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Understanding the Fair and Equitable Tobacco Reform Act (FETRA) and Its Implications
Definition & Meaning
The Fair and Equitable Tobacco Reform Act (FETRA) is a federal law enacted in 2004 aimed at eliminating federal tobacco marketing quota and price support loan programs. These programs previously encouraged tobacco marketing through mechanisms such as weight quotas, price supports, acreage allotments, and geographic restrictions on tobacco production. FETRA is often referred to as the tobacco buyout, as it established the Tobacco Transition Payment Program (TTPP), which provides annual payments for ten years to eligible tobacco quota holders and producers to ease the transition away from these programs.
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Legal Use & context
FETRA is relevant in the context of agricultural law and economic policy, particularly concerning tobacco production in the United States. It is used in discussions about agricultural subsidies, market regulation, and the economic impact on tobacco farmers. Users may find legal forms related to agricultural transitions or financial agreements helpful in navigating the implications of FETRA.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A tobacco farmer who held a federal marketing quota prior to 2004 may have received annual payments under the TTPP for ten years after FETRA was enacted, helping them transition to other crops or business ventures.
Example 2: A state government may implement programs to support former tobacco farmers in diversifying their agricultural practices following the elimination of federal quotas (hypothetical example).
Relevant laws & statutes
The Fair and Equitable Tobacco Reform Act (FETRA) is the primary statute governing the transition from federal tobacco marketing programs. It is codified at 7 USCS § 519.
Common misunderstandings
What to do if this term applies to you
If you are a tobacco farmer affected by the provisions of FETRA, consider reviewing your eligibility for the Tobacco Transition Payment Program. You may also want to explore US Legal Forms for templates related to agricultural agreements or financial planning. If your situation is complex, seeking advice from a legal professional may be beneficial.
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