Tobacco buyout

Tobacco buyout

Tobacco Buyout is an informal, popular phrase used in the United States to refer to the Fair and Equitable Tobacco Reform Act, which was part of the American Jobs Creation Act, signed into law by President George W. Bush in October, 2004. The Tobacco Buyout ended the formal system of production restraints and price supports for tobacco leaf established by the Agricultural Adjustment Act in 1938. With the end of the federal tobacco program, the price of U.S. leaf declined by about 25 percent and the total output of U.S. tobacco has increased, as U.S. leaf has become more competitive on the global market.


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