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Abstract

Tobacco is grown in 21 States on about 200,000 farms. Several types and kinds are grown, but flue-cured and burley account for more than 90 percent of total production. U.S. tobacco faces stiff competition. Because of high U.S. support prices, the strong dollar and other factors, exports have declined and imports have risen during the last decade. Despite marketing quota cutbacks, loan stocks have risen sharply. Consumption of tobacco products has stabilized because of higher prices and health concerns. Three laws were enacted in 1982 and 1983 affecting the tobacco program. Growers, rather than taxpayers, now bear most of the costs of operating the program. Other changes included price support and quota ownership modifications. Despite the changes, major issues, such as U.S. ability to compete in the world tobacco market, remain.

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