[Federal Register Volume 65, Number 200 (Monday, October 16, 2000)]
[Rules and Regulations]
[Pages 61077-61080]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26591]



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  Federal Register / Vol. 65, No. 200 / Monday, October 16, 2000 / 
Rules and Regulations  

[[Page 61077]]



DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Part 301

[Docket No. 00-037-1]
RIN 0579-AB15


Citrus Canker; Payments for Commercial Citrus Tree Replacement

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Interim rule and request for comments.

-----------------------------------------------------------------------

SUMMARY: We are amending our citrus canker regulations to establish 
provisions under which eligible owners of commercial citrus groves may 
receive payments to replace commercial citrus trees removed because of 
citrus canker. The payment of these funds is necessary in order to 
reduce the economic effect of the citrus canker quarantine on affected 
commercial citrus growers.

DATES: This interim rule is effective October 16, 2000. We invite you 
to comment on this docket. We will consider all comments that we 
receive by December 15, 2000.

ADDRESSES: Please send your comment and three copies to: Docket No. 00-
037-1, 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. 00-037-1.
    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

    Citrus canker is a plant disease that affects plants and plant 
parts, including fresh fruit, of citrus and citrus relatives (Family 
Rutaceae). Citrus canker can cause defoliation and other serious damage 
to the leaves and twigs of susceptible plants. It can also cause 
lesions on the fruit of infected plants, which renders the fruit 
unmarketable, and cause infected fruit to drop from the trees before 
reaching maturity. The aggressive A (Asiatic) strain of citrus canker 
can infect susceptible plants rapidly and lead to extensive economic 
losses in commercial citrus-producing areas.
    The regulations to prevent the interstate spread of citrus canker 
are contained in 7 CFR 301.75-1 through 301.75-14 (referred to below as 
the regulations). The regulations restrict the interstate movement of 
regulated articles from and through areas quarantined because of citrus 
canker and provide conditions under which regulated fruit may be moved 
into, through, and from quarantined areas for packing. The regulations 
currently list parts of Broward, Collier, Dade, Hendry, Hillsborough, 
and Manatee Counties, FL, as quarantined areas for citrus canker.
    In this document, we are amending the regulations to provide for 
the payment of tree replacement funds to eligible owners of commercial 
citrus groves who have had citrus trees destroyed because of citrus 
canker. The provisions for the commercial citrus tree replacement 
program are contained in a new section, Sec. 301.75-15, which is 
explained in detail below.

Definitions (Sec. 301.75-1)

    We are amending Sec. 301.75-1, which provides definitions for the 
terms used in Subpart--Citrus Canker, by adding definitions for 
commercial citrus grove and public order, two terms that are used in 
new Sec. 301.75-15.
    We have defined commercial citrus grove as ``An establishment 
maintained for the primary purpose of producing citrus fruit for 
commercial sale.'' This definition is intended to distinguish 
commercial citrus groves from ``dooryard'' or residential citrus trees. 
This distinction between commercial and dooryard citrus is necessitated 
by the language contained in the two acts cited above that provide the 
funding for the tree replacement payments provided for by this rule. 
Specifically, the Consolidated Appropriations Act for FY 2000 provides 
for the use of funds ``to replace commercial citrus trees'' and the 
Agricultural Risk Protection Act directs the use of funds to compensate 
``commercial producers.'' Although the Florida Department of Food and 
Consumer Services' Division of Plant Industry (DPI) defines a 
commercial citrus grove as ``a solid set planting of 40 or more citrus 
trees,'' our definition of the term in this interim rule omits the 40-
tree threshold in recognition of the possibility that there may be some 
small groves of fewer than 40 trees that were, prior to being destroyed 
because of citrus canker, maintained by their owners for the purpose of 
producing citrus fruit for commercial sale. If, during the processing 
of an application for tree replacement funds, a question arises as to 
whether or not a small grove was maintained for commercial purposes, we 
will ask the grove owner to produce documentation to support his or her 
claim that the grove was maintained for commercial purposes. The 
supporting documents that we expect a person engaged in the commercial 
production of citrus could provide are records of production expenses 
incurred, records of income derived from direct sales to consumers or 
from the consignment of harvested fruit to a packer or juicing 
operation, and tax records showing losses or gains in income resulting 
from the production and sale of the fruit.
    We have defined public order as ``either an 'Agreement to Destroy 
and Covenant Not to Sue' signed by the grove owner and the Florida 
Department

