Filename: USA CUE13 MBTOC Replies Final 07

- 2011.docx

PAGE 1

NOMINATING PARTY : The United States of America

DATE: JULY 1 4 , 2011

FILE NAME: USA CUE13 M BTOC REPLIES 07

- 2011

BRIEF DESCRIPTIVE TI TLE : Methyl Bromide Critical Use Nomination for 2013, U.S. Replies to MBTOC Report (Submitted in 2011 for 2013 Use Season)

CROP NAME (OPEN FIEL D OR PROTECTED): Cucurbits, Eggplant, Ornamentals, Peppers, Rose Nursery, Strawberry F ruit, Tomato and Dried Meat Products

NOMINATING PARTY CONTACT DETAILS:

Co ntact Person: Federico San Martini, Ph.D.

Title: Policy Advisor

Address: Office of Environmental Policy U.S. Department of State
2201 C Street, N.W. Room 265 7 Washington, D.C. 20520 U.S.A. Telephone: (202) 647

- 3819

Fax: (202) 647

- 1052

E

- mail: SanMartiniFM@state.gov

CONTACT OR EXPERT(S) FOR FURTHER TECHNICAL DETAILS:

Contact/Expert Person: Jack Housenger

Title: Director

Address: Biological and Economic Analysis Division Office of Pesticide Progra ms U.S. Environmental Protection Agency 1200 Pennsylvania Avenue, N.W. Mailcode 7503P Washington, D.C. 20460 U.S.A. Telephone: (703) 308

- 8200

Fax: (703) 308

- 7042

E

- mail: Housenger.Jack@epa.gov

The U.S. is withdrawing its request for the following uses based on the data that is currently available to us having requested further justification from the applicants that would demonstrate

that the lack of availability of methyl bromide will result in significant market disruption and that

there a re no technically and economi cally feasible alternatives

.

Table 1 . Amount of methyl bromide (kg) to be withdrawn by the U nited S tates

Sector Applicant Methyl B romide (kg)

Cucurbits MarDel (Maryland & Delaware) 348

Cucurbits Southeast C onsortium 7,665 Pepper Southeast C onsorti um 68 Nursery Stock California Rose Growers 65

Tomato Southeast Consortium , Maryland,

and Virginia 1,633

Total 9, 779Filename: USA CUE13 MBTOC Replies Final 07

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### Cucurbit

MBTOC (TEAP 2011) recommends a CUE of 11.899 tonnes for this use in 2013, provided the Party submits further explanation on the specific issues that have arisen for the alternatives by July 15th, 2011 recognizing that the nominated amount represents an almost co mplete phase

- out in this industry. The USG may either

support or withdraw this nominated sector at the OEWG. If the US proposes an increased amount, MBTOC will need to reassess. From this amount, 0.815 t are for Georgia squash, 0.657 tonnes for Georgia cuc umber; 2.415 tonnes for Georgia melon; and 7.665 t for the Southeast region and 0.348 t for Mardel area.



### U.S. Reply
The U.S. is requesting that MBTOC recommend the amount nominated for Georgia

cucurbits in the U.S. Nomination for one final year (2013)

. For Georgia

, t he U.S. review of the available information indicates that small growers (growing less than 4 ha or 10 acres of this crop) need an additional year to successfully transition to the

alternatives. These small growers do not have as much experience with the alternatives and need to convert their equipment to the 3

- Way mixture (1, 3

- dichloropropene plus chloropicrin plus metam) . The U nited S tates conduct ed an economic assessment of small grower’s abi lity to

conv ert their equipment (see Table 2 below). The assessment demonstrates that despite the 3

- Way mixture being more affordable than MeBr plus chloropicrin on a per acre basis, retrofitting farm equipment to use the 3

- Way mixture at a cost of $ 3450 (Culpepper, 2011) is not affordable for growers under four acres , amortized over 10 years at 7% interest (7% is a current home equity loan rate for this region , interest on agricultura l loans could be lower). However, due to variations in impacts for ind ividual growers and uncertainties in the assumptions used in this economic analysis, farms less than 10 acres are reasonably expected to incur negative impacts from having to covert to the 3

- Way mixture. Based on this assessment, the amount of methyl

bromide being requested this year will be allocated to farmers with less than 4 ha ( 10 acres ) of this crop

. S mall farms of this size in Georgia are a very small subset of vegetable growers and

account for 10 to 15% of the vegetable farms (Census of Agriculture, 2007). There are currently

no commercial fumigation/applicators in Georgia so these applications cannot be done by

someone else

.

