I
107TH CONGRESS
1ST SESSION
H. R. 1658
To eliminate the Federal quota and price support programs for Burley to-
bacco, to compensate quota holders for the lost quota value, to provide
transition payments to producers of Burley tobacco, and to provide
assistance to communities adversely affected by the elimination of the
quota and price support programs.
IN THE HOUSE OF REPRESENTATIVES
MAY 1, 2001
Mr. HILL introduced the following bill; which was referred to the Committee
on Agriculture
A BILL
To eliminate the Federal quota and price support programs
for Burley tobacco, to compensate quota holders for the
lost quota value, to provide transition payments to pro-
ducers of Burley tobacco, and to provide assistance to
communities adversely affected by the elimination of the
quota and price support programs.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Burley Buy-out Act of 2001’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—ELIMINATION OF PRICE SUPPORT AND MARKET
QUOTAS FOR BURLEY TOBACCO
Sec. 101. Burley tobacco price support program.
Sec. 102. Burley tobacco marketing quotas.
TITLE II—COMPENSATION TO QUOTA HOLDERS AND TRANSITION
ASSISTANCE TO PRODUCERS OF BURLEY TOBACCO
Sec. 201. Definitions.
Sec. 202. Compensation to Burley quota holders for loss of tobacco quota asset
value.
Sec. 203. Transition payments for active Burley tobacco producers.
Sec. 204. Commodity Credit Corporation.
TITLE III—ECONOMIC ASSISTANCE FOR BURLEY TOBACCO-
DEPENDENT COMMUNITIES
Sec. 301. Rural economic assistance grants.
Sec. 302. Commodity Credit Corporation.
TITLE 
I—ELIMINATION 
OF
PRICE SUPPORT AND MAR-
KET QUOTAS FOR BURLEY
TOBACCO
SEC. 101. BURLEY TOBACCO PRICE SUPPORT PROGRAM.
Notwithstanding section 106 of the Agricultural Act
of 1949 (7 U.S.C. 1445), beginning with the 2002 crop
of Burley tobacco, the Secretary of Agriculture shall not
make price support available, whether in the form of loans,
payments, purchases, or other operations, for any crop of
Burley tobacco.
SEC. 102. BURLEY TOBACCO MARKETING QUOTAS.
Notwithstanding part I of subtitle B of title III of
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1311
et seq.), beginning with the 2002 crop of Burley tobacco,
the Secretary shall not proclaim a national marketing
quota for Burley tobacco or apportion a marketing quota
for Burley tobacco among States and farms.
TITLE 
II—COMPENSATION 
TO
QUOTA HOLDERS AND TRAN-
SITION ASSISTANCE TO PRO-
DUCERS 
OF 
BURLEY 
TO-
BACCO
SEC. 201. DEFINITIONS.
In this title:
(1) ACTIVE BURLEY TOBACCO PRODUCER.—The
term ‘‘active Burley tobacco producer’’ means a per-
son that was the actual producer, as determined by
the Secretary of Agriculture, of Burley tobacco on a
farm where Burley tobacco was produced pursuant
to a marketing quota established under the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1281 et
seq.) for at least two of the 1999 through 2001 mar-
keting years.
(2) BURLEY QUOTA HOLDER.—The term ‘‘Bur-
ley quota holder’’ means an owner of a farm on Jan-
uary 1, 2002, for which a Burley tobacco farm mar-
keting quota was established under the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) for
the 2001 marketing year.
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture.
SEC. 202. COMPENSATION TO BURLEY QUOTA HOLDERS
FOR LOSS OF TOBACCO QUOTA ASSET VALUE.
(a) COMPENSATION REQUIRED.—The Secretary shall
make a payment under this section to an eligible Burley
quota holder to compensate the Burley quota holder for
the lost value of the quota on account of the elimination
of marketing quotas for Burley tobacco under section 102.
(b) ELIGIBILITY.—To be eligible to receive a payment
under this section, a person shall submit to the Secretary
an application containing such information as the Sec-
retary may require to demonstrate to the satisfaction of
the Secretary that the person satisfies the definition of
Burley quota holder. The application shall be submitted
within such time, in such form, and in such manner as
the Secretary may require.
