Skip Navigation

This Article
Right arrow Abstract Freely available
Right arrow FREE Full Text (PDF) Freely available
Right arrow E-letters: Submit a response
Right arrow Alert me when this article is cited
Right arrow Alert me when E-letters are posted
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Similar articles in this journal
Right arrow Similar articles in ISI Web of Science
Right arrow Similar articles in PubMed
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrowRequest Permissions
Right arrow Disclaimer
Google Scholar
Right arrow Articles by Zaccaro, D. J.
Right arrow Articles by Altman, D. G.
Right arrow Search for Related Content
PubMed
Right arrow PubMed Citation
Right arrow Articles by Zaccaro, D. J.
Right arrow Articles by Altman, D. G.
Social Bookmarking
 Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

Health Education Research, Vol. 15, No. 2, 175-180, April 2000
© 2000 Oxford University Press

Tobacco growers' knowledge of revenue distribution and foreign prices: implications for health education

Daniel J. Zaccaro and David G. Altman

Department of Public Health Sciences, Wake Forest University School of Medicine, Medical Center Boulevard, Winston-Salem, NC 27157-1063, USA


    Abstract
 Top
 Abstract
 Introduction
 Methods
 Results
 Discussion
 References
 
This study examined tobacco growers' knowledge of tobacco economics, particularly their knowledge of how tobacco revenue is distributed and their knowledge of the price of foreign tobacco. Tobacco growers (n = 1236) from 14 tobacco-dependent counties in North Carolina were interviewed by telephone and asked to estimate how much of a hypothetical $2.00 for a pack of cigarettes is received by each of four market segments: tobacco growers, retailers, government and manufacturers. Respondents were also asked to estimate the price of foreign raw tobacco. USDA data were used to assess the accuracy of the respondents' estimates. Respondents were within the `correct' range as follows: growers 31%, retailers 15%, government 23%, manufacturers 43% and foreign prices 25%. Knowledge was positively related to education and farm size for the growers' share and foreign tobacco prices. Knowledge of the government's and manufacturers' shares was positively associated with younger age. North Carolina growers lacked knowledge of the distribution of the tobacco dollar. This may influence the positions that growers take on health policy and provide significant opportunities for health educators to become involved in grassroots efforts to educate growers.


    Introduction
 Top
 Abstract
 Introduction
 Methods
 Results
 Discussion
 References
 
Tobacco growers are an influential constituent of the tobacco industry (Altman and Goldstein, 1998Go; Zhang and Husten, 1998Go). Historically, growers have often aligned themselves with tobacco manufacturers to defeat proposed public health legislation and regulation. Farmers' knowledge of tobacco issues, currently unknown, could impact the positions they take on tobacco-related initiatives such as excise tax increases (Altman et al., 1996Go, 1997Go) and on partnerships they develop. If growers are misinformed about tobacco-related issues, the influence they have may be misdirected. In the absence of knowledge, tobacco growers could take public positions that do not serve them or the public very well. Thus, it is important that growers have knowledge about health and economic issues. In addition, previous work (Altman et al., 1998Go) has shown that education is positively associated with having an interest in or taking action to diversify a crop base.

This study ascertained whether growers had knowledge of tobacco-related issues that impact directly on their livelihood. Specifically, we examined the association between sociodemographic factors and growers' knowledge of: (1) how each segment of the tobacco industry shared the retail tobacco dollar and (2) foreign tobacco prices. Since 1997, public health professionals have increasingly worked with tobacco farmers on issues related to the proposed national tobacco settlement. Data from the current study will help public health workers better understand where opportunities for educational intervention with tobacco growers lie.


    Methods
 Top
 Abstract
 Introduction
 Methods
 Results
 Discussion
 References
 
This study was approved by the Wake Forest University School of Medicine Institutional Review Board. The sampling methods of this study have been reported previously (Altman et al., 1998Go). From January to April 1997, 1236 flue-cured tobacco farmers in 14 tobacco-dependent counties in Eastern North Carolina were interviewed (response rate was 91.2%). This report focused on two questions posed to tobacco growers:

  1. The following four groups make money on tobacco sales (manufacturers, government, retailers and growers). Assuming that a pack of cigarettes costs $2.00, how much goes to each of these groups?
  2. In 1995, what price per pound would you estimate that farmers overseas received for their flue-cured tobacco?
We selected these two questions because knowledge of the underlying distribution of tobacco money is a key determinant of the decisions made by tobacco farmers about their farm operations. Furthermore, we believe that the reduction in the proportion of tobacco income going to growers and foreign competition are the key threats to the future of US tobacco growers. The first question yielded four dependent variables, one estimate for each constituency or market segment (growers, retailers, government and manufacturers) of tobacco retail money. For each market segment of the tobacco industry, respondents were asked to either answer `don't know' or give their best estimate of how much that sector receives. The question pertaining to foreign tobacco prices also yielded `don't know' responses or an estimate of the price (US$).