Table 2 . Comparison of the Costs of Using Methyl Bromide versus the GA 3

- Way on a 3, 4,

and 10

- Acr e Tomato Farm in Georgia

Alternatives 3 Acre Farm 4 Acre Farm 10 Acre Farm

MeBr:Pic 3

- Way Mix MeBr:Pic 3

- Way Mix MeBr:Pic 3

- Way Mix

Gross Revenue $ 70,830 $ 70,830 $ 94,440 $ 94,440 $ 236,101 $ 236,101 Total Operating Costs $ 70,002 $ 69,484 $ 93,337 $ 92,646 $ 233,341 $ 231,614

Net Revenue $ 828 $ 1,346 $ 1,104 $ 1,795 $ 2,759 $ 4,487

Difference between Net

Revenue Earned per Farm When Applying

Me Br vs. Net Revenue Earned When Applying

3

- Way & Accounting

for Cost to Retrofit* N/A $ (106) N/A $ 67 N/A $ 1,104

Notes: EPA assumes retrofitting costs of $ 3450 are amortized over a 10 year period at 7%, compounded. This interest rate is based on the assumption that farmers would be subject to the same interest rates as those on a home equity loan, which currently in Georgia f or a 10

- year loan are approximately 7%.Filename: USA CUE13 MBTOC Replies Final 07

- 2011.docx

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### Eggplant

MBTOC (TEAP 2011) recommends 1.381 tonnes for this use for 2013, provided the Party submits further explanation on the specific issues that have arisen for the alternatives by July 15th, 2011. Of this amount, 0.769 t are for Georgia and 0.612 t are for Florida. If substantiation is not provided, MBTOC does not recommend this nomination. The USG may either support or withdraw this nominated sector at the OEWG. If the US proposes an increased amount, MBT OC will need to reassess.



### U.S. Reply
The U.S. is requesting that MBTOC recommend the amount nominated for Georgia and Florida eggplant in the U.S. Nomination for one final year (2013)

. For Georgia

, t he U.S. review of the available information indicates that small growers (growing less than 4 ha or 10 acres of this crop) need an additional year to successfully transition to the alternatives. These small growers do not have as much experience with the alternat ives and need to convert their equipment to the 3

- Way mixture (1, 3

- dichloropropene plus chloropicrin plus metam) . The U nited S tates conduct ed an economic assessment of small grower’s ability to

conv ert their equipment (see Table 3 below). The assessment demonstrates that despite the 3

- Way mixture being more affordable than MeBr plus chloropicrin on a per acre basis, retrofitting farm equipment to use the 3

- Way mixture at a cost of $ 3450 (Culpepper, 2011) is not affordable for growers under four acres , a mortized over 10 years at 7% interest (7% is a current home equity loan rate for this region , interest on agricultura l loans could be lower). However, due to variations in impacts for individual growers and uncertainties in the assumptions used in this economic analysis, farms less than 10 acres are reasonably expected to incur negative impacts from having to covert to the 3

- Way mixture. Based on this assessment, the amount of methyl bromide being requested this year will be allocated to farmers with less than 10 acres of this

crop. S mall farms of this size in Georgia are a very small subset of vegetable growers and

ac count for 10 to 15% of the vegetable farms (Census of Agriculture, 2007). There are currently

no commercial fumigation/applicators in Georgia so these applications cannot be done by

someone else

.

Table 3 . Comparison of the Costs of Using Methyl Bromid e versus the GA 3

- Way on a 3, 4,

and 10

- Acre Tomato Farm in Georgia

Alternatives 3 Acre Farm 4 Acre Farm 10 Acre Farm

MeBr:Pic 3

- Way Mix MeBr:Pic 3

- Way Mix MeBr:Pic 3

- Way Mix

Gross Revenue $ 70,830 $ 70,830 $ 94,440 $ 94,440 $ 236,101 $ 236,101 Total Operating Costs $ 70,002 $ 69,484 $ 93,337 $ 92,646 $ 233,341 $ 231,614

Net Revenue $ 828 $ 1,346 $ 1,104 $ 1,795 $ 2,759 $ 4,487

Difference between Net

Revenue Earned per Farm When Applying

Me Br vs. Net Revenue Earned When Applying

3

- Way & Accounting

for Cost to Retrofit* N/A $ (106) N/A $ 67 N/A $ 1,104

Notes: EPA assumes retrofitting costs of $ 3450 are amortized over a 10 year period at 7%, compounded. This interest rate is based on the assumption that farmers would be subject to the same interest rates as those on a home equity loan, which currently in Georgia f or a 10

- year loan are approximately 7%.Filename: USA CUE13 MBTOC Replies Final 07

- 2011.docx

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Florida surveyed several growers to find out their experience in 2010 with alternatives (see Table 4)

. The survey demonstrates that some growers still experienc e impacts when using the

alternatives. The individua ls responding to the survey describe impacts as yield loss, cost increases, or longer plant back intervals when using the alternatives. Allowing the use of methyl bromide through 2013 will provide time for Florida growers to adapt their systems to the use of the alternatives (different fumigants, potentially an herbicide treatment under the tarp, longer plant back interval, different films, etc.).

Table 4

. Florida Survey Data on Alternatives

CROP Percent of Acres Surveyed Impact * % (range) Eggplant 4 Not listed Pepper 4

- 9 % (0 to 20)

Tomato 28

- 8 % (0 to 25)

Notes: * Impact was interpreted by respondents as yield loss, cost increase, or longer plant back intervals leading to missing a market window.



### Ornamental

MBTOC (TEAP 2011) recommends a reduced amount of 40.818 tonnes for this use in 2013. This includes

39.907 t for California and 0.911 t for Florida. MBTOC has reduced the nomination by 15% for California and 25% for Florida, respectively, based on implementation of substrat es, steam and uptake and improvement in MI technologies by 2013 and the registration time (and rate) for MI.



