[Federal Register Volume 59, Number 199 (Monday, October 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25610]


  Federal Register / Vol. 59, No. 199 / Monday, October 17, 1994 /
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[[Page Unknown]]

[Federal Register: October 17, 1994]


                                                   VOL. 59, NO. 199

                                           Monday, October 17, 1994

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 51

[Docket No. 94-093-1]

 

Brucellosis in Cattle and Bison; Payment of Indemnity

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Interim rule.

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SUMMARY: We are increasing the amount of Federal indemnity for 
brucellosis reactor and brucellosis-exposed cattle and bison destroyed 
during herd depopulation, and are increasing the amount of Federal 
indemnity for cattle and bison destroyed after being sold or traded 
from a herd that is subsequently found to be affected with brucellosis. 
These actions are necessary to give owners sufficient financial 
incentive to promptly destroy brucellosis-affected cattle and bison, in 
order to accelerate the eradication of brucellosis in the United States 
and protect other cattle and bison from brucellosis.

DATES: Interim rule effective October 17, 1994. Consideration will be 
given only to comments received on or before December 16, 1994.

ADDRESSES: Please send an original and three copies of your comments to 
Chief, Regulatory Analysis and Development, PPD, APHIS, USDA, P.O. 
Drawer 810, Riverdale, MD 20738. Please state that your comments refer 
to Docket No. 94-093-1. Comments received may be inspected at USDA, 
room 1141, South Building, 14th Street and Independence Avenue SW., 
Washington, DC, between 8 a.m. and 4:30 p.m., Monday through Friday, 
except holidays. Persons wishing to inspect comments are requested to 
call ahead on (202) 690-2817 to facilitate entry into the comment 
reading room.

FOR FURTHER INFORMATION CONTACT: Dr. M.J. Gilsdorf, National 
Brucellosis Epidemiologist, Cattle Diseases and Surveillance Staff, 
Veterinary Services, APHIS, USDA, room 731, Federal Building, 6505 
Belcrest Road, Hyattsville, MD 20782, (301) 436-4918.

SUPPLEMENTARY INFORMATION:

