Tobacco Acreage Diminishes

Source from:  tobaccojournal.com 28 Sep 2008 10/07/2008

Tobacco acreage in South Carolina has declined by more than half between 1993 and 2007. According to the state's department of agriculture, tobacco acreage declined from 52,000 acres to 20,500 acres over the last 14 years. In 2004, government price supports ended and tobacco giants Philip Morris and R.J. Reynolds negotiated prices with farmers upfront. In addition, a growing tide of smoking bans and persistent efforts to raise the cigarette tax have also contributed to this downward trend. Moreover, South Carolina's cigarette tax of USD 0.07 (EUR 0.05) - the lowest in the country - is unlikely to last. INdustry experts expect an increase of up to USD 0.50 a pack in the coming year. Enditem