The assessment, called the Tobacco Transition Payment Program (TTPP), was designed as compensation for farmers who were facing an immediate drop in tobacco crop prices, which had previously been federally controlled.“It was a way to sunset the program without drastically hurting the farmers who benefited from it,” said Will Mc Kitterick, a senior analyst for research firm IBISWorld who left the firm in August, in a recent interview.
But as expected, many farmers decided they could not sell tobacco at a profit any longer, and they dropped out.
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It was particularly lucrative for states where tobacco fields are primarily concentrated: North Carolina and Kentucky, whose farmers received $392 million and $247 million, respectively, according to Brown’s estimates.“It was a very important source of income for these rural communities,” Brown said.
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