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J. Michael Moore,
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Crop Update
The Georgia crop is harvested and soon will be sold. Yields and quality have been very good compared to the most recent years when Tomato Spotted Wilt Virus and drought coupled together to cause shortfalls in both. Growers have done a good job of destroying stalks which are left behind in the field and have taken a great step forward in reducing the source of future insect and disease problems for future years. With Georgia reimbursed for retrofitting over 4,000 barns, most of the tobacco produced in the state was cured using the new indirect heat curing units. Many growers will have significant amounts of tobacco which they will have to store for sale during the 2002 marketing season. Below are more comments on proper storage of cured tobacco. New price support differentials announced by USDA will cause flue-cured tobacco cured in barns with direct heat, beginning with the 2002 and subsequent crops, to have the price support rate adjusted to provide a price support loan rate that is one-half the normal price support rate for tobacco cured in barns with an indirect heat source. Tobacco produced in the 2001 production season and offered for sale during the 2002 marketing season will be considered as 2002 crop tobacco and must meet the indirect heat cured certification. Georgia and Florida growers will vote from October 15 to October 19, 2001 by mail on a referendum to permit the sale of flue-cured tobacco quota from one farm to another farm across county lines within the State.

Storing Cured Tobacco To Maintain Quality
All indications are that Georgia growers and in some cases growers in other states will store more tobacco from this season for sale in the following marketing season than in any recent year. Individual growers comment on having more tobacco than can be held by all the barns used to cure this crop.

Grower management of two factors can greatly enhance the resulting quality of stored tobacco for the next season. Management of both factors, moisture and insects, can be greatly aided by leaving tobacco in the barn in boxes and racks where it was cured. After the curing schedule is completed, exposing the interior of the barn to temperatures approaching 165 degrees F, the curing barn is the most sanitary storage facility on the farm. Barns should be in good repair with rain-tight roofs and doors and vent covers which close tightly.

1) Moisture management can insure that tobacco remains dry throughout the storage period and mold is prevented from forming on the tobacco while in storage. Tobacco should be checked frequently and barn fans used to dry the leaf during days with drying weather conditions. Weekly or semi- weekly running of barn fans can help avoid a build-up of moisture in the barns.

2) Insect management can prevent the infestation of the highest quality and highest priced tobacco of the season by cigarette beetles and tobacco moths. All tobacco trash and other sources of food for these insects should be cleaned and removed from anywhere near the barns. This includes old tobacco sheets and animal feed which may be in the area.

Few chemicals are labeled for use around the barns and certainly on the tobacco for controling insect infestations. Avoiding insect infestation is the best way to control insects. However, if tobacco does become infected the barn furnace is an excellent means of insect control. Temperatures in the barn should be limited only to that required to eliminate the insect problem and this practice should be minimized and used only when necessary to avoid any unnecessary darkening of the tobacco.

Tobacco removed from the barns, sheeted or baled, and stored even temporarily in another area can bring insects back the curing barns, even if it is replaced in the barns. Sheeting or baling of tobacco reduces the grower's ability to control moisture and insects in this tobacco.

To read more on this topic: "STORING CURED TOBACCO TO MAINTAIN QUALITY" please go to the following link. http://www.georgiatobacco.com

MH Residues
As of the September 21, 2001 MH residue report, with 181 samples analyzed for the Tobacco Industry Leadership Group, MH residue levels now average 88 ppm across all belts.
Georgia-Florida type 14 is averaging 124 ppm. (0-297)
South Carolina type 13 stands at 76 ppm. (0-245)
North Carolina Border Belt type 13 is averaging 72 ppm. (0-312)
North Carolina Eastern belt type 12 is averaging 109 ppm. (0-347)
North Carolina Middle Belt type 11 is averaging 78 ppm. (0-220)
North Carolina Old Belt type 11 is averaging 61 ppm. (0-272)
Virginia Old Belt type 11 is averaging 41 ppm. (0-162)

FLUE-CURED TOBACCO, SOUTHERN AND NORTHERN AREAS Week No. 11, SEPTEMBER 21, 2001
Conditions improved for flue-cured tobacco sold at auction during the eleventh week of the 2001 marketing season. Both quality and maturity of offerings were considered desirable. Loan receipts were down in Northern markets, but rose slightly in the Southern Area. Volume dropped several million pounds at contract centers, but was down only slightly at auction markets. Producers have now marketed 82 percent of the 2001 effective quota. Total flue-cured sales for the season have reached 456.0 million pounds and returned $842,889,570 or $184.85 per hundred pounds.