### U.S. Reply

The U nited S tates agrees with the 25% reduction that MBTOC recommended for Florida

ornamentals in the U.S. Nomination. The U nited S tates is requesting that MBTOC

recommend the amount nominated for California ornamentals in the U.S. Nomination.

T he U nited S tates has conducted an economic assessment of ornamental production in California and Florida comparing methyl bromide plus chlo ropicrin to iodomethane plus chloropicr i n (see

Table 5 and 6 ). The assessment demonstrates there would be some impact s on Florida ornamental growers. Some but not all growers have been able to incorporate the alternatives into their ornamental production systems. The U nited S tates is optimistic that as growers gain experience with their own ornamental cultivars, production systems and timing schedules they will be able to use the alternatives with very few impacts. The United States believes the 25%

red uction in Florida suggested by MBTOC can be sustained absent further information being provided

The situation in California is different than that in Florida because California registered MidasTM ( iodomethane) in December of 2010 at lower use rates and there is no research data to determine the yield and quality impacts at the registered rates . When California registered MidasTM (iodomethane) at lower use rates it left us without any research data to determine the yield and quality impacts at the registe red rates. Therefore, we have assumed a 20% yield loss using iodomethane plus chloropicrin until we obtain research data indicating the correct implications of

the lower use rates. In addition

, California has much larger buffer distances around sensitiveFilename: USA CUE13 MBTOC Replies Final 07

- 2011.docx

PAGE 5

sites for iodomethane (1/2 mile buffers) and early work indicates a large percentage of acres

cannot use iodomethane.

Please note that in the economic assessment net operating revenue is calculated as gross revenue minus operating costs. In general, thi s is a good measure of the direct losses of income that may be suffered by the users. The net operating revenue does not represent net income to the users. Net income, which indicates profitability of an operation for an enterprise, is gross revenue

minus the sum of operating and fixed costs. Net income is smaller than the net operating revenue measured in this study, often substantially so. We did not include fixed costs because they are difficult to measure and verify. In Table 5, the loss as a percen tage of net operating revenue is negative, which is difficult to interpret. Therefore, in this case, the loss as a percentage of gross revenue would be a more meaningful and consistent measure of loss especially for comparison across the two states.

Ta ble 5

. California Cut F lowers

- Calla Lily & Ranunculus

- Economic Impacts of Methyl

Bromide Alternatives

California Cut Flowers

– Calla Lily &

Bulbs M ETHYL
B ROMIDE 1,3

- D + Pic Dazomet Metam

Sodium Iodo

methane + Pic (50:50)

Y IELD L OSS (%) 0% 25% 25% 20% 20%

Y IELD PER H ECTARE 55,937 41,952 41,952 44,749 44,749

* P RICE PER U NIT (U.S.$) $ 2.59 $ 2.59 $ 2.59 $ 2.59 $ 2.59

= G ROSS R EVENUE PER H ECTARE (U.S.$) $ 145,107 $ 108,830 $ 108,830 $ 116,086 $ 116,086

- O PERATING C OSTS PER H ECTARE (U.S.$) $ 161,824 $ 160,685 $ 160,154 $ 158,343 $ 164,206

= N ET O PERATING R EVENUE PER
H ECTARE (U.S.$) $ (16,717) $ (51,855) $ (51,323) $ (42,257) $ (48,121)

1. L OSS PER H ECTARE (U.S.$) $

- $ 35,138 $ 34,606 $ 25,540 $ 31,404

2. L OSS PER K ILOGRAM OF M E B R (U.S.$) $

- $ 133 $ 131 $ 97 $ 119

3. L OSS AS A P ERCENTAGE OF G ROSS
R EVENUE (%) 0% 24% 24% 18% 22%

4. L OSS AS A P ERCENTAGE OF N ET
O PERATING R EVENUE (%) 0%

- 210%

- 207%

- 153%

- 188%

Yield loss of % for iodomethane in Florida is based on data from Rosskopf et al 2010 a and 2010 b.Filename: USA CUE13 MBTOC Replies Final 07

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Table 6

. Florida Cut Flowers

- Lilies

- Economic Impacts of Methyl Bromide Alternatives

Florida Cut Flowers

– Lilies Methyl Bromide I odomethane + P ic ( 50 : 50 )

Y IELD L OSS (%) 0% 0%

Y IELD PER H ECTARE 31,135 31,135

* P RICE PER U NIT (U.S.$) $ 10.00 $ 10.00

= G ROSS R EVENUE PER H ECTARE (U.S.$) $ 311,353 $ 311,353

- O PERATING C OSTS PER H ECTARE (U.S.$) $ 259,777 $ 262,616

= N ET O PERATING R EVENUE PER H ECTARE (U.S.$) $ 51,576 $ 48,737

1. L OSS PER H ECTARE (U.S.$) $

- $ 2,839

2. L OSS PER K ILOGRAM OF M E B R (U.S.$) $

- $ 6.46

3. L OSS AS A P ERCENTAGE OF G ROSS R EVENUE (%) 0 % 1 %

4. L OSS AS A P ERCENTAGE OF N ET O PERATING R EVENUE (%) 0 % 6 %



### Pepper

MBTOC (TEAP 2011) recommends 5.673 tonnes for this use in 2013, provided the Party submits further explanation on the specific issues that have arisen for the alternatives by July 15th, 2011. If substantiation is not provided, MBTOC does not recommend this nomin ation. The USG may either support or withdraw this nominated sector at the OEWG. If the US proposes an increased amount, MBTOC will need to reassess the nomination. Of the recommended amount, 0.068 t is for the Southeast, 0.189 t is for Georgia and 5.415 t is for

Florida.



