Tobacco Transition Payment Program

TTPP
Number: 10.085
Agency: Department of Agriculture
Office: Farm Service Agency

Program Information 

Program Number/Title (010):
10.085 Tobacco Transition Payment Program
Popular Name (020):
(TTPP)
Federal Agency (030):
Farm Service Agency, Department of Agriculture
Authorization (040):
Pl 108-357, Executive Order Fair and Eqitable Tobacco Refrom Act of 2004, Title VI, Section 601--643, Public Law 108-357, 118 Stat. 1521-1536, 7 U.S.C 518.
Objectives (050):
The Fair and Equitable Tobacco Reform Act of 2004 repeals the federal tobacco price support/production control program, provides compensation payments to tobacco quota owners for the elimination of their government-created asset (quota), and provides transition payments to active tobacco producers.
Types of Assistance (060):
DIRECT PAYMENTS WITH UNRESTRICTED USE
Uses and Use Restrictions (070):
None.
Eligibility Requirements (080)
Applicant Eligibility (081):
Eligible quota holder means only a person who, as of October 22, 2004, has either a fee simple interest or life estate interest in the farm for which FSA established a farm basic marketing quota for the 2004 marketing year. The wetlands and highly erodible land provisions of part 12 of Title 7, the controlled substance provisions of part 718 of Title 7, and the payment limitation provisions of part 1400 of Title 7 shall not be applicable to payments made under 7 CFR Part 1463 to an eligible quota holder. Eligible tobacco producer means an owner, operator, landlord, tenant, or sharecropper who shared in the risk of producing tobacco on a farm where tobacco was produced, or considered planted, pursuant to a tobacco poundage quota or acreage allotment assigned to the farm for the 2002, 2003, or 2004 marketing years. The wetlands and highly erodible land provisions of part 12 of Title 7 and the controlled substance provisions of part 718 of Title 7 shall be applicable to payments made under 7 CFR Part 1463 to an eligible tobacco producer. However, the payment limitation provisions of part 1400 of Title 7 shall not be applicable to payments made under this part to an eligible tobacco producer.
Beneficiary Eligibility (082):
Tobacco quota holders, tobacco producers, and eligible assignees.
Credentials/Documentation (083):
Eligible quota holder means only a person who, as of October 22, 2004, has either a fee simple interest or life estate interest in the farm for which FSA established a farm basic marketing quota for the 2004 marketing year. To be eligible for TTPP, quota holders are the owners of a farm with an established 2004 basic marketing quota on their farm as of October 22, 2004, the date the President signed the bill that ends the quota system. Eligible tobacco producer means an owner, operator, landlord, tenant, or sharecropper who shared in the risk of producing tobacco on a farm where tobacco was produced, or considered planted, pursuant to a tobacco poundage quota or acreage allotment assigned to the farm for the 2002, 2003, or 2004 marketing years. For purposes of determining if an eligible tobacco producer has shared in the risk of producing a crop in the 2002, 2003, or 2004 crop years, CCC will consider evidence presented by a producer that includes, but is not limited to: written leases; contracts for the purchase of tobacco; crop insurance documents; or receipts for the purchase of items used in the production of tobacco. This program is excluded from coverage under OMB Circular No. A-87.
Application and Award Process (090)
Preapplication Coordination (091):
Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedures (092):
This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Applicants contact their local county Farm Service Agency Office or U.S. Department of Agriculture Service Center for sign-up information.
Award Procedure (093):
CCC will make a payment to each eligible producer in an amount equal to 10 percent of the total amount due under a contract entered into except that in the case an application was filed after June 17, 2005, the applicant will receive only the TTPP payments that have not been made as of the date the contract is approved.
Deadlines (094):
Contact the headquarters or regional office, as appropriate, for application deadlines.
Range of Approval/Disapproval Time (095):
1 to 60 days.
Appeals (096):
A person may obtain reconsideration and review of any adverse determinations in accordance with the appeal regulations found at parts 11 and 780 of Title 7.
Renewals (097):
Not Applicable.
Assistance Consideration (100)
Formula and Matching Requirements (101):
This program has no statutory formula.
This program has no matching requirements.
This program does not have MOE requirements.
Length and Time Phasing of Assistance (102):
The Tobacco Transition Payment Program (TTPP) provides payments to tobacco quota holders and tobacco producers beginning in 2005 and ending in 2014. Method of awarding/releasing assistance: lump sum.
Post Assistance Requirements (110)
Reports (111):
No reports are required.
Audits (112):
No audits are required for this program.
Records (113):
Tobacco quota holders or any other individual or entity receiving payment for TTPP shall maintain and retain financial books and records which will permit verification of all transactions for at least 3 years, following the end of the calendar year in which payment was received.
Financial Information (120)
Obligations (122):
(Direct Payments with Unrestricted Use) FY 11 $953,253,000; FY 12 est $960,000,000; and FY 13 est $960,000,000
Range and Average of Financial Assistance (123):
No Data Available.
Program Accomplishments (130):
Not Applicable.
Regulations, Guidelines, and Literature (140):
Program is announced through news media and in letters to agricultural producers in the county. Regulations published in 7 CFR Part 1463, 2005, 2014 Tobacco Transition Program.
Information Contacts (150)
Regional or Local Office (151) :
See Regional Agency Offices. Farm Service Agency state offices can inform applicants of county office locations where applicants may sign up.
Headquarters Office (152):
Kelly Hereth 1400 Independence Avenue, SW, Stop 0512, Washington, District of Columbia 20250-0512 Email: kelly.hereth@wdc.usda.gov Phone: 2027200448 Fax: 2026903307
Website Address (153):
www.fsa.usda.gov/tobacco and http://www.fsa.usda.gov/pas/publications/facts/html/ttpp05.htm .
Related Programs (160):
Not Applicable.
Examples of Funded Projects (170):
Not Applicable.
Criteria for Selecting Proposals (180):
Not Applicable.