Comparison of Lugar and Ford Tobacco Proposals

Issue Lugar Amendment Ford's Title X of McCain's S.1415
Federal support for tobacco production (quota program). Ends quota program as of 1999 crop. Continues current quota program for burley tobacco, and creates a new government-run permit program for flue-cured tobacco that would work the same as the quota program except that permits would be distributed only to producers.
Federal support for tobacco production (price support program). Phases out price support program during 1999-2001 crop years. Continues the price support program.
Buyout of Quota. Buyout of quota for a total of $8 per pound of quota owned, paid in three equal payments during 1999-2001. Voluntary buyout payments for burley tobacco, and mandatory buyout payments for flue-cured tobacco, paid at rate of $8 per pound for over 10 years. "Loss of Quota" payments paid at varying rates for quota owners and flue-cured permit holders.

Above payments to be paid in lump sum if quota and price support programs are terminated, or if the national quota declines by 50%.

Payments to producers who lease quota or are tenants. Transition payments for a total of $4.00/lb. multiplied by average production over '95-'97 in three equal payments from 1999-2001. "Loss of Quota" payments paid at varying rates for burley and flue-cured quota lessees and tenants, and flue-cured permit holders.

Above payments to be paid in lump sum if quota and price support programs are terminated, or if the national quota declines by 50%.

Economic assistance to tobacco-dependent counties and persons. Total of $1 billion in state block grants over 5 years to be distributed to tobacco-dependant counties for purposes largely at discretion of states. *Community Economic Development grants: approximately $10.5 billion.

*Workers Transition Grants: $625 million.

*Higher Education Grants: approximately $1.44 billion

Cost. $18 billion $28.5 billion

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