Page:United States Statutes at Large Volume 118.djvu/1556

 118 STAT. 1526 PUBLIC LAW 108–357—OCT. 22, 2004 (1) ESTABLISHMENT.—The Secretary shall establish a base quota level applicable to each tobacco quota holder identified under subsection (b). (2) POUNDAGE QUOTAS.—Subject to adjustment under sub section (d), for each kind of tobacco for which the marketing quota is expressed in pounds, the base quota level for each tobacco quota holder shall be equal to the basic quota for quota tobacco established for the 2002 tobacco marketing year under a marketing quota program established under part I of subtitle B of title III of the Agriculture Adjustment Act of 1938 on the farm owned by the tobacco quota holder. (3) MARKETING QUOTAS OTHER THAN POUNDAGE QUOTAS.— Subject to adjustment under subsection (d), for each kind of tobacco for which there is marketing quota or allotment on an acreage basis, the base quota level for each tobacco quota holder shall be the quantity equal to the product obtained by multiplying— (A) the basic tobacco farm marketing quota or allot ment for the 2002 marketing year established by the Sec retary for quota tobacco owned by the tobacco quota holder; by (B) the average production yield, per acre, for the period covering the 2001, 2002, and 2003 crop years for that kind of tobacco in the county in which the quota tobacco is located. (d) TREATMENT OF CERTAIN CONTRACTS AND AGREEMENTS.— (1) EFFECT OF PURCHASE CONTRACT.—If there was an agree ment for the purchase of all or part of a farm described in subsection (c) as of the date of the enactment of this title, and the parties to the sale are unable to agree to the disposition of eligibility for contract payments, the Secretary, taking into account any transfer of quota that has been agreed to, shall provide for the equitable division of the contract payments among the parties by adjusting the determination of who is the tobacco quota holder with respect to particular pounds or allotment of the quota. (2) EFFECT OF AGREEMENT FOR PERMANENT QUOTA TRANSFER.—If the Secretary determines that there was in exist ence, as of the day before the date of the enactment of this title, an agreement for the permanent transfer of quota, but that the transfer was not completed by that date, the Secretary shall consider the tobacco quota holder to be the party to the agreement that, as of that date, was the owner of the farm to which the quota was to be transferred. (e) CONTRACT PAYMENTS.— (1) CALCULATION OF TOTAL PAYMENT AMOUNT.—The total amount of contract payments to which an eligible tobacco quota holder is entitled under this section, with respect to a kind of tobacco, shall be equal to the product obtained by multiplying— (A) $7.00 per pound; by (B) the base quota level of the tobacco quota holder determined under subsection (c) with respect to that kind of tobacco. (2) ANNUAL PAYMENT.—During each of fiscal years 2005 through 2014, the Secretary shall make a contract payment under this section to each eligible tobacco quota holder, with

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