United States 

Department of 

Agriculture

Animal and 

Plant Health 

Inspection 

Service

September

2011

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-2011-0100

Tuberculosis in Cattle and Bison; State and 

Zone Designations; Minnesota

Policy & Program Development

Policy Analysis & Development
i

Summary

Minnesota currently has a split State status for bovine tuberculosis (TB) with an 

Accredited Free (AF) zone and a Modified Accredited Advanced (MAA) zone. This interim rule 

will reclassify the status on of the MAA zone, consisting of parts of four counties from MAA to 

AF. MAA status imposes various requirements for TB testing of cattle. Reclassification to AF 

removes all movement restrictions. The Regulatory Flexibility Act (RFA) of 1980 (Public Law 

96-354) requires agencies to evaluate the potential effects of proposed and final rules on small 

businesses, small organizations, and small government jurisdictions. Section 605 of the RFA 

allows an agency to certify that a rule will not have a significant impact on substantial number of 

small entities. 

Advancement of status for parts of four counties will eliminate testing requirements, 

saving cattle producers time and money. Because few producers will be affected, these savings 

are expected to be relatively small. This action will not significantly change program operations 

and will have no significant effects on other Federal agencies, State governments or local 

governments. 

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.
1

Introduction 

This analysis provides the basis, as required by the Regulatory Flexibility Act, for 

certification by the APHIS Administrator that the interim rule will not have a significant 

economic impact on a substantial number of small entities.

Bovine tuberculosis is a contagious and infectious granulomatous disease caused by the 

bacterium Mycobacterium bovis. Although commonly defined as a chronic debilitating disease, 

bovine tuberculosis can occasionally assume an acute, rapidly progressive course. While any 

body tissue can be affected, lesions are most frequently observed in the lymph nodes, lungs, 

intestines, liver, spleen, pleura, and peritoneum. Although cattle are considered to be the true 

hosts of M. bovis, the disease has been reported in several other species of both domestic and 

nondomestic animals, as well as in humans.

The Cooperative State-Federal Tuberculosis Eradication Program, which began in 1917, 

has been administered by the Animal and Plant Health Inspection Service (APHIS) of the U.S. 

Department of Agriculture, State animal health agencies, and U.S. livestock producers. This 

program has nearly eradicated bovine TB from the Nation's livestock population. The disease's 

presence in humans has been reduced as a result of the eradication program, advances in 

sanitation and hygiene, the discovery of effective drugs, and pasteurization of milk.

APHIS has established five status stages (or levels), for States and zones, based upon the 

prevalence of bovine TB within cattle and bison. These five stages are: non-accredited, 

accredited preparatory, modified accredited, modified accredited advanced, and accredited-free.

Minnesota is regionalized into these two zones (AF, MAA) and the zone statuses last 

updated in an interim rule published in the Federal Register October 1, 2010. Minnesota has 

asked to advance the status of its MAA zone under the National Bovine Tuberculosis Eradication 
2

Program. Parts of four counties in the northwestern portion of Minnesota will be advanced to 

AF status. 

Potential Impact on Small Entities

The cattle industry plays an important role in Minnesota’s economy. There were 24,685

cattle and calf operations in Minnesota in 2007 with a total inventory of 2.39 million head.1 

State-wide cash receipts from cattle and calves and dairy products totaled $1.2 billion and $1.45

billion, respectively, in 2010. The ten-year average cash receipts for cattle and calves and dairy 

products (2001-2010) were $1.01 billion and $1.30 billion, respectively.2

The Small Business Administration (SBA) has established guidelines for determining 

which businesses are considered small. According to SBA size standards for beef cattle ranching 

and farming (NAICS 112111) and for dairy cattle and milk production (NAICS 112120), 

operations with not more than $750,000 in annual sales are considered small entities. For cattle 

feedlots (NAICS 112112), operations with not more than $2.5 million in annual sales are 

considered small entities. The vast majority of beef operations in Minnesota are considered 

small. In 2007, 98 percent of cattle/calf farms and 84 percent of dairy farms generated less than 

$500,000 in cash receipts and less than 1 percent generated $1 million or more.

