[Federal Register: October 16, 2003 (Volume 68, Number 200)]
[Proposed Rules]
[Page 59548-59554]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16oc03-13]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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[[Page 59548]]
DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection Service
7 CFR Part 301
[Docket No. 00-035-2]
RIN 0579-AB19
Plum Pox Compensation
AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Proposed rule.
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SUMMARY: We are proposing to amend the plum pox compensation
regulations to provide additional compensation to affected growers,
under certain conditions. We are proposing to provide additional
compensation to growers who have already been paid under the existing
regulations, which provide for payments based on a 3-year fallow
period, but who are prohibited from replanting regulated articles for a
total of more than 3 years due to additional detections of plum pox in
areas already under quarantine. Such growers would be paid compensation
for up to 2 additional years. We are also proposing to provide
additional compensation to growers who are direct marketers of their
fruit, and to provide compensation for growers who have had trees that
were less than 1 year old destroyed. We are proposing these actions in
response to issues that have surfaced during our 2 years of experience
in managing the plum pox quarantine and paying compensation to affected
growers. These proposed changes are necessary to provide adequate
compensation to persons affected by the plum pox quarantine and
eradication efforts associated with the quarantine.
DATES: We will consider all comments that we receive on or before
December 15, 2003.
ADDRESSES: You may submit comments by postal mail/commercial delivery
or by e-mail. If you use postal mail/commercial delivery, please send
four copies of your comment (an original and three copies) to: Docket
No. 00-035-2, Regulatory Analysis and Development, PPD, APHIS, Station
3C71, 4700 River Road Unit 118, Riverdale, MD 20737-1238. Please state
that your comment refers to Docket No. 00-035-2. If you use e-mail, address your comment to regulations@aphis.usda.gov. Your comment must
be contained in the body of your message; do not send attached files.
Please include your name and address in your message and ``Docket No.
00-035-2'' on the subject line.
You may read any comments that we receive on this docket in our
reading room. The reading room is located in room 1141 of the USDA
South Building, 14th Street and Independence Avenue SW., Washington,
DC. Normal reading room hours are 8 a.m. to 4:30 p.m., Monday through
Friday, except holidays. To be sure someone is there to help you,
please call (202) 690-2817 before coming.
APHIS documents published in the Federal Register, and related
information, including the names of organizations and individuals who
have commented on APHIS dockets, are available on the Internet at
http://www.aphis.usda.gov/ppd/rad/webrepor.html.
FOR FURTHER INFORMATION CONTACT: Mr. Stephen Poe, Operations Officer,
Program Support Staff, PPQ, APHIS, 4700 River Road Unit 134, Riverdale,
MD 20737-1236; (301) 734-8247.
SUPPLEMENTARY INFORMATION:
Background
Plum pox is an extremely serious viral disease of plants that can
affect many Prunus (stone fruit) species, including plum, peach,
apricot, almond, nectarine, and sweet and tart cherry. A number of wild
and ornamental Prunus species may also be susceptible to this disease.
Infection eventually results in severely reduced fruit production, and
the fruit that is produced is often misshapen and blemished. In Europe,
plum pox has been present for a number of years and is considered to be
the most serious disease affecting susceptible Prunus varieties. Plum
pox virus is transmitted locally by a variety of aphid species, as well
as by budding and grafting with infected plant material, and spreads
over longer distances through movement of infected budwood, nursery
stock, and other plant parts.
There are no known effective methods for treating trees or other
plant material infected with plum pox, nor are there any known
effective prophylactic treatments to prevent the disease from occurring
in trees exposed to the disease due to their proximity to infected
trees or other plant material. Without effective treatments, the only
option for preventing the spread of the disease is the destruction of
infected and exposed trees and other plant material.
On March 2, 2000, as a result of the detection of plum pox in Adams
County, PA, the Secretary of Agriculture published in the Federal
Register (65 FR 11280-11281, Docket No. 00-001-1) a declaration of
extraordinary emergency regarding plum pox that was effective on
January 20, 2000. The declaration of extraordinary emergency was
followed by an interim rule published in the Federal Register on June
2, 2000 (65 FR 35261-35265, Docket No. 00-034-1), that established
regulations quarantining a portion of Adams County, PA, due to the
detection of plum pox in that region \1\ and restricting the interstate
movement of certain articles from the quarantined area that present a
risk of transmitting plum pox (e.g., trees, seedlings, root stock,
budwood, branches, twigs, and leaves of susceptible Prunus spp.). That
interim rule, which established a new ``Subpart-Plum Pox'' (7 CFR
301.74 through 301.74-4), was promulgated on an emergency basis to
prevent the spread of plum pox to noninfested areas of the United
States.
