Following is the report of the USDA Market News Service for Week No. 5

VALDOSTA, GA USDA FEDERAL-STATE GEORGIA-FLORIDA FLUE-CURED TOBACCO, TYPE 14 WEEK NO. 5 WEEKLY SUMMARY FOR WEEK ENDING THURSDAY, AUGUST 31, 2000

A better demand was shown during the fifth week of Georgia-Florida flue-cured tobacco auctions, as indicated by lower loan receipts and higher grade bid averages. Composition of marketings continued to move up the stalk, but quality was a bit lower. Volume of sales was the heaviest so far this season. Due to the Federal holiday, no sales are scheduled for next Monday, but auctions will resume Tuesday, September 5. The belt's sales opportunity for the three day week (September 5-7) is 7,459,000 pounds. Approximately 35 percent of the 2000 Type 14 effective quota has been sold at auction.

Gross Sales by States and Type follow:

This week's general average of $176.13 was up $17.51 from a week earlier. After 19 sales days last season, 30.6 million pounds had averaged $156.76 per hundred. Resales mounted to 967,326 pounds for the week, increasing the season figure to 3,227,125 pounds.

Nonauction sales reported through August 31, by states were: Florida 95,900 pounds; Georgia 439,288 pounds; North Carolina 4,645,730 pounds; South Carolina 1,226,001 pounds; and Virginia 599,294 pounds. Of the overall bid averages this week, 56 percent advanced, 25 percent declined, and 19 percent held steady. In heavy volume sales, leaf grades were unchanged to $3 higher, and brought between $180 and $187 per hundred. Cutters and lugs gained mostly $1 to $8, and sold from $147 to $175 per hundred. Baled tobacco continued to bring $1 to $7 over the same grade in sheets, with nearly 70 percent of the recorded sales being packaged in bales.

The proportion of leaf (B) tobacco rose 40 percentage points and took over as the dominant group at 66 percent. Cutters (C) slipped to 13 percent and lugs (X) dropped to 14 percent. Nondescript (N), smoking leaf (H), and primings (P) rounded out the rest of sales at 3, 2, and 2 percent, respectively. Fair and low quality tobacco combined, increased 7 points to 82 percent of all auctions. A similar decrease was noted for good quality tobacco, accounting for 14 percent. Mature and better tobacco made up 62 percent of the total volume.

The percentage of tobacco that went into the loan program this week, dropped 6 points and accounted for 8.9 percent of sales. The Flue-Cured Stabilization Corporation has taken in 13.0 percent of gross sales for the season, compared to 6.2 percent at the same point last year.

Auction bid averages per hundred pounds on several U. S. grades and comparisons follow:

Questions? Contact:
USDA AMS TOBACCO MARKET NEWS
1306 Annapolis Drive, Raleigh, NC 27608
(919) 856-4550

Market News Web Page
The daily and weekly sales schedules for the 2000 Georgia - Florida Markets can be found at the following URL. http://www.ams.usda.gov/marketnews.htm

Tobacco Industry Leadership Committee Reaffirms Barn Conversion Program, Exempts Carryover Tobacco for 2001.

In a Raleigh meeting on August 31 members of the Tobacco Industry Leadership Committee (TILG) reaffirmed the plan and timetable for converting curing barns from direct fired furnaces to indirect heated (heat exchangers) furnaces. It is expected that tobacco produced after July 1, 2001 must be cured in barns utilizing indirect sources of heat in order to qualify for price support. However, the TILG concented to exempt tobacco produced in excess of a grower's 2000 quota to be carried over and sold without penalty during the 2001 marketing season.

By using indirect sources of heat the exhausts from fuel combustion do not pass through the tobacco and the levels of nitrosamines are significantly reduced. The Barn Conversion Project consists of two stages. First, barns converted by August 31, 2000 are eligible for a reimbursement of up to $3,000 per barn, not to exceed 15 cents per pound multiplied by a grower's 2000 effective quota. Reimbursement forms for qualifing conversions must be correctly completed and postmarked by September 30, 2000.

