Saturday, March 28, 2009

The Tobacco Story, Continued

House Ag held a hearing on the tobacco industry. Skimming the prepared testimony, it seems the numbers of farmers are down (from 8,000 to 3,000 in NC, a 72 percent drop in KY to 8,000), but flue-cured is more competitive with Brazil. It fits with the impressionistic evidence from newspapers--the old tobacco programs did their job of slowing the process of change, keeping more people in tobacco growing. Ending the program looks to have speeded change, made the industry more competitive but more volatile. And the program wasn't keeping prices down and encouraging smoking.

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