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The Changing Political Environment for Tobacco—Implications for Southern Tobacco Farmers, Rural Economies, Taxpayers, and Consumers

Published online by Cambridge University Press:  28 April 2015

A. Blake Brown ,
William M. Snell  and
Kelly H. Tiller
A. Blake Brown
Affiliation:
Department of Agricultural and Resource Economics, North Carolina State University, Raleigh, North Carolina
William M. Snell
Affiliation:
Department of Agricultural Economics, University of Kentucky, Lexington, Kentucky
Kelly H. Tiller
Affiliation:
Agricultural Policy and Analysis Center, University of Tennessee, Knoxville, Tennessee
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Abstract

The farm level economic implications of the political turmoil surrounding tobacco are examined. Tobacco ranks first in crop receipts in the Southeastern United States. Free market advocates typically want to eliminate the tobacco program because of its cartellike nature. Health advocates want to maintain the program because it limits tobacco production. Cigarette manufacturers tolerate the program because of the political support they receive from program stakeholders. The effects of cigarette price increases with and without a program are examined. Whether or not the program is maintained in the face of declining tobacco demand has significant implications for Southern agriculture.

Keywords

cigarette pricehealth advocatespoliticalSouthern agriculturetobaccotobacco program
Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 31 , Issue 2 , August 1999 , pp. 291 - 308
Copyright
Copyright © Southern Agricultural Economics Association 1999

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