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(January 17, 2006) Johanns Announces $950 Million in Tobacco Transition Program Payments

Agriculture Secretary Mike Johanns announced today that USDA will begin issuing more than $950 million in Tobacco Transition Payment Program (TTPP) payments to quota holders and producers. Also, quota holders and producers can enter into successor-in-interest contracts beginning Jan. 23, 2006 for subsequent payments which would enable them to receive lump-sum payments from private entities by selling the remaining eight TTPP payments.

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Program Information


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Reporting Contract Payments to IRS on Form 1099


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Tobacco Transition Payment Program

The Tobacco Transition Payment Program (TTPP), also called the "tobacco buy-out," helps tobacco quota holders and producers transition to the free market.

The Fair and Equitable Tobacco Reform Act of 2004 (P.L. 108-357), signed by President Bush on Oct. 22, 2004, ended the Depression-era tobacco quota program and established the TTPP. The program provides annual transitional payments for 10 years to eligible tobacco quota holders and producers. Payments began in 2005 and continue through 2014. Payments are funded through assessments of approximately $10 billion on tobacco product manufacturers and importers.

Download TTPP Contracts Listing (TXT) 25MB 2/6/2006

Note: An updated version of this file will be available here every Monday. Please look for the date of the file to ensure you are getting the newest available.

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Registered Lump Sum Provider Listing as of 2/10/2006


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