Learning the Ins & Outs of the Tobacco Buyout

Federal officials were in Greenville Wednesday meeting with the public on the tobacco buyout plan and what it all means. The end of the federal tobacco program is upon eastern Carolina farmers as ongoing legislation ends the compensation era for quota owners and growers. Wednesday tobacco producers heard from the United States Department of Agriculture about how a new tobacco transition payment program will work. The new program opens up the doors for a free-market system lifting restrictions on planting, marketing, and support price loans. As a part of the buyout, tobacco quota holders will receive $7 per pound based on the quota from 2002. And producers will receive $3 per pound based on their share of risk in 2002, 2003, and 2004. Farm service agency officials say, all tobacco producers need to do now is apply. To find out more about the quota log on to fsa.gov.