[Federal Register Volume 65, Number 236 (Thursday, December 7, 2000)]
[Proposed Rules]
[Pages 76582-76588]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31142]


 ========================================================================
 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.
 
 ========================================================================
 

  Federal Register / Vol. 65, No. 236 / Thursday, December 7, 2000 / 
Proposed Rules  

[[Page 76582]]



DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Part 301

[Docket No. 00-037-2]
RIN 0579-AB15


Citrus Canker; Payments for Recovery of Lost Production Income

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: We are proposing to amend our citrus canker regulations to 
establish provisions under which eligible owners of commercial citrus 
groves could, subject to the availability of appropriated funds, 
receive payments to recover production income lost as a result of the 
removal of commercial citrus trees to control citrus canker. These 
proposed lost production payments, which would serve to complement our 
October 16, 2000, interim rule that provides for the payment of tree 
replacement funds to eligible owners of commercial citrus groves, would 
help to reduce the economic effects of the citrus canker quarantine on 
affected commercial citrus growers.

DATES: We invite you to comment on this docket. For comments on all 
portions of this proposed rule except the rule's information collection 
and recordkeeping requirements that are subject to the Paperwork 
Reduction Act, consideration will be given only to comments received on 
or before January 8, 2001. For comments on the Paperwork Reduction Act 
requirements of this proposed rule, consideration will be given only to 
comments received on or before February 5, 2001.

ADDRESSES: Please send four copies of your comment (an original and 
three copies) to: Docket No. 00-037-2, 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. 00-037-2.
    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 that render the fruit 
unmarketable, and can 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 301.75-15 (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.
    On October 16, 2000, we published in the Federal Register (65 FR 
61077-61080, Docket No. 00-037-1) an interim rule that amended the 
regulations by adding a new section (Sec. 301.75-15) 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. In that interim rule, we noted that we anticipated that 
additional funds would be made available to allow us 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. In this document, we are proposing to amend the regulations by 
adding another new section, Sec. 301.75-16, that would address the 
payment of funds to recover income from production that was lost as the 
result of the removal of commercial citrus trees to control citrus 
canker. That proposed new section is explained in detail below.

Definitions (Section 301.75-1)

    We are proposing to amend Sec. 301.75-1, ``Definitions,'' by adding 
a definition for the term ACC coverage, which would be used in proposed 
new Sec. 301.75-16. We would define ACC coverage as ``the crop 
insurance coverage against Asiatic citrus canker (ACC) provided under 
the Florida Fruit Tree Pilot Crop Insurance Program authorized by the 
Federal Crop Insurance Corporation'' (FCIC). This crop insurance pilot 
covers 29 Florida counties, including the 6 counties that currently 
contain citrus canker quarantined areas, and allows growers to insure 
covered citrus tree varieties against both standard perils (losses 
resulting from freezes, wind, and excess moisture) and losses due to 
citrus canker (referred to by FCIC as Asiatic citrus canker or ACC). 
Eligibility for the two sets of perils (standard and ACC) is determined 
separately; thus, an insured grower may qualify for coverage against 
the standard perils but not against ACC. While growers located in 
counties that do not contain quarantined areas qualify for ACC coverage 
automatically, growers located in counties that do contain quarantined 
areas are required to obtain an ACC underwriting certification, which 
describes the status of citrus trees with respect to citrus canker, 
from APHIS or from the Florida Department of Food and Consumer 
Services'

[[Page 76583]]

Division of Plant Industry (DPI). If a grower's trees are certified by 
APHIS or DPI as being infected with or exposed to citrus canker, the 
trees are not eligible for ACC coverage under the crop insurance pilot.

