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Hudson Applauds USDA and OMB's Decision to Protect Tobacco Transition Payment Program

January 7, 2014

FOR IMMEDIATE RELEASE
January 7, 2014

Hudson Applauds USDA and OMB’s Decision to Protect Tobacco Transition Payment Program

WASHINGTON-Today U.S. Representative Richard Hudson (NC-08), member of the House Agriculture Committee, applauded the decision by Secretary of Agriculture, Tom Vilsack, and Office of Management and Budget Director, Sylvia Burwell, not to subject the Tobacco Transition Payment Program (TTPP) to the proposed FY2014 sequester cuts.

“I am pleased to see the USDA and OMB come to their senses and agree with Congress that tobacco growers are entitled to the full payments that they planned for and were promised to them. Tobacco is an integral part of North Carolina’s agriculture and economy, and its growers are some of the hardest working producers in our state,” said Rep. Hudson.

“The Tobacco Transition Payment Program helped move this important crop into the free market and provided certainty to stakeholders when they needed it most. Moreover, this program is entirely funded by fees assessed on tobacco product manufacturers and importers, and therefore should not be subject to sequestration to make up for fiscal mismanagement elsewhere. I am glad that we were able to unite in a bipartisan fashion to ensure this fair outcome, and will continue to fight for our farmers and growers across North Carolina.”

The Fair and Equitable Tobacco Reform Act of 2004 established the TTPP to provide tobacco quota holders annual transitional payments for 10 years (2005-2014) in exchange for the termination of all federal restrictions, marketing cards, and price support loans for tobacco. In November of last year, Rep. Hudson and a bipartisan group of representatives sent a letter to Secretary Vilsack and Director Burwell urging them to honor the contract they had entered into and protect TTPP from the proposed sequester cuts.

Click here to view the letter sent by Rep. Hudson and here to view the response from Secretary Vilsack.

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