The Fair and Equitable Tobacco Reform Act is a component of the

American Jobs Creation Act The American Jobs Creation Act of 2004 () was a federal tax act that repealed the export tax incentive (ETI), which had been declared illegal by the World Trade Organization several times and sparked retaliatory tariffs by the European Union. It ...

, passed in the United States in October 2004. The main component of the Fair and Equitable Tobacco Reform Act is the Tobacco Transition Payment Program (TTPP, otherwise known as the "Tobacco Buyout"), which was formalized by the

United States Department of Agriculture The United States Department of Agriculture (USDA) is the United States federal executive departments, federal executive department responsible for developing and executing federal laws related to farming, forestry, rural economic development, ...

in February 2005.

Tobacco Transition Payment Program

The Tobacco Buyout ended all aspects of the federal tobacco marketing quota and price support loan programs that were established by the

Agricultural Adjustment Act The Agricultural Adjustment Act (AAA) was a United States federal law of the New Deal era designed to boost agricultural prices by reducing surpluses. The government bought livestock for slaughter and paid farmers subsidies not to plant on part ...

in 1938. Beginning in 2005, there were no planting restrictions, no marketing cards, and no price support loans, all traditional components of tobacco agriculture in the United States. Along with the end of these policies, the Tobacco Buyout also entails the TTPP, which provides payments to tobacco quota holders and tobacco producers from 2005 to 2014. {{Agri-stub Acts of the 108th United States Congress