This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

61077

Vol. 65, No. 200

Monday, October 16, 2000

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

7 CFR Part 301

[Docket No. 00–037–1]

RIN 0579–AB15

Citrus Canker; Payments for

Commercial Citrus Tree Replacement

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Interim rule and request for

comments.

SUMMARY: We are amending our citrus

canker regulations to establish

provisions under which eligible owners

of commercial citrus groves may receive

payments to replace commercial citrus

trees removed because of citrus canker.

The payment of these funds is necessary

in order to reduce the economic effect

of the citrus canker quarantine on

affected commercial citrus growers.

DATES: This interim rule is effective

October 16, 2000. We invite you to

comment on this docket. We will

consider all comments that we receive

by December 15, 2000.

ADDRESSES: Please send your comment

and three copies to: Docket No. 00–037–

1, Regulatory Analysis and

Development, PPD, APHIS, Suite 3C03,

4700 River Road Unit 118, Riverdale,

MD 20737–1238.

Please state that your comment refers

to Docket No. 00–037–1.

You may read any comments that we

receive on this docket in our reading

room. The reading room is located in

room 1141 of the USDA South Building,

14th Street and Independence Avenue,

SW., Washington, DC. Normal reading

room hours are 8 a.m. to 4:30 p.m.,

Monday through Friday, except

holidays. To be sure someone is there to

help you, please call (202) 690–2817

before coming.

APHIS documents published in the

Federal Register, and related

information, including the names of

organizations and individuals who have

commented on APHIS dockets, are

available on the Internet at http://

www.aphis.usda.gov/ppd/rad/

webrepor.html.

FOR FURTHER INFORMATION CONTACT: Mr.

Stephen Poe, Operations Officer,

Program Support Staff, PPQ, APHIS,

4700 River Road Unit 134, Riverdale,

MD 20737–1236; (301) 734–8247.

SUPPLEMENTARY INFORMATION:

Background

Citrus canker is a plant disease that

affects plants and plant parts, including

fresh fruit, of citrus and citrus relatives

(Family Rutaceae). Citrus canker can

cause defoliation and other serious

damage to the leaves and twigs of

susceptible plants. It can also cause

lesions on the fruit of infected plants,

which renders the fruit unmarketable,

and cause infected fruit to drop from the

trees before reaching maturity. The

aggressive A (Asiatic) strain of citrus

canker can infect susceptible plants

rapidly and lead to extensive economic

losses in commercial citrus-producing

areas.

The regulations to prevent the

interstate spread of citrus canker are

contained in 7 CFR 301.75–1 through

301.75–14 (referred to below as the

regulations). The regulations restrict the

interstate movement of regulated

articles from and through areas

quarantined because of citrus canker

and provide conditions under which

regulated fruit may be moved into,

through, and from quarantined areas for

packing. The regulations currently list

parts of Broward, Collier, Dade, Hendry,

Hillsborough, and Manatee Counties,

FL, as quarantined areas for citrus

canker.

In this document, we are amending

the regulations to provide for the

payment of tree replacement funds to

eligible owners of commercial citrus

groves who have had citrus trees

destroyed because of citrus canker. The

provisions for the commercial citrus tree

replacement program are contained in a

new section, § 301.75–15, which is

explained in detail below.

Definitions (§ 301.75–1)

We are amending § 301.75–1, which

provides definitions for the terms used

in Subpart—Citrus Canker, by adding

definitions for commercial citrus grove

and public order, two terms that are

used in new § 301.75–15.

We have defined commercial citrus

grove as ‘‘An establishment maintained

for the primary purpose of producing

citrus fruit for commercial sale.’’ This

definition is intended to distinguish

commercial citrus groves from

‘‘dooryard’’ or residential citrus trees.

