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<h1>Analysis in Support of Certification that the Rule will not have a Significant Economic Impact on a Substantial Number of Small Entities</h1>
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<h1>Final Rule</h1>
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<h1>Black Stem Rust (<i>Puccinia graminis</i> )-Resistant Berberis Varieties</h1>
<h1>APHIS 10-035-1</h1>
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<h2>U.S. Department of Agriculture</h2>
<h2>Animal and Plant Health Inspection Service</h2>
<h2>April 2010</h2>
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<h1>Summary</h1>
<p>Black stem rust (BSR) is a fungus that spreads from host to host via windborne spores. It is considered one of the most destructive plant diseases in the United States. This disease generally affects barberry plants, wheat, oat, and rye crops and results in significant crop yield reductions. </p>
<p>Currently, plant species and cultivars are tested by the United States Department of Agriculture Research Service (USDA ARS) to determine whether they are rust-resistant or rust-susceptible. Plant species and cultivars that are determined to be BSR-resistant are listed in the Code of Federal Regulations. </p>
<p>The final rule will amend 7 CFR 301.38-2(a)(1)  by adding 23 varieties to the list of rust-resistant Berberis species or cultivars. The nursery and floriculture industries that may be affected by this rule are largely composed of small entities.  We expect these entities to benefit from the rule, by being able to market interstate barberry species and cultivars newly determined to be BSR-resistant. </p>
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<h1>Introduction </h1>
<p>This analysis provides the basis, as required by the Regulatory Flexibility Act, for certification by the APHIS Administrator that the rule will not have a significant economic impact on a substantial number of small entities.</p>
<p> The interstate movement of barberry plants (<i>Berberis</i>, <i>Mahoberberis</i>, and <i>Mohania</i>) is regulated to mitigate the spread of black stem rust (BSR). BSR is a fungus that spreads from host to host via windborne spores and is considered one of the most destructive plant diseases in the United States. The fungus typically affects barberry plants, wheat, oat, and rye crops by robbing them of food and water and significantly reducing crop yields.  </p>
<p>Through testing conducted by the Agricultural Research Service (ARS) of the United States Department of Agriculture (USDA), barberry plants are categorized as either “rust-resistant” or “rust-susceptible”. The interstate movement of BSR-resistant cultivars and plant species is allowed with a certificate, while that of BSR-susceptible cultivars and plant species is prohibited. Upon categorization, BSR-resistant plants species and cultivars are placed on a list of rust-resistant varieties. The list is maintained in the Code of Federal Regulations and on the USDA Animal and Plant Health Inspection Service website.  This rule will add 23 varieties that have been determined to be BSR-resistant to the current list.  </p>
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<h1>Potential Impact on Small Entities</h1>
<p>The introduction and spread of plant pests can result in damage to crops and losses to the U.S. agricultural sector. For the purpose of this analysis and following the Small Business Administration (SBA) guidelines, we note that a major segment of entities potentially affected by this rule are classified within the following industries: Nursery and Tree Production (NAICS 111421), and Floriculture Production (NAICS 111422).  According to the Census of Agriculture, these two categories included 52,845 farms in 2007, and represented three percent of all farms in the United States. These entities are considered small by SBA standards if their annual sales are $750,000 or less. Over 93 percent of the farms in these industries had annual sales of less than $500,000.[footnoteRef:1]  Barberry plants are not one of the crops tracked by the Census and therefore data on production and number of producers are not available. Nurseries producing barberry plant species and cultivars will not be negatively affected.  In fact, they will benefit from being able to market the 23 varieties interstate. In addition, the rule does not require any additional reporting, recording keeping, or other compliance measures beyond what is already in place.  [1:  The nursery and floriculture industries are representative of other agricultural industries in terms of being comprised largely of small entities.  ] 
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<p>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.</p>
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<p>References</p>
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<p>Census of Agriculture, 2007, <a href="http://www.agcensus.usda.gov/Publications/2007/Full_Report/index.asp"><i>http://www.agcensus.usda.gov/Publications/2007/Full_Report/index.asp</i></a></p>
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<p>Economic Census, 2002, http://www.census.gov/econ/census02/</p>
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<p>Economic Research Service. <i>Floriculture and Nursery Crops Outlook. </i>FLO-04, September 23, 2005. www.ers.usda.gov</p>
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<p class="ref">Small Business Administration. <i>A Guide for Government Agencies How to Comply with the Regulatory Flexibility Act.  </i><a href="http://www.sba.gov/advo/laws/regflex.html"><i>http://www.sba.gov/advo/laws/regflex.html</i></a></p>
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<p class="ref">Small Business Administration. <i>Small Business Standard Match to North American Industry Classification System </i><a href="http://www.sba.gov/size/sizetable2002.html"><i>http://www.sba.gov/size/sizetable2002.html</i></a></p>
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