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\1\ The particular strain of plum pox found in the quarantined
area in Adams County, PA--the ``D'' strain--is not known to be
transmitted by seed or fruit, and is not known to infect cherry.
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On September 14, 2000, we published in the Federal Register (65 FR
55431-55436, Docket No. 00-035-1) another interim rule that established
regulations to provide for the payment of compensation to owners of
commercial stone fruit orchards and fruit tree nurseries who had stone
fruit trees or nursery stock destroyed in order to control plum pox.
Those compensation provisions, which were added to ``Subpart-Plum Pox''
as a new Sec. 301.74-5, were necessary to reduce the economic effect
of the plum pox quarantine on affected commercial growers and nursery
owners, thus ensuring the continued cooperation of growers and nursery
owners with the
[[Page 59549]]
survey and eradication activities being conducted by the U.S.
Department of Agriculture's (USDA's) Animal and Plant Health Inspection
Service (APHIS) and the Pennsylvania Department of Agriculture (PDA).
Existing Compensation Regulations
Under the regulations in Sec. 301.74-5 (referred to below as the
regulations), owners of commercial stone fruit orchards and owners of
fruit tree nurseries are eligible to receive compensation for losses
associated with the destruction of trees in order to control plum pox
and the prohibition on the movement or sale of nursery stock,
respectively, if the losses result from an action performed pursuant to
an emergency action notification (EAN) issued by APHIS.
The regulations provide, among other things, that owners of
commercial stone fruit orchards will be compensated on a per-acre basis
at a rate based on the age of the trees destroyed and a 3-year
prohibition on the replanting of host trees. The compensation to be
paid by USDA is based on the loss in value of the destroyed orchard.
The loss in value is calculated as the difference between the net
present value (NPV) of the original (destroyed) orchard over a 25-year
life cycle minus the NPV of the replanted orchard for its entire
productive life of 25 years. To calculate the NPV of an orchard (both
original and replanted orchards), we used discounted cash flow
analysis, which takes into account the quantity, variability, and
duration of the forecasted income stream over a specified income
projection period. Each year's net income is discounted back to a
present worth figure at the appropriate, market-derived discount rate.
The valuation model can be expressed in the following equation form,
where Y = net income, r = discount rate, and n = number of years in the
discount period:
[GRAPHIC] [TIFF OMITTED] TP16OC03.004
To calculate NPV using the above equation, we had to determine net
income, discount rate, and the number of years in the discount period.
Each of these inputs is discussed below.
The rate of compensation to be paid by USDA is set at up to 85
percent of the difference in value between the destroyed and
replacement orchards as described above. The State of Pennsylvania has
indicated that State funds will be used to make up the remaining
difference in value. In no case will total USDA plus State compensation
exceed 100 percent of the difference in value.
Net income. To determine per-acre net income, we multiplied the
yield (number of bushels) per acre by the price per bushel, then
subtracted production costs. The estimation of net income is based on
the 1995-1998 average Pennsylvania peach production, price, and yield
data from the Pennsylvania Agricultural Statistics Service.
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Peach price ($/ Yield (bushel/ Income ($ per
Year bushel) acre) acre)
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1995...................................................... 13.65 275.9 3,766
1996...................................................... 16.50 254.5 4,199
1997...................................................... 16.85 254.5 4,288
1998...................................................... 15.85 236.4 3,747
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1995-98 average....................................... 15.71 255.3 4,010
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The calculation of the variable costs of production is based on the
following estimates:
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Type of cost Year incurred Costs
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Land preparation................... Year 0........................... $395 per acre.
Planting........................... Year 1........................... $1,303 per acre.
Orchard maintenance during Year 2........................... $222 per acre.
preproductive year.
Orchard maintenance during Years 3-25....................... $899/year per acre.
productive years.