(c) BASE QUOTA LEVEL.—The Secretary shall deter-
mine, for each Burley quota holder whose application for
payment is approved by the Secretary under subsection
(b), the base quota level of the Burley quota holder for
the 1991 through 2001 marketing years. The base quota
level for the Burley quota holder shall be equal to the aver-
age Burley tobacco farm marketing quota established for
the 1991 through 2001 marketing years for the farm
owned by the Burley quota holder.
(d) PAYMENT.—The Secretary shall make a one-time
payment to an eligible Burley quota holder in an amount
equal to the product obtained by multiplying—
(1) $8 per pound; by
(2) the base quota level established for the Bur-
ley quota holder under subsection (c).
(e) TIME FOR PAYMENT.—The payments required by
this section shall be made during fiscal year 2002.
SEC. 203. TRANSITION PAYMENTS FOR ACTIVE BURLEY TO-
BACCO PRODUCERS.
(a) TRANSITION PAYMENTS REQUIRED.—The Sec-
retary shall make transition payments under this section
to eligible active Burley tobacco producers to lessen the
financial consequences to producers of the elimination of
price support for Burley tobacco under section 101.
(b) ELIGIBILITY.—To be eligible to receive transition
payments under this section, a person shall submit to the
Secretary an application containing such information as
the Secretary may require to demonstrate to the satisfac-
tion of the Secretary that the person satisfies the defini-
tion of active Burley tobacco producer. The application
shall be submitted within such time, in such form, and
in such manner as the Secretary may require.
(c) PRODUCTION HISTORY.—The Secretary shall
base the transition payments made to an active Burley to-
bacco producer on the average quantity of Burley tobacco
subject to a marketing quota that was produced by the
producer during the 1999 through 2001 marketing years.
(d) PAYMENTS.—The Secretary shall make transition
payments to an eligible active Burley tobacco producer in
an aggregate amount equal to the product obtained by
multiplying—
(1) $7.50; by
(2) the average quantity determined under sub-
section (c) for the producer.
(e) TIME FOR PAYMENTS.—The total amount cal-
culated for an active Burley tobacco producer under sub-
section (d) shall be paid to the producer in five equal in-
stallments. A payment shall be made during each of the
fiscal years 2002 through 2007.
SEC. 204. COMMODITY CREDIT CORPORATION.
The Secretary shall use the funds, facilities, and au-
thorities of the Commodity Credit Corporation to carry
out this title.
TITLE 
III—ECONOMIC 
ASSIST-
ANCE FOR BURLEY TOBACCO-
DEPENDENT COMMUNITIES
SEC. 301. RURAL ECONOMIC ASSISTANCE GRANTS.
(a) GRANT AUTHORITY.—During each of the fiscal
years 2002 through 2007, the Secretary of Agriculture
shall use $50,000,000 of funds of the Commodity Credit
Corporation to provide grants to States in which Burley
tobacco is produced to assist those areas of such a State
that are economically dependent on the production of Bur-
ley tobacco.
(b) GRANT BASIS.—In making a grant under sub-
section (a) to a Burley tobacco-growing State, the Sec-
retary shall base the amount of the grant on the following,
as determined by the Secretary:
(1) The number of counties in the State in
which Burley tobacco production is a significant part
of the county’s economy.
(2) The level of economic dependence of such
counties on Burley tobacco production.
(c) USE OF GRANTS BY STATES.—A State that re-
ceives a grant under subsection (a) shall use the grant
to make grants to counties or other public or private enti-
ties in the State to assist areas that are dependent on the
production of Burley tobacco, as determined by the Gov-
ernor. The amount of a grant paid to a county or other
entity to assist an area shall be based on (as determined
by the Secretary)—
(1) the ratio of gross Burley tobacco sales re-
ceipts in the area to the total farm income in the
area; and
(2) the ratio of all Burley tobacco related re-
ceipts in the area to the total income in the area.
(d) USE OF GRANTS BY COUNTIES.—A county or
other entity that receives a grant under subsection (c)
shall use the grant in a manner determined appropriate
by the county or entity (with the approval of the State)
to assist Burley tobacco producers and other persons who
are economically dependent on the production of Burley
tobacco, including use for—
(1) on-farm diversification and alternatives to
the production of tobacco and risk management; and
(2) off-farm activities such as development of
non-tobacco related jobs.
SEC. 302. COMMODITY CREDIT CORPORATION.
The Secretary shall use the funds, facilities, and au-
thorities of the Commodity Credit Corporation to carry
out this title.
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