By DOUG LOFTIS
Area producers who have entered into direct purchase contracts with Philip Morris USA will be heading out of South Boston this harvest season to deliver their flue-cured leaf to any of 11 receiving stations which include the Piedmont-Big Sale Warehouse in Danville and the Golden Leaf Warehouse in South Hill.
Other agent/receiving stations are in Winston-Salem, N.C., Robertsonville, N.C., Smithfield, N.C., Kinston, N.C., Wilson, N.C., Lumberton, N.C., Mullins, S.C., Alma, Ga., and Valdosta, Ga.
Philip Morris, the nation's largest tobacco purchaser, along with R.J. Reynolds and other buyers, are expected to purchase more than half of the 548.9 million pounds of flue-cured leaf that will be sold in 2001.
Last year, an estimated 10 percent of the flue-cured crop was purchased directly by tobacco companies which included Petersburg-based Star-Scientific Inc. Star Scientific, which purchased 14.5 million pounds directly from growers in 2000, receives all of its flue-cured leaf at its processing plant in Chase City.
Philip Morris announced late last year that it would expand its tobacco farmer partnering program and thus bypass the auction system. It purchased 100 million pounds, or about 27 percent, of burley tobacco last year .
Philip Morris officials say that the experimental method of purchasing direct was well-received and the program was extended to flue-cured tobacco. Contract agreements will be available to growers February 5, but Philip Morris has said that it may not be able to accept offers for contracts from all growers and for that reason, will continue to buy some tobacco through the auction system.
Contract purchasing and lower growing quotas are causing more tobacco warehouses to merge or cease operations altogether. South Boston operated three warehouses last season - the Planters, Star and Victory (a growers' cooperative).
"Some warehouses won't be operating." Stan Duffer, Regional Market Development Manager with the Virginia Department of Agriculture said last week after learning of purchasing plans by Philip Morris. "The pie is going to be right small."
The ripple effect of direct purchasing has more than just warehouse operators guessing.
Growers must designate where they will be selling their tobacco but that information is used by more than just warehousemen. Kevin Bohon with the ASCS office in Halifax explained how designation information is also used by the government and tobacco companies to dispatch graders and buyers to locations where tobacco is being sold.
Heretofore, growers have been allowed to designate in which warehouses they intend to sell their tobacco and in many cases, that tobacco bypassed the auction system. Tobacco companies were allowed to use designated marketing cards to purchase leaf directly.
Bohon said that he expects the government to impose some type of penalty for that practice this year and growers might expect to receive two marketing cards; one for designated and one for undesignated tobacco.
The first designation period is underway and will end April 15.

By NANCY ZUCKERBROD
Associated Press Writer
WASHINGTON (AP) - A presidential commission says the Food and Drug Administration should be given the authority to regulate tobacco for health reasons - and the government should compensate farmers who agree to stop growing the crop.
President Clinton named tobacco farmers, anti-smoking advocates and economic development experts to the panel in September with a goal of giving tobacco farmers an economic boost while protecting the public from smoking hazards.
In a preliminary report, unanimously endorsed, the 10-person commission said Friday the FDA should regulate the manufacture, sale, distribution and labeling of tobacco products to protect public health.
Andrew Shepherd, a commission member and Virginia tobacco grower, said farmers who once wore baseball caps saying ''Keep the FDA off the farm'' now see the advantages of regulation.
''As a consumer, I certainly wouldn't mind a lot more information on that pack - where it's from, how it's manufactured and what else is in there,'' Shepherd said.
Philip Morris Inc., which has fought FDA regulation in the past, now says it would accept some oversight.
''Having a set of defined rules will help bring greater stability and predictability to our business,'' company spokesman Brendan McCormick said.
Former FDA Commissioner David Kessler, a tobacco foe, doubted the sincerity of Phillip Morris' endorsement: ''I think they're looking for the stamp of social acceptability.''
The report was forwarded to President Bush. His spokesman, Ari Fleischer, declined to comment, saying it had not yet been reviewed.
