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

Final Rule

APHIS-2010-0075

Expansion of Gypsy Moth Quarantined Areas 

in Indiana, Maine, Ohio, Virginia, West 

Virginia, and Wisconsin

Policy and Program Development 

Policy Analysis & Development
Summary

This rule amends the gypsy moth regulations by expanding the quarantine boundary to 

include 1 county in Indiana, parts of 3 counties and certain townships in Maine, 4 counties in 

Ohio, 4 counties in Virginia, 1 county in West Virginia, and parts of 3 counties in Wisconsin. 

USDA surveys conducted in these areas have detected all life stages of the gypsy moth and 

reproducing populations at significant levels. This action is needed to prevent the introduction of 

gypsy moth into non-infested areas.

This action will affect the interstate movement of regulated articles, including logs, 

Christmas trees, and nursery stock, and outdoor household articles, from and through the newly 

regulated areas to non-regulated areas. Compliance agreements facilitate certification and 

movement of regulated articles. Documents self-issued under compliance agreements help in 

avoiding delays, but the quarantine can still result in minor costs associated with the time and 

record keeping required for the self-inspections.

There are between 196 and 246 loggers/shippers, 39 Christmas tree farms, 39 nurseries, 

and 47 garden centers in the newly quarantined areas. All of these entities are considered small, 

according to Small Business Administration standards. The quarantine requirements may cause 

a slight increase in costs for some of these businesses, depending on the proportion of their sales 

made to buyers in non-quarantined areas. However, any negative impacts that may be incurred 

because of the rule will be small, especially when compared to the harm to the forest industry

and the U.S. economy from further spread of the gypsy moth. 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. 
Introduction 

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

certification by the APHIS Administrator that this expansion of the gypsy moth quarantine will 

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

The gypsy moth, Lymantria dispar, is a destructive pest of over 500 species of forest 

trees. Oak and alder are the gypsy moth’s preferred broad-leaf trees, and Douglas fir and 

western hemlock are the preferred needle-bearing trees. More than 300 million acres of land in 

the United States have trees susceptible to damage from this pest. When defoliated by gypsy 

moths, the trees weaken and may die. The results are economic loss, harm to ecosystems and 

wildlife habitat, disturbed water flow and water quality, and landscape spoiled for recreational 

use. 

The rule amends the gypsy moth regulations at 7 CFR 301.45-3, by expanding the 

quarantine boundary to include 1 county in Indiana, parts of 3 counties and certain townships in 

Maine, 4 counties in Ohio, 4 counties in Virginia, 1 county in West Virginia, and parts of 3 

counties in Wisconsin. This action is being taken because USDA surveys conducted in these 

areas have detected all life stages of the gypsy moth and reproducing populations at significant 

levels. Eradication is not considered feasible because these areas are adjacent to areas currently 

recognized as generally infested and therefore are subject to reinfestation. This action is needed 

to prevent the introduction of gypsy moth into non-infested areas. 

When an agency promulgates a final rule, it is required by the Regulatory Flexibility Act 

(RFA) to prepare a final regulatory flexibility analysis, unless the agency certifies that the rule 

will not have a significant economic impact on a substantial number of small entities. The 
analysis that follows provides a factual basis for certification, as required in Section 605(b) of the 

RFA.

Gypsy Moth Restrictions and Affected Entities

This action will affect the interstate movement of regulated articles, including logs, 

Christmas trees, and nursery stock, and outdoor household articles (OHA), from and through the 

newly regulated areas to non-regulated areas. Compliance agreements facilitate certification and 

movement of regulated articles. Documents self-issued under compliance agreements help in 

avoiding delays, but can still result in costs associated with the time and record keeping required 

for the self-inspections. 

Most shipments of regulated nursery stock and Christmas trees from gypsy moth 

quarantined areas take place under compliance agreements that usually require treatment of the 

articles in the field. For example, evergreens that will be shipped are normally treated 

preventatively each year. 