Harvest cost....................... Years 4-25....................... $1.75 per bushel.
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Discount rate. The discount rate used in the present value
calculation is 12.5 percent, which is the risk-adjusted rate estimated
to be appropriate in this situation.
Number of years in discount period. The NPV was calculated using a
life cycle approach. The revenues and costs were calculated over a
period equal to the expected productive life of a replanted orchard,
which, as noted previously, is 25 years.
Using the information and methodology set forth in the preceding
paragraphs, we arrived at the per-acre compensation rates set forth in
Sec. 301.74-5(b)(1) of the current regulations. The amounts of
compensation for destroyed trees range from $3,713 per acre for a 25-
year-old block of trees to $15,000 per acre for a 7-year-old block of
trees. Finally, because compensation programs are intended, in part, to
encourage the prompt execution of measures deemed necessary to control
or eradicate plant pests, Sec. 301.74-5(b)(1) of the regulations
provides that compensation payments will be reduced by 10 percent, plus
any tree removal costs incurred by the State or USDA, if the trees
subject to an EAN were not destroyed by the date specified on that
order.
The existing regulations also: (1) Provide that owners of fruit
tree nurseries will be compensated for up to
[[Page 59550]]
85 percent of the net revenues lost from their first and second year
crops as the result of the issuance of an EAN, and (2) stipulate
procedures for applying for compensation and require that premises on
which trees have been destroyed because of plum pox pursuant to an EAN
issued by APHIS may not be replanted with susceptible Prunus species
(Prunus species identified as regulated articles) for 3 years.
Proposed Changes to the Compensation Regulations
Extension of Prohibition of Replanting
In December 2001, a science panel \2\ concluded that the
prohibition on replanting host material at locations where orchards had
been destroyed due to the presence of plum pox should be extended due
to recent detections of plum pox-positive trees during the second year.
As a result of these detections, replanting cannot occur at affected
sites for an additional 3 years. Since the existing regulations in
Sec. 301.74-5(d) do not make it clear that replanting should be banned
in a regulated area until 3 years after the most recent detection of
plum pox in that area, we are proposing to amend the regulations to
clarify that fact.
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\2\ The science panel was composed of representatives of APHIS,
PDA, USDA's Agricultural Research Service, and university
scientists.
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As explained earlier in this document, the calculations on which
the currently authorized rates of compensation are based were designed
to account for a 3-year period during which growers could not replant
Prunus species in quarantined areas. Given the detections of additional
plum pox-positive trees, we believe it is necessary to provide
additional compensation to growers since they will not be able to plant
host species for additional years. The amount of additional
compensation has been determined to be $828 per acre for a fourth
fallow year and $736 per acre for a fifth fallow year. These amounts
are based on extending the same formula we used to calculate the
original 3-year compensation rate to apply to fourth and fifth fallow
years.
We are proposing to provide additional payments in those amounts to
growers who have already received compensation payments, and to provide
those same amounts to growers who are due compensation in the future.
Note: APHIS does not intend to propose additional compensation
in the future if additional plum pox positive trees are found and
the ban on replanting must be extended further. The maximum amount
of compensation per acre that a grower could receive under any
circumstances would be the total payment due for 5 fallow years
according to the age of the trees.
The revised compensation rates are shown in proposed Sec. 301.74-
5(b)(1)(ii) in the rule portion of this document.
New Provisions for Direct Market Growers
The current compensation regulations contain no provisions for
``direct market growers.'' Direct market growers are growers who
produce fruit and sell the fruit themselves for premium prices at
farmers markets. Typically, the acreage involved in production for
these purposes is small, and all of the fruit produced is for sale
directly to consumers as tree-ripened fruit. None of the fruit produced
on acreage devoted to direct market production is sold for processing
or to packing houses, nor is it marketed wholesale.
Direct market growers usually produce a wide variety of fruit (both
species and varieties) to enable them to satisfy the needs of their
customers through an extended marketing season. In the event these
growers are not able to use their own fruit (e.g., as a result of their
orchards being destroyed due to the presence of plum pox) they are
normally precluded from obtaining fruit from other sources. The
conditions under which these growers are eligible to sell their
products at farmers markets usually require that sellers be the
producers of the fruits and vegetables they are selling.
