Tobacco Loss Assistance Program (10.083)
Program
10.083 Tobacco Loss Assistance Program
Federal Agency
COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
Authorization
Section 774 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act 2002, Public Law 107-76.
Program Number
10.083
Last Known Status
Deleted 05/23/2006 (Payments for this program were subtantially completed in FY 2003 with residual payments in FY 2004.)
Objectives
This program defrays tobacco production costs and enhances producers and quota-holders solvency. In the short-term, the cost to the government roughly equals the benefits paid to the tobacco producers. In the long-term, to the extent that these disaster payments protect tobacco producers from bankruptcy, the payments may also stabilize the small farm economy and thereby help achieve the public policy objective of the tobacco program.
Types of Assistance
Direct Payments with Unrestricted Use.
Uses and Use Restrictions
This program makes payments to eligible persons who own, control, or grow tobacco on a farm for which a basic quota or allotment for eligible tobacco was established for the 2001 crop year.
Eligibility Requirements
Applicant Eligibility
For a person to be considered eligible'' under this program, such person must own, control, or grow eligible tobacco on a farm with an established eligible tobacco'' marketing quota or allotment for the 2001 crop year. Eligible tobacco means each of the following kinds of tobacco: fire-cured tobacco, comprising of types 22 and 23; dark air-cured tobacco, comprising of types 35 and 36; and Virginia sun-cured tobacco, comprising of type 37.
Beneficiary Eligibility
Eligible tobacco producers and/or quota-holders.
Credentials/Documentation
Funds of the Commodity Credit Corporation (CCC) be made available to eligible tobacco producers whose farms had established marketing quotas or allotments for the 2001 crop year. Data furnished by the applicants will be used to determine eligibility for program benefits. Furnishing the data is voluntary; however, without it program benefits will not be provided.
Application and Award Process
Preapplication Coordination
None. This program is excluded from coverage under E.O. 12372.
Application Procedure
Eligible tobacco producers who wish to apply for TLAP funds, must file an application with the county FSA office by the date established by CCC. However, an application filed late because of hardship may be accepted. Acceptance of such applications must be approved by the Deputy Administrator, subject to the availability of funds.
Award Procedure
FSA determined the eligibility of the States that produced tobaccos that suffered a reduction of tobacco quota or acreage allotment in the quota marketing program for the 2001 crop year. FSA computed the total of basic quota for all kinds of eligible tobacco in each of the respective States. The eligible States notified tobacco producers of the status of their intentions. To ensure TLAP payments do not exceed funding limitation, the Tobacco and Peanuts Division (TPD) locked out the 2001 TLAP program application at county offices in April 2002. Thereafter, TPD will provide authorization codes to the county offices for any additional payments. The county office will use the authorization codes in order to issue the additional 2001 TLAP payments.
Deadlines
For the 2001 crop year, TLAP payments should be made to eligible tobacco producers not later than March 31, 2002.
Range of Approval/Disapproval Time
Appeals
The appeal, reconsideration, or review of determinations must be made in accordance with parts 11 and 780 of 7 CFR part 1464 Subpart F. The eligibility provisions for kinds of tobacco are not subject to appeal rights.
Renewals
None.
Assistance Considerations
Formula and Matching Requirements
TLAP payments shall be made to eligible tobacco producers as follows: (1) All fire-cured, dark air-cured, and Virginia sun-cured tobacco funds will be distributed one-third to quota owners, one-third to the controller, and one-third to growers; (2) the allocated funds will be disbursed to quota owners based on the 2001 crop year basic acreage allotment multiplied by National Agricultural Statistics Service (NASS) yield, and to controllers and growers based on the 2001 crop effective allotment multiplied by the yields as specified in the authorizing legislation; (b) the payment amount for each kind of eligible tobacco shall be equal to 10 cents per eligible payment pound distributed 1/3 to the eligible owner, 1/3 to the eligible controller (if any), and 1/3 to the eligible grower (if any). Persons who fit more than one category can accumulate shares; (c) in the case where a payment to a farm is disputed, CCC may require that all interested parties agree to the resolution of the dispute before any payment is made and may delay payments to that farm until any such disputes are resolved. Also, so that payments may be made expeditiously in a manner that is administratively efficient, CCC may in its sole discretion exclude payments to a person who does not file a timely claim.
Length and Time Phasing of Assistance
Payment is made by check or direct deposit after determining applicant eligibility.
Post Assistance Requirements
Reports
None.
Audits
Recipients under this program are subject to audit by the Office of the Regional Inspector General, USDA.
Records
An owner or any other individual or entity receiving assistance for TLAP shall maintain and retain financial books and records which will permit verification of all transactions for at least 3 years, following the end of the calendar year in which assistance was provided.
Program Accomplishments
It is estimated that more than $340 million were paid out to eligible tobacco producers and quota-holders from FY 00 to FY 02.
Financial Information
Account Identification
12-4336-0-4-351.
Obligations
(Direct Payments) FY 00 $340,000,00; FY 01 $7,000,000; and FY 02 $5,500,000.
Range and Average of Financial Assistance
Not applicable.
Regulations, Guidelines and Literature
Program is announced through news media and in letters to agricultural producers in the counties. Regulations published in the Federal Register, 7 CFR part 1464 Subpart F.
Related Programs
None.
Information Contacts
Regional or Local Office
Consult the local phone directory for location of the nearest county FSA office. If no listing, contact the appropriate State FSA office listed in the Farm Service Agency section of Appendix IV of the Catalog or on the WEB at http://www.fsa.usda.gov/edso/.
Headquarters Office
Department of Agriculture, Farm Service Agency, Tobacco Branch, STOP 0514, 1400 Independence Avenue, S.W., Washington, D.C. 20250-0540, Telephone: (202) 720-2715.
Web Site Address
Examples of Funded Projects
Not applicable.
Criteria for Selecting Proposals
All tobacco producers meeting eligibility requirements may receive assistance. Applications are non-competitive.
