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Tobacco And The Economy: Farms, Jobs, And Communities

Author

Listed:
  • Gale, H. Frederick, Jr.
  • Foreman, Linda F.
  • Capehart, Thomas C., Jr.

Abstract

Public health policies intended to reduce the incidence of smoking-related disease adversely affect thousands of tobacco farmers, manufacturers, and other businesses that produce, distribute, and sell tobacco products. This report assesses the likely impacts of declining tobacco demand, and identifies the types of workers, farms, businesses, and communities that are most vulnerable to loss of tobacco income and jobs. The dollar impact on the farm sector of a reduction in cigarette demand will be smaller than that experienced by manufacturing, wholesale, retail, and transportation businesses, but tobacco farms and their communities may have the most difficulty adjusting. Many tobacco farmers lack good alternatives to tobacco, and they have tobacco-specific equipment, buildings, and experience. Most communities will make the transition to a smaller tobacco industry with little difficulty, because tobacco accounts for a small share of the local economy. However, a number of counties depend on tobacco for a significant share of local income.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:uerser:34007
    DOI: 10.22004/ag.econ.34007
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    References listed on IDEAS

    as
    1. Ian J. Irvine & William A. Sims, 1997. "Tobacco Control Legislation and Resource Allocation Effects," Canadian Public Policy, University of Toronto Press, vol. 23(3), pages 259-273, September.
    2. Beghin, John C. & Blake Brown, A. & Hasyim Zaini, M., 1997. "Impact of domestic content requirement on the US tobacco and cigarette industries," Agricultural Economics, Blackwell, vol. 15(3), pages 201-212, January.
    3. Grise, Verner N., 1995. "Tobacco: Background for 1995 Farm Legislation," Agricultural Economic Reports 262024, United States Department of Agriculture, Economic Research Service.
    4. Brown, A. Blake & Snell, William M. & Tiller, Kelly, 1999. "The Changing Political Environment For Tobacco -- Implications For Southern Tobacco Farmers, Rural Economies, Taxpayers, And Consumers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(2), pages 1-18, August.
    5. Gale, Fred, 1994. "What Tobacco Farming Means to Local Economies," Agricultural Economic Reports 308416, United States Department of Agriculture, Economic Research Service.
    6. A. Blake Brown, 1995. "Cigarette Taxes and Smoking Restrictions: Impacts and Policy Implications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 946-951.
    7. Brown, A. Blake & Snell, William M. & Tiller, Kelly H., 1999. "The Changing Political Environment for Tobacco—Implications for Southern Tobacco Farmers, Rural Economies, Taxpayers, and Consumers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 31(2), pages 291-308, August.
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    Cited by:

    1. Ciliberto Federico & Kuminoff Nicolai V, 2010. "Public Policy and Market Competition: How the Master Settlement Agreement Changed the Cigarette Industry," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-46, July.
    2. Beach, Robert H. & Richmond, David & Austin, David H. & Jones, Alison Snow, 2006. "How Will Tobacco Farmers Respond to the Quota Buyout? Findings from a Survey of North Carolina Tobacco Farmers," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35411, Southern Agricultural Economics Association.
    3. Fredriksson, Per & Mamun, Khawaja, 2009. "Gubernatorial Reputation and Vertical Tax Externalities: All Smoke, No Fire?," Working Papers 2009002, Sacred Heart University, John F. Welch College of Business.
    4. Per G. Fredriksson & Khawaja A. Mamun, 2014. "Tobacco Politics and Electoral Accountability in the United States," Public Finance Review, , vol. 42(1), pages 4-34, January.
    5. Vardges Hovhannisyan & Vahé Heboyan & Magdana Kondaridze, 2024. "An empirical assessment of effectiveness of the US tobacco control policies: a smoothed instrumental variables quantile regression approach," Empirical Economics, Springer, vol. 67(2), pages 465-493, August.
    6. Jones, Alison Snow & Beach, Robert H. & Johnston, Stephen A., 2005. "Tobacco Farmer Interest and Success in Diversification," 2005 Annual meeting, July 24-27, Providence, RI 19151, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Liemt, Gijsbert van., 2001. "The world tobacco industry : trends and prospects," ILO Working Papers 993525813402676, International Labour Organization.
    8. Kuo-Liang Chang & George Langelett & Andrew Waugh, 2011. "Health, Health Insurance, and Decision to Exit from Farming," Journal of Family and Economic Issues, Springer, vol. 32(2), pages 356-372, June.
    9. Tovar, Jorge, 2013. "El Cultivo del Tabaco en América Latina," Documentos CEDE Series 161363, Universidad de Los Andes, Economics Department.
    10. repec:ilo:ilowps:352581 is not listed on IDEAS
    11. repec:ilo:ilowps:486118 is not listed on IDEAS
    12. Helen Pushkarskaya & Maria Marshall, 2010. "Family Structure, Policy Shocks, and Family Business Adjustment Choices," Journal of Family and Economic Issues, Springer, vol. 31(4), pages 414-426, December.

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