Second, growers converting barns after the August 31 deadline and before a July 1, 2001 deadline are still eligible for up to a $2,600 reimbursement per barn converted up to a total of 13 cents per pound of 2000 effective quota against which reimbursement has not already been collected. Funding for the barn conversion reimbursement program has been provided primarily from Philip Morris and Flue Cured Stabilization. Initial funding is $65 million dollars. While this amount is not enough to retrofit all of the barns which were on farms to cure the large 1997 crop, it will assist growers with the costs for retrofitting a significant number of barns.

At the end of last week Flue Cured Stabilization reported that over 3100 conversions had been made with the average reimbursement per barn requested amounting to $2,700. Reimbursement forms are being acted upon and checks mailed generally in two weeks of reciept. Results of leaf samples taken by County Agents in the five states indicate significant reductions in the nitrosamine levels of tobacco cured in retrofitted barns.

Over a dozen companies are now offering indirect heat curing systems or retrofits with prices ranging from just over $1,000 to over $6,000. Just as in any season and with anything new there have been problems and there are modifications being made to some of the systems being sold. Some maufacturers and installers are behind their delivery schedule. Growers are encouraged to shop around and to place orders in time to allow delivery and installation before the rush prior to the July 1, 2001 deadline.
http://www.ustobaccofarmer.com/

MH Residues

As of the August 25, 2000 MH residue report, with 28 samples analyzed for the Tobacco Industry Leadership Group,
MH residue levels average 61 ppm across all belts.
Georgia-Florida type 14 is averaging 59 ppm.
South Carolina type 13 stands at 67 ppm.
North Carolina Border Belt type 13 is averaging 49 ppm.
North Carolina Eastern belt type 12 is averaging 62ppm.
North Carolina Old Belt type 11 and Virginia Old Belt samples have not been analyzed and released from the laboratory.

Actigard ™ 50 WG Plant Activator Receives Label

EPA recently approved registration of Actigard 50WG [EPA Reg. No. 100-922] and Acibenzolar-S-methyl Technical [EPA Reg. No. 100-921. Actigard 50WG is a selective, systemic compound used for the control of downy mildew of cole crops and leafy vegetables, bacterial leaf spots of tomato, and blue mold of tobacco. Actigard 50WG is an inducer of host plant resistance. Actigard 50WG exhibits an unique mode of action which mimics the natural systemic activated resistance (SAR) response found in most plant species. Actigard 50WG has no direct activity against target pathogens.
http://www.cp.us.novartis.com/

Upcoming Events and Dates

Georgia Tobacco Variety Display. Tobacco from two on-farm Regional Variety Farm Tests of 13 candidate varieties will be displayed for company evaluations at Alma Brightleaf Warehouse in Alma on September 21, 2000. Along with the Farm Test Display will be tobacco from the Regional Small Plot Test and the Georgia Official Variety Test grown at the Coastal Plain Experiment Station in Tifton. In addition to the tobacco company personnel who will evaluate the candidate varieties, growers will be interested in comparing samples of tobacco from released varieties which they may be growing or considering growing.

Georgia Tobacco Commission Reaffirmation Voting Period, September 15 - October 14, 2000. Ballots will be mailed to all growers and should be returned by the deadline. Grower assessments are important sources of funding for tobacco Research and Extension projects at the University of Georgia. For more information call 1.800.425.7675.

Sunbelt Agricultural Exposition, Moultrie, Georgia, October 17,18,19, 2000. A number of heat exchanger manufacturers are scheduled to exhibit. For information on the show call 912.985.1968. http://www.sunbeltexpo.com/

Georgia Excellence In Tobacco Production Seminar and Awards Luncheon, November 28, 2000, RDC Auditorium, Tifton, GA. A morning seminar will feature results of current research, along with production, curing and marketing information. Cured leaf from the Georgia Official Tobacco Variety Test will be on display. A heat exchanger show will take place under the covered expo shelter. Two young tobacco producers will be recognized for their record of excellence in tobacco production during a luncheon program. For more information call 912.386.7498.

Georgia Farm Show, Alma Bright Leaf Warehouse, January 9,10,11, 2001. For information on the show call 919.380.0780.

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