The problem considered in this study arose from the need for an emperlcal analysis of the sale value of land to determine if the increased price benefits of the governmental flue-cured tobacco program have been absorbed by higher land rents. If acreage allotments giving the right to produce tobacco under the program are capitalized into farmland values to an appreciable extent, the program objective of increasing farm incomes would be partially defeated through higher rents. The objective of this study was to determine the extent to which allotments have been capitalized into land values. Data on sale value of farms and factors expected to influence the farm sale value were secured from primary public record sources for the four-year period from 1954 to 1957 in two distinctly different flue-cured tobacco regions--Pittsylvania County, Virginia, and Wilson, Greene, and Pitt Counties, North Carolina. These data were analyzed by a multiple regression statistical technique designed to measure the value of an acre of tobacco allotment es a right to produce. The statistical coefficients indicated that an acre of tobacco allotment increased in value from $962 in 1954 to $1,673 in 1957 for Pittsylvania County and from $1,830 to $3,308 for Wilson, Greene, and Pitt Counties. The size of the values for an acre of tobacco allotment as well as the increase in values over the four-year period during which allotments were reduced under the program by 33 percent indicate that an appreciable proportion of the price·rais1ng benefits of the program have been capitalized into land values. / Master of Science