Using USDA data (Gale, 1997Go; Grise, 1998Go), we obtained estimates of the actual amount of retail money that went to each market segment from 1980 to 1995. Table IGo reports estimates for selected years and cut points for classifying respondents' accuracy. Respondents' estimates were categorized as `don't know', `underestimate', `overestimate' or `correct'. By making the cut points at least as extreme as the most extreme estimates based on USDA data, we made it more likely that responses were `correct' (a conservative approach). For example, if a respondent was below the lowest cut point for what manufacturers receive from a $2.00 pack of cigarettes, that response was classified as an `underestimate'. If a respondent gave an estimate that was between the lowest and highest cut points, that response was considered `correct'.


View this table:
[in this window]
[in a new window]
 
Table I. Estimates of the shares of a $2.00 pack of cigarettes that went to each sector for 3 years (cutpointsa for classifying respondents' accuracy were based upon the extremes of actual shares)
 
The average price of flue-cured tobacco from Zimbabwe in 1996 ($1.33/lb) was considered the standard for foreign tobacco prices. Of the top tobacco growing countries in the world, Brazilian tobacco had the lowest price in 1996/1997 ($1.05/lb) (Capehart, 1998, pers. commun.). Although no foreign tobacco prices deviated substantially above the Zimbabween price, we chose $1.50/lb as the upper cut point. The `correct' range for foreign tobacco prices, $1.00–1.50, was more extreme than estimates from data available, making it easier for respondents to be `correct'.

The independent variables were: age group (<40, 41–59, >60), education level (less than high school, high school graduate, some college, college graduate), farm size (<24 acres, >24 acres) and personal tobacco use (yes/no).

The association between independent variables and respondents' knowledge was assessed first with two sets of {chi}2 tests of independence. Omnibus tests of significance were used to assess whether any differences existed among any of the four response levels. Binary outcome tests (lumping the `underestimate', `overestimate' and `don't know' responses into `not correct') were conducted to clarify the differences between two important categories, `correct' and `not correct'.

Stepwise log-linear models were employed to assess which independent variables were the most important predictors of knowledge. The most significant independent variable from univariate log-linear models was entered into the log-linear model first. After adjustment for the first variable, the remaining explanatory variables were tested for their association with the knowledge variable. This was repeated until no other explanatory variables were significant at the {alpha} = 0.05 significance level. Log-linear models were utilized for both omnibus and binary outcomes. Statistical analyses were conducted using the SAS system ({chi}2 tests) and the BMDP 4F system (log-linear models).


    Results
 Top
 Abstract
 Introduction
 Methods
 Results
 Discussion
 References
 
Education, farm size and age were associated with knowledge of the growers' share of the tobacco dollar for both omnibus and binary tests (all P < 0.001; Table IIGo). Education, farm size and age remained significant predictors of knowledge of growers' share in omnibus tests using stepwise log-linear models (all P < 0.05). After adjustment for education and farm size in binary tests using log-linear models, age was no longer significant. Higher percentages of correct responses were observed with higher education levels, larger farm size and younger age.


View this table:
[in this window]
[in a new window]
 
Table II. Knowledge of growers with respect to how a hypothetical $2.00 pack of cigarettes is distributed in (%)
 
Knowledge of the retailers' share was associated with age and education level in omnibus tests (P < 0.001). Both education and age remained significant predictors of knowledge after adjustment for each other in omnibus tests using log-linear models (P < 0.001).

Age and education levels were predictive of knowledge of the government's share in omnibus tests and remained significant after adjustment for each other in log-linear models (P < 0.001). Only age remained significant in log-linear models of government's share (P = 0.003) in binary tests.

Personal tobacco use, education and age were significant predictors of knowledge of manufacturers' share after adjustment for each other in omnibus tests using log-linear models (P < 0.05). Only age was a significant predictor of knowledge of manufacturers' share in binary tests (P < 0.05). Younger age groups had a higher percentage of `correct' responses.

Knowledge of foreign tobacco prices was associated with education, farm size and age in omnibus tests (all P < 0.001) and binary tests (all P < 0.005), but only education and farm size remained significant in stepwise log-linear models. Respondents with more education and larger farms were `correct' more often about foreign tobacco prices than those with less education or smaller farms.


    Discussion
 Top
 Abstract
 Introduction
 Methods
 Results
 Discussion
 References
 
Younger age, higher levels of education and larger farm size were associated with growers' knowledge of the distribution of retail tobacco money. Importantly, we found that a minority of tobacco growers could accurately report how retail tobacco sales money was distributed, despite the wide ranges of what was considered a `correct' response. Similarly, we found that few growers had knowledge of the price of foreign tobacco. This is important because foreign production of high quality, inexpensive tobacco is one of the primary threats to the future of American tobacco farmers. Because the positions that growers take on tobacco-related health issues are impacted by their knowledge, their influence on tobacco and health issues could be misdirected. If growers were more aware of how retail tobacco money was distributed (e.g. growers and government receive less and manufacturers receive more of the retail dollar than they estimate), their position on health initiatives might change. For example, a cornerstone of effective public health policy is to increase tobacco excise tax as this will reduce tobacco use and in some cases (through earmarking) could assist tobacco-dependent communities. Growers have uniformly opposed increases in excise taxes on tobacco unless the tax is small (e.g. 5 cents) and farmers get all of the proceeds (Altman et al., 1996Go). If growers were more aware of the threat of foreign tobacco and their own decreasing share of the tobacco retail money, they might support an increase in excise taxes to provide assistance for tobacco-dependent communities.