### U.S. Reply

The U nited S tates is requesting that MBTOC recommend the amount nominated for Georgia and Florida pepper in the U.S. Nomination for one final year (2013)

.

For Georgia

, t he U.S. review of the available information indicates that small growers (growing less than 4 ha or 10 acres of this crop) need an additional year to successfully transition to the alternatives. These small growers do not have as much experience with the alternat ives and need to convert their equipment to the 3

- Way mixture (1,3

- dichloropropene plus chloropicrin plus metam) . T he U nited S tates conduct ed an economic assessment of small grower’s ability to

conv ert their equipment (see Table 7 below). The assessment demonstrates that despite the 3

- Way mixture being more affordable than MeBr plus chloropicrin on a per acre basis, retrofitting farm equipment to use the 3

- Way mixture at a cost of $ 3450 (Culpepper, 2011) is not affordable for growers under four acres , am ortized over 10 years at 7% interest (7% is a current home equity loan rate for this region , interest on agricultura l loans could be lower). However, due to variations in impacts for individual growers and uncertainties in the assumptions used in this

eco nomic analysis, farms less than 10 acres are reasonably expected to incur negative impacts from having to covert to the 3

- Way mixture. Based on this assessment, the amount of methyl bromide being requested this year will be allocated to farmers with less than 10 acres of this

crop. S mall farms of this size in Georgia are a very small subset of vegetable growers and

account for 10 to 15% of the vegetable farms (Census of Agriculture, 2007). There are currently

no commercial fumigation/applicators in Georgia so these applications cannot be done by

someone else

.Filename: USA CUE13 MBTOC Replies Final 07

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PAGE 7

Table 7 . Comparison of the Costs of Using Methyl Bromide versus the GA 3

- Way on a 3, 4,

and 10

- Acre Tomato Farm in Georgia

Alternatives 3 Acre Farm 4 Acre Farm 10 Acre Farm

MeBr:Pic 3

- Way Mix MeBr:Pic MeBr:Pic 3

- Way Mix

Gross Revenue $ 70,830 $ 70,830 $ 94,440 $ 94,440 $ 236,101 $ 236,101 Total Operating Costs $ 70,002 $ 69,484 $ 93,337 $ 92,646 $ 233,341 $ 231,614

Net Revenue $ 828 $ 1,346 $ 1,104 $ 1,795 $ 2,759 $ 4,487

Difference between Net

Revenue Earned per Farm When Applying

Me Br vs. Net Revenue Earned When Applying

3

- Way & Accounting

for Cost to Retrofit* N/A $ (106) N/A $ 67 N/A $ 1,104

Notes: EPA assumes retrofitting costs of $ 3450 are amortized over a 10 year period at 7%, compounded. This interest rate is based on the assumption that farmers would be subject to the same interest rates as those on a home equity loan, which currently in Georgia f or a 10

- year loan are approximately 7%.

Florida surveyed several growers to find out their experience in 2010 with alternatives (see Table 8)

. The survey demonstrates that some growers are still experienc ing impacts when using the

alternatives. The ind ividuals responding to the survey describe impacts such as yield loss, cost increases, or longer plant back intervals when using the alternatives. Allowing the use of methyl bromide through 2013 will provide time for Florida growers to adapt their systems to the use of the alternatives (different fumigants, potentially an herbicide treatment under the tarp, longer plant back interval, different films, etc.).

Table 8

. Florida Survey Data on Alternatives

CROP Percent of Acres Surveyed Impact * % (range) Eggplant 4 Not listed Pepper 4

- 9 % (0 to 20)

Tomato 28

- 8 % (0 to 25)

Notes: * Impact was interpreted by respondents as yield loss, cost increase, or longer plant back intervals leading to missing a market window.



### Strawberry fruit

After reviewing the MBTOC report (TEAP 2011) , including the text of the minority report, TEAP made a recommendation for a reduced amount of 461.186 tonnes for strawberry fruit in California for 2013 and that the Party provide further substantiation of why the 70.551 tonnes (or part there of) can not use alternatives demonstrated by MBTOC. The amo unt approved is part of the nominated amount of 531.76 t by the Party. After TEAPs Decision, a report was written by nine members of the majority to restate their position on the

recommendation ...

- this report was not reviewed by TEAP.



