[Federal Register Volume 65, Number 179 (Thursday, September 14, 2000)]
[Rules and Regulations]
[Pages 55431-55436]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-23620]


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DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Part 301

[Docket No. 00-035-1]
RIN 0579-AB19


Plum Pox Compensation

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Interim rule and request for comments.

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SUMMARY: We are amending our plum pox regulations to provide for the 
payment of compensation to the 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. The payment of these 
funds is necessary in order to reduce the economic impact of the plum 
pox quarantine on affected commercial stone fruit growers and fruit 
tree nursery owners and enhance eradication efforts.

[[Page 55432]]


DATES: This interim rule is effective September 14, 2000. We invite you 
to comment on this docket. We will consider all comments that we 
receive by November 13, 2000.

ADDRESSES: Please send your comment and three copies to: Docket No. 00-
035-1, Regulatory Analysis and Development, PPD, APHIS, Suite 3C03, 
4700 River Road Unit 118, Riverdale, MD 20737-1238.
    Please state that your comment refers to Docket No. 00-035-1.
    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

    On June 2, 2000, we published in the Federal Register (65 FR 35261-
35265, Docket No. 00-034-1) an interim rule that established 
regulations quarantining a portion of Adams County, PA, due to the 
detection of plum pox in that region 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.). Those 
regulations, which are contained in ``Subpart Plum Pox'' (7 CFR 301.74 
through 301.74-4), were promulgated on an emergency basis to prevent 
the spread of plum pox to noninfested areas of the United States.
    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 (although the 
particular strain of plum pox detected in Adams County, PA the D strain 
is not known to infect 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. The D strain of plum pox is not known to be 
transmitted by seed or fruit.
    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.
    In addition to quarantining portions of Adams County, PA, officials 
of the Animal and Plant Health Inspection Service (APHIS) and the 
Pennsylvania Department of Agriculture (PDA) have been conducting an 
intensive survey and eradication program in and around the infested 
area since plum pox was first detected in the fall of 1999. In the fall 
of 1999, 18 blocks of commercial stone fruit trees covering 218 acres 
were found positive for plum pox. The trees in those blocks were 
destroyed in the spring of 2000. As of July 21, 2000, PDA and APHIS had 
jointly ordered the destruction of an additional 24 blocks of 
commercial stone fruit trees covering 527 acres that had been 
identified as infected during this year's survey, which began in the 
first week of May 2000. PDA and APHIS anticipate that additional 
infected blocks will be detected and destroyed during the course of 
this year's survey. In addition to the commercial stone fruit orchards 
affected by plum pox, two fruit tree nurseries located in the vicinity 
of the regulated area were issued emergency action notifications 
(EAN's) that stopped the sale and movement of any Prunus spp. plant 
material from those nurseries because of risk associated with budwood 
that was cut in the quarantined area.
    On March 2, 2000, 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. A declaration of extraordinary emergency enables the 
Secretary to, among other things, pay compensation to producers and 
other persons for economic losses incurred by them as a result of the 
quarantine, destruction, or other action taken pursuant to the 
declaration of extraordinary emergency. Therefore, in order to reduce 
the economic impact of the plum pox quarantine on affected commercial 
stone fruit growers and fruit tree nursery owners, we are amending the 
plum pox regulations to provide for the payment of compensation to 
eligible growers and nursery owners. The provisions for the payment of 
compensation have been added to the plum pox regulations in a new 
section, Sec. 301.74-5, ``Compensation.''

Eligibility

    Paragraph (a) of Sec. 301.74-5 provides that owners of commercial 
stone fruit orchards and fruit tree nurseries will be eligible to 
receive compensation from the U.S. Department of Agriculture (USDA) to 
mitigate losses or expenses incurred as a result of the plum pox 
quarantine and emergency actions.
    The owner of a commercial stone fruit orchard will be eligible to 
receive compensation for losses associated with the destruction of 
trees in order to control plum pox pursuant to an EAN issued by APHIS. 
When the presence of plum pox is confirmed in an orchard block, APHIS 
and PDA jointly issue an order for the destruction of those trees that 
have been identified as being infected with plum pox or exposed to the 
plum pox virus. That order, which identifies the trees to be destroyed 
and specifies the date by which the destruction must occur, will serve 
as the primary means of documentation for an owner's claim for 
compensation.
    The owner of a fruit tree nursery will be eligible to receive 
compensation for net revenue losses associated with the prohibition on 
the movement or sale of nursery stock as a result of the issuance of an 
EAN by APHIS with respect to regulated articles within the nursery in 
order to control plum pox. To date, two fruit tree nurseries have been 
issued EAN's that prohibited the sale and movement of any Prunus 
material in the nursery because of risk associated with budwood that 
was cut in the quarantined area. Because nursery stock can be 
considered a perishable crop, we believe that it is reasonable that the 
nursery owners would choose to destroy the regulated articles rather 
than continuing to spend money maintaining articles that could not be 
moved or sold. Again, the EAN identifying the material that cannot be 
moved or sold will serve

