Saying that payments under the Tobacco Transition Payment Program (TTPP) should not be subject to sequestration cuts and that an Office of Management and Budget (OMB) plan to do so could erode confidence in government-backed financial programs, Georgia Farm Bureau President Zippy Duvall has written to government officials expressing opposition to the cuts.

The OMB included the TTPP among federal programs to be cut under sequestration rules, a move that has drawn recent protests from tobacco interests because the funds are collected from tobacco companies rather than coming from tax dollars.

Many Georgia tobacco growers took the TTPP buyout plans, under which the final payments are to be issued in 2014.


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The USDA's Farm Service Agency administers the program.

While some growers took annual payments, others opted for a lump-sum loan arrangement through their banks, and in those cases the federal government directed the payments to the banks.