### U.S. Reply

The U nited S tates is requesting that MBTOC recommend the amount reflected by the Majority Position as nominated for California strawberry fruit in the U.S. Nomination.Filename: USA CUE13 MBTOC Replies Final 07

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PAGE 8

The United States is pleased that MBTOC has agreed to the 2013 CUN for this sector, which reflects a 21% cut made by the United States based on the 2012 CUE approved by the Parties last year. However, we would like clarification why this recommendation do es not appear to be reflected in the TEAP Progress report. Given the majority recommendation of MBTOC, the United States does not understand what additional information may be needed as MBTOC has already made its recommendation. Nonetheless, United States would like to do its best to address any remaining questions or concerns around the U.S. nomination.

There are several issues the U nited S tates would like to clarify.

ISSUE #1: The first issue is the cut to the U.S. nominated amount as recommended by the first minority report and TEAP. In its recommendation, TEAP (TEAP, 2011) noted that restoring the difference between the majority opinion of MBTOC and TEAP’s recommendation, which would represent an additional 13% cut beyond the 21% cut the United S tates has already proposed, would require further substantiation of the critical area not able to use the alternatives. As i s detailed later in this reply, the minority recommendation is based on incorrect math.

T he minority’s approach is based on ina ccuracies in the October 2010 TEAP report . T herefore the minority has not calculated the correct amount for 2013. A s described by the United States in an email of April 14 of this year, t he use rate in 2012 should have been listed as 170 kg/ha (San Marti ni, 2011) . The U nited S tates notes that on page 15

, Table 4.5 of the October 2010 TEAP report (see below for a reproduction ) it says “For California, the Party nominated 751.596 t (4421 ha at 170 kg/ha). ” But the October 2010 TEAP then contradicts itself on page 16, where

it incorrectly s t a tes “The Party has adopted a dose rate of 196 kg MB/ha in its CUN for 2012 and MBTOC has accepted this.” We would like to clarify that for 2012 the U.S. nominated a use rate of 170 kg/ha (reflecting what was correctly stated on page 15 of the 2010 TEAP report) and that the parties approved 673,085 kg which at an application rate of170 kg/ha is equivalent to 3,959

treated ha

. The U.S. nominated a use rate of 175 kg/ha for use in 2011 so MBTOC would no t have recommended a use rate of 196 kg/ha for 2012.

Table 4.5. Final evaluation of the preplant soil use CUNs requested to be reviewed for 2012 by the United States after the 30 th OEWG (TEAP, 2010)

California nomination in relation to current use of MB (page 15) For California, the Party nominated 751.596 t (4421 ha at 170 kg/ha). This nominated amount was 100% of the previous CUE for California in 2011.

Restrictions to transition in California (page 16)
In Ventura,

... . The Party has adopted a dose rate of 196 kg MB/ha in its CUN for 2012 and MBTOC has accepted this, although MBTOC encourages wider use of 50:50 formulations, which still allow for complying with regulatory restrictions on Pic use.

However, t he problem of the incorrect use rate and treated hectares listed by TEAP in 2010 has been perpetuated again in 2011 by the minority as seen on page 157 of the May 2011 TEAP Progress Report. The minority incorrectly states “MBTOC’s recommendation for the 2010

nominatio n for 2012 that was approved by the Parties was based on 3,434 ha at an application rate of 196 kg/ha. ” The U nited S tates would like to make it clear that the number should be 3,959 ha [ 673,085 kg / 170 kg/ha = 3,959 ha ] reflecting what was correctly stat ed on page 15 of the 2010 TEAP report, as well as what was correctly noted in the 2011 TEAP report in the report by some members who supported the majority position (pages175

- 6)

.Filename: USA CUE13 MBTOC Replies Final 07

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PAGE 9

8.5 Minority Reports (page 157 in TEAP, 2011) The signatories of this Minority Report hold firmly to the view that the MB

- treated area in 2013 should be calculated on the basis of the approved area in 2012, namely 3,434 ha. A 21% reduction should therefore

result in a MB

- treated area of no more than 2,713 ha in 2013, as this is 21% less than the area proposed for treatment in 2012 of 3,434 ha. This area of 2,713 ha would result in a recommendation by MBTOC of 461.186 tonnes of methyl bromide at the rate of 170 kg/ha (see summary of these figures in 8

- 4).

Thus, using the corr ect starting kilogram or hectare values the calculated number would agree with the amount nominated by the U nited S tates :

TABLE 9

N OMINATION A MOUNT BY U.S. F OR S TRAWBERRY F RUIT IN 2010 FOR U SE IN 2012:

SECTOR California Strawberry Commission

Quantity Requested for 2011 : Amount (kg) 952,543

Quantity Re commended by

MBTOC/TEAP for 2011 : Amount (kg) 751,596

Quantity Approved by Parties

for 201 1 : Amount (kg) 751,596

Area (ha) 4,421

Rate 170

Transition from 201 1 Baseline Adjusted Value Percentage (%) 0 %

Quantity Required for

201 2 Nomination: Amount (kg) 751,596

Area (ha) 4421

Rate 170

ISSUE #2: The second issue the U.S. would like to address is the number of acres of strawberry fruit grown in California. During the MBTOC and U.S. bilateral in Turkey we were told that MBTOC uses the California Department of Pesticide Data (DPR), Pesticide Usage R eport (PUR) to estimate strawberry acreage. During that meeting, the U.S. also pointed out that the California DPR database is designed to accurately track pesticide usage not crop acres and consistently

under

- reports strawberry acres thus resulting in an under

- estimate of California strawberry production. Table 10 shows that using the MBTOC methodology as described in the 2010 MBTOC meeting in Spain and again confirmed at the 2011 MBTOC meeting in Turkey can lead

to an assessment that would not account f or 5,469 acres or 16% of California strawberry production.Filename: USA CUE13 MBTOC Replies Final 07

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PAGE 10

Table 10. Area by county of California strawberry fruit and percent under

- reported by California Department of Pesticide Regulation based on California Department of Food and Agriculture data.

