Large numbers of people are still employed in production, marketing, and processing of flue-cured tobacco in eight agricultural subregions in five southeastern states. Mechanization and new technology which is being introduced could result in substantial economic and social problems unless new economic opportunities are developed. However, mechanization has been slowed down by government tobacco programs, which limit acreage and production, and by the uncertain demand for future tobacco products. In 1967, about 295 million man-hours of labor were needed to produce the flue-cured tobacco crop, but if current technological methods were adopted this could be reduced by one-half. A mechanical harvesting system requires a $52,000 outlay for a 40-acre tract. Mechanization would affect 84,000 commercial tobacco farms with over 350,000 residents. In 1966 about 4.1 million residents resided in the area under study. As mechanization releases farm workers from their jobs, growth in nonfarm employment will be necessary to prevent an economic recession and considerable outmigration from the area. (BC)