Etheridge Announces Sign Up for Tobacco Buyout Payments

USDA Regulations Clarify Timing of Assessments, Supports Completion of 2004 Phase II Payments

WASHINGTON - Yesterday the U.S. Department of Agriculture (USDA) announced the sign-up for tobacco buyout payments and released details on the assessments to be levied against tobacco companies to fund the buyout. U.S. Rep. Bob Etheridge (D-Lillington) urged farmers to prepare for the sign-up period, which will run from March 14th through June 17th. Etheridge also said the USDA's assessment regulation supports farmers' and quota holders' case to secure the $424 million in Phase II payments disputed by the tobacco companies.

"I am pleased that the Department is moving forward to get tobacco buyout dollars flowing to North Carolina," Etheridge said. "I look forward to learning additional details on the process, and I will keep farmers informed so that they can make the best decisions for their families. I am also pleased that the USDA's regulations state clearly that the assessments on tobacco companies are not to begin until 2005. That clarification should help North Carolina's farm families in their fight for their Phase II money."

Prior to sign-up, all quota holders and farmers will receive a letter providing more detailed information on the buyout process. The letter will also include Farm Service Agency (FSA) records of poundage of base quota level for each individual. If the information is inaccurate or incomplete, quota holders and farmers should provide verifiable information to their USDA Service Center at sign-up. The regulations concerning payments to quota holders and producers will be available in March.

USDA has contracted with Wachovia to help conduct an information campaign to ensure that all farmers and quota holders get the information they need. The campaign will include letters; newspaper, magazine, radio and television advertising; and informational brochures. Town hall meetings will be hosted in key tobacco-growing states, and a toll free call center - 1-866-887-0140 - will go into service March 1st.

For more information on the USDA's latest announcements and to follow the status of the buyout, please visit www.fsa.usda.gov/tobacco.