C ounty 2011 acres DPR under

reported (%) Acres potentially

missing from

MBTOC

assessment Monterey 10,701 7.9% 845 San Luis Obispo 2,789 28.1% 784

Santa Barbara 7,249 28.1% 2037

Santa Cruz 2,647 7.9% 209

Ventura 10,419 15.3% 1594

Total 33,805 5469

The U.S. considers the California Department of Food and Agriculture (CDFA) to be a more appropriate authority of estimating crop acreage than the PUR database, which is not designed to estimate total crop acreage. The CDFA estimates agree quite c losely with the CSC estimates (see Table 11). By using a lower estimate of strawberry acres (from the PUR database) MBTOC

would over

- estimate the amount of acres that could be grown under the TeloneTM township cap.

In addition it could lead to an over

- est imate of the acres that could be grown with straight chloropicrin.

Table 11 . Comparison of California Department of Food and Agriculture and C alfornia Strawberry Commission strawberry acreage estimates from 2001 through 2011.

Year CSC Strawberry Acreage Estimate 1 CDFA

Estimate 3 Difference Fall Summer Organic CSC Total 2

2001 na N a 305 25,143 26,400 1,257

2002 23,365 3,464 378 26,829 28,500 1,671

2003 24,286 3,944 607 28,230 29,600 1,370

2004 26,847 4,792 607 31,639 33,200 1,561

2005 28,625 4,012 541 32,637 34,300 1,663

2006 29,187 4,082 965 33,269 35,800 2,531

2007 29,937 4,704 1,575 34,641 35,500 859

2008 31,169 5,350 1,794 36,519 37,600 1,081

2009 35,915 2,718 1,776 38,633 39,800 1,167

2010 34,425 3,184 1,655 37,609 na na 2011 34,438 2,987 1,636 37,425 na na

N otes Information provided by the California Strawberry Commission. 1 Acreage estimates from the California Strawberry Commission's Annual survey. Fall = fall planted, Summer = summer planted)

2 Total = Fall acres + Summer acres 3 CDFA acreage estimate from CDFA Annual Resource Directory : http://www.cdfa.ca.gov/statistics/ 4 Acreage difference between CSC and CDFA estimates = CSC estimate

- CDFA estimate.Filename: USA CUE13 MBTOC Replies Final 07

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PAGE 11

ISSUE #3: The third issue that the U.S. would like to address is the lack of research data on Midas TM (iodomethane plus chloropicrin ) at the rates registered in California. Recent data from strawberry grower test plots in California (California Strawberry Commissio n, 2011) suggest that under areas of high pest pr essure that Midas TM may lead to losses of 7 to 18 percent compared to methyl bromide (see Table 1 2 ). This grower trial was applied as broadcast treatments with 2

rep lications of 5 bed plots

. The Midas 33:67 treatments had a 7

- 18% reduction in yield

compare d to the methyl bromide and Pic Clor 60 controls. T he grower

- observed yield reduction may be attributed to phytotoxicity that was observed in the Midas treatments.

Table 1 2

. Marketable yield and dif ference in yield compared to methyl bromide in Oxnard California during the 2010

- 2011 season

.

Treatment Marketable Fruit (g) Difference from MeBr (%) MeBr:Pic (50:50) 350 lb/acre 209,867 0 Midas:Pic (33:67) 200 lb/acre 194,928

- 7

Midas:Pic (33:67) 250 lb/acre 171,473

- 18 Midas:Pic (33:67) 300 lb/acre 180,360

- 14

PicClor 60 250 lb/acre 211,183

- .6

PicClor 60 350 lb/acre 209,877 0.0

Note: 1. All three Midas treatments had significant phytotoxicity symptoms on the strawberry foliage.

ISSUE #4: During the MBTOC and U.S. bilateral in Turkey the impact of the Midas TM (iodomethane plus chloropicrin ) buffer requirements in California were discussed. An analysis

was recently c onducted by the California Strawberry Commission using County Agricultural Commissioner farm data and a GIS system to calculate buffer zone impacts on a farm

- by

- farm

basis. The U.S. EPA has proposed that in California it will ma ke the future methyl bromide

buffer equal to the currently used California buffer zones except for additional restrictions for

difficult to evacuate sites. New labels for all fumigants, including methyl bromide, which specify buffer distances around fumigated fields, should be in place by 2012. This analysis was conducted using the “new” methyl bromide label restrictions (300 lbs of 50:50 MB:PIC: 60 feet f or 5 acre block, 100 feet for 10 acre block and 1/8 mile for difficult to evacuate sites). The Midas analysis used the current California buffer zones restrictions (300 lbs of Midas 33:67 broadcast; 265 feet for 5 acre block, 445 feet for 10 acre block an d 1⁄2 mile for difficult to evacuate sites). A s ummary of the buffer zone impacts is presented (see Table 1 3 )

. This analysis shows that the impacts of the new methyl bromide buffer zones will be minimal with only a 2% loss in acreage compared to a 30

- 40%

l oss with applications of methyl iodide. These buffer impacts may restrict the amount of methyl iodide that can be used for California strawberry fruit.