[[Page 55433]]

as the primary means of documentation for a nursery owner's claim for 
compensation.

Amount of Payment

    Paragraph (b) of Sec. 301.74-5 provides the rates of compensation 
for trees and the method of calculating the amount of compensation for 
nursery stock. This paragraph begins by stating that compensation will 
be paid to eligible individuals upon approval of a claim submitted in 
accordance with Sec. 301.74-5(c), which is explained below.
    Stone fruit orchards. Eligible 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 planting of 
host trees. The compensation to be paid by USDA is based on the loss in 
value of the destroyed orchard. The calculation is the difference 
between the value of the original (destroyed) trees over a 25-year life 
cycle minus the value of the trees to be replanted, up to the expected 
remaining life of the replanted trees. This takes into account the fact 
that a replanted orchard is an economically productive asset for its 
entire expected life.
    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] TR14SE00.013

    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. A more detailed analysis may 
be obtained from the person listed under FOR FURTHER INFORMATION 
CONTACT.
    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.

----------------------------------------------------------------------------------------------------------------
                                                                  Peach price ($/ Yield (bushel/   Income ($ per
                              Year                                    bushel)          acre)           acre)
----------------------------------------------------------------------------------------------------------------
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
1995-98 average.................................................           15.71           255.3           4,010
----------------------------------------------------------------------------------------------------------------

    The calculation of the variable costs of production is based on the 
following estimates:

------------------------------------------------------------------------
          Type of cost               Year incurred           Costs
------------------------------------------------------------------------
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
------------------------------------------------------------------------

    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 have arrived at the per-acre compensation rates set 
forth in the chart provided in Sec. 301.74-5(b)(1) in the regulatory 
text at the end of this document. 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 such as that established by this rule 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) 
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.
    Fruit tree nurseries. Eligible owners of fruit tree nurseries will 
be compensated for up to 85 percent of net revenues that were lost as 
the result of the issuance of an EAN (compensation will be 85 percent 
if State compensation is less than or equal to 15 percent of lost

[[Page 55434]]

revenues). The issuance of an order prohibiting the movement or sale of 
regulated articles from a nursery would affect two season's worth of 
nursery stock, i.e., the nursery stock that would have been sold during 
the year in which the EAN was issued (referred to as the first year 
crop) and the nursery stock being grown during that year that would 
have been sold during the following year (referred to as the second 
year crop).
    To calculate the net revenue lost on the first year crop, we will 
multiply the expected number of trees that would have been sold (the 
number of trees in the field minus 2 percent culls and 3 percent unsold 
trees) by the average price per tree ($4.65 per tree for all 
varieties); from that amount, we will then subtract digging, grading, 
and storage costs ($0.10 per tree) to arrive at the net revenue lost 
for the first year crop. To calculate the net revenue lost for the 
second year crop, we will multiply the expected number of trees to be 
sold (the number of budded trees in the field minus 20 percent death 
loss minus 2 percent culls) by the average price per tree ($4.65 for 
plum and apricot trees and $3.30 for peach and nectarine trees). The 
total compensation amount will, as noted above, be up to 85 percent of 
the sum of the net revenue losses for the first and second year crops.

