Tobacco outlook hinges on U.S. buyout

Hollis, Paul L.
October 2004
Southeast Farm Press;10/20/2004, Vol. 31 Issue 24, p2
Trade Publication
The article focuses on the U.S. tobacco program. If the program ends, U.S. flue-cured production could increase towards a level of 800 million pounds over the next two to three years. Many flue-cured farmers would exit production with the end of the program. The pace of consolidation of production units would increase, resulting in fewer farms, but in larger aggregate U.S. production. Price would decline to under $1.50 per pound within one to two years and could decrease toward $ 1.25 as production expanded. In addition, world production of fluecured tobacco would not likely expand substantially,


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