Tobacco Producers and Quota Owners Get Second Chance For Phase II Payments

Board Announces Work Sessions to Assist 1999 Round Two Applicants

RICHMOND (February 2, 2000) - The Virginia Tobacco Trust Certification Board, Inc. announced today the mailing of applications for round two of the 1999 payment of the National Tobacco Grower Settlement Trust (Phase II). Applications were sent to the 3,660 tobacco farm operators who did not apply for payment by the November 1999 first-round deadline. Approximately 11,230 quota holders and producers are eligible to receive payments for the tobacco associated with these 3,660 farms.

"Virginia producers and quota owners are fortunate in this first year of the settlement to have a second payment round," said CD Bryant, Chairman of Concerned Friends for Farmers and a member of the board. "This second round payment is going to accomplish two things. It will enable the board to pay as many eligible producers and quota owners as possible, and it will help correct any address or owner errors in the 1998 Farm Service Agency data. This 1998 FSA data will be used for future Phase II payments, and potentially the millions in separate Phase I payments to be paid over the next 25 years. It is imperative that these FSA records are accurate and in order."

The board also announced a series of work sessions in southwest and Southside Virginia for those applicants who wish to prepare their applications with representatives of the board's counsel, McGuire, Woods, Battle & Boothe LLP. The meetings will be held in conjunction with representatives from the Farm Service Agency and the Virginia Cooperative Extension in three counties.

"Phase II applicants attending these meetings are encouraged to bring their applications, and all additional materials they may need to update FSA records and fill out their paperwork," said Bryant. "The best way to see the application is filled out correctly is to get help during the preparation process," he said.

All new applications for second round 1999 Phase II payments, and the resubmitted applications rejected for payment in the first round, must be postmarked by March 1, 2000. Checks will be mailed to approved applicants on April 17, 2000. The Phase II board will certify annual payments for eleven more years, but will do so only once per year from now on. The board has already certified the payment of $21.6 million to Virginia' s tobacco producers and quota owners, 90 percent of the money available to Virginia in 1999. Virginia's payment rate is one of the highest in the nation.