United States 

Department of 

Agriculture

Animal and 

Plant Health 

Inspection 

Service

January 2015

Analysis in Support of Certification that the 

Rule will not have a Significant Economic 

Impact on a Substantial Number of Small 

Entities

Interim Rule

APHIS-2014-0023

Gypsy Moth Generally Infested Areas; 

Additions in Minnesota, Virginia, West 

Virginia, and Wisconsin

Policy & Program Development

Policy Analysis & Development
Summary

APHIS is amending the gypsy moth regulations (contained in 7 CFR 301.45 through 

301.45-12) by adding areas in Minnesota, Virginia, West Virginia, and Wisconsin to the list of 

generally infested areas based on detected infestations of gypsy moth. As a result of this action, 

the interstate movement of regulated articles from those areas is restricted. This rule will affect 

businesses such as nurseries, Christmas tree farms, and timber companies that are located within 

the newly expanded quarantined areas and that transport regulated articles interstate.

Agricultural entities in the newly quarantined areas are predominantly, if not entirely, 

small entities. Businesses with compliance agreements can self-inspect regulated articles moved 

from quarantined areas. Many of the entities are already operating under compliance agreements. 

Businesses without compliance agreements can have inspection and certification services 

provided by State or Federal officials at no cost. The APHIS Administrator has determined that 

this action will not have a significant economic impact on a substantial number of small entities.

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Table of Contents

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

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

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

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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 is amending the gypsy moth regulations (contained in 7 CFR 301.45 through 

301.45-12) by adding areas in Minnesota, Virginia, West Virginia, and Wisconsin to the list of 

generally infested areas based on detected infestations of gypsy moth. As a result of this action, 

the interstate movement of regulated articles from those areas is restricted. This action is 

necessary to prevent the artificial spread of the gypsy moth to noninfested areas of the United 

States.

We are also removing the requirement in § 301.45-4 that regulated articles originating 

outside of any generally infested area and moving interstate directly through any generally 

infested area must be covered to prevent access by any gypsy moth life stages. That requirement 

was put in place out of an abundance of caution when we had a more limited understanding of 

the biology and behavior of the gypsy moth. In the intervening time, advances in our 

understanding of the pest have led APHIS to conclude that the requirement does not provide 

additional protection from the spread of gypsy moth during shipment. We are therefore 

removing a requirement that we no longer view as necessary, thus lightening the regulatory 

burden on shippers of regulated articles. 

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Potential Impact on Small Entities

The gypsy moth, Lymantria dispar (Linnaeus), is a destructive pest of forest, shade, and 

commercial trees such as nursery stock and Christmas trees. The gypsy moth regulations 

(contained in 7 CFR 301.45 through 301.45-12 and referred to below as the regulations) restrict 

the interstate movement of regulated articles from generally infested areas to prevent the 

artificial spread of the gypsy moth.

The regulated articles, which include logs, pulpwood, and mobile homes, are produced or 

transported in most of the affected counties in some measure. This rule will affect businesses 

such as nurseries, Christmas tree farms, and timber companies that are located within the newly 

expanded quarantined areas and that transport regulated articles interstate. 

Table 1 summarizes the 2007 Census of Agriculture data (the latest census for which 

consistent data are available for all regulated articles) according to commodity groups that will 

be affected by the interim rule. These commodity groups are: (1) nursery; (2) cut Christmas 

trees; and (3) wood products including logs (classified within North American Industry 

Classification System [NAICS] Subsector 321) and pulpwood (NAICS 3221). Figures for mobile 

homes shipped to each State are also included in table 1. 

In 2007, there were 18 nurseries and 28 producers of Christmas trees in the nine newly 

affected counties. Sales figures for these counties are not available as there are too few 

operations per county. In the same year, sales1 of manufactured wood products exceeded $9.6 

billion in the four States, while sales of all pulp and paper products were over $11.5 billion. 