We have reviewed information on production costs and revenues for
direct market growers, and believe it is necessary to increase the
rates of payment to these growers in order to fairly compensate them.
The formulas used to calculate the original amount of compensation due
to such growers would remain the same, and the discount rates would not
be changed. The difference in payments for direct marketers versus
other growers would be due primarily to the high value of sales by
direct marketers, despite the fact that they bear additional costs that
other growers do not. The net income for direct marketers are based on
the income and cost figures presented in tables 1 and 2:
Table 1.--Calculation of Income Per Acre for Direct Marketers
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Peach price ($ per Yield (bushel per
Year Price ($ per pound) bushel) acre) Income ($ per acre)
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1998............................................................ $1.69 81.13 273.1 $22,156
1999............................................................ 1.66 79.92 321.3 25,678
2000............................................................ 1.65 79.03 378.0 29,873
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3-year average.............................................. 1.67 80.02 324.1 25,902
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Table 2.--Variable Costs of Production for Direct Marketers
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Type of cost Year incurred Costs
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Land preparation................... Year 0........................... $395 per acre.
Planting........................... Year 1........................... 1,303 per acre.
Maintenance (pre-productive years). Year 2........................... 222 per acre.
Maintenance (productive years)..... Years 3-25....................... 1,376 per year, per acre.
Harvest............................ Years 4-25....................... 1.75 per bushel, per year.
Marketing costs.................... Years 4-25....................... 21,304 per year.
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[[Page 59551]]
As with per-acre net income for all other growers, to determine
per-acre net income for direct marketers, we multiplied the yield
(number of bushels) per acre by the price per bushel, then subtracted
production costs. The estimation of net income is based on data
provided by a direct marketer for the 1998, 1999, and 2000 production
seasons.
Given the difference in net income between other growers and direct
marketers, we are proposing to compensate direct marketers at the rates
shown in proposed Sec. 301.74-5(b)(1)(i) in the rule portion of this
document. Like the rates for other growers discussed earlier in this
document, the rates for direct marketers would also include provisions
to pay compensation for fourth and fifth fallow years if necessary.
We propose to pay growers direct market rates of compensation only
if the orchard owner grows fruit exclusively for sale in farmers
markets or similar outlets as described in the proposed regulations. We
would not pay compensation at direct marketer rates to growers who sell
any portion of their harvest to wholesale markets, nor would we pay
direct marketer compensation rates to growers who sell most of their
fruit wholesale and who sell some of their fruit at roadside fruit
stands or similar venues.
Additional Compensation for Destruction of Trees Less Than 1 Year Old
The current regulations do not contain provisions for compensation
for the destruction of trees less than 1 year old (known as ``0 year
trees''). However, we have concluded that growers who have such trees
destroyed because of plum pox deserve to be compensated for the loss of
those trees and the revenue that might be expected from them. This is
based on our determination that growers incur costs in ground
preparation, the cost of nursery stock, and the expense of planting and
maintaining these trees.
After examining the economic information obtained from the
Pennsylvania State University and the Pennsylvania State Adams County
Cooperative Extension Service, we have concluded that a fair rate of
compensation for these trees is $2,403 per acre for all growers,
including direct marketers. This amount represents the 85 percent
Federal share, and is the same for all growers because all growers,
including direct marketers, incur similar costs for 0 year trees.
Growers of 0 year trees would also be compensated for fourth and fifth
fallow years, where applicable, at rates of $828 per acre for a fourth
fallow year and $736 per acre for a fifth fallow year.
Compensation will be paid using funds transferred to APHIS by the
Commodity Credit Corporation of USDA. For any acres that are added to
the plum pox quarantine program after September 30, 2004, the Federal
share of compensation to be paid may change.
Benefits of Compensation
The benefit of providing compensation is the increased likelihood
that growers with infected orchards will participate in the plum pox
eradication program. The use of compensation complements and supports
the regulatory goal of preventing disease spread. More so than in other
pest eradication programs, the specific characteristics of plum pox
necessitate the use of compensation to obtain growers' cooperation in
the control of the immediate disease outbreak and the ensuing national
survey.
Because the manner in which PPV spreads is not predictable, the
eradication strategy necessarily calls for the destruction of trees
that are asymptomatic. Growers, on their own, would not have the
incentive to cut down trees that appear uninfected as would be
necessary in an eradication program.