At the same point last season, auction sales totaled 574.7 million gross pounds for an average of $179.03 per hundred, with 23.5 million pounds of nonauction sales having been reported. Resales for the week amounted to 1,276,095 pounds, and 6,345,036 pounds for the season. Gross sales and averages for the week and season (in million pounds and $$ per cwt.), and change from previous week:

A strong demand was noted in the Northern Area where individual averages posted gains of up to $8 over last week. However, in the Southern Area, most averages were steady to only $1 higher. Overall, bid averages rose $1 or $2 for ripe leaf and smoking leaf grades, which sold between $188 and $193 per hundred pounds. Gains of $1 to $3 were recorded for unripe leaf grades, with averages between $181 and $187. Mid and lower stalk tobacco was steady to $1 higher, and brought from $177 to $179 for cutters, and $158 to $165 for lugs.

This week's auctions proved to be desirable. Leaf and smoking leaf marketings continued to increase in volume. More mature and mellow tobacco moved across warehouse floors in both Northern and Southern Areas. No significant changes were noted in the quality of offerings. Percentages (rounded) by group, quality, and maturity, for the week ending Thursday, September 20, 2001, follow:

Producers in the Southern Area sent 867,997 pounds or 16.8 percent of gross sales into the Flue-Cured Stabilization Corporation, while Northern Area growers placed only 533,875 pounds or 7.4 percent under loan. Total loan receipts at auction for the week amounted to 1,401,872 pounds or 11.3 percent. The season total now stands at 11,840,802 pounds or 14.4 percent. At the same point of auctions last year, the Flue-Cured Stabilization Corporation had received 18.6 million pounds or 3.6 percent of gross sales. USDA AMS Tobacco Programs 919-856-4550

SOUTHERN FLUE-CURED CONTRACT CENTERS, GROSS SALES, TYPE 14 GROSS SALE REPORT FOR THURSDAY, 20-SEP-2001

CCC ANNOUNCES CHANGES IN FLUE-CURED TOBACCO PRICE SUPPORT DIFFERENTIALS Farm Service Agency, Washington, D.C. September 21, 2001
The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today published its final rule in the Federal Register announcing changes to the flue-cured tobacco price support differentials effective for the 2002 crop. These changes were proposed in a Notice to the Federal Register on December 7, 2000, and involve tobacco cured in barns with direct heat.

After review of the comments received in response to the Federal Register Notice, CCC has determined that the price support loan differentials for flue- cured tobacco cured in barns with direct heat, beginning with the 2002 and subsequent crops, should be adjusted to provide a price support loan rate that is one-half the normal price support rate for tobacco cured in barns with an indirect heat source.

A change in differentials was requested by the Flue- Cured Tobacco Stabilization Cooperation (Stabilization), the producer-owned association through which price support is made available. According to Stabilization, buyers are changing their purchase requirements to target tobacco cured using direct heat; accordingly, the market value of this tobacco should be greatly reduced. Based on the comments and other information, these concerns about buyer acceptance of the tobacco cured with direct heat appear to be accurate.

With the new differentials, farmers with barns with direct heat sources may still sell their tobacco for the highest obtainable price. However, the lower price support value will reflect the expected lower market value for the tobacco. # FSA's Home Page: http://www.fsa.usda.gov

USDA ANNOUNCES TOBACCO REFERENDUM IN FL AND GA Farm Service Agency, Washington, D.C. September 12, 2001
The Department of Agriculture announced today that it received petitions from 25 percent of active flue-cured tobacco producers in the States of Georgia and Florida requesting a referendum among active flue- cured tobacco producers in each of those states.

The referenda will be conducted from October 15 to October 19, 2001. Results will determine whether or not USDA will permit the sale of flue-cured tobacco quota across county lines within the states of Florida and Georgia beginning with the 2002 crop.

The Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2000, provides that upon receiving qualifying petitions from 25 percent of the State's growers, the Secretary of Agriculture must hold a referendum and must permit the sale of a flue-cured tobacco quota from one farm to another farm across county lines within the State if a majority of active tobacco producers voting in the referendum approve such provisions.

The referenda will be conducted in both States by mail vote on the dates set forth above, and the eligibility to vote in the referenda will be the same as the eligibility standards for votes taken on the triennial marketing quota referendum. The voting is limited to active flue-cured tobacco producers. Other tobacco program provisions, such as the disaster lease and transfer of marketing quotas, tobacco price support, and USDA's inspection activities will not be affected by the referenda.

Further program information is available from Rebecca Harrington (202) 720-4281, E-mail address Rebecca_Harrington@wdc.fsa.usda.gov

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