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Tobacco And The Economy: Farms, Jobs, And Communities

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

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.

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Paper provided by United States Department of Agriculture, Economic Research Service in its series Agricultural Economics Reports with number 34007.

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Date of creation: 2000
Date of revision:
Handle: RePEc:ags:uerser:34007
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  1. Beghin, John C. & Brown, A. Blake & Zaini, M. Hasyim, 1997. "Impact of domestic content requirement on the US tobacco and cigarette industries," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 15(3), January.
  2. 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.
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