 

3

 The 

composition of Minnesota’s cattle inventory is shown in table 1.

 

1 2007 Census of Agriculture. National Agriculture Statistics Service, USDA. 2 USDA/ERS Cash Receipts, by Commodity Groups and Selected Commodities, United States and States, 2000-2007.

http://www.ers.usda.gov/Data/farmincome/FinfidmuXls.htm

3 2007 Census of Agriculture. National Agriculture Statistics Service, USDA.
3

Minnesota currently has two TB status zones: an AF and MAA zone. This rule will 

reclassify parts of four counties in the northwestern portion of Minnesota from MAA to AF. The 

elevation of an area to AF status removes all movement restrictions. While movement 

restrictions on cattle from MAA zones have been generally suspended under Federal Order, 

annual whole herd testing has occurred in the MAA zone, in addition to individual testing of 

cattle within 60 days of movement from a special management sub-zone within the MAA as a 

result of a memorandum of understanding (MOU) between the State of Minnesota and APHIS. 

No testing is required for cattle moving out of an AF zone. 

Cattle herd owners in the parts of the four counties being upgraded to AF from MAA 

status will see an actual reduction in testing. Testing that occurred under the MOU will no 

longer be required. There are about 254 cattle herds with about 10,771 cattle in the area being 

elevated from MAA status. This includes 20 cattle herds with a total of 1,441 animals within the

special management zone. A total of 413 sexually intact animals moved out of the special 

TABLE 1. Minnesota Cattle Inventory, January 1, 2011

Type Number Percentage of Total

Beef cows 360,000 15.1%

Milk cows 470,000 19.7%

Heifers

Beef cow replacements 90,000 3.8%

Milk cow replacements 290,000 12.2%

Other heifers 190,000 7.9%

Total heifers 570,000 23.9%

Steers 470,000 19.7%

Bulls 35,000 1.4%

Calves 475,000 19.9%

TOTAL 2,380,000

Source: National Agriculture Statistics Service, USDA.
4

management zone in fiscal year 2010. Of these animals, 257 head required 60-day movement 

test, as per MOU. The remaining 156 head moved on a whole herd test that was valid as a 60-

day movement test.

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Cattle herd owners in the areas being elevated from MAA to AF status will see a 

reduction in TB testing, and will therefore benefit from reduced costs. TB testing including 

veterinary fees, costs about $10 to $15 per head. The annual cost savings associated with the 

removal of the annual herd testing requirement for the 254 herds in the affected area are expected 

to be between $107,710 and $161,565. In addition, we expect annual cost savings associated 

with reduced movement testing to total between $2,570 and $3,855 in the special management 

zone. 

The total cost savings associated with the reduction in testing will be positive, but small.

In addition, the testing costs are small when compared to the value of the cattle tested. On 

January 1, 2010, all cattle and calves in Minnesota had an average per animal value of $870.

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Conclusion

 

The savings in TB testing costs represent no more than about 1.7 percent of the average per-head 

value of cattle in Minnesota ($15 / $870).

Minnesota currently has two TB status zones: an AF and MAA zone. This interim rule 

will reclassify the status for parts of four counties from MAA to AF which will remove all 

movement restrictions. Cattle herd owners in parts of the four counties being upgraded to AF 

status from MAA status will see an actual reduction in testing. Even though a Federal Order has 

 

4

Personal Communication with C. William Hench, DVM USDA-APHIS-Veterinary Services

5 2010 Agricultural Statistics Annual, Chapter 7, Table 7-3 

http://www.nass.usda.gov/Publications/Ag_Statistics/2010/Chapter07.pdf
5

suspended testing requirements in MAA zones, testing has occurred in the MAA zone as a result 

of a MOU between the State of Minnesota and APHIS. The total expected savings will be 

relatively small, between 110,280 and $165,420. The affected cattle herds account for less than 

0.5 percent of the cattle in the State of Minnesota. In addition, TB testing costs are about one 

percent or less of the value of the cattle tested. Under these circumstances, the Administrator of 

the Animal and Plant Health Inspection Service has determined that this action, if promulgated,

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