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Tobacco: Background for 1990 Farm Legislation

Author

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  • Grise, Verner N.

Abstract

Tobacco is grown in 21 States on about 137,000 farms. Several types and kinds are grown, but flue-cured and burley account for about 94 percent of total production. After steadily declining from 1975 to 1986, tobacco production has risen the last 3 years. Supply and demand are in balance because excess stocks have been used. After declining for several years, cigarette production rose in 1987 and 1988 because of growing exports. Legislation enacted in 1986 lowered support prices, moved loan stocks into the trade, and changed quota setting to a more market-oriented approach. Still, major problems exist. Domestic tobacco product consumption continues to decline and the United States continues to face stiff competition in world markets, even with lower prices.

Suggested Citation

  • Grise, Verner N., 1989. "Tobacco: Background for 1990 Farm Legislation," Staff Reports 278847, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:278847
    DOI: 10.22004/ag.econ.278847
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    Cited by:

    1. Grise, Verner N., 1990. "The Tobacco Program and Its Effects," Food Review/ National Food Review, United States Department of Agriculture, Economic Research Service, vol. 13(1), March.
    2. Rebecca E. Shelton & Hallie Eakin, 2021. "Social and cultural bonds left to “the mercy of the winds:” an agricultural transition," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 38(3), pages 693-708, September.
    3. Green, Robert C., 1991. "Program Provisions for Rye, Dry Edible Beans, Oil Crops, Tobacco, Sugar, Honey, Wool, Mohair, Gum Naval Stores, and Dairy Products: A Database for 1961-90," Staff Reports 278865, United States Department of Agriculture, Economic Research Service.

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