Burley tobacco revolutionized the industry in east Tennessee and western North Carolina. What started from two farmers planting white burley in Greeneville ignited an agricultural revolution and significantly changed crops, production and quality. By the 1990s, burley tobacco production int he region had drastically declined, and it is a tradition that few local farmers still practice.
The 2004 Fair and Equitable Tobacco Reform Act, commonly referred to as the Tobacco Buyout Program, ended the federal tobacco program. This act ended price supports and quotas, and also ended reporting requirements. The tobacco industry is now faced with new challenges in tobacco production as they have scant information to base production decisions on. The 2006 Burley Tobacco Survey provides an initial outlook of future production, challenges, trends and expectations. The results from the survey were used to analyze future production decisions. An ordered logit model reveals that producers who received prices of $1.65/lb or more, have farms in excess of 250 acres, received less than 10 percent of total gross farm receipts from tobacco, are 34 years old or younger, or have a graduate or professional degree are more likely to continue burley tobacco production in 2007. Farmers with gross agricultural receipts of $9,999 or less, those who make higher amounts in terms of net household income, and those producers who are from North Carolina are less likely to continue production in 2007.
This thesis addresses the Burley Tobacco Buyout Program and its impact on three local economies. Data collection involved obtaining information from government reports, internet sources, public documents, agriculture offices, federal agriculture officials, and books. Personal interviews were conducted with 32 farmers in Sullivan County, Tennessee; Washington County, Virginia; and Watauga County, North Carolina. This study is significant because it addresses not only the decline of an agricultural product but also changes in a way of life in Southern Appalachia. The future of burley tobacco growing in this region appears to be bleak because of foreign market competition and decreasing domestic demand. From the personal interviews, many farmers had already abandoned tobacco production and older respondents were often planning to stop all farming practices. Specifics of the federal government-mandated Buyout Program to compensate quota holders and growers are presented, as well as the experiences and opinions of farmers regarding this program.