How to Apply

    Paragraph (c) of Sec. 301.74-5 provides information on how to apply 
for compensation. This paragraph states that the form necessary to 
apply for compensation may be obtained from the Plum Pox Cooperative 
Eradication Program, USDA, APHIS, PPQ, 401 East Louther Street, Suite 
102, Carlisle, PA 17013-2625, and that the completed claim form must be 
sent to the same address. Claims for trees or nursery stock destroyed 
on or before the effective date of this rule must be received within 60 
days after the effective date of this rule. Claims for trees or nursery 
stock destroyed after the effective date of this rule must be received 
within 60 days after the destruction of the trees or nursery stock.
    For claims made by owners of commercial stone fruit orchards, the 
completed application must be accompanied by a copy of the EAN 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. For claims made by owners of fruit tree nurseries, the 
completed application must be accompanied by a copy of the EAN 
prohibiting the sale or movement of the nursery stock, its accompanying 
inventory that describes the total number of trees covered by the EAN 
and their age and variety, and documentation indicating the final 
disposition of the nursery stock.

Replanting

    Paragraph (d) of Sec. 301.74-5 prohibits, for a period of 3 years 
following the destruction of the original trees, the replanting of 
susceptible Prunus species on premises where trees have been destroyed 
because of plum pox pursuant to an EAN. We are taking this step to 
ensure that there is adequate time to thoroughly survey the areas 
within and around quarantined areas and ensure they are free of 
infection before potential host material is reintroduced.

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 reduce the economic effect of the plum pox quarantine on 
affected commercial stone fruit growers and fruit tree nursery owners, 
thus ensuring the continued cooperation of growers and nursery owners 
with the survey and eradication activities being conducted by PDA and 
APHIS.
    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 this 
action effective less than 30 days after publication. 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. The document 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 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.
    The following economic analysis provides a cost-benefit analysis as 
required by Executive Order 12866 and an analysis of the potential 
economic effects on small entities as required by the Regulatory 
Flexibility Act.
    This rule amends the plum pox regulations to provide for the 
payment of compensation to the 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. The payment of these 
funds is necessary in order to reduce the economic effect of the plum 
pox quarantine on affected commercial stone fruit growers and fruit 
tree nursery owners.
    The presence of plum pox in Adams County, PA, seriously threatens 
not only the stone fruit orchards in southern Pennsylvania and adjacent 
areas of Maryland and West Virginia, but could eventually threaten the 
entire domestic stone fruit industry. Federal involvement in 
eradicating a new disease outbreak such as plum pox yields greater 
benefits to the uninfected industry in the United States. Without such 
actions, it is unlikely that affected individuals could or would 
provide sufficient control to prevent the spread of diseases or pests.
    Pennsylvania is the fifth largest peach-producing State in the 
United States, following California, South Carolina, Georgia, and New 
Jersey. In 1998, Pennsylvania produced 65 million pounds of peaches, 
with Adams County producing about 45 percent (29.5 million pounds) of 
that total. Adams County peaches fetch an average price of 34 cents per 
pound, which is higher than the national average of 24.40 cents per 
pound. The total value of production for Adams County peaches in 1998 
was approximately $10 million, or half of the value of the State's 
production.
    The total value of U.S. peach production was nearly $500 million in 
1998. Specific production statistics for other plum pox hosts grown in 
Pennsylvania, such as apricots, nectarines, and plums, are unavailable. 
In 1998, the total value of domestic stone fruit production, including 
almonds, was about $1.6 billion.
    Removing infected and exposed stone fruit trees protects a 
substantial investment in other stone fruit orchards. While the entire 
value of domestically produced stone fruit is not at risk immediately 
from plum pox, the disease would, if left unchecked, continue to 
spread; over time, an increasing percentage of the industry would be at 
risk.
    On June 29, 2000, the Vice President and the Secretary of 
Agriculture announced that the USDA would provide up to $13.2 million 
to compensate Pennsylvania fruit growers

[[Page 55435]]

for trees destroyed because of plum pox. As noted previously, a total 
of 745 acres of stone fruit trees had been destroyed or ordered 
destroyed by July 21, 2000. According to PDA officials, the average age 
of those trees is 11 years; this rule provides for a payment of up to 
$13,601 per acre by USDA for 11-year-old-trees. Paid at that rate, the 
costs of replacing those 745 acres of stone fruit trees will be 
approximately $10.1 million, leaving about $3.1 million of the $13.2 
million available to cover additional losses for this year (i.e., 
approximately 228 additional acres if paid at the $13,601 per-acre 
rate). As noted previously, PDA and APHIS anticipate that additional 
infected blocks are likely to be detected and destroyed during the 
course of this year's survey, so it is likely that all or substantially 
all of the $13.2 million in compensation funds that were the subject of 
the June 29, 2000, announcement will have to be used to cover this 
year's losses. The costs of compensation for the net revenues lost by 
the two fruit tree nurseries is expected to be approximately $500,000.