At a campaign stop in Kentucky last year, Bush said Congress should give the FDA ''the authority necessary to discourage teen-age smoking.''
Under Kessler, the FDA in 1996 reversed a decades-old policy by asserting authority over tobacco products and issuing rules to crack down on cigarette sales to minors. But the Supreme Court ruled in March that the FDA had exceeded its authority.
Legislation that would have given FDA regulatory oversight of tobacco failed in Congress last year.
''I think this report from this White House commission is going to give us a good shot in the arm to get this thing moving,'' said Sen. Tom Harkin, D-Iowa.
Sen. Bill Frist, R-Tenn., introduced a bill earlier this week that would give FDA authority to try to curb youth smoking, but health groups say it's too limited.
''It would make it almost impossible for the agency to restrict advertising of implied health claims or that mislead adults,'' said Matthew Myers, co-chair of the commission and president of Campaign for Tobacco-Free Kids.
Frist said he would compromise but added, ''Anything we put forward has got to be protective of the First Amendment protection of free speech.''
The commission also sought to address economic concerns of tobacco farmers, whose numbers have dropped from 188,650 in 1978 to 89,700.
Increasing imports of cheaper foreign tobacco and declining cigarette sales have led to steep cuts in the amount of tobacco U.S. farmers can grow under the federal price-support program.
The report says farmers should receive help shifting to other crops and should be paid for giving up their quotas, or allotments, that dictate how much leaf they can grow annually. Myers said a quota buyout could be a ''multibillion-dollar aid package.''
The report said money to fund the buyout could come from cigarette taxes or the 1998 national tobacco settlement between states and cigarette companies.
Harkin signaled there would be congressional support.
''Next year the farm bill is up, and we'll take another look at what we might be doing to encourage smaller farmers in the South to get out of growing tobacco and grow something else,'' he said.
A final report due in May will have more detailed recommendations, Myers said.

On the Net:
Tobacco Commission: http://www.fsa.usda.gov/tobcom/

Virginia State trooper G.W. Fisher died during a hail of gunfire near Durham, and trooper B. W. Wright died while pursuing a speeder on an icy road.
Fisher, a native of Halifax County, and Wright, who called Halifax County home for 14 years, were honored on Friday at the State Police office in Halifax, with portraits of the troopers to be hung in the lobby at the local office.
The dedication ceremony, attended by representatives of local law enforcement, as well as current and retired fellow troopers, also honored the families of Fisher and Wright with red and white flowers representative of the troopers' sacrifice, along with two framed copies of their portraits.
Captain G. Howard Gregory of the Appomattox State Police office, reminded those present of the risks present for all of those who choose law enforcement as a career, while recalling the names of fallen officers inscribed on the granite walls of the National Law Enforcement Officers Memorial in Washington, D.C.
Gregory recalled that since 1928, when the Virginia State Police counted their first fatality, 50 troopers have died in the line of duty, with seven coming from Division Three, which encompasses Halifax County.
Fisher, who took a leave of absence while a trooper to serve in Vietnam, was remembered by Gregory as a gentleman with a very polite manner.
The field training officer assigned to Fisher in Petersburg recorded that "He was neat, clean and never complained; he was well liked by the people in McKinney."
Following the stopping of an apparent violator on Virginia Interstate 85 on November 14, 1976, Trooper Fisher was abducted at gunpoint and forced to drive his vehicle toward Atlanta by his assailant.
He was killed during a gun battle at a roadblock on November 15, near Durham.
His assailant was charged, tried and convicted of first-degree murder, and was sentenced to life imprisonment.
A supervisor of Fisher's at the time of his death, Sgt. T.G. Maggard, commented that "He was a dedicated trooper, the kind that really enjoyed helping other people.
"He was congenial, just a nice boy very quiet, very religious, real mild-mannered."
Fisher was married to the former Sandra Alicia Beale of Norfolk and was the father of a daughter, Alicia Dawn.