[[Page 61078]]

of Food and Consumer Services' Division of Plant Industry (DPI) or an 
'Immediate Final Order' issued by DPI, both of which identify citrus 
trees infected with or exposed to citrus canker and order their 
destruction.'' This State-issued order serves as the official means by 
which the owner of a commercial citrus grove is notified of the need to 
destroy citrus trees because of citrus canker.

Funds for the Replacement of Commercial Citrus Trees

    The introductory text of Sec. 301.75-15 provides that the payment 
of tree replacement funds is contingent upon the availability of funds 
appropriated for that purpose. The funding for the tree replacement 
payments provided for by this rule currently comes from two sources. 
The Consolidated Appropriations Act for FY 2000 (Pub. L. 106-113) 
directs the Secretary of Agriculture to use not more than $9 million of 
Commodity Credit Corporation funds for a cooperative program with the 
State of Florida to replace commercial citrus trees removed to control 
citrus canker until the earlier of December 31, 1999, or the date crop 
insurance coverage is made available with respect to citrus canker. We 
will draw from that $9 million to pay claims for the majority of the 
trees destroyed before December 31, 1999. Claims resulting from the 
destruction of any trees for which crop insurance was available, as 
well as for any trees destroyed after December 31, 1999, will be paid 
with a portion of the funds made available by the Agricultural Risk 
Protection Act of 2000 (Pub. L. 106-224), which provides that $25 
million shall be used by the Secretary to compensate commercial growers 
for losses due to plum pox, Pierce's disease, and citrus canker.

Eligibility

    Under paragraph (a) of new Sec. 301.75-15, the owner of a 
commercial citrus grove may be eligible to receive funds to replace 
commercial citrus trees removed to control citrus canker if the trees 
were removed pursuant to a public order after September 28, 1995, which 
is the date that the current citrus canker infestation was detected in 
Florida. This interim rule also provides for the payment of tree 
replacement funds for trees destroyed between 1986 and 1990 because the 
State of Florida has identified five commercial citrus groves in 
Manatee and Highlands Counties that were destroyed to control citrus 
canker during a limited outbreak of the disease during that period. 
Prior to the effective date of this interim rule, no provision had been 
made for the payment of tree replacement funds or other compensation to 
the owners of those five groves.

Tree Replacement Payments

    We consider that trees infected with or exposed to citrus canker, 
because of the destructive nature of the disease, have no value. Thus, 
the tree replacement payments provided for by this interim rule are 
intended to provide eligible growers with the funds necessary to 
establish new plantings, rather than to pay for the trees destroyed 
because of citrus canker. In calculating the replacement costs for 
commercial citrus trees, we considered the costs of land preparation, 
the replacement tree, labor for planting, and maintenance until the 
tree becomes productive. In developing the Florida Fruit Tree Pilot 
Crop Insurance Program, which includes coverage for the loss of 
commercial citrus trees due to citrus canker, the U.S. Department of 
Agriculture's (USDA's) Risk Management Agency (RMA) calculated the cost 
of replacing commercial citrus trees to be $26 per tree. This amount is 
applicable for all varieties of citrus trees for which coverage is 
offered, i.e., grapefruit, lemon, lime, orange, and ``all other 
citrus'' (tangerine, tangelo, temple orange, and murcott), and 
considers the costs of land preparation, tree planting, and grove care 
expenses. Information gathered from industry sources confirms the cost 
of replanting commercial citrus trees. The cost of tree replacement as 
calculated by RMA is consistent with APHIS' estimate of costs for the 
first 6 years of production, or until trees become productive and earn 
an income. For all categories of citrus, these costs are estimated to 
be $25.51 per tree. Therefore, Sec. 301.75-15(b) provides that the 
owner of a commercial citrus grove who is eligible to receive funds to 
replace commercial citrus trees will, upon approval of his or her 
application, receive a payment of $26 per tree up to a maximum of 
between $2,704 and $4,004 per acre, depending on the variety of the 
trees removed. Specifically, the per-acre caps, which were calculated 
by multiplying $26 by the varietal average number of trees per acre 
reported by the Florida citrus industry to the USDA's National 
Agricultural Statistics Service through the Florida Agriculture 
Statistics Service, are as follows:

