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Production Costs and Returns for Tobacco in 2003

  • by Linda Foreman
  • 5/13/2005
  • TBS-25801

Overview

Average net returns per acre were estimated to be negative for burley and flue-cured tobacco in 2003. Total economic costs for burley and flue-cured tobacco production likely rose in 2003 from 2002 due to higher costs for energy, labor, and quota rental rates. Cost estimates are computed using production data from the last tobacco surveys, conducted in 1995 for burley tobacco and 1996 for flue-cured tobacco, and 2003 data on prices, yields, marketing costs, and quota levels.

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