Table 1 3

. Estimated percentage of acres that cannot be treated due to buffer zone and

label restric tions for methyl iodide and methyl bromide on a representative set of farms located within 3 miles of Salinas, CA

.

Fumigation Type Buffer Zone Acreage That Cannot Be Treated Total Acreage Impacted (%) 5 Acre Application 10 Acre

Application Difficult to

Evacuate Site Methyl bromide 1 0.0 % 2 % 2.1% 2

– 4 % Methyl iodide 2 35% 40 % na 3 35

– 40 % Methyl iodide drip 3 30 % 32 % na 30

– 32 %Filename: USA CUE13 MBTOC Replies Final 07

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N otes : 1 300 lbs 50:50 MB:PIC broadcast application (60 ft buffer for 5 acres and 100 ft buffer zones for 10 acres). 1/8 mile buffer for difficult to evacuate sites.

2 300 lbs 33:67 Midas broadcast application (265 ft buffer for 5 acres and 445 ft buffer for 10 acres). 1/2 mile buffer for difficult to evacuate site already added to each block size)

3 Difficult to evacuate site buffer already incorporated into totals un der the 5 and 10 acre application blocks.

4 200 lbs Midas Gold drip application. 1/2 mile buffers already included.

ISSUE # 5 : The fi nal California strawberry fruit issue the U.S. would like to address is the disagreement between the amount of methyl bromide nominated by the U.S. and the amount the California Strawberry Com mission thought was needed. The minority members of MBTOC

noted in the May 2011 TEAP report ( page 157 ) : “ The CSC advised MBTOC that it was “in dispute” with the US nomination of 531.737 tonnes, as it believed the nominated amount for

California in 2013 should be 685.896 tonnes of methyl bromide. This larger quantity was more than the amount approved by the Parties for producing strawberry fruit in California in 2012. ”

The U nited S tates would like to reiterate that the official U.S. nomination for California strawberry fruit remains at 531,737 kg of methyl bromide.



### Tom ato

MBTOC (TEAP 2011) recommends an amount of 10.741 tonnes for this use in 2013, provided the Party submits further explanation on the specific issues that have arisen for the alternatives by July 15th, 2011. If substantiation is not provided, MBTOC does not recommend this nomination. The USG may either support or withdraw this nominated sector at the OEWG. If the US proposes an increased amount, MBTOC will need to reassess. Of the nominated amount, 0.1 t is for Maryland, 0.129 t for Virginia, 1.633 t for SE, 0.776 t for Georgia, and 8.331 t for Florida.



### U.S. Reply

The U nited S tates is requesting that MBTOC recommend the amount nominated for Georgia and Florida tomatoes in the U.S. Nomination for one final year (2013)

.

For Georgia

, t he U.S. review of the available information indicates that small growers (growing less than 4 ha or 10 acres of this crop) need an additional year to successfully transition to the alternatives. These small growers do not have as much experience with the alternat ives and need to convert their equipment to the 3

- Way mixture (1, 3

- dichloropropene plus chloropicrin plus metam) . T he U nited S tates conduct ed an economic assessment of small grower’s ability to

conv ert their equipment (see Table 1 4 below). The assessmen t demonstrates that despite the 3

- Way mixture being more affordable than MeBr plus chloropicrin on a per acre basis, retrofitting farm equipment to use the 3

- Way mixture at a cost of $ 3450 (Culpepper, 2011) is not affordable for growers under four acres , amortized over 10 years at 7% interest (7% is a current home equity loan rate for this region , interest on agricultura l loans could be lower). However, due to variations in impacts for individual growers and uncertainties in the assumptions used in this economic analysis, farms less than 10 acres are reasonably expected to incur negative impacts from having to covert to the 3

- Way mixture. S mall farms of this size in Georgia are a very small

subset of vegetable growers and account for 10 to 15% of the ve getable farms (Census of Agriculture, 2007). There are currently no commercial fumigation/applicators in Georgia so these applications cannot be done by someone else

.Filename: USA CUE13 MBTOC Replies Final 07

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PAGE 13

Table 14 . Comparison of the Costs of Using Methyl Bromide versus the GA 3

- Way on a 3

, 4, and 10

- Acre Tomato Farm in Georgia

Alternatives 3 Acre Farm 4 Acre Farm 10 Acre Farm

MeBr:Pic 3

- Way Mix MeBr:Pic 3

- Way Mix MeBr:Pic 3

- Way Mix

Gross Revenue $ 70,830 $ 70,830 $ 94,440 $ 94,440 $ 236,101 $ 236,101 Total Operating Costs $ 70,002 $ 69,484 $ 93,337 $ 92,646 $ 233,341 $ 231,614