Individual and commercial movers of OHA are required to attach to the articles either a 

certificate issued by an inspector, or an OHA inspection document issued by the owner of the 

articles, ensuring absence of gypsy moths. There is no charge for the certification or inspection 

document. Inspection takes a few minutes for each item and involves no monetary cost unless 

treatment is necessary. Most individual homeowners moving their own articles choose to selfinspect, to avoid delays waiting for an inspector. 

Effects of the rule for entities in the newly regulated areas will depend on whether their 

sales occur largely within or outside areas under quarantine. Most shipments of Christmas trees 

and nursery products are within infested areas, while the majority of log shipments are shipped to 

receiving mills in non-infested areas. Entities moving logs that have compliance agreements are 
allowed to self-certify directly on the waybill that the articles have been inspected, helping to 

minimize quarantine costs with regard to these items. 

When inspection reveals the presence of gypsy moth, infested articles are returned to 

their origin, treated, or destroyed. Fumigation of infested Christmas trees or nursery stock can 

cost between $30 and $50 per shipment. Spraying for caterpillars and scraping of egg masses is 

the least costly treatment for OHA’s and logs. The average cost of inspecting and removing any 

life stages of gypsy moth is between $8 and $10 per shipment.

The economic impact for affected entities in the newly quarantined areas will depend on 

the type, number and size of entities regulated, levels of infestation, and the proportion of 

shipments to non-regulated areas. Sales of nursery stock and Christmas trees in the newly 

quarantined counties in 2007 were valued at $15.5 million, and represented about 3.6 percent of 

the total value of such sales in the five States, and about 0.2 percent of national sales.1 We 

provide here information on entities that may be affected in the newly quarantined areas, by 

State, and the quarantine-related actions the entities have taken while under Federal Order.2 

Indiana

There are 13 establishments engaged in the production and shipment of regulated articles 

in the newly quarantined area (LaPorte County) in Indiana. Of these, 10 are nurseries and 3 are 

Christmas tree growers. All shipments were under compliance agreement. About 300 acres of 

Christmas trees were treated at a cost of $6,000 (300 acres * $20 per acre).

 

1 Total sales of nursery stock and Christmas trees in the affected counties ($15.5 million) divided by the total for the 

five States ($465 million) and by the national total ($6,953 million).

Source: USDA/NASS, 2007 Census of Agriculture, 

http://www.agcensus.usda.gov/Publications/2007/Full_Report/Volume_1,_Chapter_2_County_Level/Ohio/st39_2_0

02_002.pdf; 

http://www.agcensus.usda.gov/Publications/2007/Full_Report/Volume_1,_Chapter_2_County_Level/Virginia/st51_

2_002_002.pdf).

2 The data were provided by respective State Plant Health Directors through Julie S. Spaulding, APHIS personal 

communication, November 2010.
Maine

There are between 65 and 115 loggers/shippers in affected areas of the newly quarantined 

counties (Penobscot, Piscataquis, and Somerset) and townships.3 Some of the townships are 

located within State parks. These entities shipped 5,370 truckloads of logs in 2009. The logs do 

not need to be treated because they move either south within the generally infested area or north 

to facilities that are under compliance agreement. There are no Christmas tree operators or 

commercial nurseries in the affected areas.

Ohio

In newly quarantined Athens, Crawford, Marion and Vinton counties in Ohio, there are 

50 establishments that move regulated materials: 7 Christmas tree growers, 11 nurseries, and 32 

loggers. These entities moved 15 truckloads of Christmas trees, 3,130 logs, and 55 shipments of 

nursery stock in 2009. Approximately 77 percent of logs and 20 percent of Christmas trees and 

nurseries were moved to non-regulated areas. All of the logs were moved to facilities under 

compliance agreement and did not require treatment. Three shipments of Christmas trees and 8 

shipments of nurseries were sent to non-regulated areas. Treatment costs ranged between $330 

(11 shipments * $30 per shipment) and $550 (11 shipments * $50 per shipment). Additionally, 

65 acres of Christmas trees were treated at a cost of $1,690 (65 acres * $26 per acre). 