Payments for the Recovery of Lost Production Income (Proposed Section 
301.75-16)

    The introductory text of proposed Sec. 301.75-16 would provide that 
our ability to make payments to commercial citrus producers to recover 
income from production that was lost as the result of the removal of 
commercial citrus trees to control citrus canker is contingent upon the 
availability of funds appropriated for that purpose. Because the 
Secretary of Agriculture has not found it necessary to declare an 
extraordinary emergency with respect to citrus canker in Florida, the 
Animal and Plant Health Inspection Service (APHIS) does not have the 
authority under the Plant Protection Act to establish a compensation 
program to cover losses associated with the current citrus canker 
outbreak in that State. Therefore, we may provide payments for the 
recovery of lost production income only if appropriated funds are made 
available for that purpose. Such funds have been made available in 
section 203(e) of 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 Pierce's 
disease, plum pox, and citrus canker. In additional, $58 million were 
made available for payments to commercial citrus and lime producers in 
Florida in the Department's fiscal year (FY) 2001 appropriation. 
Specifically, paragraphs (a) through (e) of section 810 of the 
Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 2001 (Pub. L. 106-387) state the 
following:

    (a) The Secretary of Agriculture shall pay Florida commercial 
citrus and lime growers $26 for each commercial citrus or lime tree 
removed to control citrus canker in order to allow for tree 
replacement and associated business costs. Payments under this 
subsection shall be capped in accordance with the following trees 
per acre limitations:
    (1) In the case of grapefruit, 104 trees per acre;
    (2) In the case of valencias, 123 trees per acre;
    (3) In the case of navels, 118 trees per acre;
    (4) In the case of tangelos, 114 trees per acre;
    (5) In the case of limes, 154 trees per acre; and
    (6) in the case of other or mixed citrus, 104 trees per acre.
    (b) The Secretary of Agriculture shall compensate Florida 
commercial citrus and lime growers for lost production, as 
determined by the Secretary of Agriculture, with respect to trees 
removed to control citrus canker.
    (c) To receive assistance under this section, a tree referred to 
in subsection (a) or (b) must have been removed after January 1, 
1986, and before September 30, 2001.
    (d) In the case of a removed tree that was covered by a crop 
insurance tree policy, compensation for lost production under 
subsection (b) with respect to such a tree shall be reduced by the 
indemnity received with respect to such a tree. In the case of a 
removed tree that was not covered by a crop insurance tree policy, 
although such insurance was available for the tree, compensation for 
lost production under subsection (b) with respect to such a tree 
shall be reduced by 5 percent.
    (e) The Secretary of Agriculture shall use $58,000,000 of the 
funds of the Commodity Credit Corporation to carry out this section, 
to remain available until expended.

Eligibility

    Under paragraph (a) of proposed Sec. 301.75-16, the owner of a 
commercial citrus grove would be eligible to receive payments to 
recover net income from production that was lost as the result of the 
removal of commercial citrus trees 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. Although the current citrus canker 
infestation was detected in Florida on September 28, 1995, 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 that occurred between 1986 and 1990. 
The proposed eligibility period would ensure that lost production 
payments could be made to those growers affected during that limited 
outbreak in Manatee and Highlands Counties as well as those growers 
affected during the current outbreak.

Per-Acre Payments

    Proposed Sec. 310.75-16(b)(1) would provide the per-acre amounts 
that would be paid to the owners of eligible commercial citrus groves. 
The amount that would be paid per acre of destroyed commercial citrus 
groves would vary, depending on the type of citrus trees that 
constituted a particular grove.
    The per-acre payments that we are proposing in this document are 
based on the estimated per-acre loss in value of the destroyed groves. 
This loss in value is the difference between the net present value 
(NPV) of the original (destroyed) grove before it was infected with or 
exposed to citrus canker minus the NPV of the replanted grove for its 
entire productive life.\1\ To calculate the NPV of a grove (both 
original and replanted groves), 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:
---------------------------------------------------------------------------

    \1\ The expected productive life of a lime grove is 25 years; 
for other varieties of citrus, the expected productive life of a 
grove is 36 years. The age of the trees destroyed to date has been 
mixed, even within individual groves; based on available 
information, we have determined that the average (mean) age of the 
trees that have been destroyed was 14 years for grapefruit, 12 years 
for tangelos, Valencia oranges, and navel oranges, and 4 years for 
limes.
[GRAPHIC] [TIFF OMITTED] TP07DE00.001

