In the United States the Tobacco Price Support Program used a combination of marketing quotas and nonrecourse loans to keep prices stable and higher than they would be otherwise. The tobacco quota

Tobacco quota

Tobacco quotas were a supply control feature of federal price support for tobacco. Burley tobacco was subject to marketing quotas and flue-cured tobacco was subject to marketing quotas and acreage allotments...

 limited production in order to raise prices. Nonrecourse loans allowed producers to hold tobacco stocks for long periods in order to balance supplies with market demand conditions.

Under the No Net Cost Tobacco Act of 1982

No Net Cost Tobacco Act of 1982

The No Net Cost Tobacco Act of 1982 required that the Tobacco Price Support Program operate at no net cost to taxpayers, other than for the administrative expenses common to all price support programs...

, tobacco loan program operations were required to function at no net cost to taxpayers (P.L. 97-218). A no net cost

No net cost

No net cost is a requirement that certain commodity programs operate at no net cost to the federal government. The No-Net-Cost Tobacco Act of 1982 required an assessment on 1982 and subsequent tobacco crops to cover potential tobacco price support program losses. The 1985 farm bill No net cost is...

 assessment was collected on all leaf tobacco sold to build a reserve fund that reimbursed the Commodity Credit Corporation

Commodity Credit Corporation

The Commodity Credit Corporation is a wholly owned government corporation created in 1933 to "stabilize, support, and protect farm income and prices"...

 (CCC) for any losses of loan principal and interest. Adoption of the tobacco quota buyout in P.L. 108-357, Title VI, ended also the price support program for the 2005 crop and subsequent years.