How have many North Carolina farmers responded to the changing demand for tobacco in recent years?

by outsourcing foreign labor

by increasing production to sell overseas

by diversifying their crops

by converting to livestock raising

Diversifying

Explanation:

We can safely say that the changing demand for tobacco means a fall in demand. When this happens you don't:

outsourcing foreign labor, because this is a contradiction. Outsourcing means hiring another company to do service functions. Foreign labor you don't outsource.

increase production, you rather diminish production.

convert to livestock raising because that could be quite costly and maybe even impossible depending on the kind of land.

But you could diversify your crops, in order to keep a sustainable part for the tobacco and for something else that is relatively stable, market-wise.