November 1, 2002, Issue X, Number 44

A publication of the National Association of State Departments of Agriculture
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Washington, D.C. 20005
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nasda@patriot.net



WAREHOUSE TASK FORCE TO MEET ON NOVEMBER 13 IN KANSAS CITY, MISSOURI

RUDGERS TO SPEAK AT USDA TECHNICAL SERVICE PROVIDERS SUMMIT

ADVISORY COMMITTEE ADDRESSES INTERSTATE MEAT SHIPMENT

FARM BILL CONFERENCE IS APPROACHING

USDA SEEKS COMMENTS ON PAYMENT LIMITATION RULE

USDA ANNOUNCES DEADLINES FOR LOAN DEFICIENCY PAYMENT APPLICATIONS

USDA EXPANDS & IMPROVES ONLINE SERVICES FOR PRODUCERS

ENVIRONMENT BRIEFS

FOOD SAFETY BRIEFS

State News--BRONSON ANNOUNCES MULTIMILLION DOLLAR PROGRAM TO IMPROVE FLORIDA'S WATER QUALITY

State News--USMEF WILL PRESENT AWARD FOR LEADERSHIP REWARDS TO JOE HAMPTON

State News--WADDELL NAMED ASSISTANT COMMISSIONER OF AGRICULTURE


Past Issues

October 25, 2002

October 18, 2002

October 14, 2002

October 4, 2002

September 27, 2002

September 20, 2002

September 13, 2002

September 6, 2002

August 30, 2002

August 23, 2002

August 19, 2002

August 9, 2002

August 2, 2002

What's New on the NASDA Website

2002-2003 NASDA Calendar

Biosecurity and Farm Bill Implementation Guides

Materials for NASDA 2002

Disaster Assistance Letter

MARK YOUR CALENDARS

  • NASDA's Midyear Legislative Conference, January 31 to February 4, 2003, The Renaissance Washington D.C. Hotel, Washington, D.C.
  • Tri-National Agricultural Accord, April 1 to 3, 2003 (new dates), Montreal, Canada

U.S. SUPPLIER LIST ONLINE
A "one-stop" information source for U.S. exporters and international buyers to research, plan, and evaluate potential trade opportunities. For information, go to NASDA's website at http://www.nasda.org/. FAS' "Exporter's Matrix: Handbook for U.S. Agribusiness" export guide is available. Please contact NASDA to request a copy.


WAREHOUSE TASK FORCE TO MEET ON NOVEMBER 13 IN KANSAS CITY, MISSOURI

        Illinois Agriculture Director Joe Hampton and Montana Agriculture Director Ralph Peck, co-chairs of NASDA's Warehouse Task Force, have announced that the first meeting of the task force is scheduled for Wednesday, November 13, in Kansas City, Missouri, at the Westin Crown Center. The meeting is scheduled from 9:00 a.m. to 5:00 p.m..
        The purpose of the task force is to resolve issues that have developed due to USDA's final rule revising the regulations administering the U.S. Warehouse Act (USWA) to implement the provisions of the Grain Standards and Warehouse Improvement Act of 2000. Several agriculture organizations believe that the final rule creates a significant void in the regulation of grain dealer, merchandising and warehousing activities.
        Director Hampton said, "It is in all of our best interests to protect the financial integrity of our grain marketing and grain warehousing systems. This task force will do all in its power to ensure state and federal governments work cooperatively to safeguard that financial integrity." NASDA's goal is to resolve issues created by the final rule in a consensus approach that will protect producers and be acceptable to federal and state officials, the regulated industry, and producers. Among the issues the task force will consider are whether the federal rules can be modified to adequately protect grain producers from losses in warehouse bankruptcies and whether federal licensing would allow states to maintain functions such as assuring accurate scales and collecting fees for commodity research and promotions.
        USDA Under Secretary J.B. Penn, who overseas the federal warehouse program, pledged during a telephone conference call earlier this week to work with the task force. "I am pleased that Under Secretary Penn is willing to work with us. I hope we can get some changes to the proposed federal rules that protect producers and allow states to continue to perform their necessary functions," says Peck. USDA officials will attend the meeting and provide information and policy perspectives that could help in resolving issues important to producers, the regulated industry, and the states.
        During NASDA's annual meeting in early October, NASDA approved a policy amendment stating that "the U.S. Warehouse Act should not preempt state authority to provide protection to producers doing business with federally licensed warehouses. NASDA endorses the immediate formation of a task force to resolve issues while USDA observes a 90-day moratorium on issuance of new federal warehouse licenses, except peanuts." This task force meeting is another step in resolving issues that have arisen in administering state programs impacted by the final rule.
        Interested agricultural, commodity, banking, and regulated industry organizations are invited to participate in the meeting and provide perspectives and background on the final rule and its implication on producers, the regulated industry, and state programs, especially CFR 735.1(c). This section reads, "Compliance with state laws relating to the warehousing, grading, weighing, storing, merchandising or other similar activities is not required with respect to activities engaged in by a warehouse operator in a warehouse subject to a license issued in accordance with this part."
        This provision and its interpretation have caused concern among several organizations. In a letter to Congress and signed by 12 agricultural organizations, including NASDA, several ramifications of the rules promulgated by USDA were identified. Among them were (1) allowing warehouses and grain merchants the option to not collect farmer contributions or, themselves avoid contributions to state indemnity funds designed to protect grain producers from warehouse/grain merchant bankruptcies; (2) the complete lack of federal regulation of grain merchandising activities; (3) preempting states from regulating grain merchandising enterprises, contrary to the language of the Act and to case law in this area; and (4) identifying that federal warehouse licenses have minimal physical plant or financial requirements. (Contact: Jennifer Yezak Molen)

