USDA REMINDS TOBACCO QUOTA HOLDERS AND PRODUCERS OF SIGN-UP DEADLINE FOR 2006 PAYMENT

Source from:  WASHINGTON, Nov. 15, 2005 11/16/2005

Deadline Also Applies To Sales of Remaining Payments The U.S. Department of Agriculture today reminds tobacco quota holders and producers not currently enrolled in the Tobacco Transition Payment Program (TTPP) that they have until Dec. 2, 2005, to sign-up in order to receive a 2006 TTPP payment. The TTPP, also known as the "tobacco buy-out," provides approximately $10 billion in ten equal installments to eligible tobacco quota holders and producers from 2005 through 2014. Payments for 2006 through 2014 will be issued annually on January 15. Also, USDA reminds tobacco quota holders and producers that they have until Dec. 2, 2005, to sell their remaining nine 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. Producers who do not complete this process by Dec. 2, 2005, can arrange for the sale of their remaining eight payments beginning Jan. 17, 2006. The TTPP marks the end of Depression-era 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 importers and manufacturers. USDA sent more than $940 million in payments to over 400,000 tobacco quota holders and producers in 2005, the first year of the program. Enditem