This distinction between commercial

and dooryard citrus is necessitated by

the language contained in the two acts

cited above that provide the funding for

the tree replacement payments provided

for by this rule. Specifically, the

Consolidated Appropriations Act for FY

2000 provides for the use of funds ‘‘to

replace commercial citrus trees’’ and the

Agricultural Risk Protection Act directs

the use of funds to compensate

‘‘commercial producers.’’ Although the

Florida Department of Food and

Consumer Services’ Division of Plant

Industry (DPI) defines a commercial

citrus grove as ‘‘a solid set planting of

40 or more citrus trees,’’ our definition

of the term in this interim rule omits the

40-tree threshold in recognition of the

possibility that there may be some small

groves of fewer than 40 trees that were,

prior to being destroyed because of

citrus canker, maintained by their

owners for the purpose of producing

citrus fruit for commercial sale. If,

during the processing of an application

for tree replacement funds, a question

arises as to whether or not a small grove

was maintained for commercial

purposes, we will ask the grove owner

to produce documentation to support

his or her claim that the grove was

maintained for commercial purposes.

The supporting documents that we

expect a person engaged in the

commercial production of citrus could

provide are records of production

expenses incurred, records of income

derived from direct sales to consumers

or from the consignment of harvested

fruit to a packer or juicing operation,

and tax records showing losses or gains

in income resulting from the production

and sale of the fruit.

We have defined public order as

‘‘either an ’Agreement to Destroy and

Covenant Not to Sue’ signed by the

grove owner and the Florida Department

61078 Federal Register / Vol. 65, No. 200 / Monday, October 16, 2000 / Rules and Regulations

of Food and Consumer Services’

Division of Plant Industry (DPI) or an

’Immediate Final Order’ issued by DPI,

both of which identify citrus trees

infected with or exposed to citrus

canker and order their destruction.’’

This State-issued order serves as the

official means by which the owner of a

commercial citrus grove is notified of

the need to destroy citrus trees because

of citrus canker.

Funds for the Replacement of

Commercial Citrus Trees

The introductory text of § 301.75–15

provides that the payment of tree

replacement funds is contingent upon

the availability of funds appropriated

for that purpose. The funding for the

tree replacement payments provided for

by this rule currently comes from two

sources. The Consolidated

Appropriations Act for FY 2000 (Pub. L.

106–113) directs the Secretary of

Agriculture to use not more than $9

million of Commodity Credit

Corporation funds for a cooperative

program with the State of Florida to

replace commercial citrus trees removed

to control citrus canker until the earlier

of December 31, 1999, or the date crop

insurance coverage is made available

with respect to citrus canker. We will

draw from that $9 million to pay claims

for the majority of the trees destroyed

before December 31, 1999. Claims

resulting from the destruction of any

trees for which crop insurance was

available, as well as for any trees

destroyed after December 31, 1999, will

be paid with a portion of the funds

made available by the Agricultural Risk

Protection Act of 2000 (Pub. L. 106–

224), which provides that $25 million

shall be used by the Secretary to

compensate commercial growers for

losses due to plum pox, Pierce’s disease,

and citrus canker.

Eligibility

Under paragraph (a) of new § 301.75–

15, the owner of a commercial citrus

grove may be eligible to receive funds to

replace commercial citrus trees removed

to control citrus canker if the trees were

removed pursuant to a public order after

September 28, 1995, which is the date

that the current citrus canker infestation

was detected in Florida. This interim

rule also provides for the payment of

tree replacement funds for trees

destroyed between 1986 and 1990

because the State of Florida has

identified five commercial citrus groves

in Manatee and Highlands Counties that

were destroyed to control citrus canker

during a limited outbreak of the disease

during that period. Prior to the effective

date of this interim rule, no provision

had been made for the payment of tree

replacement funds or other

compensation to the owners of those

five groves.

Tree Replacement Payments

We consider that trees infected with

or exposed to citrus canker, because of

the destructive nature of the disease,

have no value. Thus, the tree

replacement payments provided for by

this interim rule are intended to provide

eligible growers with the funds

necessary to establish new plantings,

rather than to pay for the trees destroyed

because of citrus canker. In calculating

the replacement costs for commercial

citrus trees, we considered the costs of

land preparation, the replacement tree,

labor for planting, and maintenance

until the tree becomes productive. In

developing the Florida Fruit Tree Pilot

Crop Insurance Program, which

includes coverage for the loss of

commercial citrus trees due to citrus

canker, the U.S. Department of

Agriculture’s (USDA’s) Risk

Management Agency (RMA) calculated

the cost of replacing commercial citrus

trees to be $26 per tree. This amount is

applicable for all varieties of citrus trees

for which coverage is offered, i.e.,

grapefruit, lemon, lime, orange, and ‘‘all

other citrus’’ (tangerine, tangelo, temple

orange, and murcott), and considers the

costs of land preparation, tree planting,

and grove care expenses. Information

gathered from industry sources confirms

the cost of replanting commercial citrus

trees. The cost of tree replacement as

calculated by RMA is consistent with

APHIS’ estimate of costs for the first 6

years of production, or until trees

become productive and earn an income.

