Crop diversification in the world’s top tobacco producers can lower smoking rates in low-income countries, but infrastructure limitations and industry subsidies make it a hard pitch to sell to farmers, according to the World Health Organization (WHO).
Does the government help farmers?
The federal government spends more than $20 billion a year on subsidies for farm businesses. The government protects farmers against fluctuations in prices, revenues, and yields. It subsidizes their conservation efforts, insurance coverage, marketing, export sales, research, and other activities.
Why do farmers grow tobacco a qualitative exploration of farmers perspectives in Indonesia and Philippines?
This qualitative study provides insights into the reasons why farmers continue to grow tobacco in the Philippines and Indonesia. Farmers were of the view that tobacco is the only viable crop because of its perceived high profits, available markets, and resilience to adverse weather conditions.
Is tobacco expensive to grow?
Tobacco would remain relatively profitable at considerably lower prices or yields than pertained in 2001. However, even for farmers in suitable agro-ecological areas, tobacco is expensive to grow, with high up-front costs and high labor requirements.
Is Growing tobacco labor intensive?
Tobacco had other advantages. Its cultivation rapidly depleted the soil of nutrients. Another advantage of cultivating tobacco was, although the crop was labor intensive, the labor need not be skilled.
Is tobacco farming profitable?
This study finds that tobacco is a highly profitable cash crop for both large and small farmers. Tobacco would remain relatively profitable at considerably lower prices or yields than pertained in 2001.
Why do farmers shift from tobacco to other crops?
Farmers who shift to other crops grow their household resources by growing other crops, usually food crops both to consume and to sell, as well as taking on off-farm labor because they are emancipated from the enormous labor burden of tobacco growing.
When did the government stop subsidizing the tobacco industry?
After subsidizing the tobacco industry since the Great Depression, the federal government ended financial support in 2004, when the Equitable Tobacco Reform Act offered $10.1 billion in buyouts to encourage tobacco farmers to switch crops. But the results have been surprising.
How much money did farmers make growing tobacco?
Others used the cash to expand by acquiring other farms or investing in new technology. The average farmer received $17,358 over 10 years from TTPP, according to a study by NCSU’s Brown. Tobacco manufacturers such as Altria Group, Reynolds American and Lorillard paid the bill.
Why is the demand for tobacco so low?
The reduced demand for tobacco should be a signal to the agriculture department to encourage farmers to look for alternative crops. Chaturvedi said that the agriculture department needs to help farmers diversify their crop production, give them the initial money needed to grow the crop and fix a minimum support price for these alternate products.