------------------------------------------------------------------------
                                                        Average
                                                         number  Maximum
                                                           of    payment
                        Variety                          trees      per
                                                          per      acre
                                                          acre
------------------------------------------------------------------------
Grapefruit, red seedless..............................      104   $2,704
Orange, Valencia......................................      123    3,198
Orange, early/midseason/navel.........................      118    3,068
Tangelo...............................................      114    2,964
Lime..................................................      154    4,004
Other or mixed citrus \1\.............................      104   2,704
------------------------------------------------------------------------
\1\ Approximately 32 acres of ``other, unidentified'' citrus trees are
  reported as having been destroyed in the information furnished by the
  State of Florida. Since that initial information was provided by
  Florida, we have been able to determine that the ``other,
  unidentified'' category of citrus groves is a mix of trees not
  conveniently categorized. The mix of trees may include grapefruit,
  oranges, and specialty crops. Based on the fact that 82 percent of the
  destroyed acres were red seedless grapefruit, APHIS used the average
  per-acres tree density for red seedless grapefruit to set the per-acre
  cap for those ``other, unidentified'' groves.

    We anticipate that additional funds will be made available for USDA 
to provide payments to the owners of commercial citrus groves for 
losses in production income resulting from the destruction of trees due 
to citrus canker. Because output per acre is approximately the same, 
regardless of the number of trees per acre, capping the tree 
replacement payments provided for by this rule based on the average 
number of trees per acre for each variety will ensure that no grower 
receives combined payments (i.e., tree replacement and lost production) 
that exceed the total estimated per-acre loss.

How To Apply

    Paragraph (c) of Sec. 301.75-15 provides information on how to 
apply for commercial citrus tree replacement funds. This paragraph 
states that the form necessary to apply for tree replacement funds may 
be obtained from any local citrus canker program office or from the 
USDA Citrus Canker Eradication Project office in Miami, FL. Completed 
claim forms must be sent to the USDA Citrus Canker Eradication Project 
office in Winter Haven, FL, which is where the DPI records necessary to 
validate claims are located. When the completed application is 
submitted, it should be accompanied by a copy of the public order that 
directed the destruction of the trees, the order's accompanying 
inventory that describes the number and variety of trees removed, and 
documentation verifying that the destruction of trees has been 
completed and the date of that destruction. Claims for trees destroyed 
on or before the effective date of this rule must be received within 60 
days

[[Page 61079]]

after the effective date of this rule, and claims for trees destroyed 
after the effective date of this rule must be received within 60 days 
after the destruction of the trees.

