For Immediate Release
March 13, 2000
Contact: John-Mark Hack (502) 564-2611

Patton Asks Feds to Release Funds to Kentucky Tobacco Farmers

Frankfort, Ky. - Governor Paul Patton requested today that the United States Department of Agriculture release $121,645,774 to the Chase Manhattan Bank for distribution to Kentucky tobacco quota holders and growers. The money is Kentucky's share of the Tobacco Loss Assistance Program, funded by the Agricultural Appropriations bill passed by the US Congress late last year. It will be shared by tobacco quota holders and growers using the same formula that was used to distribute Phase II payments late last year.

Governor Patton said, "Times have never been tougher for Kentucky's farm families. We want to expedite the distribution of these federal funds in the most efficient possible way to our tobacco quota holders and growers. Chase Manhattan has the database and the hardware in place to provide this service for a reasonable fee and do it quickly. Our farmers need the money now as they head toward a busy spring planting season."

The Kentucky Tobacco Settlement Trust Corporation, the state entity handling Phase II payments, is also serving as the point for the distribution of the federal funds. Corporation staff indicated that growers would probably see their payments within the next six to eight weeks. Growers and quota holders who applied for Phase II funds will not have to reapply. Corporation staff is exploring the possibility of offering a grace application period for quota holders and growers who missed the deadlines for Phase II funds. The administrative costs and time involved in conducting such a process are the major questions yet to be resolved. A decision on the clean up application period is expected in the next two weeks.

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