No Net Cost Tobacco Act of 1982

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No Net Cost Tobacco Act of 1982

The No Net Cost Tobacco Act of 1982 is a United States federal law that was enacted to ensure that the federal government does not incur any net costs in the operation of the tobacco price support program. The act was designed to make the tobacco program self-sustaining by requiring tobacco producers to cover the costs associated with the program.

Background

The tobacco price support program was established to stabilize tobacco prices and ensure a steady income for tobacco farmers. This program involved the federal government purchasing surplus tobacco to maintain price levels. However, the costs of maintaining this program were significant, leading to the need for legislation to address these expenses.

Provisions

The No Net Cost Tobacco Act of 1982 introduced several key provisions:

• **Assessment Fees**: Tobacco producers were required to pay assessment fees to cover the costs of the price support program. These fees were calculated based on the amount of tobacco produced.
• **Tobacco Marketing Quotas**: The act reinforced the use of tobacco marketing quotas to control the supply of tobacco and prevent overproduction.
• **Tobacco Stabilization Fund**: A fund was established to collect the assessment fees and use them to offset the costs of the price support program.

Impact

The implementation of the No Net Cost Tobacco Act of 1982 had a significant impact on the tobacco industry. By shifting the financial burden of the price support program to the producers, the act aimed to reduce the federal government's expenditures on tobacco support. This change encouraged more efficient production practices and better management of tobacco supply.

Amendments and Revisions

Over the years, the No Net Cost Tobacco Act of 1982 has been subject to various amendments and revisions to address changing economic conditions and the evolving needs of the tobacco industry. These changes have included adjustments to assessment fees and modifications to the tobacco marketing quota system.

See Also

• Tobacco Control Act
• Agricultural Adjustment Act
• Federal Crop Insurance Corporation
• United States Department of Agriculture