Immediate Action

    Immediate action is necessary to reduce the economic effect of the 
citrus canker eradication program on affected commercial citrus 
growers, thus ensuring the continued cooperation of commercial growers 
with the survey and eradication activities being conducted by the State 
of Florida and APHIS. Under these circumstances, the Administrator has 
determined that prior notice and opportunity for public comment are 
contrary to the public interest and that there is good cause under 5 
U.S.C. 553 for making this rule effective less than 30 days after 
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. 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 citrus canker regulations to establish 
provisions under which eligible owners of commercial citrus groves may 
receive payments to replace commercial citrus trees removed because of 
citrus canker. The payment of these tree replacement funds is necessary 
as a first step toward reducing the economic effect of the citrus 
canker quarantine on affected commercial citrus growers. As for the 
second step, we anticipate that additional funds will be made available 
for USDA to provide payments to growers for losses in production income 
resulting from the destruction of trees due to citrus canker. In order 
to make those funds available, we expect to publish a proposed rule 
that details our estimates of per-acre losses and discusses the 
information and methodology upon which those estimates are based.
    The value of citrus produced in the United States in 1998 was $2.6 
billion, and Florida produced a substantial share of the total. In 
1997-1998, Florida accounted for 43.67 percent of U.S. orange 
production, 76.2 percent of grapefruit production, 72.72 percent of 
lime production, 63.41 percent of tangerine production, and 100 percent 
of both temple and K-Early citrus production (USDA, National 
Agricultural Statistics Service, Agricultural Statistics, 1999). 
Removing the infected and exposed trees protects a substantial 
investment in other citrus groves. While the entire value of citrus 
produced is not at risk immediately from citrus canker, the disease 
would, if left unchecked, continue to spread. In time, the entire 
industry would be at risk.
    According to the data provided to APHIS by the State of Florida, 
during the current citrus canker outbreak, approximately 484,900 
commercial citrus trees were removed to control citrus canker by July 
19, 2000, and another 238,900 commercial citrus trees are expected to 
be destroyed by September 30, 2000. Paid at the rate of $26 per tree, 
the costs of replacing those 723,800 trees would be approximately $18.8 
million. However, we expect that the actual amount paid out will be 
lower due to the per-acre cap on tree replacement payments provided for 
by this interim rule; as noted previously, we have placed this cap on 
tree replacement payments in order to ensure that no grower receives 
combined tree replacement and lost production payments that exceed the 
total estimated per-acre loss. The State of Florida has also identified 
another 87,731 trees from 5 groves in Manatee and Highlands Counties 
that were destroyed because of citrus canker between 1986 and 1990 
(i.e., before the start of the current outbreak); the costs of 
replacing those trees at $26 per tree would be approximately $2.28 
million. Again, we expect that the per-acre cap on tree replacement 
payments provided for by this interim rule will result in the actual 
amount paid out being lower.

Effects on Small Entities

    This rule establishes provisions under which eligible owners of 
commercial citrus groves could, subject to the availability of 
appropriated funds, receive payments to replace commercial citrus trees 
removed because of citrus canker. Therefore, the entities who will be 
affected by this rule are commercial citrus growers. 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. While the majority of 
citrus growers in Florida would be considered small entities under 
those SBA guidelines, those growers who would not be classified as 
small entities account for the majority of the citrus-growing acreage 
in the State. Based on available information, it appears that most of 
the citrus-canker-related losses in Florida have been incurred by those 
larger citrus producers. Regardless of the size of the entities 
affected, we expect that this rule will benefit those commercial citrus 
growers who are eligible for tree replacement payments by helping to 
defray some of the losses and expenses that they have incurred as a 
result of the ongoing State and Federal efforts to eradicate citrus 
canker in Florida.
    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 0579-0163 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

[[Page 61080]]

Regulatory Affairs, OMB, Attention: Desk Officer for APHIS, Washington, 
DC 20503, and (2) Docket No. 00-037-1, 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. 00-037-1 and send your comments within 60 days of 
publication of this rule.
    This rule amends the citrus canker regulations to establish 
provisions under which eligible owners of commercial citrus groves may 
receive payments to replace commercial citrus trees removed because of 
citrus canker. Implementing this program would necessitate the use of 
an information collection activity in the form of an application for 
funds.
    We are soliciting comments from the public concerning our 
information collection and recordkeeping 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 0.21 hours per response.
    Respondents: Eligible commercial citrus grove owners in Florida.
    Estimated annual number of respondents: 65.
    Estimated annual number of responses per respondent: 1.08.
    Estimated annual number of responses: 70.
    Estimated total annual burden on respondents: 15 hours.
    (Due to rounding, the total annual burden hours may not equal the 
product of the annual number of responses multiplied by the average 
reporting burden per response.)
    Copies of this information collection can be obtained by calling 
Mrs. Celeste Sickles, APHIS' Information Collection Coordinator, at 
(301) 734-7477.