Without government intervention, growers would opt to keep
producing as long as trees remain symptom-free. The eradication
strategy calling for the swift destruction of both diseased and exposed
trees causes economic losses in addition to that resulting from the
disease. For these reasons, the payment of compensation would reflect
the incremental burdens of complying with regulatory requirements
insofar as market forces would not otherwise impose similar costs.
Executive Order 12866 and Regulatory Flexibility Act
This proposed rule has been reviewed under Executive Order 12866.
The rule has been determined to be significant for the purposes of
Executive Order 12866 and, therefore, has been reviewed by the Office
of Management and Budget.
We have prepared an economic analysis for this proposed rule. The
economic analysis is summarized below. Copies of the full analysis are
available by contacting the person listed under FOR FURTHER INFORMATION
CONTACT, or may be viewed on the Internet at http://www.aphis.usda.gov/ppd/rad/plumpox.pdf
.
Summary of Economic Analysis
We are proposing to amend the plum pox compensation regulations to
provide additional compensation to affected growers, under certain
conditions. We are proposing to provide additional compensation to
growers who have already been paid under the existing regulations,
which provide for payments based on a 3-year fallow period, but who are
prohibited from replanting regulated articles for a total of more than
3 years due to additional detections of plum pox in areas already under
quarantine. Such growers would be paid compensation for up to 2
additional years. We are also proposing to provide additional
compensation to growers who are direct marketers of their fruit, and to
provide compensation for growers who have had trees that were less than
1 year old destroyed. We are proposing these actions in response to
issues that have surfaced during our 2 years of experience in managing
the plum pox quarantine and paying compensation to affected growers.
These proposed changes are necessary to provide adequate compensation
to persons affected by the plum pox quarantine and eradication efforts
associated with the quarantine.
This proposed rule would amend the regulations to provide
additional compensation in the event a quarantine period is extended
according to an EAN issued by APHIS. The fallow period may be increased
by 1 or 2 years depending on the proximity of the land to recent finds
of the plum pox virus. By delaying the time at which growers can
replant, the longer fallow period increases the loss to growers. We are
proposing to increase the amount of compensation to account for the
longer fallow period.
Plum pox has been detected in some areas near orchards that were
removed in the initial year of the eradication program. This has led to
a need for additional fallow years for those acres. A fallow period of
3 years from the last find is needed to conclude that plum pox has been
eradicated. The maximum amount of compensation to be paid would be for
5 fallow years. For orchards removed in 2002, we anticipate that only a
3-year fallow period will be needed if no further plum pox is
discovered.
Compensation payments are based on calculating the difference
between the amount a grower could earn from the original orchard minus
the amount that the grower could earn from a replanted orchard after a
fallow period. A longer fallow period results in higher compensation
payments because of the
[[Page 59552]]
additional time it takes until growers have productive trees.
The payment to commercial growers for 2 additional fallow years
would be $828 per acre for the fourth year and $736 per acre for the
fifth year ($1,564 total per acre). The total number of acres that
would currently be eligible for additional payments because of the
added fallow years is 1,400. The estimated cost if all acres are
eligible for 2 additional years is $2,189,600.
Total additional payments for direct marketers range from $264,472
to $348,452 depending on the number of fallow years a direct marketer
would be required to wait before replanting. Table 7, page 15
summarizes the range of payments. Payments to direct marketers for the
first three fallow years would increase by $10,172 per acre from the
base amount that growers receive. Direct marketers were eligible to
receive the same payments as other growers so the $10,172 represents
the additional payment. Because they are among the last trees that have
been removed, a three year fallow period should be sufficient to
demonstrate that plum pox has been eradicated. However, in the event
that additional fallow years are necessary due new detections of plum
pox, direct marketers would be compensated for up to 5 (total) fallow
years. They would receive $1,710 per acre for a fourth year and $1,520
per acre for a fifth year. There are approximately 26 acres of trees
used for direct marketing that have been removed as part of the plum
pox eradication program; total payments to direct marketers would
increase by $264,472, assuming the fallow period does not need to be
extended. A four year fallow period for direct marketers would result
in payments of $11,882 per acre ($10,172 + $1,710). Total payments for
26 acres would be $308,932. A five year fallow period for direct
marketers would result in payments of $13,402 per acre
($10,172+$1,710+$1,520). Total payments for 26 acres would be $348,452.