These statewide data are not available at the county level, nor are we able to disaggregate these

1 The value of sales represents the gross market value before taxes and production expenses of all 

agricultural products sold or removed from the place in 2007 regardless of who received the payment. 

2

 
values to the products actually affected by this rule. Similarly, only State-level data are available 

for mobile home placements, which reveal that 5,536 mobile homes were shipped to the four 

States in 2007 from manufacturers outside the state. 

In three of the four States, the farm operations in the affected counties represent less than 

one percent of the statewide operations in each commodity group. The exception is West 

Virginia, where the nurseries in the affected counties are 12.7% of the State’s total number of 

nurseries, and the affected Christmas tree operations are 7.1% of the State’s total. 

Table 1 – Number of farms and value of sales for principal regulated commodity groups in the affected States and 

counties, 2007

Nursery Cut-Christmas trees and 

short rotation woody crops

Wood Products (NAICS 321) 

and Pulp (NAICS 3221)

Mobile Homes –

Shipped to State

State

# of 

affected 

counties

# of 

farms in 

affected 

counties

# farms in 

State (% in 

affected 

counties)

# of 

farms in 

affected 

counties

# farms in State 

(% in affected 

counties)

wood 

sales 

(million$)

pulp sales 

(million$) Units

MN 2 1 363 (.28%) 1 368 (.27%) 2,398 2,279 898

VA 1 0 392 (0%) 1 481 (.21%) 2,786 1,908 2,107

WV 5 14 110 (12.7%) 19 267 (7.1%) 1,173 0 1,833

WI 1 3 637 (.47%) 7 1,136 (.62%) 3,324 7,322 698

TOTAL 9 18 1,502 28 2,252 9,681 11,508 5,536

Sources: USDA, NASS, 2007 Census of Agriculture, State and County Level Data; United States Census 

Bureau – American FactFinder; Institute for Building Technology and Safety.

Sales of all crops sold in the States were over $10.6 billion in 2007, of which about $281

million can be attributed to the two broad commodity groups (nursery and Christmas trees) 

affected by the quarantine restrictions imposed by this rule (table 2). In Virginia, 12.1% of the 

State’s crop sales in 2007 were in the two affected commodity groups. In all other cases, this 

figure was less than 4%. The percentage of producers affected by this rule is actually 

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significantly smaller, as very small shares of these industries, by State, are found within the 

affected counties.

Table 2 – Prevalence of articles that would be regulated if the gypsy moth quarantines were statewide, 2007

Statewide agricultural 

production 

Percentages that would be

regulated if the entire State 

were quarantined for gypsy 

moth

State Total 

Operations

Total Sales

(million$)

Operations Sales

MN 46,189 7,049 1.6% 1.1%

VA 16,493 858 5.3% 12.1%

WV 9,086 78.3 4.2% 1.2%

WI 43,189 2,669 4.1% 3.7%

Source: USDA, NASS, 2007 Census of Agriculture, State and County Level Data.

According to Small Business Administration criteria, a business engaged in crop 

production (NAICS Subsector 111) is considered to be a small entity if its annual receipts are not 

more than $750,000. Agricultural entities in the newly quarantined areas are predominantly, if 

not entirely, small entities.

We do not anticipate any significant economic impacts because of this action. APHIS 

works closely with State officials through quarantines and regulatory programs to limit the 

artificial spread of gypsy moth beyond infested areas, and stakeholders support these efforts. No 

public comment was received, for example, opposing an April 2013 interim rule that expanded 

the quarantined area in Wisconsin. West Virginia and Virginia already have regulatory programs 

in place due to previously quarantined counties. Many businesses operate under compliance 

agreements that allow them to self-inspect regulated articles moved from quarantine areas. 

Businesses without compliance agreements can have inspection and certification services 

provided by State or Federal officials at no cost.

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The APHIS Administrator has determined that this action will not have a significant 

economic impact on a substantial number of small entities.

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