any tobacco growers would exit tobacco farming. Those that remained would probably have to make substantial changes in their operations. Farm groups and some legislators argue that tobacco farmers should not only be compensated for lost value of quota, but also for the costs and losses incurred with the transition out of tobacco or to production in a deregulated market. This was the justification given for the $4 per pound of quota grown compensation level discussed during the tobacco settlement debate of 1998.
Once a particular program option is chosen and policy makers determine what conditions for compensation are Afair,@ then economists can assist policy makers in determining compensation levels that meet the parameters and conditions set for Afairness.@