Edward Jones Agrees to Help Tobacco Farmers

Source from:  stlouis.bizjournals.com 10/14/2005

Edward Jones and Chase agreed to help tobacco farmers manage payments they get from a new federal program that ends quotas and price supports. Under the Tobacco Transition Payment Program, more than 600,000 farmers in about 12 states, including Missouri, are expected to receive more than $9 billion over the next 10 years starting this year. The tobacco farmers can opt to sell their rights to the payments to a financial institution in exchange for a lump-sum payment. St. Louis-based Edward Jones said it has investment representatives in many of the tobacco-farming communities. Chase offers QuotaCash, which will provide the lump-sum payments to farmers who don't want to wait 10 years for the payout. The Fair and Equitable Tobacco Reform Act of 2004 signed by President Bush last year ended the Depression-era tobacco quota program and established the TTPP, which provides annual transitional payments for 10 years to eligible tobacco quota holders and producers. The first payout was delivered earlier this month, when tobacco quota holders and producers received more than $900 million, the first of 10 payments. Enditem