The study has some limitations. Only 14 counties in North Carolina were included and thus these findings may not be generalizable to the total population of tobacco farmers. In classifying responses as `correct' or `not correct', we used a wide range of values that may have increased the proportion of `correct' responses. This approach, however, may have overestimated the proportion of growers who provided `correct' responses, providing a conservative test of growers' knowledge. Lastly, we have no direct evidence that a change in knowledge would result in a change in growers' behavior.

Recently, policy makers involved in tobacco settlement-related discussions have promoted diversification and economic development for tobacco-dependent communities. In North Carolina, for example, approximately half the state settlement ($2.5 billion) has been allocated to support tobacco-dependent communities. This state settlement, combined with a national settlement with the tobacco companies making $5.1 billion available for tobacco farmers and tobacco-dependent communities, illustrates the growing national interest in helping tobacco-dependent communities transition to new economies. As specific proposals to allocate resources are considered, it is critical that individual growers and their organizational representatives participate in these discussions from an informed position. Indeed, if the majority of growers are misinformed, as we found in this study, the likelihood that misdirected programs and policies will be enacted increases. There are numerous potential constituencies in a position to educate growers, but our study illustrates that if education is being delivered, it is not affecting growers' knowledge of one important aspect of the underlying economics of tobacco (i.e. the distribution of tobacco-generated money).

Historically, health educators have had little interaction with tobacco farmers. Recent discussions between the public health community and tobacco farmers (Altman and Goldstein, 1998Go) have begun to break down some of the barriers that have existed between these communities for many years. As a result of the positive relationships that have emerged from these early interactions, the viability of involving health educators in programs to educate tobacco growers and tobacco-dependent communities has grown. Health educators, with their knowledge of tobacco, behavior change and community development, are uniquely positioned to help growers improve their understanding of tobacco and health issues and build bridges that are mutually beneficial. A clear priority for these interactions is to inform farmers about the flow of tobacco money and the threat of foreign tobacco production. Our study illustrates that there is great potential for health educators to help thousands of residents of hundreds of communities in the tobacco South survive a dramatically different set of economic conditions.


    Acknowledgments
 
This research was supported by grant NIH RO1 CA67838-02 from the National Cancer Institute.


    References
 Top
 Abstract
 Introduction
 Methods
 Results
 Discussion
 References
 
Altman, D. G. and Goldstein, A. O. (1998) The Federal Tobacco Price Support Program and Public Health. Center for the Study of the American South, University of North Carolina, Chapel Hill, NC.

Altman, D. G., Levine, D. W., Howard, G. and Hamilton, H. (1996) Tobacco farmers and diversification: opportunities and barriers. Tobacco Control: An International Journal, 5, 192–198.[Abstract]

Altman, D. G., Levine, D. W., Howard, G. and Hamilton, H. (1997) Tobacco farming and public health: attitudes of the general public and farmers. Journal of Social Issues, 53, 113–128.

Altman, D. G., Zaccaro, D. J., Levine, D. W., Austin, D., Stephensen, C., Bailey, B., Sligh, M., Cohn, G. and Dunn, J. (1998) Predictors of crop diversification: a survey of tobacco farmers in North Carolina (USA). Tobacco Control: An International Journal, 7, 376–382.[Abstract/Free Full Text]

Gale, F. (1997) Tobacco Dollars and Jobs. US Department of Agriculture, Washington, DC.

Grise, V. N. (1998) The Changing Tobacco User's Dollar. US Department of Agriculture, Washington, DC.

Zhang, P. and Husten, C. (1998) Impact of the Tobacco Price Support Program on tobacco control in the United States. Tobacco Control: An International Journal, 7, 176–182.[Abstract/Free Full Text]

Received on February 23, 1999; accepted on June 22, 1999


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?



This Article
Right arrow Abstract Freely available
Right arrow FREE Full Text (PDF) Freely available
Right arrow E-letters: Submit a response
Right arrow Alert me when this article is cited
Right arrow Alert me when E-letters are posted
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Similar articles in this journal
Right arrow Similar articles in ISI Web of Science
Right arrow Similar articles in PubMed
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrowRequest Permissions
Right arrow Disclaimer
Google Scholar
Right arrow Articles by Zaccaro, D. J.
Right arrow Articles by Altman, D. G.
Right arrow Search for Related Content
PubMed
Right arrow PubMed Citation
Right arrow Articles by Zaccaro, D. J.
Right arrow Articles by Altman, D. G.
Social Bookmarking
 Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?