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Peachtree Tobacco Funding, a new division of Peachtree Settlement Funding, has received thousands of calls about the Tobacco Buyout Program. Farmers, located throughout the nation, embracing the new program.
Susan Melchiori, Peachtree Tobacco Funding’s Buyout Manager, comments, “It’s incredible how appreciative these tobacco farmers are that we’re offering them a lump sum today for their future tobacco payments. Our quotes are fair and there are no hidden fees. The farmers I have spoken with like the simplicity of our program”.
According to Susan M. Cast, Peachtree Tobacco Funding's Legal Manager, "We have received overwhelming gratitude from the farmers we're helping. There is a sharp contrast between our handpicked team of specialists who are available to answer questions and impersonal automated phone systems, which cannot explain the program or the options to interested participants. Farmers have really warmed to our personal touch."
In September, Peachtree announced the creation of its newest business, Peachtree Tobacco Funding. Peachtree, in cooperation with one of the world’s largest financial institutions, launched its Tobacco Transition Payment Division with a five hundred million dollar commitment.
In light of new government agricultural laws, Peachtree can purchase the future payments that tobacco producers will receive from the government over the next nine years. These payments are being made by the federal government to allow tobacco farmers the time and resources to grow other crops.
Peachtree provides cash, in a lump sum, to people who do not want to, or cannot afford to, wait 10 years for their Tobacco Transition Payments.
Recently the United States Department of Agriculture (USDA) extended the deadline for the “successor in interest” contract (also known as Form 962) from November 1st to December 2nd. This gives interested tobacco farmers an additional 30 days to sell their nine remaining future payments for a lump sum today. According to Peachtree Tobacco Funding’s Buyout Manager, Susan Melchiori, “We have recently learned some farmers have signed their Form 962s without knowing how much they will receive. Peachtree provides farmers with an exact dollar amount.”
Founded in 1996, Peachtree is a leader in the cash flow industry. In addition to the new Tobacco Transition Payment Division, Peachtree also acquires a wide-range of financial assets such as Structured Legal Settlements, Lottery Prize Payments, Life Insurance Policies and other types of deferred payment obligations.
Background on the Tobacco Transition Payment Program
On October 22, 2004, Congress enacted the Fair and Equitable Tobacco Reform Act of 2004 (the “Tobacco Act”) as part of the American Jobs Creation Act of 2004. The Tobacco Act repeals the federal tobacco quota programs and price supports. Instead, the government has agreed to buyout the tobacco quota holders and producers using an assessment mechanism for tobacco manufacturers and importers to pay for the buyout. Tobacco quota holders and producers will receive equal annual payments over a 10-year period, as agreed in a contract with the Secretary of Agriculture. The Tobacco Act also includes a provision that allows quota holders and producers to transfer or assign the payments to a financial institution, giving that institution the right to receive the contract payments in exchange for a lump sum or other payment to the quota holders. On April 4, 2005, the United States Department of Agriculture (USDA) issued a Final Rule implementing the “Tobacco Transition Payment Program”.
About Peachtree Settlement Funding
Peachtree Settlement Funding is a specialty factoring company, which allows recipients of future cash flows to obtain an immediate lump sum in exchange for all, or a portion of, those future sums. Peachtree is the nation’s leading specialty factoring company and caters to people seeking to sell structured legal settlements, annuity payments, lottery prize payments, sweepstakes awards and life insurance policies. In addition, Peachtree provides cash advances to people with pending personal injury claims. Peachtree has purchased several billion dollars of specialty receivables and continues to expand into new areas by bringing institutional financing and professionalism to bear on underserved markets.
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