RUDGERS TO SPEAK AT USDA TECHNICAL SERVICE PROVIDERS SUMMIT

        Nathan L. Rudgers, commissioner of the New York Department of Agriculture and Markets, will be participating on a panel of conservation technical service providers at a National Technical Service Providers Summit on November 7 in Washington, D.C.
        The purpose of the summit, part of the Technical Service Provider process outlined in the 2002 farm bill, is to initiate a dialogue with potential private and public service providers on ways to expand conservation technical assistance for farmers and ranchers. The summit is being hosted by USDA in the Jefferson Auditorium of the USDA headquarters complex in Washington, D.C., from 10 a.m. to 4 p.m. EST to obtain public input on the process.
        Most of the conservation technical assistance on private land today is currently being provided by USDA's Natural Resources Conservation Service (NRCS) and its partners including the nearly 3000 soil and water conservation districts across the nation. The summit is designed to discuss ways to expand the availability of conservation technical assistance on private land.
        Prospective providers, users of provider services, and members of the public are invited to attend in person or via the Internet or telephone. Public comments will be taken in the auditorium and by phone during the summit. Individuals who wish to make oral statements should contact Marilou Flores (202/720-0427) in advance.
        The morning session, from 10:00 a.m. to 12:30 p.m., will feature Deputy Secretary of Agriculture Jim Moseley, NRCS Chief Bruce Knight, and Farm Service Agency (FSA) Administrator Jim Little. Panels of prospective technical service provider recipients and prospective private sector and public sector providers will comment on the proposed process. Listening sessions in the afternoon, from 1:30 p.m. to 4:00 p.m., will give the audience and callers the opportunity for comments. (Contact: Tom Sommer)

ADVISORY COMMITTEE ADDRESSES INTERSTATE MEAT SHIPMENT

        The National Advisory Committee on Meat and Poultry Inspection (NACMPI) endorsed interstate shipment of state-inspected meat and poultry during a meeting held on June 5 to 6, 2002. The NACMPI acts as an advisory committee to the Secretary of Agriculture to consult before issuing product standards and labeling changes or on matters affecting federal and state inspection program activities.
        Issue papers from the NACMPI meeting are now available on the Food Safety and Inspection Service (FSIS) website. In addition to interstate meat shipment, the committee addressed issues on field workforce roles and structures, new technology, as well as a briefing paper on an overtime rate structure study. The issue papers are available at http://www.fsis.usda.gov/OPPDE/NACMPI/Reports.htm.
        During the June session, the NACMPI endorsed interstate shipment of state-inspected meat and poultry and made several recommendations that build on language contained in the 2002 farm bill. The new farm bill directs USDA to conduct a full review of state inspection systems when the Secretary of Agriculture submits the annual report to Congress on the activities of FSIS. The language states that this review should also offer guidance about changes the state systems might expect should the statutory prohibition against the interstate shipment of state-inspected product be removed. NASDA worked with Sens. Tom Harkin (D-Iowa), Orrin Hatch (R-Utah), and other congressional offices to develop and add the provision to the farm bill.
        The NACMPI recommends that FSIS review back as far as 2000 all State Comprehensive Reviews that have been completed and attempt to complete the reviews of the remaining states by March 2003. The committee also directed FSIS to ask Congress for additional funding and an extension of the due date of the Report on Interstate Shipment. The advisory group also suggested that FSIS should consider out source contracting as an option to complete the reviews. To move toward interstate meat shipment even faster, NACMPI advised states with inspection programs to adopt all federal regulations and policies. To ensure uniform compliance between state and federal regulatory requirements, the committee urged state inspection programs to adopt the new FSIS security guidelines in a timely manner, use any deficiencies identified in state comprehensive reviews to create guidance materials for state plants, and state plant operators should become more involved in federal inspection meetings. (Contact: Charlie Ingram)