This proposed rule also addresses the issue of trees less than one
year old. Some growers have received destruction orders for trees that
had been planted the same year. These trees did not go through one
harvest season and are sometimes referred to as zero year trees. The
original compensation program made no provision for these trees.
However, growers that have had trees less than one year old destroyed
have incurred costs. Based on input from cooperative extension agents
and Pennsylvania State University, we have concluded that a fair rate
of compensation for these trees is $2,403 per acre for a three year
fallow period. There are at least 43 acres of zero year trees that have
been removed as part of the plum pox eradication program; total
payments to growers of zero year trees would increase by $103,329.
As stated earlier in this document, these proposed changes are
necessary to provide adequate compensation to persons affected by the
plum pox quarantine and eradication efforts associated with the
quarantine. Persons affected by the quarantine would, in all cases,
benefit from adoption of this proposed rule.
Under these circumstances, the Administrator of the Animal and
Plant Health Inspection Service has determined that this action would
not have a significant economic impact on a substantial number of small
entities.
Executive Order 12372
This program/activity is listed in the Catalog of Federal Domestic
Assistance under No. 10.025 and is subject to Executive Order 12372,
which requires intergovernmental consultation with State and local
officials. (See 7 CFR part 3015, subpart V.)
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. If this proposed rule is adopted: (1) All State
and local laws and regulations that are inconsistent with this rule
will be preempted; (2) no retroactive effect will be given to this
rule; and (3) administrative proceedings will not be required before
parties may file suit in court challenging this rule.
Paperwork Reduction Act
In accordance with section 3507(d) of the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.), the information collection or
recordkeeping requirements included in this proposed rule have been
submitted for approval to the Office of Management and Budget (OMB).
Please send written comments to the Office of Information and
Regulatory Affairs, OMB, Attention: Desk Officer for APHIS, Washington,
DC 20503. Please state that your comments refer to Docket No. 00-035-2.
Please send a copy of your comments to: (1) Docket No. 00-035-2,
Regulatory Analysis and Development, PPD, APHIS, Station 3C71, 4700
River Road Unit 118, Riverdale, MD 20737-1238, and (2) Clearance
Officer, OCIO, USDA, room 404-W, 14th Street and Independence Avenue
SW., Washington, DC 20250. A comment to OMB is best assured of having
its full effect if OMB receives it within 30 days of publication of
this proposed rule.
We are soliciting comments from the public (as well as affected
agencies) concerning our proposed information collection and
recordkeeping requirements. These comments will help us:
(1) Evaluate whether the proposed information collection is
necessary for the proper performance of our agency's functions,
including whether the information will have practical utility;
(2) Evaluate the accuracy of our estimate of the burden of the
proposed information collection, including the validity of the
methodology and assumptions used;
(3) Enhance the quality, utility, and clarity of the information to
be collected; and
(4) Minimize the burden of the information collection on those who
are to respond (such as through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology; e.g., permitting electronic
submission of responses).
Estimate of burden: Public reporting burden for this collection of
information is estimated to average 0.6667 hours per response.
Respondents: Owners of stone fruit orchards and fruit tree
nurseries in Pennsylvania.
Estimated annual number of respondents: 3.
Estimated annual number of responses per respondent: 1.
Estimated annual number of responses: 3.
Estimated total annual burden on respondents: 2 hours. (Due to
averaging, the total annual burden hours may not equal the product of
the annual number of responses multiplied by the reporting burden per
response.)
Copies of this information collection can be obtained from Mrs.
Celeste Sickles, APHIS' Information Collection Coordinator, at (301)
734-7477.
Government Paperwork Elimination Act Compliance
The Animal and Plant Health Inspection Service is committed to
compliance with the Government Paperwork Elimination Act (GPEA), which
requires Government agencies in general to provide the public the
option of submitting information or transacting business electronically
to the maximum extent possible. For information pertinent to GPEA
compliance related to this proposed rule, please contact Mrs. Celeste
Sickles, APHIS' Information Collection Coordinator, at (301) 734-7477.