Background

    Brucellosis, also called Bang's disease or undulant fever, is a 
serious infectious disease of cattle, bison, and other species, 
including humans, caused by bacteria of the genus Brucella. Brucellosis 
in cattle and bison is characterized by fever, sterility, slow 
breeding, abortion, and loss of milk production. To help prevent the 
spread of brucellosis, the regulations in 9 CFR part 51 (referred to 
below as the regulations) provide for payment of Federal indemnity to 
owners of certain animals destroyed because of brucellosis. The payment 
of indemnity is intended to provide owners with financial incentive to 
promptly destroy animals infected with or exposed to brucellosis. 
Because the continued presence of brucellosis in a herd seriously 
threatens the health of animals in that herd and other herds, the 
prompt destruction of brucellosis-affected cattle or bison is critical 
if brucellosis eradication efforts in the United States are to succeed.
    Under Sec. 51.3(a)(2)(i) of the regulations, the Administrator of 
the Animal and Plant Health Inspection Service may authorize the 
payment of Federal indemnity by the United States Department of 
Agriculture to any owner whose herd of cattle or bison is destroyed 
because of brucellosis. Section 51.3(a)(2)(ii) of the regulations sets 
forth the amount of Federal indemnity that will be paid for such cattle 
and bison. Under the regulations prior to the effective date of this 
interim rule, in all of the United States except Alaska, Hawaii, Puerto 
Rico, and the Virgin Islands of the United States, the amount of 
Federal indemnity paid per animal could not exceed $250 for any 
registered cattle or nonregistered dairy cattle, $150 for any 
nonregistered cattle other than dairy cattle, and $150 for any bison. 
In Alaska, Hawaii, Puerto Rico, and the Virgin Islands of the United 
States, the amount of Federal indemnity could not exceed $250 for any 
cattle or bison.
    The rates for indemnity payments prior to this interim rule have 
made a number of owners reluctant to destroy their herds, due to the 
financial loss that could result from selling an animal at slaughter 
prices, rather than breeding prices. For instance, in 1993, the 
slaughter value of nonregistered cattle other than dairy cattle 
averaged approximately $475 per head, whereas the cost of replacing 
such an animal for breeding averaged close to $770 per head. Therefore, 
even by combining slaughter value with the $150 Federal indemnity 
payment, an owner suffered a significant loss per head when 
depopulating. Owners of dairy cattle experienced even greater losses 
when depopulating. Combining the average slaughter value of 
approximately $475 and the Federal indemnity payment of $250 provided 
an owner with approximately $725 per head, compared to approximately 
$1,160 in replacement cost.
    The reluctance of some owners to depopulate their herds resulted in 
increased exposure of cattle and bison to infected animals and 
increased incidence of brucellosis infection. This, in turn, has 
resulted in increased brucellosis eradication costs.
    Therefore, in this interim rule, we are increasing the amount of 
indemnity that will be paid for cattle and bison destroyed during herd 
depopulation. Under this interim rule, in States other than Class Free 
States, the amount of Federal indemnity shall not exceed $250 for any 
nonregistered cattle other than dairy cattle, and $250 for any bison. 
For any registered cattle, nonregistered dairy cattle, or, in Class 
Free States, any cattle or bison from herds affected with brucellosis, 
the amount of Federal indemnity shall not exceed the lesser of 95 
percent of appraised value, minus salvage value, or $750. These rates 
shall apply to brucellosis reactor cattle and bison, as well as to 
other sexually intact cattle and bison in the herd. (See discussion 
below under the heading ``Brucellosis-Exposed Female Calves.'') The 
appraisal is to be conducted by an independent appraiser assigned by 
the Administrator. The higher indemnity rates for nonregistered cattle 
other than dairy cattle in Class Free States are necessary to ensure 
that brucellosis is not spread in those States that have been freed of 
the disease.
    Additionally, we will pay these new rates to owners who have 
brucellosis-exposed cattle or bison destroyed that were previously sold 
or traded from a herd that, subsequent to the sale or trade, is found 
to be affected with brucellosis. On April 26, 1994, we published in the 
Federal Register (59 FR 21634-21635, Docket No. 93-023-2) a final rule 
that provided for payment of indemnity for the destruction of such 
animals. The amount of indemnity was the same as that provided for 
cattle and bison destroyed as part of herd depopulation under 
Sec. 51.3(a)(2)(ii). Providing for payment of indemnity for these 
animals was considered necessary to help protect the herd to which the 
cattle or bison were moved, by encouraging prompt destruction of 
potentially infected additions to the herd. In order to provide owners 
with the financial incentive to destroy such potentially infected 
cattle and bison, we are amending Sec. 51.3(a)(4) to provide the same 
rates of indemnity for these cattle and bison as for cattle and bison 
destroyed as part of herd depopulation.

Brucellosis-Exposed Female Calves

    We are also amending Sec. 51.3 to raise the maximum allowable 
indemnity payment for exposed female calves destroyed during herd 
depopulation. Prior to the effective date of this interim rule, the 
regulations provided that the Administrator could authorize the payment 
of Federal indemnity of not more than $50 per head to any owner whose 
exposed female calf or calves were destroyed because of brucellosis. 
(Under Sec. 51.1 of the regulations prior to the effective date of this 
interim rule, exposed female calf meant ``a female bovine less than 6 
months of age which is nursed by a brucellosis reactor at the time such 
reactor is condemned.'')
    The indemnity rate for exposed female calves was lower than that 
for older cattle due to the relatively low value of calves. However, 
this relatively low rate has discouraged owners from considering whole 
herd depopulation. Therefore, to encourage the prompt destruction of 
all potentially infected animals in a herd, we are amending 
Sec. 51.3(a)(3) to provide that the maximum $50 indemnity payment for a 
female calf exposed to brucellosis does not apply to female calves that 
are destroyed during herd depopulation. The indemnity for exposed 
female calves destroyed during herd depopulation will be the same as 
that for other cattle and bison included in herd depopulation.
    Also, in this interim rule, we are amending Sec. 51.3(a)(3) of the 
regulations to clarify that indemnity payments for exposed female 
calves shall apply only to sexually intact female calves. Female 
bovines that are not sexually intact are not capable of transmitting 
brucellosis, and their destruction is not necessary to prevent the 
spread of the disease. Our policy, therefore, has been not to pay 
indemnity for female calves that are not sexually intact. We are adding 
a definition of sexually intact exposed female calf to Sec. 51.1 to 
mean a female bovine less than 6 months of age that is nursed by a 
brucellosis reactor at the time such reactor is condemned, and that has 
not been altered to make it incapable of reproduction. Because 
brucellosis is a disease of sexually intact animals, steer calves, 
which have been castrated, do not pose a risk of transmitting 
brucellosis. Because male calves can be more easily altered than female 
calves, and it is economically more advantageous to owners to alter 
such male calves than to have them destroyed, the regulations do not 
specifically address the destruction of exposed male calves.

