United States 

Department of 

Agriculture

Animal and 

Plant Health 

Inspection 

Service

January 2014

Analysis in Support of Certification that the 

Rule will not have a Significant Economic 

Impact on a Substantial Number of Small 

Entities

Final Rule

APHIS 2013-0037

RIN 0579-AD78

Importation of Potatoes from Mexico 

Policy & Program Development

Policy Analysis & Development
i

Summary

This analysis examines the expected economic impact for U.S small entities of a final 

rule that will allow the importation of potato tubers (Solanum tuberosum L.) for consumption

from Mexico into the United States. The Small Business Administration’s small-entity standard 

for U.S. farms that produce potato tubers is annual receipts of not more than $750,000. In 2007, 

the average market value of sales by the 15,014 U.S. farms that produced potatoes was about 

$222,000, well below the small-entity standard. 

In recent years, the United States has shifted from being a net importer to being a net 

exporter of fresh or chilled table potatoes. U.S average annual domestic supply from 2008 to 

2010 (marketed production plus imports minus exports) was about 16.6 million metric tons 

(MT). Mexico’s average annual exports for the same years totaled about 1,500 MT. Even if all of 

Mexico’s exports were diverted to the United States, they would be equivalent to less than 

one-hundredth of one percent of U.S domestic supply. Although most potato farms are small, 

based on the quantities of table potatoes traded by the two countries and U.S production, this 

final rule, if promulgated, will not have a significant economic impact on a substantial number of 

small entities. 
ii

Table of Contents

Summary.............................................................................................................................. i

Introduction......................................................................................................................... 1

Potential Impact on Small Entities...................................................................................... 2

Response to Public Comments............................................................................................ 3
1

Introduction 

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.

APHIS received a request from Mexico to authorize the importation of potato tubers 

(Solanum tuberosum L.) for consumption into the United States. Prior to this final rule, the 

regulations in 7 CFR 319.56 did not authorize the importation of potatoes from Mexico. This 

action allows the importation of potatoes (not seed) under a systems approach. 

In response to Mexico’s request, APHIS issued a proposed rule to authorize the 

importation of potatoes from Mexico, subject to mitigation measures to prevent the introduction 

of plant pests in the commercial potato shipments. These measures include commercial 

consignments only, production by a grower who is registered in a certification program, packing 

in a registered packinghouse, washing, cleaning, and treatment with a sprout inhibitor, external 

and internal inspections after packing, and certification that consignments of potato meet 

phytosanitary requirements. Based on the comments received, APHIS is issuing a final rule to 

authorize the importation of potatoes from Mexico.

The Regulatory Flexibility Act requires agencies to evaluate the potential effects of their 

proposed and final rules on small business, small organizations and small governmental 

jurisdictions. Section 604 of the Act requires an agency to prepare a final regulatory flexibility

analysis (FRFA) that describes the expected impact of the rule on small entities and a description 

of the steps the agency has taken to minimize any significant economic impacts on small entities 

consistent with the stated objectives of applicable statutes. In place of the FRFA, the head of the 
2

agency may certify that a final rule will not have a significant economic impact on substantial 

number of small entities. This analysis provides the basis for this certification.

Potential Impact on Small Entities

Potato production is classified within the North American Industry Classification System 

code 111211, for which the Small Business Administration’s small-entity standard is annual 

revenue of not more than $750,000.1 The latest data on the number of farms that produce 

potatoes are found in the 2007 Census of Agriculture, which reports that the average market 

value of potatoes sold per farm was about $222,000. Clearly, most potato producers are small 

entities. 

Table 1 shows that between 2002 and 2007, the number of farms that harvested potatoes 

increased from 9,408 to 15,014, but the total area planted in potatoes decreased from about 

1,266,000 to 1,132,000 acres. In 2007, about 31 percent of the harvested acres were in Idaho. 

Table 1. U.S. potato: Number of farms and area harvested in leading States, 2007

and 2002

2007 2002 2007 2002

U.S 15,014 9,408 1,131,963 1,266,087

Pennsylvania 1,258 984 9,690 11,094

North Carolina 1,123 504 14,760 19,500

New York 860 530 18,911 22,094

Idaho 703 818 350,905 364,229

Wisconsin 608 399 63,933 80,332

Michingan 600 395 42,267 45,840

Virginia 596 302 5,408 5,774

Other States 9,266 5,476 626,089 717,224

Source: NASS, Census of Agriculture, 2007 and 2002.

Number of farms Acres 

 

1

Small Business Administration Table of Small Business Size Standards 

http://www.sba.gov/sites/default/files/files/Size_Standards_Table(1).pdf
3

Mexico’s annual exports of potatoes (not seed) from 2008 to 2010 averaged about 1,500 

MT, and were valued at about $724,000. Mexico’s annual imports of potatoes (not seed) for this 

same period averaged about 79,000 MT, valued at about $35.5 million, with essentially all 

imported from the United States. Even if all of Mexico’s table potato exports were diverted to 

the United States, they would be equivalent to less than one-half of one percent of U.S imports, 

and less than one-hundredth of one percent of U.S domestic supply. The APHIS Administrator 

has determined that this action will not have a significant economic impact on a substantial 

number of small entities.

Response to Public Comments

No significant issues were raised in response to the certification. However, comments

received stated the following: The economic analysis does not address consumer benefits; there 

is no economic need for the rule; the risk of pests will increase; there will be slight decrease in 

the price of potatoes; U.S potato exports to Mexico may increase; and most potato producers are 

not small entities.

In response to those comments we observe that this rule is not a significant action and

therefore does not require an analysis of expected economic benefits for consumers. We have 

evaluated potential impacts on small entities, as required by the Regulatory Flexibility Act.

With regard to economic need, the Plant Perfection Act (PPA) (7 U.S.C. 7701 et seq)

states that we may restrict or prohibit the importation of a commodity into the United States only

if we determine that such restriction or prohibition is necessary to prevent the introduction of 

dissemination of a plant pest or noxious weed within the United States. The PPA does not 

authorize us to take non-pest impacts into consideration in making import decisions. 
4

We disagree with the commenter’s concern that the rule may cause an increased risk to 

domestic farmers. APHIS has determined that under the prescribed systems approach the stated 

mitigations will adequately reduce the risk of quarantine pests entering the United States.

We agree that there could be a slight decrease in price because of an additional supply of 

potatoes, providing a net benefit to the economy. However the decrease will be insignificant. 

Even if all of Mexico’s table potato exports were diverted to the United States, they would be 

equivalent to less than one-half of one percent of U.S imports, and less than one-hundredth of 

one percent of U.S net supply. This amount is not sufficient to cause significant price changes.

This rule concerns potato imports from Mexico. Any projection of effects of the rule on 

U.S potato exports would be speculative.

Lastly, the presence of a few major players does not preclude most potato producers from 

being small entities. The latest data on the number of farms that produce potatoes from the 2007 

Census of Agriculture indicate that the average market value of potatoes sold per farm was about 

$222,000, well below the Small Business Administration’s small-entity standard of annual 

revenue not more than $750,000.