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The Changing Political Environment For Tobacco -- Implications For Southern Tobacco Farmers, Rural Economies, Taxpayers, And Consumers

Author

Listed:
  • Brown, A. Blake
  • Snell, William M.
  • Tiller, Kelly

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 cartel-like 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.

Suggested Citation

  • 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(02), August.
  • Handle: RePEc:ags:joaaec:15387
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    File URL: http://purl.umn.edu/15387
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    References listed on IDEAS

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    1. Baltagi, Badi H & Levin, Dan, 1986. "Estimating Dynamic Demand for Cigarettes Using Panel Data: The Effects of Bootlegging, Taxation and Advertising Reconsidered," The Review of Economics and Statistics, MIT Press, vol. 68(1), pages 148-155, February.
    2. Beghin, John & Chang, Ruey-er, 1992. "Differentiated products and supply controls in the analysis of agricultural policy reform: the case of tobacco," Agricultural Economics, Blackwell, vol. 7(3-4), pages 301-315, October.
    3. Wasserman, Jeffrey & Manning, Willard G. & Newhouse, Joseph P. & Winkler, John D., 1991. "The effects of excise taxes and regulations on cigarette smoking," Journal of Health Economics, Elsevier, vol. 10(1), pages 43-64, May.
    4. Rezitis, Anthony N. & Brown, A. Blake & Foster, William E., 1998. "Adjustment costs and dynamic factor demands for U.S. cigarette manufacturing," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 18(3), May.
    5. Lewit, Eugene M. & Coate, Douglas, 1982. "The potential for using excise taxes to reduce smoking," Journal of Health Economics, Elsevier, vol. 1(2), pages 121-145, August.
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    Cited by:

    1. Kelly J. Tiller & Shiferaw T. Feleke & Jane H. Starnes, 2010. "A discrete-time hazard analysis of the exit of burley tobacco growers in Tennessee, North Carolina, and Virginia," Agricultural Economics, International Association of Agricultural Economists, vol. 41(5), pages 397-408, September.

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