Acceleration of Brucellosis Eradication

     We estimate that, under the indemnity payment rates provided for 
prior to the effective date of this interim rule, it would have taken 6 
to 12 years to reach the goal of complete eradication of brucellosis 
from domestic cattle and bison in the United States, with a cost to the 
Federal Government of between $14,619,000 and $25,975,000. In contrast, 
because the provisions of this interim rule will encourage the rapid 
depopulation of herds known to be affected with brucellosis, and 
therefore increase program effectiveness, total eradication of 
brucellosis from domestic cattle and bison could be accomplished by 
1998, with projected costs of approximately $3,290,000. Thus, we expect 
the approximate cost savings to the Federal Government from the 
accelerated program to be between $11.3 million and $22.7 million.

Immediate Action

    The Administrator of the Animal and Plant Health Inspection Service 
has determined that there is good cause for publishing this interim 
rule without prior opportunity for public comment. Immediate action is 
necessary to prevent the spread of brucellosis that might occur if 
owners of cattle and bison were to cease entirely the depopulation of 
herds affected with the disease.
    Under normal conditions, owners of cattle and bison affected with 
brucellosis are most willing to depopulate their herds in the fall, 
because steer calves are usually old enough to wean in the fall, and 
depopulating in the fall saves the expense of buying feed for the 
winter. However, if the increase in indemnity payments provided for in 
this rule were to be effected using proposed rulemaking, owners, in 
anticipation of an increase, would likely refuse to depopulate until 
the rule is made final. This would cause a cessation of the 
depopulation of affected herds for several months, which would 
seriously hinder eradication efforts and increase the risk of the 
spread of brucellosis.
    Because prior notice and other public procedures with respect to 
this action are impracticable and contrary to the public interest under 
these conditions, we find good cause under 5 U.S.C. 553 to make it 
effective upon publication in the Federal Register. We will consider 
comments that are received within 60 days of publication of this rule 
in the Federal Register. After the comment period closes, we will 
publish another document in the Federal Register. It will include a 
discussion of any comments we receive and any amendments we are making 
to the rule as a result of the comments.

Executive Order 12866 and Regulatory Flexibility Act

    This interim rule has been reviewed under Executive Order 12866. 
The rule has been determined to be not significant for purposes of 
Executive Order 12866, and, therefore, has not been reviewed by the 
Office of Management and Budget.
    In this interim rule, we are increasing the amount of Federal 
indemnity for brucellosis reactor and brucellosis-exposed cattle and 
bison destroyed during herd depopulation, and are increasing the amount 
of Federal indemnity for cattle and bison destroyed after being sold or 
traded from a herd that is subsequently found to be affected with 
brucellosis. Under this interim rule, in States other than Class Free 
States, the amount of Federal indemnity shall not exceed $250 for any 
nonregistered cattle other than dairy cattle, and $250 for any bison. 
For any registered cattle, nonregistered dairy cattle, or, in Class 
Free States, any cattle or bison from herds affected with brucellosis, 
the amount of Federal indemnity shall not exceed the lesser of 95 
percent of appraised value, minus salvage value, or $750. Prior to this 
interim rule, indemnity paid per animal could not exceed $250 for any 
registered cattle or nonregistered dairy cattle, $150 for any 
nonregistered cattle other than dairy cattle, and $150 for any bison. 
In Alaska, Hawaii, Puerto Rico, and the Virgin Islands of the United 
States, the amount of Federal indemnity could not exceed $250 for any 
cattle or bison.
    In 1993, beef and cull dairy cows sold for slaughter brought an 
average of $476 per 1,000-pound animal. The replacement cost of a steer 
or heifer averaged $768 in 1993, while a dairy herd replacement cow 
averaged $1,160.
    Under Federal regulations, owners cannot be required to depopulate 
their herds because of brucellosis. However, because having diseased 
animals and/or having a herd under quarantine creates a severe 
competitive disadvantage for an owner, we expect the increase in 
indemnity rates provided for in this interim rule to encourage more 
owners to agree to whole herd depopulation.
    As of June 30, 1994, there were 204 herds under quarantine for 
brucellosis. These include 200 beef herds with a total of approximately 
10,000 head of cattle and 4 dairy herds with a total of about 5,000 
head. All of the owners of the beef herds that are under quarantine, 
but none of the owners of the dairy herds, can be considered small 
entities (annual gross receipts of $0.5 million or less, according to 
Small Business Administration size standards). There are no registered 
herds under quarantine. The approximately 15,000 head of cattle under 
quarantine represent less than .015 percent of the total cattle 
population in the United States.
    Under these circumstances, the Administrator of the Animal and 
Plant Health Inspection Service has determined that this action will 
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 12778