FARM BILL CONFERENCE IS APPROACHING

        NASDA and a partnership of agricultural and conservation organizations are sponsoring a National Conference on Farm Bill Conservation Opportunities. The conference will be held November 13 to 14, 2002, at the Hilton St. Louis Airport in St. Louis, Missouri. The reservation deadline has been extended through November 5. Conference registration and information can be found on the NASDA website.
        The conference is designed to bring stakeholders groups together to learn more about the farm bill conservation programs and develop specific action plans to disseminate information on the opportunities for producers from farm bill conservation programs. USDA's Natural Resource Conservation Service (NRCS) Chief Bruce Knight will give the keynote address. Jamie Clover Adams, secretary of the Kansas Department of Agriculture will also address the conference. (Contact: Charlie Ingram)

USDA SEEKS COMMENTS ON PAYMENT LIMITATION RULE

        USDA is seeking public comments on proposed regulations to implement new payment limitations that were established under the 2002 farm bill. The payment limitation provisions generated much debate and controversy during the farm bill process. The new law also established a commission to study and make recommendations regarding farm program payment limitations and the impact it would have on farm income, land values, and agribusiness infrastructure.
        The 2002 farm bill establishes some new payment limitations. The total dollar payment limitation is reduced from $460,000 under previous law to $360,000 in the new farm bill. Individuals or entities are not eligible to receive direct payments, counter-cyclical payments, marketing loan gains, nor a payment under conservation programs if the three year average of their adjusted gross income exceeds $2.5 million. An exemption is provided where not less than 75 percent of the adjusted gross income is derived from farming, ranching, or forestry operations. USDA's proposed regulations set forth the criteria that will be applied in determining whether certain income limits have been exceeded by an individual or entity.
        The farm bill makes no changes to the current person actively engaged in farming provisions. The three-entity rule, which restricts the number of entities through which a "person" may receive payments, still applies. It continues the limit on direct payments at $40,000 per person, sets a $65,000 limit for counter-cyclical payments, and limits marketing loan benefits at $75,000. There is a separate payment limitation for the peanut program.
        Comments on the proposed rule must be received by November 27, 2002. A copy of the rule and detailed information can be found on the USDA web site at http://www.nrcs.usda.gov/programs/farmbill/2002/IncRule02.html (Contact: Charlie Ingram)

USDA ANNOUNCES DEADLINES FOR LOAN DEFICIENCY PAYMENT APPLICATIONS

        USDA recently announced that deadlines for loan deficiency payment (LDP) applications are Nov. 12, 2002 for 2001-crop grains and rice, and Nov. 18, 2002, for 2001-crop upland cotton. The 2002 farm bill provides special provisions for the 2001-crop year, which extend LDPs to commodities produced on farms that were not enrolled in 2001 crop-year Production Flexibility Contracts (PFC). This extension means that more farmers may become eligible for LDPs.
        The 2002 farm bill expanded the eligibility to non-PFC farms. In addition, producers who lost beneficial interest in 2001-crop marketing loan commodities before applying for LDPs, whether produced on a PFC or non-PFC farm, may now be eligible for LDPs. Producers lose "beneficial interest" when they no longer own a particular commodity or otherwise have lost control of it. The 1996 farm bill provided that producers who enrolled in a PFC contract are eligible for the 2001 LDPs. Producers had a one-time opportunity in 1996 to enroll their farms in a seven-year PFC contract, which enabled them to receive PFC contract payments. A producer on PFC acreage is an owner, operator, landlord, tenant, or sharecropper who shares in the risk of producing a crop on PFC acreage, or would have shared had a crop been produced. Because these LDP eligibilities were established late in the marketing year of these crops, the application deadlines were established as the dates which are 30 days after the publication of the regulations in the Federal Register.
        The regulations regarding rice and grains were published Oct. 11, 2002, and the regulations regarding upland cotton were published Oct. 18, 2002. Producers who think they might be eligible for 2001-crop LDPs may have to meet other requirements. For more information on these programs, producers should contact their local USDA Service Center or FSA office. (Contact: Charlie Ingram)

