Tobacco 

In 1781, Governor-General José Basco y Vargas implemented the Tobacco Monopoly, prohibiting tobacco cultivation in Cagayan Valley from 1785 to 1797. This had a significant impact on the residents of Cauayan, as tobacco was their main profitable product. Mengal Lagutao, along with others from Camarag, rebelled against the Spanish authorities due to the forced relocation of Camarag, tribute demands, and the tobacco ban. The rebellion spread to Paniqui, with armed Yogads joining the cause. Native commandant Mateo Cabal led soldiers to engage Lagutao's forces, resulting in casualties on both sides. Eventually, in May 1797, a decree partially lifted the ban on tobacco cultivation, initially only allowing Ilagan to plant for the monopoly. Subsequent decrees gradually permitted other towns in the valley to cultivate tobacco, leading to increased production over the next thirty years, making Cagayan Valley the largest producer of high-grade tobacco in the country by 1831, including Cauayan with seven barrios contributing to this cultivation.