7 USC 518b - Contract payments for producers of quota tobacco

U.S Code last checked for updates: Jan 18, 2025

§ 518b.

Contract payments for producers of quota tobacco

(a)

Contract offered

(b)

Eligibility

(1)

Application and determination

(2)

Effect of multiple producers for same quota tobacco

(c)

Base quota level

(1)

Establishment

(2)

Flue-cured and burley tobacco

(3)

Other kinds of tobacco

In the case of each kind of tobacco (other than tobacco covered by paragraph (2)), for the purpose of calculating a contract payment to a producer of quota tobacco, the base quota level for the producer of quota tobacco shall be the quantity obtained by multiplying—

(A)

the basic tobacco farm acreage allotment for the 2002 marketing year established by the Secretary for quota tobacco produced on the farm; by

(B)

the average annual yield, per acre, of quota tobacco produced on the farm for the period covering the 2001, 2002, and 2003 crop years.

(d)

Contract payments

(1)

Calculation of total payment amount

Subject to subsection (b)(2), the total amount of contract payments to which an eligible producer of quota tobacco is entitled under this section, with respect to a kind of tobacco, shall be equal to the product obtained by multiplying—

(A)

subject to paragraph (2), $3.00 per pound; by

(B)

the base quota level of the producer of quota tobacco determined under subsection (c) with respect to that kind of tobacco.

(2)

Annual payment

(3)

Variable payment rates

The rate for payments to a producer of quota tobacco under paragraph (1)(A) shall be equal to—

(A)

in the case of a producer of quota tobacco that produced quota tobacco marketed, or considered planted, under a marketing quota in all three of the 2002, 2003, or 2004 tobacco marketing years, the rate prescribed under paragraph (1)(A);

(B)

in the case of a producer of quota tobacco that produced quota tobacco marketed, or considered planted, under a marketing quota in only two of those tobacco marketing years, ⅔ of the rate prescribed under paragraph (1)(A);

(C)

in the case of a producer of quota tobacco that produced quota tobacco marketed, or considered planted, under a marketing quota in only one of those tobacco marketing years, ⅓ of the rate prescribed under paragraph (1)(A).

(e)

Death of tobacco producer

(Pub. L. 108–357, title VI, § 623, Oct. 22, 2004, 118 Stat. 1527.)

cite as: 7 USC 518b