    To calculate NPV using the above equation, we had to determine net 
income, the 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.
    Net income. To determine the per-acre net income for each variety 
of fruit, we multiplied the yield (number of boxes) per tree by the 
price per box, then subtracted the production cost per tree to arrive 
at the cash flow per tree; the cash flow per tree was then multiplied 
by the number of trees per acre to determine per-acre net income. The 
values used for the variables in our calculations, which are based on 
information obtained from the Florida

[[Page 76584]]

Agricultural Statistics Service and the University of Florida's 
Institute of Food and Agricultural Services, are as follows:

                                                                      Grapefruit *
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Yield (88-lb. boxes per tree).....................       Years 1-2        Years 3-5        Years 6-8       Years 9-13      Years 14-19      Years 20-36
                                                              0.00             1.95             3.19             4.20             4.91             5.28
--------------------------------------------------------------------------------------------------------------------------------------------------------
Price per box.....................................                                                  $3.58
--------------------------------------------------------------------------------------------------------------------------------------------------------
Production costs..................................               Year 1
                                                                 Year 2
                                                               Years 3-36
                                                             $10.16 per tree
                                                             $3.79 per tree
                                                             $1.852 per box
--------------------------------------------------------------------------------------------------------------------------------------------------------
Trees per acre....................................                                                   104
--------------------------------------------------------------------------------------------------------------------------------------------------------
* In our October 16, 2000, interim rule, this category was referred to as ``Grapefruit, red seedless.'' It is referred to as ``Grapefruit'' in this
  proposed rule to conform with the language used in Sec. 810 of Public Law 106-387.


                                                                    Orange, Valencia
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Yield (88-lb. boxes per tree).....................       Years 1-2        Years 3-5        Years 6-8       Years 9-13      Years 14-19      Years 20-36
                                                              0.00             1.18             2.09             2.30             3.64             4.38
--------------------------------------------------------------------------------------------------------------------------------------------------------
Price per box.....................................                                                  $5.29
--------------------------------------------------------------------------------------------------------------------------------------------------------
Production costs..................................               Year 1
                                                                 Year 2
                                                               Years 3-36
                                                             $10.16 per tree
                                                             $3.79 per tree
                                                             $2.134 per box
--------------------------------------------------------------------------------------------------------------------------------------------------------
Trees per acre....................................                                                   123
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                    Orange, Navel **
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Yield (88-lb. boxes per tree).....................       Years 1-2        Years 3-5        Years 6-8       Years 9-13      Years 14-19      Years 20-36
                                                              0.00             1.23             2.69             3.56             4.71             5.67
--------------------------------------------------------------------------------------------------------------------------------------------------------
Price per box.....................................                                                  $4.14
--------------------------------------------------------------------------------------------------------------------------------------------------------
Production costs..................................               Year 1
                                                                 Year 2
                                                               Years 3-36
                                                             $10.16 per tree
                                                             $3.79 per tree
                                                             $1.853 per box
--------------------------------------------------------------------------------------------------------------------------------------------------------
Trees per acre....................................                                                   118
--------------------------------------------------------------------------------------------------------------------------------------------------------
** In our October 16, 2000, interim rule, this category of oranges was referred to as ``Orange, early/midseason/navel.'' It is referred to as ``Orange,
  navel'' in this proposed rule to conform with the language used in Sec. 810 of Public Law 106-387.


