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The farmer said he turned down an offer from Philip Morris for $1.50 per pound for one shipment.
"That $1.50 won't work," he said. "There's no money left in it after you pay your labor, your fertilizer and all your chemical bills."
A different delivery of burley grown in the same field and cured in the same barn brought nearly $1.80 per pound, he said.
Sebelius listed measures taken by Obama since he took office two years ago, including "legislation to regulate tobacco products, investing in local tobacco control efforts and expanding access to insurance coverage for tobacco cessation."
The Food and Drug Administration has banned flavored cigarettes and begun investigating menthol cigarettes. In November it issued rules requiring graphic images on cigarette packages.
"The economic burden of cigarette use includes more than $193 billion annually in health care costs and loss of productivity,[link widoczny dla zalogowanych]," Sebelius said.