Effects on Small Entities

    The Regulatory Flexibility Act requires that the Agency 
specifically consider the economic effects of its rules on small 
entities. The Small Business Administration (SBA) defines a firm 
engaged in agriculture as ``small'' if it has less than $500,000 in 
annual receipts. Within the quarantined area of Adams County, PA, there 
are 7 peach, plum, and nectarine producers with orchards on about 800 
acres. Four of these producers are known to have orchards infected with 
plum pox. None of the producers in the quarantined area would be 
considered small under SBA guidelines. However, in Adams County as a 
whole, there are 124 stone fruit growers; of these, about two-thirds 
would be considered small entities under SBA guidelines. This rule will 
allow eligible persons to be compensated for the destruction of stone 
fruit trees or nursery stock to control plum pox and is, therefore, 
expected to be beneficial to growers or nursery owners who had trees or 
nursery stock destroyed as part of the eradication program.
    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 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule: (1) Preempts all State and local laws and 
regulations that are inconsistent 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

    In accordance with section 3507(j) of the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.), the information collection and 
recordkeeping requirements included in this interim rule have been 
submitted for emergency approval to the Office of Management and Budget 
(OMB). OMB has assigned control number 0579-0159 to the information 
collection and recordkeeping requirements.
    We plan to request continuation of that approval for 3 years. 
Please send written comments on the 3-year approval request to the 
following addresses: (1) Office of Information and Regulatory Affairs, 
OMB, Attention: Desk Officer for APHIS, Washington, DC 20503, and (2) 
Docket No. 00-035-1, Regulatory Analysis and Development, PPD, APHIS, 
suite 3C03, 4700 River Road Unit 118, Riverdale, MD 20737-1238. Please 
state that your comments refer to Docket No. 00-035-1 and send your 
comments within 60 days of publication of this rule.
    This interim rule will provide for the payment of compensation to 
the 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. The payment of these funds is necessary in order to 
reduce the economic impact of the plum pox quarantine on affected 
commercial stone fruit growers and fruit tree nursery owners and 
increase the effectiveness of plum pox eradication efforts. 
Implementing this compensation program will necessitate the use of an 
information collection activity in the form a claim form that eligible 
owners must complete in order to apply for compensation. We are 
soliciting comments from the public concerning our information 
collection requirements. These comments will help us:
    (1) Evaluate whether the 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 
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 10 minutes per response.
    Respondents: Owners of fruit tree nurseries and owners of 
commercial stone fruit orchards.
    Estimated annual number of respondents: 12.
    Estimated annual number of responses per respondent: 1.
    Estimated annual number of responses: 12.
    Estimated total annual burden on respondents: 2 hours.
    Copies of this information collection can be obtained from Ms. 
Laura Cahall, APHIS' Information Collection Coordinator, at (301) 734-
5360.

List of Subjects in 7 CFR Part 301

    Agricultural commodities, Plant diseases and pests, Quarantine, 
Reporting and recordkeeping requirements, Transportation.

    Accordingly, we are amending 7 CFR part 301 as follows:

PART 301--DOMESTIC QUARANTINE NOTICES

    1. The authority citation for part 301 continues to read as 
follows:

    Authority: Title IV, Pub. L. 106-224, 114 Stat. 438, 7 U.S.C. 
7701-7772; 7 U.S.C. 166; 7 CFR 2.22, 2.80, and 371.3.

    2. In Subpart Plum Pox, a new Sec. 301.74-5 is added to read as 
follows:


Sec. 301.74-5  Compensation.