                                                                         Tangelo
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Yield (88-lb. boxes per tree).....................       Years 1-2        Years 3-5        Years 6-8       Years 9-13      Years 14-19      Years 20-36
                                                              0.00             0.87             1.90             2.51             3.32             4.00
--------------------------------------------------------------------------------------------------------------------------------------------------------
Price per box.....................................                                                  $3.88
--------------------------------------------------------------------------------------------------------------------------------------------------------
Production costs..................................               Year 1
                                                                 Year 2
                                                               Years 3-36
                                                             $10.16 per tree
                                                             $3.79 per tree
                                                             $1.852 per box
--------------------------------------------------------------------------------------------------------------------------------------------------------
Trees per acre....................................                                                   114
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                                              Lime
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Yield (88-lb. boxes per tree)...................................         Year 1          Year 2          Year 3          Year 4          Year 5          Year 6          Year 7        Yrs 8-25
                                                                           0.16            0.60            1.07            1.38            1.83            2.11            2.48            2.61
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Price per box...................................................                                                               $9.11
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Production costs................................................                       Year 1
                                                                                       Year 2
                                                                             Years 3-25
                                                                                  $12.57 per tree
                                                                                  $7.79 per tree
                                                                           $6.55 per box
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Trees per acre..................................................                                                                154
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Discount rate. The discount rate used in the equation differed for 
original groves and replanted groves. Based on information provided by 
extension economists in Florida and citrus industry economists, we have 
applied the following discount rates when calculating the NPV of 
replanted groves, as replanting would not be expected to occur until 
the production area is free from citrus canker: 14 percent for 
grapefruit; 14.5 percent for tangelos and

[[Page 76585]]

Valencia and navel oranges; and 13.5 percent for limes. Based on the 
discount rates applied to production in areas free from citrus canker, 
we estimated that the following discount rates would be appropriate for 
income that could be earned from a grove in an area where citrus canker 
is present: 15 percent for grapefruit; 15.5 percent for tangelos and 
Valencia and navel oranges; and 14.5 percent for limes. These higher 
discount rates reflect the increased risk that would be associated with 
citrus production in an area known to have citrus canker.
    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 grove, which, as noted 
previously, is 25 years for lime groves and 36 years for other 
varieties of citrus.
    Based on the recommendations of extension economists and sources 
within the citrus industry, payments for the recovery of lost 
production income would be made on a per-acre basis, rather than on a 
per-tree basis, because output per acre is approximately the same, 
regardless of the number of trees per acre. Paying on a per-tree basis 
would likely result in underpayments to growers with older groves, 
which normally have fewer, but larger and more productive, trees, and 
in overpayments to growers with newer groves, which normally have more 
trees that are smaller and produce less fruit per tree than the larger 
trees. The trend in the industry is to plant more trees per acre; 
smaller trees allow for easier harvesting, making it easier to find 
workers willing to do this type of work.
    Using the information and methodology set forth in the preceding 
paragraphs, we have calculated the per-acre NPV for each variety of 
citrus considered in this proposed rule. The NPV includes the lost 
production component considered in this proposed rule as well as the 
tree replacement component addressed in our October 16, 2000, interim 
rule that established Sec. 301.75-15, ``Funds for the replacement of 
commercial citrus trees.'' Because the regulations in Sec. 301.75-15 
already provide for tree replacement payments, we have subtracted those 
tree replacement payments (i.e., $26 times the number of trees per 
acre) from the NPV to arrive at the proposed per-acre lost production 
payments presented in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                       Tree            Lost
                                    Trees  per       Per-tree       replacement     production       NPV  (per
         Citrus variety                acre*         payment*      payment  (per   payment  (per       acre)
                                                                      acre)*           acre)
----------------------------------------------------------------------------------------------------------------
Grapefruit......................             104             $26          $2,704          $2,925          $5,629
Orange, Valencia................             123              26           3,198           5,729           8,927
Orange, navel...................             118              26           3,068           5,693           8,761
Tangelo.........................             114              26           2,964           1,666           4,630
Lime............................             154              26           4,004           4,829           8,833
Other or mixed citrus**.........             104              26           2,704           2,925          5,629
----------------------------------------------------------------------------------------------------------------
* Trees per acre, pre-tree payment, and tree replacement payment per acre reflect the limitations established in
  Sec. 810(a) of Public Law 106-387.
** Records provided by the State of Florida list approximately 32 acres of ``other, unidentified'' citrus trees
  as having been destroyed due to citrus canker before December 31, 1999. Under this proposed rule, the payment
  for those ``other, unidentified'' citrus trees would be the same as that for grapefruit. Since the time those
  initial records were 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 acreage destroyed before
  December 31, 1999, consisted of grapefruit, APHIS used grapefruit production and cost data to estimate the
  value of the ``other, unidentified'' groves.

