NAICS 111910 Quarterly Industry Report
Tobacco Farming
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 111910Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry profile for NAICS 111910 provides business owners, buyers, and valuation professionals with sector-specific benchmarks and market context for tobacco farming operations. Additional data is drawn from Bureau of Labor Statistics[4], U.S. Census Bureau[5].. Content is compiled from USDA NASS[2] crop production reports, USDA ERS[3] tobacco market analysis, and SBA[6] regulatory filings to support informed valuation and transaction analysis.
Industry Snapshot
Key metrics for the tobacco farming industry.
NAICS Sector
11
Agriculture, Forestry, Fishing and Hunting
Industry Definition & Overview
Tobacco Farming (NAICS 111910) encompasses establishments primarily engaged in growing tobacco, including flue-cured, burley, dark air-cured, fire-cured, and other tobacco types [1]. The United States produced roughly 432 million pounds of tobacco in 2023, with a total crop value near $1 billion, continuing a long-term production decline from peak levels that once exceeded two billion pounds annually [2]. North Carolina and Kentucky together account for about 77 percent of domestic output, with Virginia, Tennessee, Georgia, and South Carolina[2] representing most of the remaining production. The U.S. tobacco crop is primarily consumed by domestic cigarette and smokeless tobacco manufacturers, with export markets absorbing a portion of the flue-cured and burley harvest.
The tobacco farming sector has contracted substantially over the past several decades following the elimination of the federal tobacco quota and price support program in 2004, declining cigarette consumption driven by public health campaigns and regulatory pressure, and consolidation of leaf buying among a small number of global tobacco companies. Remaining operations tend to be experienced producers with established buyer relationships and efficient production practices, operating on farms that have grown larger as smaller growers have exited. Tobacco remains one of the highest-value crops per acre in the southeastern United States, generating farm-gate returns that can exceed $4,000 per acre in favorable years. Per USDA ERS[3] analyses, the industry faces ongoing uncertainty from shifting consumer preferences, potential federal regulation of nicotine levels, and competition from imported leaf tobacco sourced from lower-cost producing countries including Brazil, Malawi, and Zimbabwe.
What's Included in This Industry
- Flue-cured tobacco farming operations
- Burley tobacco farming
- Dark air-cured tobacco production
- Fire-cured tobacco farming
- Oriental and specialty tobacco growing
- Cigar wrapper tobacco cultivation
- Shade-grown tobacco operations
- Other tobacco type farming
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Agriculture, Forestry, Fishing and Hunting | 11 |
| Subsector | Crop Production | 111 |
| Industry Group | Other Crop Farming | 1119 |
| NAICS Industry | Tobacco Farming | 11191 |
| National Industry | Tobacco Farming | 111910 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 111998 | All Other Miscellaneous Crop Farming | All other miscellaneous crop farming operations where former tobacco farmers have diversified into alternative specialty crops following production declines |
| 111930 | Sugarcane Farming | Sugarcane farming operations that share comparable southeastern U.S. growing regions and face similar agricultural labor availability challenges |
| 111920 | Cotton Farming | Cotton farming operations concentrated in the southeastern United States that compete for the same agricultural land and seasonal labor resources |
| 115111 | Cotton Ginning | Cotton ginning services operating in tobacco-growing regions that provide broader agricultural processing infrastructure for southeastern farming operations |
| 115114 | Postharvest Crop Activities (except Cotton Ginning) | Postharvest crop activities including tobacco curing, grading, sorting, and baling services that support farm-to-buyer leaf preparation processes |
| 111140 | Wheat Farming | Wheat farming operations that represent an alternative crop rotation option for tobacco farmland transitioning to grain production in mid-Atlantic states |
Frequently Asked Questions
Common questions about this industry.
What types of tobacco are classified under NAICS 111910?
NAICS 111910 covers all tobacco farming operations including flue-cured (the most common type used in cigarettes), burley, dark air-cured, fire-cured, Oriental, cigar wrapper, and shade-grown tobacco [1]. The U.S. Census Bureau[9] classifies all tobacco cultivation under this single code regardless of curing method or end-use application.
What is the SBA size standard for tobacco farming?
The SBA sets the small business size standard for NAICS 111910 at $2.5 million in average annual receipts [3]. This relatively low threshold reflects the concentrated nature of the tobacco production sector. Per SBA regulations[10], receipts are calculated as a multi-year average of gross annual income, and farms meeting this standard qualify for federal small business contracting preferences and lending programs.
How large is the U.S. tobacco farming industry?
The United States produced roughly 432 million pounds of tobacco in 2023, with a total crop value near $1 billion [2]. Per USDA NASS[2] production data, this represents a substantial decline from peak production levels that once exceeded two billion pounds annually. North Carolina and Kentucky together account for about 77 percent of national output.
What happened to the federal tobacco program?
The federal tobacco quota and price support program, which had regulated production levels and guaranteed minimum prices since the 1930s, was eliminated in 2004 through the Fair and Equitable Tobacco Reform Act. Quota holders received a $10.14 billion buyout funded by tobacco product assessments. Per USDA ERS[3] policy analysis, the elimination of quotas accelerated farm consolidation and shifted pricing to a contract-based system where leaf companies negotiate directly with growers, fundamentally changing the business model for tobacco farmers.
What factors affect tobacco farm valuation?
Key valuation factors include productive acreage and soil quality suited for tobacco cultivation, barn and curing infrastructure capacity and condition, irrigation equipment, established buyer contracts with leaf dealers or manufacturers, proximity to auction markets and leaf processing facilities, and historical yield and quality grade records. Farms with long-standing relationships with major leaf buying companies typically command premium valuations compared to operations without contracted sales.
What is the revenue per acre for tobacco farming?
Tobacco consistently ranks among the highest-value field crops on a per-acre basis in the southeastern United States, with farm-gate returns that can exceed $4,000 per acre in favorable production years. Net returns after production costs vary based on tobacco type, yield, quality grade, and contract pricing. The USDA Risk Management Agency[11] provides crop insurance coverage that helps stabilize farm income against weather-related production losses and quality downgrades.
How has declining cigarette consumption affected tobacco farmers?
Declining U.S. cigarette consumption driven by public health campaigns, smoking bans, higher excise taxes, and alternative nicotine products has reduced domestic leaf demand over the past two decades. Many smaller tobacco farmers have exited the industry, while remaining producers have increased farm size and improved production efficiency to maintain economic viability. Some farmers have diversified into alternative crops or transitioned partially to other high-value specialty crops while maintaining reduced tobacco acreage.
What role do tobacco exports play in the industry?
The United States exports a portion of its tobacco crop, primarily flue-cured and burley leaf, to international manufacturers. Export volumes have declined as global manufacturers have shifted purchasing toward lower-cost producing countries including Brazil, Malawi, Zimbabwe, and India. Per the USDA Foreign Agricultural Service[12], U.S. tobacco export competitiveness depends on the premium quality characteristics of domestically grown leaf, particularly for cigarette blending purposes where American flue-cured and burley tobacco remain valued for their specific flavor and burning properties.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]Virginia, Tennessee, Georgia, and South Carolina nass.usda.gov
- [3]USDA ERS ers.usda.gov
- [4]Bureau of Labor Statistics bls.gov
- [5]U.S. Census Bureau census.gov
- [6]SBA sba.gov
- [7]SBA 7(a) loans sba.gov
- [8]504 loans sba.gov
- [9]U.S. Census Bureau census.gov
- [10]SBA regulations sba.gov
- [11]USDA Risk Management Agency rma.usda.gov
- [12]USDA Foreign Agricultural Service fas.usda.gov
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