Agricultural Restructuring Of Ontario Tobacco Production

Restructuring of specialized agricultural production systems is a widespread phenomenon in all developed economies. As such, fluecured tobacco production in southern Ontario is both typical in terms of its restructuring in response to capital intensification, but atypical in that restructuring has also occurred as a result of official pressures to reduce domestic cigarette consumption. This paper first describes rapid initial growth of the Ontario flue-cured tobacco sector from 1920 to its adoption of supply management in 1957. It then examines the two subsequent periods of restructuring: the first from 1957 to 1981 characterized by mechanization, intensification and inelastic market conditions; the second period from 1981 to the present, marked by the additional pressures of anti-smoking campaigns and legislation. While restructuring has affected all the areas of tobacco production, evidence suggests that peripheral and outlying regions have experienced the greatest reductions in farm numbers and tobacco acreage. A particular aspect of the restructuring has been how the state and individuals respond to the forces of restructuring. The dominant response in the Ontario tobacco sector has been to identify alternative agricultural enterprises. The paper reviews the state sponsored programs and summarizes the results of two tobacco sector case studies that investigated farmer responses to restructuring in the post 1981 period.