Payment Adjustments

    Paragraph (b)(2) of proposed Sec. 301.75-16 would provide for 
adjustments to be made to the per-acre payments discussed above in 
those cases where ACC coverage had been available for the destroyed 
trees. Specifically, under proposed Sec. 301.75-16(b)(2)(i), if the 
owner of a commercial citrus grove had obtained ACC coverage for trees 
in his or her grove and had received crop insurance payments following 
the destruction of the insured trees, the payment provided for under 
paragraph (b)(1) of this section will be reduced by the total amount of 
the crop insurance payments received by the commercial citrus grove's 
owner for the insured trees. This proposed adjustment would enable us 
to deduct any indemnity for destroyed trees that may have been received 
by a grower through crop insurance, thus ensuring that the grove owner 
did not receive two payments for the same destroyed trees.
    If the owner of a commercial citrus grove had been eligible to 
obtain ACC coverage for the trees in his or her grove, but that owner 
had not obtained the available coverage, proposed Sec. 301.75-
16(b)(2)(ii) would provide that the per-acre lost production payment 
would be reduced by 5 percent, as required by Sec. 810(d) of Public Law 
106-387. This would respond to concerns that if APHIS provided full 
lost production payments to insurance-eligible commercial growers who 
elected not to obtain ACC coverage against citrus canker losses, those 
full payments would likely undermine the intent and effectiveness of 
the Federal crop insurance program by making it appear that crop 
insurance was not necessary.

How To Apply

    Paragraph (c) of proposed Sec. 301.75-16 would provide information 
on how to apply for lost production payments. This paragraph would 
state that the form necessary to apply for payments could be obtained 
from any local citrus canker program office or from the USDA Citrus 
Canker Eradication Project office in Miami, FL. Completed claim forms 
would have to 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. This paragraph would also state that an 
applicant should, when submitting a completed application, include with 
the form a copy of the public order that directed the destruction of 
the trees, the order's accompanying inventory that describes the 
acreage, number, and variety of trees removed, and documentation 
verifying that the destruction of trees had been completed and the date 
of that destruction. Claims for losses attributable to the destruction 
of trees on or before the effective date of the final rule implementing 
the provisions of this proposed rule would have to be received within 
60 days after the effective date of the final rule. Claims for losses 
attributable to the destruction of trees after the effective date of 
the

[[Page 76586]]

final rule would have to be received within 60 days after the 
destruction of the trees.

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.
    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 proposed rule would amend the citrus canker regulations to 
establish provisions under which eligible owners of commercial citrus 
groves could, subject to the availability of appropriated funds, 
receive payments to recover production income lost as a result of the 
removal of commercial citrus trees to control citrus canker. These 
proposed lost production payments, which would serve to complement our 
October 16, 2000, interim rule that provides for the payment of tree 
replacement funds to eligible owners of commercial citrus groves, would 
help to reduce the economic effects of the citrus canker quarantine on 
affected commercial citrus growers.
    As shown in the table below, the United States produced 
approximately 16,990 tons of oranges, grapefruit, limes, tangerines, 
and tangelos worth $2.25 billion in 1998, with Florida producing nearly 
half of that total.

