11/11/05 — Tobacco payment questions addressed

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Tobacco payment questions addressed

By Turner Walston
Published in News on November 11, 2005 1:45 PM

As the first tobacco buyout payments roll out, Farm Service Agency officials are working to clear up some issues that have confused some owners and quota holders, especially those involved with estates.

"The biggest part I see right now is producer death, landowner death, and trying to get those situations where it's paid to the right people," said Rick Tharrington, Wayne County executive director of the Farm Service Agency.

"In some cases, we pay the estates because the estate hadn't been settled, and in some cases, the people that died hadn't even had the chance to establish estates," Tharrington said.

The National Tobacco Processing Center will handle all Successor-In-Interest contract issues relating to buyout payments. Local Farm Service Agency offices will handle transfers of existing contracts under limited conditions.

Those conditions are: transfer to a family member, or due to death of a contract holder. In some cases, owners bought tobacco quotas that were assigned to another person's land. Tharrington said that situation would be handled with by splitting the contract.

He said it is important to note that the conditions applied to transfers, not lump sum payments, which are handled by third parties. Information and forms relating to lump sum payments are available at http://www.fsa.usda.gov/tobacco or by calling 1-202-720-7413.

Transfer of TTPP contracts must be submitted to the local office before Dec. 2.

The first round of payments were made in September, with 2006 payments expected to be made in January.