|The tobacco industry in the USA is privatized; however, the Burley Tobacco Growers Cooperative Association uses the government's help. The cooperative, with 150,000 members and established in 1941, is able to borrow funds from the government to advance loans to burley growers in amounts based on certain qualities and characteristics of the tobacco being marketed. All loans are repaid (10). Buyers are willing to pay higher prices based on the quality of the different types of burley tobacco and the government distorts these prices by implementing policy tools to support domestic farm incomes or to improve their tobacco's competitive position (34). The cooperative administers the price support program for burley tobacco type 31 in Kentucky, Ohio, Indiana, Missouri and West Virginia (10).
The USA produces the highest quality burley tobacco in the world plus is the largest producer and exporter (34).
- The basic quota was 453 million pounds, down 28.8% from 638 million pounds in 1998.
- Cigarette exports and production for the domestic market are declining with production at about 665 billion pieces, down from 714 billion pieces in 1998.
- Exports are declining at about 200 billion cigarettes, down from 229 billion in 1998.
- Production for the domestic market was about 433 billion cigarettes, down from 465 billion in 1998 (8).