----------------------------------------------------------------------------------------------------------------
                                                                       1998
                                 -------------------------------------------------------------------------------
                                                                                     Value of
              Fruit                    U.S.        Value of U.S.      Florida         Florida     Florida  share
                                    production      production      production      production    of  production
                                      (tons)        (millions)        (tons)        (millions)          (%)
----------------------------------------------------------------------------------------------------------------
Oranges.........................          13,857        $1,930.5           6,051          $843.0           43.67
Tangerines......................             360            96.1             228            61.0           63.41
Grapefruit......................           2,626           211.9           2,001           161.4           76.20
Limes...........................              19             4.3              14             3.1           72.72
Tangelos........................             128            11.7             128            11.7          100.00
                                 -------------------------------------------------------------------------------
    Total.......................          16,990         2,254.5           8,422         1,080.2  ..............
----------------------------------------------------------------------------------------------------------------
 Source: 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, 
approximately 8,418 acres of commercial citrus trees have been 
destroyed to control citrus canker by November 15, 2000. This figure 
includes an estimated 7,814 acres of commercial citrus that have been 
destroyed since the current citrus canker outbreak was detected in 
September 1995, as well as approximately 604 acres of grapefruit trees 
from 5 groves in Manatee and Highlands Counties that were destroyed 
between 1986 and 1990 to control citrus canker during a limited 
outbreak of the disease during that period.
    As shown in the following table, which was prepared using the 
acreage estimates provided by the State of Florida and the proposed 
per-acre payments contained in this proposed rule, lost production 
payments for commercial citrus trees destroyed by November 15, 2000, 
would total between about $29.1 to $36.5 million. The uncertainty in 
this estimate is attributable to the fact that, of the 8,418 acres 
estimated to have been destroyed by November 15, 2000, there are about 
1,806 acres that have not yet been broken out by variety in the data 
available to us. To account for that acreage, we have multiplied the 
acreage (1,806.38) by the lowest ($1,666) and highest ($5,729) of the 
proposed per-acre payments to identify the entire range of possible 
total claims.\2\
---------------------------------------------------------------------------

    \2\ We believe that figure provided in the table for limes--
2,929 acres--accounts for all lime acreage destroyed by November 15, 
2000, so the presently unidentified acreage can be expected to 
consist of a mix of grapefruit, Valencia and navel oranges, and 
tangelos, which collectively account for approximately 3,650 acres 
in the table. Of that 3,650 acres, grapefruit accounts for 87.6 
percent, Valencia oranges for 1.6 percent, navel oranges for 10.4 
percent, and tangelos for 0.4 percent. Applying those same 
percentages to the 1,806.38 acres of currently unidentified citrus 
would translate to lost production claims of about $5.876 million 
for that acreage, which would result in total lost production claims 
for acreage destroyed by November 15, 2000, of about $31.993 
million.

----------------------------------------------------------------------------------------------------------------
                                                                     Estimated
                                                                      acreage      Proposed per-  Estimated lost
                             Variety                               destroyed by    acre payment     production
                                                                     11/15/00                         claims
----------------------------------------------------------------------------------------------------------------
Grapefruit......................................................        3,201.00          $2,925      $9,362,925
Oranges, Valencia...............................................           58.30           5,729         334,001
Oranges, navel..................................................          380.22           5,693       2,164,592
Tangelos........................................................           11.13           1,666          18,543
Limes...........................................................        2,929.00           4,829      14,144,141
Other or mixed citrus...........................................           31.97           2,925          93,512
                                                                 -----------------------------------------------
    Subtotal....................................................        6,611.62  ..............      26,117,714
                                                                 -----------------------------------------------
Variety not yet identified......................................        1,806.38     1,666-5,729      3,009,429-
                                                                                                      10,348,751
                                                                 -----------------------------------------------

[[Page 76587]]

 
    Total.......................................................           8,418  ..............     29,127,143-
                                                                                                     $36,466,465
----------------------------------------------------------------------------------------------------------------