USDA EXPANDS & IMPROVES ONLINE SERVICES FOR PRODUCERS

        USDA is enhancing and expanding the department's services available to producers and customers through the Internet. Instead of driving to a Service Center, registered customers will be able to conduct business online with the Service Center Agencies in a secure and protected environment.
        Some features of USDA's Internet services will allow farmers and ranchers to download forms and submit them electronically. For example, producers can use the 2002 Farm Bill Tools Page to update contract base acres and farm program yields used to calculate program benefits, calculate base and yields and Milk Income Loss Contract (MILC) payments. Other farm bill online tools will be added later. Another tool which is available is the Electronic Field Office Technical Guide (eFOTG), which contains technical information about the conservation of soil, water, air, and related plant and animal resources. Producers can find county loan deficiency payment rates, and customers looking to buy a house or rental properties can check the website for properties currently for sale. The USDA Lender Interactive Network Connection (USDALINC) is an interactive system that provides approved Rural Housing Service (RHS) approved lender/partners access to RHS electronic services for loan status and default status reporting. To view the e-forms and services available from this website, visit: http://forms.sc.egov.usda.gov/eforms/default1.htm. (Contact: Charlie Ingram)

ENVIRONMENT BRIEFS

~~USDA Seeks Comments on Farm and Ranch Lands Protection Program~~USDA's Natural Resources Conservation Service (NRCS) has announced it is seeking public comments on the Farm and Ranch Lands Protection Program (FRPP), formerly known as the Farmland Protection Program (FPP). The 2002 farm bill amended the program and a proposed rule was published in the October 29, 2002 Federal Register. The purpose of the program is to protect prime, unique and important soil from conversion to nonagricultural uses through the purchase of conservation easements. The proposed rule establishes eligibility criteria, state ranking considerations and guidelines for program administration. Comments are due by December 30, 2002. The proposed rule is available on the NRCS website at http://www.nrcs.usda.gov/programs/farmbill/2002/FBRules.html.

~~Nominations Sought for USDA Air Quality Task Force~~On September 25, USDA called for nominations for qualified persons to serve as members of the Agricultural Air Quality Task Force. The role of the task force is to strengthen and coordinate USDA air quality research efforts to determine the extent to which agricultural activities contribute to air pollution and to identify cost-effective ways in which the agriculture industry can improve air quality. Nominations are due November 12, 2002. The 2002 farm bill specifically addresses air quality issues and ties them to conservation programs. Nomination information for the task force can be found on the web at http://fargo.nserl.purdue.edu/faca, or by contacting Beth Sauerhaft, NRCS designated federal official, by e-mail at beth.sauerhaft@usda.gov. (Contact: Charlie Ingram)

FOOD SAFETY BRIEFS

~~FDA Issues Import Alert on Cantaloupes~~The Food Drug Administration (FDA) this week issued an import alert on cantaloupes from Mexico because of insanitary conditions that have resulted in four Salmonellosis outbreaks in the last three years in the United States. These outbreaks were responsible for many illnesses including two deaths and at least 18 hospitalizations. This import alert recommends that officials detain without physical examination cantaloupe from Mexico offered for entry at all U.S. ports. Investigations of Salmonella outbreaks between 2000 and 2002 showed insanitary conditions in the growing and packing of cantaloupe in Mexico. In addition, FDA sampling of imported produce found some samples of cantaloupe from most growing regions in Mexico tested positive for Salmonella. This week's import alert expands the prior import alerts that targeted specific shippers and growers whose products were linked to outbreaks or tested positive for Salmonella. The FDA also announced that it will continue to work with the Mexican government on a food safety program for production, packing, and shipping of fresh cantaloupes. The Mexican government has proposed a certification program based on good agricultural practices and good manufacturing practices that would allow FDA to identify firms that have adopted and implemented such a food safety program. This certification program is still under development. During NASDA's annual meeting in early October, members discussed continuing problems regarding the safety and threat posed by certain imported foods. NASDA members approved updated policy statements on imported foods and called on USDA and FDA to require a full risk assessment, analytical testing, and certification of food items that are involved in a previous food contamination and food safety incident.

