Tobacco Buyout Program Signup in Progress

Source from:  BY JACK McDUFFIE Staff Writer 03/16/2005

The signup for the long-awaited tobacco buyout program began yesterday and will continue through June 17. The signup is being conducted through the local office of the Farm Service Agency on Smith Circle in Elizabethtown. The Fair and Equitable Tobacco Reform Act of 2004, most commonly referred to as the "Tobacco Buyout Program" ended the federal tobacco-marketing quota and price support loan programs with the 2004 marketing year. The buyout affects all tobacco quota owners and/or producers. According to Bladen County FSA Director Thomas "Chubby" Starling, all quota holders and/or producers will receive a letter providing more detailed information on the program. Starling said it is the responsibility of the quota holder or producer to ensure that the information regarding their assigned allotment and production figures is accurate. "If the information is inaccurate or incomplete, quota holders and/or producers are requested to provide verifiable information to the USDA Service Center (FSA) personnel when they sign up," Starling said. The provisions of the payout are as follows: The payment rate for quota holders is $7 per pound times the base quota level for quota held as of October 22, 2004. Producers receive $3 per pound times the base quota level based upon the producer's share of the risk incurred for crop years 2002, 2003 and/or 2004. Payments will be made in 10 annual installments but may be assigned or a successor-in-interest to the contract may be permitted. Starling asks that anyone who owned a farm in Bladen County with tobacco quota assigned as of October 22, 2004, or produced tobacco quota in 2002, 2003, and/or 2004 to visit the Bladen County FSA office between March 14 and June 17 to sign their contract to participate in the Tobacco Transition Payment Program. The first payment in the program will be issued prior to September 30. Enditem