FSA Tobacco Transition Payment Program TTPP PIA - usda 2025

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The buyout pays quota owners $7 a pound over 10 years based on 2002 basic quota. Meanwhile, producers who raised tobacco in 2002, 2003, or 2004 will be paid $3 per pound over 10 years if they grew tobacco all three years.
The main component of the Fair and Equitable Tobacco Reform Act is the Tobacco Transition Payment Program (TTPP, otherwise known as the Tobacco Buyout), which was formalized by the United States Department of Agriculture in February 2005.
By advocating and enabling accelerated implementation of the WHO Framework Convention on Tobacco Control through sustainable systems for tobacco control, the Tobacco Free Initiative works towards a world free of tobacco: tobacco-free people, communities and environments.
The funding from the settlement was intended to be allocated to lifesaving tobacco prevention efforts in states, not just when the agreement was signed, but through annual payments by the tobacco companies to the states for as long as they continue to sell cigarettes due to the death and disease their products cause.
The federal tobacco program was established under the Agricultural Adjustment Act (AAA) of 1938 as a means to raise and stabilize tobacco prices and income. Under the program, tobacco farmers agreed to restrict supply via marketing/acreage allotments (or quotas) in exchange for minimum price guarantees.
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