Tobacco Market Transition Act

H.R. 986, the Tobacco Market Transition Act, proposes a fundamental overhaul of the federal tobacco program by ending the traditional system of marketing quotas and price supports. The bill would establish the Tobacco Production Control Corporation to manage a new licensing system for tobacco production and create a trust fund to provide financial compensation to tobacco farmers and quota holders during this transition. For citizens and farmers, this would mean the elimination of long-standing federal tobacco regulations in favor of a market-based system, supported by one-time payments to help producers adjust to the loss of their previous quota assets.