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With a farm value in 2001 of $1.9 billion, tobacco is the United States' ninth largest cash crop. The United States is fourth behind China, Brazil, and India in world production, and second behind Brazil in exports. ERS economists analyze U.S. supply, demand, prices, and trade for tobacco and review the effects of tobacco policy and regulation on tobacco farmers.


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Trends in the Cigarette Industry After the Master Settlement Agreement describes the Master Settlement Agreement between cigarette manufacturers and States' attorneys general and provides readers with insights into changes in the cigarette industry since the agreement was signed. Cigarette companies have boosted prices as a result of payments required by the settlement. Higher prices have curtailed consumption, although not as much as originally expected. The long-term decline in cigarette consumption due to non-economic factors continues as well.

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updated: March 4, 2003

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