaining four 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 or by calling the national FSA office at 202-720-7901. Contract holders that do not complete this process by Nov. 1, 2010, can arrange for the sale of their remaining three payments beginning Jan. 18, 2011.
Tobacco quota holders and producers already enrolled in TTPP do not have to do anything else to receive the 2011 payment; however, tobacco quota holders and producers are reminded to contact the FSA county office where their farm records are maintained to report any updates related to their mailing address or the banking information on file. Failure to do so will result in non-payment of the 2011 TTPP payment.
The TTPP marks the end of federal tobacco marketing quota and price support loan programs. TTPP 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 at http://www.fsa.usda.gov/tobacco.