Tobacco Program's Production Rights and Effects on Competition

Pursuant to a congressional request, GAO reviewed certain aspects of the Agricultural Stabilization and Conservation Service's (ASCS) flue-cured and burley-cured tobacco programs to determine: (1) by occupation or source of income, the owners of tobacco allotments and quotas that are leased or rented; (2) the amounts and average costs of the leased or rented allotments and quotas; (3) the program's long-term effects on the competitiveness of U.S.-grown tobacco and on farmers' income; (4) the potential for averting future loan program costs by authorizing the Secretary of the Department of Agriculture (USDA) to adjust price-support levels for the various kinds of tobacco; and (5) the amount of the tobacco that warehouses market as floor sweepings.