Trooper Wright, according to Gregory's remarks, was remembered as an "upbeat person, with a good sense of humor."
A Farmville native, Wright was initially assigned to Arlington upon graduation from basic training in 1961, and was subsequently assigned to Halifax County in 1962.
Trooper Wright was killed in a noncollision crash while in pursuit of a speed violator on January 17, 1976.
Wright was married to Elizabeth Layne Wright and was the father of three daughters, Amy Elizabeth, Anna Joyce and Kristi Bernice.
According to newspaper accounts, Wright was a familiar figure in the Dan River community, frequently being seen plowing gardens for friends and neighbors in his tractor.
Gregory noted something said at the law officer's memorial in Washington that summed up his feelings about the two troopers - "It's not how these officers died that made them heroes, it's how they lived."
"They will not be forgotten - their contributions mean much to their fellow troopers and to their families," said Gregory.
"They are true heroes in every sense of the word."

The city of Henderson, N.C., has rejected a request from the Roanoke River Basin Association (RRBA) that the city and the Kerr Lake Regional Water System take a position against Raleigh, Durham and Cary's proposal for a Kerr Lake pipeline.
The city of Henderson is the managing partner and controls the largest share of water from the Kerr Lake Regional Water System.
"This action confirms our suspicion that the city of Henderson might be willing to sell water from the Kerr Lake Regional Water System to the Triangle communities," said Tom Brawner, executive director of the RRBA.
Brawner had appeared at the regular meeting of the Henderson City Council on December 4, 2000, and requested that they oppose any efforts by Raleigh, Durham, Cary and Granville County to develop Kerr Lake as a regional water source.
Brawner requested at that meeting that the city of Henderson send a letter to consulting firm CH2M Hill opposing their clients, (Raleigh, Cary, Durham and Granville County) efforts to obtain water from Kerr Lake.
CH2M Hill of Raleigh, which one source has described as the "technical eyes and ears" for the city of Durham, was hired by the town of Cary in July 1999 to prepare its Long-Range-Water-Supply Plan.
CH2M Hill had organized a meeting on June 26 at the offices of Triangle J. Council of Governments in Raleigh to discuss options for the long-term water needs of the Triangle metropolitan area.
In a letter to Brawner dated January 23, 2001, Eric Williams, city manager of Henderson, made reference to Brawner's request "concerning the study underway via a Memorandum of Agreement (MOA) between CH2M Hill and Raleigh, Cary, Durham and Granville County."
"I'm writing to follow up on your initial appearance at the Henderson City Council's December 4, 2000 Regular Meeting and your subsequent request that we advise the consultants in this matter above (CH2M Hill) that any option concerning water supply involving Kerr Lake was opposed by the city and, therefore, should be excluded from any of the study efforts.
"I believe the particular scenario you quoted in your communication with us made reference to language in the MOA along the lines of '...work with the Kerr Lake Regional Water System to investigate the feasibility of expanding their water intake and treatment facilities on Kerr Lake...'
"The City Council, their Public Utilities Committee and our City Staff have thoughtfully considered your request and believe it is not in our best interest to communicate with the consultant along these lines.
"Obviously, we value greatly the concerns of the Association and, in particular, are extremely mindful and quite sensitive to the tremendous assest our region has in the Kerr Lake Regional Water System.
"Accordingly, we have always, and will continue to, protect it and promote it for our own future and that of our regional partners.
"However, we believe whatever studies may be underway should proceed unemcumbered at this point."
Brawner previously had published a letter to the editor of the Gazette-Virginian, published last July, in which he made clear the reasons for his opposition to an inter-basin transfer of Kerr Lake water.
"Inter-basin transfer - which would occur in the Triangle taps Kerr Lake - is unfair and it's wrong. In additiion to working against nature and depleting one basin for the benefit of another, a policy allowing inter-basin transfer serves as a disincentive for growing urban areas to safeguard the water closest to them.