~~Additional HACCP Guidance Developed for Small Plants~~USDA's Food Safety Inspection Service (FSIS) recently mailed a new Hazard Analysis and Critical Control Point (HACCP) guidance document to assist all small and very small plants. The document, "Supporting Documentation Materials for HACCP Decisions," was prepared in cooperation with Ohio State University. The material provides information for all nine HACCP processes to aid plants in preparing and understanding supporting documentation for their hazard analysis. The guide is intended to aid in the scientific documentation of the decisions that are made during hazard analysis, validation of HACCP plans, and developing corrective actions. Additionally, it provides examples of processing steps and information from scientific publications and regulatory documents.

~~FSIS Posts Frequently Asked Questions on Web Site~~The Food Safety and Inspection Service (FSIS) Technical Service Center (TSC) has posted the first set of "Frequently Asked Questions" (FAQs), to the agency's web site. The FAQs represent a selected summary of thousands of questions answered over the past five years, including those received from FSIS field personnel, plant owners and operators, industry representatives, officials representing other federal and state agencies, and foreign government officials. Topics include HACCP, SSOP, processing, slaughter, export, and general (e.g., labeling, appeals, NRs, ISP codes). The FAQs can be accessed at http://www.fsis.usda.gov/OFO/TSC/faq11.htm.

~~Meat Processors Call for Irradiation Pilot Project in School Lunch Program~~The American Meat Institute (AMI) Board of Directors last week urged USDA to establish a pilot program for purchasing irradiated ground beef in the School Lunch commodity beef purchasing program. AMI pointed out that groups like the American Medical Association and the World Health Organization have long endorsed irradiation for meat products and the technology is used in nearly 40 countries around the world. The industry group said that "irradiation provides an extra margin of safety along with the many technologies already in use by the industry." The Food and Drug Administration (FDA) approved the use of irradiation for use on single ingredient raw products in 1999. USDA issued a rule permitting it use in February 2000, and many restaurants and meat companies are offering irradiated products to consumers. AMI said these same products should be provided through the school lunch program.

~~USDA Makes Homeland Security Materials Available~~USDA has prepared homeland security information materials, fact sheets and recommendations for producers, food processors, and meal providers to help keep America's food safe. The information includes general agricultural biosecurity questions and answers, and specific topics such as biosecurity on dairy farms and measures for on-site farm visits. The information can be viewed on the USDA website at http://www.usda.gov/homelandsecurity/homeland.html. (Contact: Charlie Ingram)