[[Page 59553]]
List of Subjects in 7 CFR Part 301
Agricultural commodities, Plant diseases and pests, Quarantine,
Reporting and recordkeeping requirements, Transportation.
Accordingly, we propose to amend 7 CFR part 301 as follows:
PART 301--DOMESTIC QUARANTINE NOTICES
1. The authority citation for part 301 would continue to read as
follows:
Authority: 7 U.S.C. 7701-7772; 7 CFR 2.22, 2.80, and 371.3.
Section 301.75-15 also issued under Sec. 204, Title II, Pub. L.
106-113, 113 Stat. 1501A-293; sections 301.75-15 and 301.75-16 also
issued under Sec. 203, Title II, Pub. L. 106-224, 114 Stat. 400 (7
U.S.C. 1421 note).
2. In Sec. 301.74-5, paragraphs (a)(1), (b)(1), (c)(1), (c)(2) and
(d) would be revised and a new paragraph (c)(3) would be added to read
as follows:
Sec. 301.74-5 Compensation.
(a) * * *
(1) Owners of commercial stone fruit orchards. Owners of commercial
stone fruit orchards are eligible to receive compensation for losses
associated with the destruction of trees in order to control plum pox
pursuant to an emergency action notification issued by the Animal and
Plant Health Inspection Service (APHIS).
(i) Direct marketers. Orchard owners eligible for compensation
under this paragraph who market all fruit they produce under the
conditions described in this paragraph may receive compensation at the
rates specified in paragraph (b)(1)(i) of this section. In order to be
eligible to receive compensation at the rates specified in paragraph
(b)(1)(i) of this section, orchard owners must have marketed fruit
produced in orchards subsequently destroyed because of plum pox under
the following conditions:
(A) The fruit must have been sold exclusively at farmers markets or
similar outlets that require orchard owners to sell only fruit that
they produce;
(B) The fruit must not have been marketed wholesale or at reduced
prices in bulk to supermarkets or other retail outlets;
(C) The fruit must have been marketed directly to consumers; and
(D) Orchard owners must have records documenting that they have met
the requirements of this section, and must submit those records to
APHIS as part of their application submitted in accordance with
paragraph (c) of this section.
(ii) All other orchard owners. Orchard owners eligible for
compensation under this paragraph who do not meet the requirements of
paragraph (a)(1)(i) of this section are eligible for compensation only
in accordance with paragraph (b)(1)(ii) of this section.
* * * * *
(b) * * *
(1) Owners of commercial stone fruit orchards.--(i) Direct
marketers. Owners of commercial stone fruit orchards who APHIS has
determined meet the eligibility requirements of paragraph (a)(1)(i) of
this section will be compensated according to the following table on a
per-acre basis at a rate based on the age of the trees destroyed. If
the trees were not destroyed by the date specified on the emergency
action notification, the compensation payment will be reduced by 10
percent and by any tree removal costs incurred by the State or the U.S.
Department of Agriculture (USDA). The maximum USDA compensation rate is
85 percent of the loss in value, adjusted for any State-provided
compensation to ensure total compensation from all sources does not
exceed 100 percent of the loss in value.
----------------------------------------------------------------------------------------------------------------
Maximum Maximum Maximum
compensation additional additional
rate ($/acre, compensation ($/ compensation ($/
Age of trees (years) equal to 85% of acre, equal to acre, equal to
loss in value) 85% of loss in 85% of loss in
based on 3-year value) for 4th value) for 5th
fallow period fallow year fallow year
----------------------------------------------------------------------------------------------------------------
Less than 1............................................... $2,403 $828 $736
1......................................................... 9,584 1,710 1,520
2......................................................... 13,761 1,710 1,520
3......................................................... 17,585 1,710 1,520
4......................................................... 21,888 1,710 1,520
5......................................................... 25,150 1,710 1,520
6......................................................... 25,747 1,710 1,520
7......................................................... 25,859 1,710 1,520
8......................................................... 25,426 1,710 1,520
9......................................................... 24,938 1,710 1,520
10........................................................ 24,390 1,710 1,520
11........................................................ 23,774 1,710 1,520
12........................................................ 23,080 1,710 1,520
13........................................................ 22,300 1,710 1,520
14........................................................ 21,422 1,710 1,520
15........................................................ 20,434 1,710 1,520
16........................................................ 19,323 1,710 1,520
17........................................................ 18,185 1,710 1,520
18........................................................ 17,017 1,710 1,520
19........................................................ 15,814 1,710 1,520
20........................................................ 14,572 1,710 1,520
21........................................................ 13,287 1,710 1,520
22........................................................ 12,066 1,710 1,520
23........................................................ 10,915 1,710 1,520
24........................................................ 9,620 1,710 1,520
25........................................................ 8,163 1,710 1,520
----------------------------------------------------------------------------------------------------------------
[[Page 59554]]
(ii) All other orchard owners. Owners of commercial stone fruit
orchards who meet the eligibility requirements of paragraph (a)(1)(ii)
of this section will be compensated according to the following table on
a per-acre basis at a rate based on the age of the trees destroyed. If
the trees were not destroyed by the date specified on the emergency
action notification, the compensation payment will be reduced by 10
percent and by any tree removal costs incurred by the State or the U.S.
