FOR IMMEDIATE RELEASE
July 31, 2000
USDA to Assist Tobacco Growers/Allotment Holders
(WASHINGTON)---As directed by Congress, the USDA-Farm Service Agency will distribute $340 milion to tobacco growers and allotment holders who suffered a reduction of tobacco quota or acreage for the 1999-2000 crop years. Eligible kinds of tobacco include: flue-cured types 11-14, burley type 31, fire-cured type 21, and cigar filler/binder types 54-55.
While the USDA does not pay direct subsidies to tobacco farmers, the amount of U.S. tobacco produced is regulated to match supply and demand with a guaranteed minimum price for producers. In recent years, allotments and quotas for some kinds of tobacco have been significantly reduced.
Sign-up at local USDA Farm Service Agency offices began July 31, 2000, and will end on September 1, 2000. Payments will reach farmers between October 1-20, 2000. Individual farm payments will be allocated evenly between farmers and quota owners for flue-cured and cigar/binder tobaccos. For burley and fire-cured tobaccos, the payments will be split three ways between farmers, quota owners, and those in control of the quotas. FSA will publish program rules in the Federal Register before issuing the payments.
For more information, call the local USDA-Farm Service Agency.
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