Public health policies intended to reduce many forms of the bad effect of smoking-related illness which impact on a large number of businesses, workers, and cluster that related in tobacco industry. Recently,increases in Federal and state tax,limitation on smoking in public places,increases in price arise from legal settlements,and lower exports have impacted the tobacco industry.But most of affected are beyond the farm gate in about higher level such as, manufacturing,wholesale, and retail businesses.however some tobacco farms and their communities are in trouble managing the decreasing in demand of tobacco because they have no other choice of plant,they have specific equipment for tobacco,buildings,and also labour.Although the developing in economics of tobacco cultivated area will decrease effect from lost tobacco dollars,but in many communities,trust on tobacco income is still quite high.
The tobacco industry has extensively effects for the economy,not only farms and manufacturers but also wholesale business and retail stores,also the other businesses that supply intermediate goods,inputs, and services they're all rely on tobacco,including companies in several sectors ,for example, warehousing,paper,metal products,machinery manufacturing,advertising,transportation, and legal services.
The tobacco leaf which is the chief ingredient in cigarettes and other tobacco products is value accounted only 4 percent of each consumer spent on tobacco products in 1998,2.3 percent went to farmers,and about 1.7 percent stand for the valued of imported tobacco,most of the money that consumers spent on cigarettes went to businesses beyond the farm and to government tax,Manufacturing value-added accounted for 43 percent,federal and state tax revenues accounted for 26 percent, and wholesale,transportation,retail accounted for 21 percent of each spent on tobacco.
Most tobacco farms are having good financial condition compare with other crop,but they will have difficulty replacing lost income from tobacco.
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