One size does not fit all, at least when it comes to taxes and the payments North Carolina tobacco growers and tobacco quota owners will receive as a result of the tobacco buyout.
Beginning this year, $3.9 billion will pour into North Carolina over a 10-year period. The money will come to tobacco growers and tobacco quota owners as the tobacco price support system that dates to the depression comes to an end.
About 75,000 North Carolinians will receive payments. Nationwide, the buyout will pay tobacco growers and quota holders $9.6 billion over 10 years.
Tobacco growers will receive $3 per pound of quota grown, while quota owners will receive $7 per pound of quota owned. Quota is sometimes described as a license to grow tobacco.
Quota owners do not always grow tobacco; they often rent their quota to others, who actually grow tobacco.
For both growers and quota owners, the money, which comes from tobacco companies, will be paid in. . . full story here.
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