Tobacco's share of farm income goes up and down because of weather, the size of annual production quotas set by a price-support program and other factors. But the figure now remains close to mid-1970s levels. In 1964, tobacco made up 47 percent of farm income. As other crops, such as corn and soybeans, became more important, tobacco's share of farm income dropped to 28 percent in 1975. It was the same in 1984.
Tobacco still provides the best net return of any crop, economists say.
A 1997 UK study said it would take 100 acres of corn to equal the net return of five acres of tobacco. That makes the crop attractive, even to small farmers. In turn, tobacco keeps small farms in business. Without tobacco to prop up small farms, the pace at which they slide into subdivisions or other development probably would quicken, said Hal Hamilton, director of the Center for Sustainable Systems in Berea. Small farmers often are the focus during discussions about protecting growers from the effects of the tobacco settlement.