    This rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. This rule (1) Preempts all State and local laws and 
regulations that are in conflict with this rule; (2) has no retroactive 
effect; and (3) does not require administrative proceedings before 
parties may file suit in court challenging this rule.

Paperwork Reduction Act

    This document contains no information collection or recordkeeping 
requirements under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 
et seq.).

List of Subjects in 9 CFR Part 51

    Animal diseases, Cattle, Hogs, Indemnity payments, Reporting and 
recordkeeping requirements.

    Accordingly, 9 CFR part 51 is amended as follows:

PART 51--ANIMALS DESTROYED BECAUSE OF BRUCELLOSIS

    1. The authority citation for part 51 continues to read as follows:

    Authority: 21 U.S.C. 111-113, 114, 114a, 114a-1, 120, 121, 125, 
134b; 7 CFR 2.17, 2.51, and 371.2(d).

    2. Section 51.1 is amended by removing the definition of exposed 
female calf, and adding a definition of sexually intact exposed female 
calf, in alphabetical order, to read as follows:


Sec. 51.1  Definitions.

* * * * *
    Sexually intact exposed female calf. A female bovine less than 6 
months of age that is nursed by a brucellosis reactor at the time such 
reactor is condemned, and that has not been altered to make it 
incapable of reproduction.
* * * * *
    3. In Sec. 51.3, paragraph (a)(1), the second sentence is amended 
by removing the words ``The indemnity'' and adding in their place the 
words ``Except for cattle and bison destroyed as part of whole herd 
depopulation in accordance with paragraph (a)(2)(i) of this section, 
the indemnity''; paragraph (a)(2)(i) is amended by removing the last 
sentence; paragraph (a)(2)(ii) is revised to read as set forth below; 
paragraph (a)(3) is amended by revising the third sentence to read as 
set forth below; and, in paragraph (a)(4), the fourth and fifth 
sentences are removed and three new sentences are added in their place 
to read as set forth below.


Sec. 51.3  Payment to owners for animals destroyed.

* * * * *
    (a) * * *
    (2) * * *
    (ii) Amount of Federal indemnity. Payments of Federal indemnity 
shall be made at the rates in effect at the time the Administrator 
approves depopulation for the herd. In States other than Class Free 
States, the amount of Federal indemnity shall not exceed $250 for any 
nonregistered cattle other than dairy cattle, and $250 for any bison. 
For any registered cattle, nonregistered dairy cattle, or, in Class 
Free States, any cattle or bison from herds affected with brucellosis, 
the amount of Federal indemnity shall not exceed the lesser of 95 
percent of appraised value, minus salvage value, or $750. The appraisal 
shall be conducted by an independent appraiser assigned by the 
Administrator.
    (3) * * * Except for sexually intact exposed female calves 
destroyed as part of herd depopulation under paragraph (a)(2)(ii) of 
this section, the indemnity for sexually intact exposed female calves 
destroyed because of brucellosis shall not exceed $50 per head. * * *
    (4) * * * In States other than Class Free States, the amount of 
Federal indemnity shall not exceed $250 for any nonregistered cattle 
other than dairy cattle, and $250 for any bison. For any registered 
cattle, nonregistered dairy cattle, or, in Class Free States, any 
cattle or bison from herds affected with brucellosis, the amount of 
Federal indemnity shall not exceed the lesser of 95 percent of 
appraised value, minus salvage value, or $750. The appraisal shall be 
conducted by an independent appraiser assigned by the Administrator. * 
* *
* * * * *
    Done in Washington, DC, this 11th day of October 1994.
Lonnie J. King,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 94-25610 Filed 10-14-94; 8:45 am]
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