Virginia

There are 141 establishments engaged in the production and shipment of regulated 

articles in the newly quarantined areas in Virginia. Of these, 28 are nurseries, 32 are Christmas 

tree growers and 81 are loggers/sawmills. There were 260 shipments of Christmas trees, 620 

shipments of nursery stock, and 1,100 shipments of logs in 2009. About 23 percent of the 

 

3 The wide range in the reported number of entities is due to some of them not operating the entire year.
shipments or 460 truckloads were to non-regulated areas. All of the shipments were under 

compliance agreement. 

West Virginia

Regulated articles are not shipped from the affected areas of Fayette County to nonregulated areas. There were 8 Christmas tree farms with a total shipment of 5 truckloads in 

2009. The county includes a saw mill that is no longer operating and a receiver mill from which 

logs are not shipped. Both of these enterprises were operating under compliance agreements. 

Wisconsin

In Monroe and Iron counties, the Madeline Island area of Ashland County, and the 

Apostle Islands National Lakeshore (island units only) of the National Park Service, there are 20 

Christmas tree growers and 3 nurseries. They shipped 13 truckloads of Christmas trees and 39 

truckloads of nursery stock in 2009. All of the Christmas tree shipments were within the 

generally infested areas. There are no nurseries or loggers in the affected areas.

Potential Impact on Small Entities

The Small Business Administration (SBA) has established size standards based on the 

North American Industry Classification System (NAICS) to determine which economic entities 

can be considered small entities. Potentially affected entities include sawmills, pulp mills, 

nursery and tree production farms, and nurseries and garden centers that move Christmas trees, 

nursery products, household products, and bark and bark products interstate from the newly 

quarantined areas to non-quarantined areas. The following information is from 2009.

The SBA classifies nursery and tree production farms (floriculture, nursery, Christmas 

trees, etc.) categorized within NAICS 111421 as small if their annual receipts are not more than 
$750,000.4

 There were a total of 42 Christmas tree farms and 49 nurseries in the affected areas 

that are small entities, based on the SBA standard. 

Logging companies (NAICS 113310) are regarded as small if they employ 500 or fewer 

employees. There were between 196 and 246 loggers/shippers in the newly quarantined areas.5 

They shipped a total of 9,601 truckloads of logs of wood valued at $9.7 million.6 All of these 

entities are considered small. 

Sawmills (NAICS 321113) are regarded as small if they employ 500 or fewer 

employees, and pulp mills (NAICS 322110) are considered small if they employ 750 or fewer 

employees. There are no sawmills in the affected areas.7 

Nursery and garden centers (NAICS 444220) are considered small if their annual sales 

are not more than $10 million. Numbers of garden centers in the newly quarantined areas are as 

follows, by State: Indiana, 12; Maine, 8; Ohio, 11; Virginia, 19, and Wisconsin, 9.8 For the 

United States overall, approximately 97 percent of nurseries and garden centers are considered to 

be small entities under the SBA’s standard.9

The requirements of this rule may cause a slight increase in costs for some of the affected 

entities, depending on the proportion of their sales made to buyers in non-quarantined areas. 

However, any negative impacts that may be incurred because of the rule will be small, especially

when compared to the harm to the forest industry and the U.S. economy from further spread of 

 

4

SBA, Small business Size Standards matched to North American Industry Classification System 2007, Effective 

August 22, 2008 (http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf.html).

5 The wide range in the reported number of entities is due to some of them not operating the entire year.

6 Average sales ranged between $39,500 (9,601 * $1,020/196) and $49,570 (9,601 * $1,020/246). Mississippi State 

University Extension Service, http://msucares.com/forestry/economics/webster.html

7

http://www.census.gov/prod/ec02/ec0231awit.pdf.

8

http://www.census.gov/econ/census02/guide/EC02_44.HTM. No garden centers in Fayette, West Virginia.

9 U.S. Census Bureau, 2007 Economic Census, Sector 44: EC0744SSSZ1: Retail Trade: Subject Series - Estab & 

Firm Size: Summary Statistics by Sales Size of Establishments for the United States: 2007.
the gypsy moth. Regulated articles that meet quarantine requirements can continue to be sold in 

non-quarantined areas. Impacts on prices and competitiveness will be insignificant.

Although the majority of affected establishments in the newly quarantined areas are small 

entities, the effects of this rule on these businesses will be minor. 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.