Basic HTML Version
Cover Story
WhoPays
When Everybody
Quits
?
by
Charles F. Vinso n
T
RY TO
imagine chis wi ldly im–
probable situacion: Human iry
has suddenly and dramaricaJly
given up rhe use of al! tobacco prod–
uces
-
no more cigaretres, cigars,
snutf, or chewing robacco. Norhing.
For rhe firsr time since robacco was
inrroduced ro Europe from rhe New
World, rhere isn'r a smoke-fi lled
room ro be found.
Depending upon wherher or not
you smoke, this scenario could seem
eirher wonderful or downrighr disas–
rrous. Certainly many smokers would
sutfer reactions. Most would regain
rheir health. Bur whar would be rhe
immediare etfecr of such an unheard–
of acrion? Ir could trigger an enrire
chain reacrion of economic misery for
al! rhose involved in rhe robacco in–
dusrry.
Tbe Man at rhe Bo ttom
Suppose, for a momenr, rhar
you
own, or possibly lease, a smaJI farm -
noc more than, say, eighr or rwelve
acres in rhe stare of Kenrucky, che
heart of burley cobacco growing
counrry in rhe United Srates.
The land in your section of the
counrry is generally rolling, if nor
hi lly, and ir erodes easily. This fact
forces much of rhe land to remain in
sod much of rhe time. You simply
42
don'r have rhe financial resources nec–
essary ro invesr in more machinery
and manpower ro force rhat land inro
producrion. This leaves you wirh
abou t three or four workable acres of
land - average for that region.
Suppose, rhen, rhat someone shows
you
how ro produce a special crop
easily grown on your small acreage,
bur one thar will reap a cruly high,
guaranteed
profir on che marker.
Would you grow ir? Probably.
Tobacco is just such a crop, per–
fecdy sui ced ro much of rhe orherwise
difficulr-ro-make-a-living-on land com–
mon in large regions of the sourh–
easrern United Srares.
To sudden ly remove rhis crop
would be immediate economic sui–
cide for che rhousands of small farm–
ers who make rheir living by g rowing
rh is fifth largesr crop in Uniced Srares
agriculrure.
Why
So Profitable?
Tobacco produces a relarively high
income from a relarively small
amounr of land, primarily because -
in rhe Unired States, ar least - the
federal government srricdy controls
production and won't allow farmers
ro grow more than thei r
allotment.
The allormenr sysrem is pare of a rig–
idly guided program of agricultura]
price controls dating aU rhe way back
ro the early 1930's during rhe heighr
of che Grear Depression. The govern–
ment originally conrrolled the num–
ber of acres which could be plan red in
tobacco, but now regulares the crop
on a poundage basis. Thus rhe price
of robacco remains relatively con–
srant.
Anorher poinr in robacco's favor is
irs relative immuniry ro economic re–
cession or depression. During rhe re–
cen r recession in 1970, robacco
farmers were not hurr ar aU - in
spire of ami -smoking campaigns and
tighr money. Farmers simply pro–
duced all cheir quoras, the market was
guaranreed, and rhe profjrs rolled in.
But rhe mosr imporranr factor of
al! is robacco's value in comparison ro
orher crops, rhe basic reason ir re–
mains so economically viral ro small
farmers. In recenr years, mosr growers
could realize a ner profir - in flue–
cured robacco, for insrance- of $600
ro $700 per acre. This compares ro a
ner profi r of $32 per acre for corn, $37
per acre for soybeans, $113 per acre
for peanurs, and $20 per acre for cor–
con . The figures speak for rhemselves.
Tobacco is far in che lead as far as
value per acre is concerned, and on a
small farm, rhar is whac councs.
But back co our hyporherical siru-
PlAIN TRUTH
Jonuary
1973