Number: RS22046
Title: Tobacco Quota Buyout
Authors: Jasper Womach, Resources, Science, and Industry Division 
Abstract: Tobacco quota buyout legislation (Title VI of P.L. 108-357 (H.R. 4520)) terminates U.S. tobacco farm price support (through nonrecourse loans) and domestic production controls (through marketing quotas) after the 2004 crop year. An assessment on tobacco product manufacturers and importers is to generate about $9.6 billion over 10 years for compensatory payments to tobacco quota owners and active tobacco producers. Beginning with the 2005 crop, there will be no restrictions on who can grow and market tobacco, where it can be grown, and the amount that can be grown and marketed.
Pages: 6
Date: May 13, 2005