    (a) Eligibility. The following individuals are eligible to receive 
compensation from the U.S. Department of Agriculture to mitigate losses 
or expenses incurred because of the plum pox quarantine and emergency 
actions:
    (1) Owners of commercial stone fruit orchards. The owner of a 
commercial stone fruit orchard will be eligible to receive compensation 
for losses associated with the destruction of trees

[[Page 55436]]

in order to control plum pox pursuant to an emergency action 
notification issued by the Animal and Plant Health Inspection Service 
(APHIS).
    (2) Owners of fruit tree nurseries. The owner of a fruit tree 
nursery will be eligible to receive compensation for net revenue losses 
associated with the prohibition on the movement or sale of nursery 
stock as a result of the issuance of an emergency action notification 
by APHIS with respect to regulated articles within the nursery in order 
to control plum pox.
    (b) Amount of payment. Upon approval of a claim submitted in 
accordance with paragraph (c) of this section, individuals eligible for 
compensation under paragraph (a) of this section will be paid at the 
rates indicated in this paragraph.
    (1) Owners of commercial stone fruit orchards. Owners of commercial 
stone fruit orchards who meet the eligibility requirements of paragraph 
(a)(1) of this section will be compensated 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
                                                            compensation
                                                              rate  ($/
                   Age of trees  (years)                     acre, equal
                                                              to 85% of
                                                               loss in
                                                               value)
------------------------------------------------------------------------
1.........................................................         4,805
2.........................................................         7,394
3.........................................................         9,429
4.........................................................        12,268
5.........................................................        14,505
6.........................................................        14,918
7.........................................................        15,000
8.........................................................        14,709
9.........................................................        14,383
10........................................................        14,015
11........................................................        13,601
12........................................................        13,136
13........................................................        12,613
14........................................................        12,024
15........................................................        11,361
16........................................................        10,616
17........................................................         9,854
18........................................................         9,073
19........................................................         8,272
20........................................................         7,446
21........................................................         6,594
22........................................................         5,789
23........................................................         5,035
24........................................................         4,341
25........................................................         3,713
------------------------------------------------------------------------

    (2) Owners of fruit tree nurseries. Owners of fruit tree nurseries 
who meet the eligibility requirements of paragraph (a)(2) of this 
section will be compensated for up to 85 percent of the net revenues 
lost from their first and second year crops as the result of the 
issuance of an emergency action notification which will be calculated 
as follows:
    (i) First year crop. The net revenue loss for trees that were 
expected to be sold in the year during which the emergency action 
notification was issued (i.e., the first year crop) will be calculated 
as (expected number of trees to be sold)  x  (average price per tree) - 
(digging, grading, and storage costs) = net revenue lost for first year 
crop, where:
    (A) The expected number of trees to be sold equals the number of 
trees in the field minus 2 percent culls minus 3 percent unsold trees; 
and
    (B) The average price per tree is $4.65; and
    (C) Digging, grading and storage costs are $0.10 per tree.
    (ii) Second year crop. The net revenue loss for trees that would be 
expected to be sold in the year following the year during which the 
emergency action notification was issued (i.e., the second year crop) 
will be calculated as (expected number of trees to be sold)  x  
(average price per tree) = net revenue lost for second year crop, 
where:
    (A) The expected number of trees to be sold equals the number of 
budded trees in the field minus 20 percent death loss minus 2 percent 
culls; and
    (B) The average price per tree is $4.65 for plum and apricot trees 
and $3.30 for peach and nectarine trees.
    (c) How to apply. The form necessary to submit a claim for 
compensation may be obtained from the Plum Pox Cooperative Eradication 
Program, USDA, APHIS, PPQ, 401 East Louther Street, Suite 102, 
Carlisle, PA 17013-2625. The completed claim form must be sent to the 
same address. Claims for trees or nursery stock destroyed on or before 
the effective date of this rule must be received within 60 days after 
the effective date of this rule. Claims for trees or nursery stock 
destroyed after the effective date of this rule must be received within 
60 days after the destruction of the trees or nursery stock. Claims 
must be submitted as follows:
    (1) Claims by owners of commercial stone fruit orchards. The 
completed application must be accompanied by a copy of the PDA or APHIS 
document 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.
    (2) 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. Premises on which trees have been destroyed because 
of plum pox pursuant to an emergency action notification issued by 
APHIS may not be replanted with susceptible Prunus species (Prunus 
species identified as regulated articles) for 3 years.

(Approved by the Office of Management and Budget under control number 
0579-0159)

    Done in Washington, DC, this 11th day of September 2000.
Bobby R. Acord,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 00-23620 Filed 9-13-00; 8:45 am]
BILLING CODE 3410-34-P