Effects on Small Entities

    This proposed rule would establish provisions under which eligible 
owners of commercial citrus groves could, subject to the availability 
of appropriated funds, receive payments to recover production income 
lost as a result of the removal of commercial citrus trees to control 
citrus canker. Therefore, the entities who would be affected by this 
proposed rule would be 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 proposed rule would benefit those commercial citrus growers 
who are eligible for lost production 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 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. 00-037-2. 
Please send a copy of your comments to: (1) Docket No. 00-037-2, 
Regulatory Analysis and Development, PPD, APHIS, suite 3C03, 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.
    This proposed rule would amend the citrus canker regulations to 
establish provisions under which eligible owners of commercial citrus 
groves could, subject to the availability of appropriated funds, 
receive payments to recover production income lost as a result of the 
removal of commercial citrus trees to control 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 0.16 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.
    Estimated annual number of responses: 65.
    Estimated total annual burden on respondents: 10 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, we propose to amend 7 CFR part 301 as follows:

PART 301--DOMESTIC QUARANTINE NOTICES

    1. The authority citation for part 301 would be 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; sections 301.75-15 and 301.75-16 also 
issued under Sec. 203, Title II, Pub. L. 106-224, 114 Stat. 400.

    2. Section 301.75-1 would be amended by adding a definition of ACC 
coverage to read as follows:

[[Page 76588]]

Sec. 301.75-1  Definitions.

    ACC coverage. The crop insurance coverage against Asiatic citrus 
canker (ACC) provided under the Florida Fruit Tree Pilot Crop Insurance 
Program authorized by the Federal Crop Insurance Corporation.
* * * * *
    3. In Subpart--Citrus Canker, a new Sec. 301.75-16 would be added 
to read as follows:


Sec. 301.75-16  Payments for the recovery of lost production income.

    Subject to the availability of appropriated funds, the owner of a 
commercial citrus grove may be eligible to receive payments in 
accordance with the provisions of this section to recover income from 
production that was lost as the result of the removal of commercial 
citrus trees to control citrus canker.
    (a) Eligibility. The owner of a commercial citrus grove may be 
eligible to receive payments to recover income from production that was 
lost as the result of the removal of commercial citrus trees 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) Calculation of payments. (1) The owner of a commercial citrus 
grove who is eligible under paragraph (a) of this section to receive 
payments to recover lost production income will, upon approval of an 
application submitted in accordance with paragraph (c) of this section, 
receive a payment calculated using the following rates:

------------------------------------------------------------------------
                                                               Payment
                      Citrus variety                         (per acre)
------------------------------------------------------------------------
Grapefruit................................................        $2,925
Orange, Valencia..........................................         5,729
Orange, navel.............................................         5,693
Tangelo...................................................         1,666
Lime......................................................         4,829
Other or mixed citrus.....................................         2,925
------------------------------------------------------------------------

    (2) Payment adjustments.
    (i) In cases where the owner of a commercial citrus grove had 
obtained ACC coverage for trees in his or her grove and received crop 
insurance payments following the destruction of the insured trees, the 
payment provided for under paragraph (b)(1) of this section will be 
reduced by the total amount of the crop insurance payments received by 
the commercial citrus grove's owner for the insured trees.
    (ii) In cases where ACC coverage was available for trees in a 
commercial citrus grove but the owner of the grove had not obtained ACC 
coverage for his or her insurable trees, the per-acre payment provided 
for under paragraph (b)(1) of this section will be reduced by 5 
percent.
    (c) How to apply for lost production payments. The form necessary 
to apply for lost production payments 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 acreage, number, and the 
variety of trees removed. Your completed application must be sent to 
the USDA Citrus Canker Eradication Project, Attn: Lost Production 
Payments Program, c/o Division of Plant Industry, 3027 Lake Alfred 
Road, Winter Haven, FL 33881. Claims for losses attributable to the 
destruction of trees on or before [the effective date of this rule] 
must be received within 60 days after [the effective date of this 
rule]. Claims for losses attributable to the destruction of trees after 
[the effective date of this rule] must be received within 60 days after 
the destruction of the trees.

    Done in Washington, DC, this 1st day of December 2000.
Bobby R. Acord,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 00-31142 Filed 12-4-00; 11:17 am]
BILLING CODE 3410-34-P