Net Revenue $ 828 $ 1,346 $ 1,104 $ 1,795 $ 2,759 $ 4,487

Difference between Net

Revenue Earned per Farm When Applying

Me Br vs. Net Revenue Earned When Applying

3

- Way & Accounting

for Cost to Retrofit* N/A $ (106) N/A $ 67 N/A $ 1,104

Notes: EPA assumes retrofitting costs of $ 3450 are amortized over a 10 year period at 7%, compounded. This interest rate is based on the assumption that farmers would be subject to the same interest rates as those on a home equity loan, which currently in Georgia for a 10

- year loan are approximately 7%.

Florida surveyed several growers to find out their experience in 2010 with alternatives (see Table

1 5 )

. The survey demonstrates t hat some growers are still experienc ing impacts when using the alternatives. The individuals responding to the survey describe impacts such as yield loss, cost increases, or longer plant back intervals when using the alternatives. Allowing the use of met hyl bromide through 2013 will provide time for Florida growers to adapt their systems to the use of the alternatives (different fumigants, potentially an herbicide treatment under the tarp, longer plant back interval, different films, etc.).

Table 1 5

. Florida Survey Data on Alternatives

CROP Percent of Acres Surveyed Impact * % (range) Eggplant 4 Not listed Pepper 4

- 9 % (0 to 20)

Tomato 28

- 8 % (0 to 25)

Notes: * Impact was interpreted by respondents as yield loss, cost increase, or longer plant back i ntervals leading to missing a market window.



### Dried Meat Products

MBTOC (TEAP 2011) is unable to assess this CUN pending the receipt of the results of large scale trials to be conducted in spring and summer of 2011 and 2010. The Party had nominated 3.730 tonnes, the amount nominated by the Party, for use in cured pork sector in 2013. This is the same amount granted by the Parties for

this use in 2012.



### U.S. Reply

The U nited S tates is requesting that MBTOC recommend the amount nominated for dried meat products in the U.S. Nomination.Filename: USA CUE13 MBTOC Replies Final 07

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PAGE 14

The first large

- scale tests for dried meat products took place in May of 2011

. In order to control for temperature and weather the next tests are scheduled for September and October of 2011 (onc e it cools down) (Schilling and Phillips, 2011) . The data from those trials should be

available in November or December of 2011 . The researchers need replicated experiments (May, September, and October) before the statistical analysis can be run

. If pho sphine works in multiple commercial settings for more than one season the U nited States believes that it will take at least 2 years to develop the logistical and practical use in the dried meat industry to ensure the widespread adoption of phosphine in the industry

.

Large

- scale testing was not conducted in 2010 because additional testing was needed in the laboratory to determine if greater concentrations of phosphine were needed to kill larger sample populations of ham mites at all life stages (Schilling and Phillips, 2011)

. The U nited S tates submitted the results of the 2010 studies with our nomination package submitted in January

2011

. Studies so far suggest that concentrations would need to be above 1000 ppm for exposure times longer than 48 hours for studies that are conducted in commercial settings.



### CITATIONS

California Strawberry Commission. June 2, 2011. Communication.

Culpe pper, S. April 1, 2011. Personal communication on Georgia fumigation costs.

Rosskopf, E.N., N. Kokalis

- Burelle, E. Nissen, O. Nissen, R. Hartman, R. McSorley, E. Skvarch, T.J. Swaford, C. Owens, S. Brooks, and K. Register. 2010 a. Evaluation of currently available alternatives to methyl bromide for ornamental crop production in Florida. Proceedings of the Annual International Research Conference on Methyl Bromide

Alternatives and Emissions Reductions. http://mbao.org/2010/082RosskopfAreawideOrnamental..pdf

Rosskopf, E.N., N. Kokalis

- Burelle, D.M. Butler, J. Holzinger, S. Fennimore. 2010 b. Evalution of steam for nematode and weed control in cut flower production inFlorida. Proceedings of the Annual International Research Conference on Methyl Bromide Alternatives and

Emissions Reductions. Available at http://mbao.org/2010/083RosskopfSteam.pdf

Schilling, W. and T. Ph illips. June 24, 2011. Personal communication on dried meat research.

SanMartini, F. April 14, 2011. Email entitled U.S. Reply to MBTOC Soils Questions sent to Porter, I. and Besri, M.

TEAP (2010). Report of the Technology and Economic Assessment Panel, Oct. 2010. Montreal Protocol on Substances that Deplete the Ozone Layer, United Nations Environment Programme, Nairobi.Filename: USA CUE13 MBTOC Replies Final 07

- 2011.docx

PAGE 15

TEAP (2011) Report of the Technology and Economic Assessment Panel, May 201 1

. Vol 1, Progress Report. Montreal Protocol on Substances that Deplete the Ozone Layer, United Nations Environment Programme, Nairobi.

U.S. Department of Agriculture. 2007. Census of Agriculture 2007. Accessed June 2011 and

available at http://www.agcensus.usda.gov/