Tobacco settlement applications due Friday

September 09, 2003

The Kentucky Tobacco Settlement Trust Corp.'s deadline for Phase II tobacco applications is Friday.

Tobacco quota owners and their farm operators must have all paperwork completed and postmarked by the deadline to ensure that they certified to receive their settlement check in December.

In August, the corporation chaired by Gov. Paul Patton mailed about 116,000 claim forms to farm operators for compensation from the National Tobacco Growers Settlement Trust.

Tobacco state governors and the four largest cigarette manufacturers established the trust fund in 1999 to provide direct cash payments to tobacco quota holders and growers to offset income losses they incur as the tobacco industry changes.


The corporation has facilitated payment of more than $458 million in the first four annual distributions made since the trust was established.

An estimated $130 million will be distributed in December, according to Joel Neaveill, Phase II coordinator.

The payments are made to quota owners, tobacco growers and tenants who share in the risk of producing tobacco.

Approximately 158,000 Kentuckians have received benefits annually from the trust since 1999.

The application was mailed to the crop year 2002 farm operator of record, according to the USDA-Farm Service Agency.

In addition, all burley tobacco basic quota owners who are not listed as a farm operator will receive a letter advising them regarding who received the direct payment application form for their basic quota.

Only the basic quota section of the application is required to be completed this year.

The growing farm and grower/tenant compensation has been predetermined through past application cycles for crop years 1998, 1999, and 2000.

For more information and assistance in completing the application, call 1-877-549-2537.

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