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MS 5340 [2] 1. Prorate Tobacco Settlement payments over a 12-month period for the following food benefits recipients:
a. Households actively engaged in farming either as owners or tenants, who are considered self-employed. See MS 5220.
b. Households that previously farmed tobacco and are leasing their land to others, who are also considered self-employed. See MS 5220.
2. Count the payments in their entirety in the month received or average the payment over the period of time the income is intended to cover for households that do not own the land and are merely leasing their quotas to third parties to grow tobacco. This type of arrangement is not considered self-employment. Give the recipient the option of selecting the budgeting process that is to the household’s advantage.
The food benefits household is responsible for providing verification of the payment amount and how often the payment will be received. Application for the Tobacco Settlement payments can be made with the Kentucky Department of Agriculture. If recipients have questions about the payments, advise them to contact the Kentucky Department of Agriculture.