Tobacco.org

U.S. Tobacco Sector Regroups 

The USDA tobacco program, a fixture in Southeast agriculture since the 1930s, was terminated at the end of the 2004 crop year. With the 2005/06 crop year underway, the tobacco sector is entering a new era of minimal government intervention. Growers and buyers of tobacco are adapting to changes triggered by the lifting of the restrictions, including a 27-percent decline in production. . . .

With the end of the tobacco program, U.S. tobacco production is likely to decline for a few more years. After this adjustment period ends, U.S. producers will be fewer in number, but they will be more competitive in domestic and world markets than previously. As prices fall, demand for U.S. tobacco will increase, and in the long run, production should slowly increase as well.

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