"It puts those who protect and conserve their own water resources - such as those in the Roanoke Basin - at the greatest risk, for they have the most coveted water."

Work has begun on the first of a four-phase expansion project at the South Boston/Halifax County Historical Museum in South Boston.
The first phase, a 4,940 square-foot shell addition, will cost an estimated $150,000.
Second-phase plans include the renovation of three galleries slated to hold permanent displays.
Native American artifacts, as well as the Abbyville collection, are among those exhibits needing more space.
"There is a demand to have the following on permanent display; the History of Halifax County, the Life of Governor William Tuck, the History of Tobacco in Southside Virginia, and the History of the Tobacco Festivals," said museum official Helen Miller. "These are the subjects most often requested by visitors to the museum.
"The generosity of local citizens in allowing their treasures to be on exhibit has been overwhelming," added Miller. "These deserve proper storage and protection."
Phase III expansion will include the construction of a gift shop and research center in the new addition, as well as renovation of the office area. The space can be utilized for storage as well as provide an area to preserve and restore artifacts, according to museum officials.
Many visitors to the museum trace family genealogy as well as local history in the present library. With the growing complement of research books and other aids, Miller said that the current space is inadequate for several visitors at once.
The museum's gift shop offers many varieties of books and articles relating to local, Virginia and national history. Many local authors and artists also have their work for sale there. Other offerings include museum publications and gifts for children "which come up to SOL standards," said Miller.

A frigid second quarter and GW's size and rebounding prowess were too much for Halifax County to overcome.
GW, aided by a 20-2 run during a six-minute span in the second quarter when the Comets' shooting went ice-cold and a 40-rebound edge, pulled away in the final minute to roll up an 81-64 win over Halifax County Friday night in Danville.
"We made them work to finish the ball game," Comets coach Garrett Dillard said after his team saw its overall record drop to 8-7 and fall to 1-2 in Western District play.
"We gave a valiant effort against a real good basketball team with a real good centerpiece."
That, the Comets did.
Halifax County's shooting thawed out in time to allow the Comets to cut a 17-point second- quarter deficit to seven points twice in the fourth quarter.
But GW made its free throws and got the rebounds when they counted down the stretch to seal the game.
Rebounding was the big key to the game for GW.
GW, the fifth-ranked team in the Associated Press Virginia Group AAA Prep Poll, out-rebounded the Comets 65-25, often holding them to one shot while getting multiple shots at the basket on the offensive end of the floor.
The Silver Eagles' 6-5 senior forward Justin Harris claimed a dozen rebounds and 6-7 senior Richard Thomas snared 10 rebounds.
Both scored 15 points in the game, many on stickbacks of offensive rebounds.
By comparison, the Comets were led on the boards by Terez Garland and Sterling Williams who had four rebounds each.
"Their inside game killed us," Dillard pointed out.
"They did a great job rebounding. That's why it was so important for us to hit the first shot, which is hard to do sometimes."
The Comets' frigid second period was also a big factor in the outcome.
Garland nailed a three-pointer with 6:21 left in the half to give the Comets a 23-22 lead.
But the Comets knocked down only one basket over the next four minutes and 52 seconds.
That opened the door for GW to use its size on the boards and transition game to make a 20-2 run that took the Silver Eagles from a one-point deficit to a 17-point 42-25 lead.
"We didn't get back (on defense)," said Dillard.
"We talked about it and emphasized to everybody to get back. We sent guys into the game specifically to get back."
But it didn't happen often enough.
Dante Ballou finally broke the GW run with a stickback of an offensive rebound with 1:12 left in the half.
Halifax County was able to interrupt the GW run only once, that coming on a layup by Dashawn Baird with 3:41 left in the half which broke the GW rally into a pair of 10-0 scoring spurts.
GW's defense forced seven Comets turnovers during the six-minute run.
The Comets had only 12 turnovers in the game, six fewer than GW which had 18 in the contest.
Halifax County trailed 43-27 at the half after shooting only 39 percent from the floor and knocking down only three of 11 three-point shot attempts in the first two quarters.