STATE NEWS


BRONSON ANNOUNCES MULTIMILLION DOLLAR PROGRAM TO IMPROVE FLORIDA'S WATER QUALITY

        Florida Agriculture and Consumer Services Commissioner Charles H. Bronson and U.S. Department of Agriculture Secretary Ann Veneman have announced a new program for Florida that will provide more than $150 million dollars for water quality and habitat improvements on agricultural lands.
        Florida's Conservation Reserve Enhancement Program (CREP), a USDA program recently authorized in the 2002 farm bill, will restore up to 30,000 acres of environmentally sensitive agricultural land. Conservation practices include restoring wetlands to improve water quality and provide new habitat for migratory waterfowl and wading birds as well as planting trees and grassy areas along water bodies to act as a barrier to runoff and to prevent bank erosion. CREP will be coordinated with other ongoing environmental projects such as the Comprehensive Everglades Restoration Plan and the Lake Okeechobee Protection Plan to achieve greater environmental benefits.
        "This cooperative effort will enable Florida to make great strides in its objectives of restoring water quality and providing a natural habitat for many species," Bronson said. "Agricultural producers are serious about protecting the beauty and well being of our unique environmental treasures."
        Under the voluntary program, farmers and ranchers will enroll in the CREP under 15 year conservation leases with the USDA. The state will then use its resources to offer incentives to the landowners to extend the conservation leases to a total of 30 years or to make them permanent. Funding for this effort totals $153 million dollars with the federal government contributing $96 million dollars of this total
        "This partnership is an example of federal and state resources coming together to enhance our natural resources," said Veneman. "This partnership means cleaner water and healthier wildlife habitat for an array of threatened and endangered species like the woodstork and indigo snake."
        The CREP program targets a large geographical area of Florida, stretching from the mouth of the St. Johns River to Florida Bay. It focuses specifically on land in the St. Johns-Ocklawaha-Indian River Lagoon System and in the Everglades Watershed (Kissimmee River, Lake Okeechobee, Caloosahatchee River, and Everglades/Florida Bay).
        Florida Agriculture and Consumer Services Commissioner Charles H. Bronson was joined by USDA Deputy Secretary James Moseley in Orlando to sign the CREP agreement. USDA's Farm Service Agency will now begin working with the Florida Department of Agriculture and Consumer Services and the Soil and Water Conservation Districts on a public outreach program to educate and enroll landowners.
        "This CREP will reduce sediment and pollutants and encourage farmers to plant vegetative cover," said Moseley. "Florida's natural resources and the communities around them will greatly benefit from this program." (Contact: Liz Compton, 850/488-3022)

USMEF WILL PRESENT AWARD FOR LEADERSHIP REWARDS TO JOE HAMPTON

        Illinois Agriculture Director Joe Hampton will receive U.S. Meat Export Federation's (USMEF) "Distinguished Service Award" for his exceptional leadership and contributions to U.S. red meat exports. Since 1991, USMEF has presented this award to outstanding figures in the red meat industry who exemplify the exceptional, individual dedication responsible for the federation's success.
        Hampton is a strong advocate of global free trade and has represented agricultural interests in the GATT negotiations and in talks with the European Union. He is a respected leader in agriculture, who has been entrusted with many and varied leadership positions in local, state, and national organizations. Hampton served on the USMEF Executive Committee and was USMEF Chairman in 1992. Hampton has served as director of the Illinois Department of Agriculture since 1999.
        Hampton will receive the award during USMEF's annual board of directors meeting, November 6 to 8. (Contact: John Herath, 217/785-9272)

WADDELL NAMED ASSISTANT COMMISSIONER OF AGRICULTURE

        Tennessee Agriculture Commissioner John W. Rose announced the appointment of K. David Waddell as assistant commissioner of the Department of Agriculture. Waddell succeeds Mike Countess, who assumed duties as deputy commissioner in September.
        "We are fortunate to have someone of David's abilities and experience to step into a key position in the department," said Rose. "He is highly regarded throughout agriculture, business and state government. Having previously served the department, he will be instrumental in helping us move forward in many important program areas, especially as it relates to regulatory and legislative affairs."
        As assistant commissioner for policy and legislation, Waddell will be responsible for ensuring that the department has appropriate statutory authority for programs and services. He will assist in the administration of programs, help formulate policy and serve as legislative liaison to the General Assembly.
        Waddell is the former executive secretary of the Tennessee Regulatory Authority (TRA) where he operated as chief administrative officer for the utilities and communications oversight agency for six years. Prior to his tenure at the TRA, he held the position of vice-president and directed government relations for the Tennessee Association of Business. Waddell previously served as assistant commissioner of the Department of Agriculture from 1981 to 1994.
        Waddell received a Doctor of Jurisprudence from the University of Tennessee at Knoxville and a bachelor's degree in Government and Public Administration from Lipscomb University in Nashville. He is a 1986 graduate of the Tennessee Government Executive Institute.
        He has served as vice-chairman of the staff subcommittee on Executive Management for the National Association of Regulatory Utility Commissions. He served as griculture's representative on the state Water Quality Control Board from 1990 to 1994, and is a former member of the Tennessee Municipal Solid Waste Advisory Committee. He was a loaned executive with the United Way in 1990.
        Waddell is a native of Cookeville, Tenn. He and his wife, Cindy, have two children, Emily and John, and reside in Brentwood, Tenn. (Contact: Tom Womack, 615/837-5118)