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Tobacco: Background for 1995 Farm Legislation

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  • Grise, Verner N.

Abstract

This report address considerations in the 1995 farm bill debate for tobacco, including market conditions, policy proposals, trade agreements, and the interactions between policy and markets for selected commodities. U.S. tobacco production is likely to decline by the end of the 1990s. Accelerated antismoking activity, along with an increasing number of smoking restrictions and prohibitions and proposals to increase cigarette taxes, is weakening leaf demand. Also, ample world production at lower prices is hurting U.S. export prospects. Technological advances that permit production of an acceptable-quality cigarette with cheaper leaf are curtailing demand for U.S.-grown leaf. Furthermore, stagnant cigarette demand and trade barriers hold down U.S. export prospects, although the General Agreement on Tariffs and Trade should help soften declines in exports. This report provides an overview of the U.S. tobacco industry, reviews Federal tobacco programs, and examines issues and potential program changes.

Suggested Citation

  • Grise, Verner N., 1995. "Tobacco: Background for 1995 Farm Legislation," Agricultural Economic Reports 262024, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:262024
    DOI: 10.22004/ag.econ.262024
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    Cited by:

    1. Gale, H. Frederick, Jr. & Foreman, Linda F. & Capehart, Thomas C., Jr., 2000. "Tobacco And The Economy: Farms, Jobs, And Communities," Agricultural Economic Reports 34007, United States Department of Agriculture, Economic Research Service.

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