GW, by comparison, hit 59 percent of its shots from the floor in the first half and canned two of its five three-point shot attempts.
Halifax County opened the third quarter with back-to-back baskets by Shamoni Faulkner and Ballou to bring the Comets to within a dozen points of GW.
The Comets trailed by 17 points late in the third period but rallied behind Roach, Garland and junior Brian King, a 6-6 230-pound seldom-used reserve.
A jump shot by Garland with 1:54 left in the period started the Comets' rally.
Roach canned a three-pointer 26 seconds later and Garland nailed a pair of free throws after GW's standout Antonio Fitzgerald, who led his team with 19 points, was saddled with a technical foul.
Later, with 30 seconds left in the quarter, Roach hit a layup to complete a 9-0 Comets run that brought the Comets to within eight points at 56-48.
King played the most minutes he had seen all season, blocked a shot and kept a body on GW's big man inside, Richard Thomas.
"He gave us some really good minutes and we've got to give him credit for that," Dillard said.
"The big thing was that everybody, all of our fans, rallied behind him. It was like this is his chance to play. Everybody's energy level increased. Brian did a great job."
A three-point basket by Garland with 7:08 left in the game brought the Comets to within seven points.
Later, a basket by Townsend followed by a pair of free throws from Roach with 3:59 to play, brought the Comets to within seven points a second time.
That was as close as the Comets were to get.
GW countered with a 6-0 flurry to extend its lead back to 13 points.
Roach converted a three-point play with 2:21 left to put the Comets to within 10 points.
But GW increased its lead down the stretch to finish with the 17-point edge.
For the first nine and a half minutes of the game, the Comets played well and engaged the Silver Eagles in what appeared would be another close game between the two archrivals.
Roach, who led the Comets in scoring with 18 points, opened the game by converting a three-point play to give the Comets an early 3-0 lead.
A three-pointer by Williams with a second left in the first quarter left the Comets trailing by a single digit at 18-17.
Townsend opened the second quarter with a three-pointer for the Comets that tied the game, setting the stage for Garland's three-point shot 29 seconds later that gave the Comets the lead.
"I thought when we scored we got into our defense and made them push the ball a little bit and that kept us in it in the first quarter," Dillard pointed out.
"In the second quarter we didn't score and couldn't run our full court defense which allowed them (GW) to go down, set up on offense and throw it (the ball) into the big guy (Thomas).
"GW went into a zone defense and normally we make some of the shots that we missed and we just went cold," added Dillard.
"That happens sometimes to teams who rely on the jump shot."
The Comets played the game without the services of Teddy Bradley who has served the Comets well on both the offensive and defensive ends of the floor.
Bradley was ill and sat on the bench in his street clothes.
"I think Teddy could have helped us put a little more pressure on the basketball and helped us some on Fitzgerald," Dillard said.
"Having him in could have made a difference or it may not have. We'll never know."

Lucille Whitt Wilkins, 86, of South Boston, died January 26 at The Woodview.
Mrs. Wilkins was born in Halifax County on August 27, 1914, the daughter of Walter Wise Whitt and Emma Conner Whitt and was married to Waverly Woodrow Wilkins. She was a member of Mt. Cana United Methodist Church and a retired Nurse's Aide at The Woodview.
A funeral service was held at Mt. Cana United Methodist Church on January 28 at 2 p.m. with the Rev. Robert Lewis officiating. Burial followed in the church cemetery.
Survivors of Mrs. Wilkins include two sons, Ellsworth Wilkins and wife, Peggy of South Boston and Wesley Wilkins and wife, Linda of Pilot Mountain, N.C.; one sister, Estelle W. Smith of Roxboro, N.C.; five grandchildren; 11 great-grandchildren; and three great-great-grandchildren. She was preceded in death by her husband and one grandchild, Donna Wilkins Melton.
Those wishing to give memorials are asked to consider Mt. Cana UMC Memorial Fund..