Tobacco is an important part of the United States Economy. There is no other crop that has a higher income per acre ratio. There is also no other commercial product that causes more deaths to it's users. Tobacco is a great benefit to our economy but it comes at a high price. The health of our nation.
In 1992 Tobacco Generated 40% of the net returns on Kentucky farms, but only took up 1% of the farmland. The huge acreage to net income ratio makes tobacco not only profitable to the farmers but also to the economy. There are around 124,000 tobacco farmers in America today. An average acre on a tobacco farm makes approximately $5000.00 for the farmer and $70,000 for the United States government in taxes. In 1996 alone the value of the total tobacco crop in America was estimated to be $2.85 billion. (
The way the tobacco industry works is unique from other agricultural industries. Tobacco is grown on farms which are typically small and family run. For the most part these farms are found in the south-east region. When the crop is ready to be sold , farmers take the tobacco to a tobaccowarehouse. At the warehouse the tobacco is weighed and stacked in piles. After it id weighed government graders set the minimum price for the farmers tobacco. After that, tobacco companies can either bid over the minimum price or refuse it. If the price is refused by the tobacco companies it is bought by government co-ops at the minimum price set by the graders. Once all the tobacco has been sold the warehouse pays the farmers directly for all the tobacco they brought and the tobacco companies pay the warehouse for all the tobacco they have bought. This system ensures that the tobacco farmers get paid for their crop. This also creates a strong sense of stability in their crop for the farmers. (
Tobacco Farmers curren…

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