Department of Agriculture (USDA). The maximum USDA compensation rate is
85 percent of the loss in value, adjusted for any State-provided
compensation to ensure total compensation from all sources does not
exceed 100 percent of the loss in value.
----------------------------------------------------------------------------------------------------------------
Maximum Maximum Maximum
compensation additional additional
rate ($/acre, compensation ($/ compensation ($/
Age of trees (years) equal to 85% of acre, equal to acre, equal to
loss in value) 85% of loss in 85% of loss in
based on 3-year value) for 4th value) for 5th
fallow period fallow year fallow year
----------------------------------------------------------------------------------------------------------------
Less than 1............................................... $2,403 $828 $736
1......................................................... 4,805 828 736
2......................................................... 7,394 828 736
3......................................................... 9,429 828 736
4......................................................... 12,268 828 736
5......................................................... 14,505 828 736
6......................................................... 14,918 828 736
7......................................................... 15,000 828 736
8......................................................... 14,709 828 736
9......................................................... 14,383 828 736
10........................................................ 14,015 828 736
11........................................................ 13,601 828 736
12........................................................ 13,136 828 736
13........................................................ 12,613 828 736
14........................................................ 12,024 828 736
15........................................................ 11,361 828 736
16........................................................ 10,616 828 736
17........................................................ 9,854 828 736
18........................................................ 9,073 828 736
19........................................................ 8,272 828 736
20........................................................ 7,446 828 736
21........................................................ 6,594 828 736
22........................................................ 5,789 828 736
23........................................................ 5,035 828 736
24........................................................ 4,341 828 736
25........................................................ 3,713 828 736
----------------------------------------------------------------------------------------------------------------
* * * * *
(c) * * *
(1) Claims by owners of stone fruit orchards who are direct
marketers. The completed application must be accompanied by:
(i) A copy of the emergency action notification ordering the
destruction of the trees and its accompanying inventory that describes
the acreage and ages of trees removed;
(ii) Documentation verifying that the destruction of trees has been
completed and the date of that destruction; and
(iii) Records documenting that the grower meets the eligibility
requirements of paragraph (a)(1)(i) of this section.
(2) Claims by owners of commercial stone fruit orchards who are not
direct marketers. The completed application must be accompanied by a
copy of the emergency action notification ordering the destruction of
the trees, its accompanying inventory that describes the acreage and
ages of trees removed, and documentation verifying that the destruction
of trees has been completed and the date of that destruction.
(3) Claims by owners of fruit tree nurseries. The completed
application must be accompanied by a copy of the order prohibiting the
sale or movement of the nursery stock, its accompanying inventory that
describes the total number of trees and the age and variety, and
documentation describing the final disposition of the nursery stock.
(d) Replanting. Trees of susceptible Prunus species (i.e., Prunus
species identified as regulated articles) may not be replanted on
premises within a contiguous quarantined area until 3 years from the
date the last trees within that area were destroyed because of plum pox
pursuant to an emergency action notification issued by APHIS.
* * * * *
Done in Washington, DC, this 10th day of October 2003.
Bill Hawks,
Under Secretary for Marketing and Regulatory Programs.
[FR Doc. 03-26174 Filed 10-15-03; 8:45 am]
BILLING CODE 3410-34-P