INTRODUCTION

Tobacco specific nitrosamines (TSNAs) have been the focus of many research reports over the past four decades.  During the past two years, these tobacco constituents have received considerable media attention.  While TSNAs are present in most cured tobaccos, research conducted in recent years have identified technologies to reduce the levels in flue-cured tobacco.  TSNAs are also found in burley tobacco; however, the situation is different in that the compounds are thought to be formed through microbial activity and research is underway to identify methods to reduce levels. TSNAs have been identified as carcinogens when tested as individual compounds at very high doses in some animal experiments.  Consequently, responsible product stewardship advocates the identification and implementation of commercially practical technology to reduce TSNA levels in cured tobacco.  For flue-cured tobacco, exhaust gases (namely, oxides of nitrogen) from direct-fired curing were shown to be the primary source of TSNA formation.  Furthermore, it was shown that not exposing the tobacco to these combustion gases during curing of flue-cured tobacco significantly reduces the level of TSNAs in cured leaf, without compromising quality and integrity.

In a meeting on December 20, 1999, the Tobacco Industry Leadership Group (TILG) recognized TSNA reduction (via barn conversion to heat-exchange technology) to be an important stewardship measure to be addressed through an industry-wide collaboration.  This is an important effort for the US tobacco community and we realize that many questions need to be addressed, especially from the growers’ perspectives.  The purpose of this newsletter is to provide an up-to-date status of the program and give guidance for requesting additional information.

AGREEMENT

A grant program has been established by Stabilization and other industry sources. The Tobacco Industry Leadership Group has begun to implement a program to reduce levels of TSNAs in flue-cured tobacco starting with the 2000 crop. The program is designed to create financial assistance for US flue-cured producers of at least $65 million in those cases where installation of new curing barn equipment, such as furnaces, is deemed necessary. Also, payments may be applied toward the purchase of  barns that are in compliance. The financial assistance to be provided under this agreement shall be limited, in total, to the barn owner/operator’s effective quota (owned or leased) for the 2000-marketing year multiplied by 15 cents per pound until 8/31/2000 and the 2000-marketing year multiplied by 13 cents per pound until 6/30/2001.  Financial assistance of up to $3000 or actual costs, whichever is less, will be provided to curing barn operators/owners for barns converted between December 20, 1999 and August 31, 2000. From September 1, 2000 through June 30, 2001, the amount will be up to $2600 or actual costs, whichever is less.

GUIDELINES

Equipment for which payment is received will conform to guidelines and specifications set forth by the TILG in a document entitled "Advisory Recommendations for Indirect Fired Heating Systems for Tobacco Bulk Curing Barns". Copies of this document are available from the Cooperative Extension Services and equipment manufacturers. Farmers are strongly encouraged to read this document before purchasing the heating systems or a new barn. Direct-fired curing systems of any type which introduce combustion gases into the curing chamber of the barn are out of compliance with these recommendations. Some of the important points of these guidelines include requirements that the heat exchange system be constructed of materials to ensure reliable service for a minimum of three years, be designed to prevent the products of combustion from entering the curing air in any quantity and in any manner, that the vendor ensure that such equipment meets or exceeds the performance of the original equipment and has little or no effect on the curing schedule in terms of time to complete the cure. Also, the vendor and installer shall ensure that nothing in the design, installation, maintenance or operation of this equipment negatively impacts the merchantability of the cured leaf removed from these barns. The vendor and installer will be required to sign certification forms. It is the grower’s responsibility to see that all forms are signed and submitted.

CERTIFICATION

This program is designed to be completed by June 30, 2001. July 1, 2001 is the proposed FSA certification date for the price support eligibility for the tobacco cured without exposure to combustion gases. Installations must be completed and all forms postmarked by June 30, 2001 to receive payment.

TESTING OF BARNS

Discussions are underway to determine methods to test the barns for compliance, either those that currently use indirect heat systems or those that are retrofitted. It is expected that test procedures and methods will be selected soon. The state Cooperative Extension Services are working on this aspect of the program. A desirable method will be one that is accurate, rapid and inexpensive. It will involve the measurement of certain combustion gases in the curing chamber of barns. Also, a sampling program for TSNAs in the cured tobacco leaf will be developed.

ADMINISTRATION

The program will be administered by the Flue-Cured Tobacco Cooperative Stabilization Corporation and  financed by Stabilization and industry grants. After the barn conversion is completed, the barn owner/operator will need to fill out an application for reimbursement form and send this form along with paid receipts and appropriate certification forms to Stabilization. The payment request will be processed and the owner/operator reimbursed. Funds for the program are expected to be available in early June 2000. Barn operators/owners will receive in the mail a packet of appropriate forms from Stabilization that must be completed and returned to Stabilization, along with paid receipts for conversion/installation. Upon final approval, the forms will be mailed by the Stabilization Corporation as a package. Additional copies of the forms can be obtained from the Cooperative Extension Services and equipment manufacturers. Also a web page has been set up under Stabilization to provide information and forms at www.ustobaccofarmer.com

 Following is a summary and an example of the funding:

1.    Funds available to tobacco producers are limited in three ways
 

A. For equipment installation from 12/20/99 to 8/31/00, the
     maximum payment a producer can receive is $0.15 times
     their 2000 national marketing quota (effective quota).

B. For equipment installation from 9/1/00 to 6/30/01, the
     maximum payment a producer can receive is $0.13 times
     their 2000 national marketing quota (effective quota).
 

C. Payments made on the basis of barns

1. For installations completed from 12/20/99 to 8/31/00,
    producers can "draw" up to an average of $3,000 per
    barn or actual cost, whichever is less, from the above
    maximum payment stated in A.

2. For installations completed from 9/1/00 to 6/30/01,
    producers can "draw" up to an average of $2,600 per
    barn or actual cost, whichever is less, from the
    maximum payment stated in B.

3. Payment will only be made upon the presentation of
    paid receipts for purchase and installation plus the
    appropriate forms that are provided.

4.  All payments will be made on a first come, first served
     basis.

2. Maximum payment amounts will be monitored by tract and farm serial number
 

Example:

Payments before 8/31/00

100,000     lbs. 2000 effective quota

 $   0.15     per pound allocation

$15,000     maximum

  $9,000     3 barns converted from 12/20/99 to8/31/00

Payments after 8/31/00

  40,000     lbs. of the 2000 effective quota remaining for reimbursement

 $   0.13     per pound allocation

  $5,200     remaining balance to convert barns from 9/1/00 to 6/30/01

- $5,200    2 barns converted after 8/31/00

-  $       0    balance