List of Subjects in 7 CFR Part 301

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

    Accordingly, 7 CFR part 301 is amended as follows:

PART 301--DOMESTIC QUARANTINE NOTICES

    1. The authority citation for part 301 is revised 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.
    Section 301.75-15 also issued under Sec. 204, Title II, Pub. L. 
106-113, 113 Stat. 1501A-293, and sec. 203, title II, Pub. L. 106-
224, 114 Stat. 400 (7 U.S.C. 1421 note).


    2. Section 301.75-1 is amended by adding, in alphabetical order, 
definitions of the terms commercial citrus grove and public order to 
read as follows:


Sec. 301.75-1  Definitions.

* * * * *
    Commercial citrus grove. An establishment maintained for the 
primary purpose of producing citrus fruit for commercial sale.
* * * * *
    Public order. Either an ``Agreement to Destroy and Covenant Not to 
Sue'' signed by the grove owner and the Florida Department of Food and 
Consumer Services, Division of Plant Industry (DPI), or an ``Immediate 
Final Order'' issued by DPI, both of which identify citrus trees 
infected with or exposed to citrus canker and order their destruction.
* * * * *

    3. In Subpart--Citrus Canker, a new Sec. 301.75-15 is added to read 
as follows:


Sec. 301.75-15  Funds for the replacement of commercial citrus trees.

    Subject to the availability of appropriated funds, the owner of a 
commercial citrus grove may be eligible to receive funds to replace 
commercial citrus trees in accordance with the provisions of this 
section.
    (a) Eligibility. The owner of a commercial citrus grove may be 
eligible to receive funds to replace commercial citrus trees removed to 
control citrus canker if the trees were removed pursuant to a public 
order between 1986 and 1990 or on or after September 28, 1995.
    (b) Tree replacement payments. The owner of a commercial citrus 
grove who is eligible under paragraph (a) of this section to receive 
funds to replace commercial citrus trees will, upon approval of an 
application submitted in accordance with paragraph (c) of this section, 
receive a payment of $26 per tree up to the following per-acre maximum 
payments:

------------------------------------------------------------------------
                                                                Maximum
                           Variety                              payment
                                                               per acre
------------------------------------------------------------------------
Grapefruit, red seedless....................................      $2,704
Orange, Valencia............................................       3,198
Orange, early/midseason/navel...............................       3,068
Tangelo.....................................................       2,964
Lime........................................................       4,004
Other or mixed citrus.......................................       2,704
------------------------------------------------------------------------

    (c) How to apply for tree replacement funds. The form necessary to 
apply for funds to replace commercial citrus trees may be obtained from 
any local citrus canker eradication program office in Florida, or from 
the USDA Citrus Canker Project, 10300 SW 72nd Street, Suite 150, Miami, 
FL 33173. The completed application should be accompanied by a copy of 
the public order directing the destruction of the trees and its 
accompanying inventory that describes the number and the variety of 
trees removed. Your completed application must be sent to the USDA 
Citrus Canker Eradication Project, Attn: Commercial Tree Replacement 
Program, c/o Division of Plant Industry, 3027 Lake Alfred Road, Winter 
Haven, FL 33881. Claims for trees 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 destroyed after the effective date 
of this rule must be received within 60 days after the destruction of 
the trees.

(Approved by the Office of Management and Budget under control 
number 0579-0163.)

    Done in Washington, DC, this 12th day of October 2000.
Charles P. Schwalbe,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 00-26591 Filed 10-13-00; 8:45 am]
BILLING CODE 3410-34-U