For all categories of citrus, these costs

are estimated to be $25.51 per tree.

Therefore, § 301.75–15(b) provides that

the owner of a commercial citrus grove

who is eligible to receive funds to

replace commercial citrus trees will,

upon approval of his or her application,

receive a payment of $26 per tree up to

a maximum of between $2,704 and

$4,004 per acre, depending on the

variety of the trees removed.

Specifically, the per-acre caps, which

were calculated by multiplying $26 by

the varietal average number of trees per

acre reported by the Florida citrus

industry to the USDA’s National

Agricultural Statistics Service through

the Florida Agriculture Statistics

Service, are as follows:

Variety

Average

number

of trees

per

acre

Maximum

payment

per

acre

Grapefruit, red seedless ... 104 $2,704

Orange, Valencia .............. 123 3,198

Orange, early/midseason/

navel .............................. 118 3,068

Tangelo ............................. 114 2,964

Lime .................................. 154 4,004

Other or mixed citrus 1 ...... 104 2,704

1Approximately 32 acres of ‘‘other, unidentified’’ citrus trees are reported as having been

destroyed in the information furnished by the

State of Florida. Since that initial information

was provided by Florida, we have been able

to determine that the ‘‘other, unidentified’’ category of citrus groves is a mix of trees not

conveniently categorized. The mix of trees

may include grapefruit, oranges, and specialty

crops. Based on the fact that 82 percent of the

destroyed acres were red seedless grapefruit,

APHIS used the average per-acres tree density for red seedless grapefruit to set the peracre cap for those ‘‘other, unidentified’’ groves.

We anticipate that additional funds

will be made available for USDA to

provide payments to the owners of

commercial citrus groves for losses in

production income resulting from the

destruction of trees due to citrus canker.

Because output per acre is

approximately the same, regardless of

the number of trees per acre, capping

the tree replacement payments provided

for by this rule based on the average

number of trees per acre for each variety

will ensure that no grower receives

combined payments (i.e., tree

replacement and lost production) that

exceed the total estimated per-acre loss.

How To Apply

Paragraph (c) of § 301.75–15 provides

information on how to apply for

commercial citrus tree replacement

funds. This paragraph states that the

form necessary to apply for tree

replacement funds may be obtained

from any local citrus canker program

office or from the USDA Citrus Canker

Eradication Project office in Miami, FL.

Completed claim forms must be sent to

the USDA Citrus Canker Eradication

Project office in Winter Haven, FL,

which is where the DPI records

necessary to validate claims are located.

When the completed application is

submitted, it should be accompanied by

a copy of the public order that directed

the destruction of the trees, the order’s

accompanying inventory that describes

the number and variety of trees

removed, and documentation verifying

that the destruction of trees has been

completed and the date of that

destruction. Claims for trees destroyed

on or before the effective date of this

rule must be received within 60 days

Federal Register / Vol. 65, No. 200 / Monday, October 16, 2000 / Rules and Regulations 61079

after the effective date of this rule, and

claims for trees destroyed after the

effective date of this rule must be

received within 60 days after the

destruction of the trees.

Immediate Action

Immediate action is necessary to

reduce the economic effect of the citrus

canker eradication program on affected

commercial citrus growers, thus

ensuring the continued cooperation of

commercial growers with the survey

and eradication activities being

conducted by the State of Florida and

APHIS. Under these circumstances, the

Administrator has determined that prior

notice and opportunity for public

comment are contrary to the public

interest and that there is good cause

under 5 U.S.C. 553 for making this rule

effective less than 30 days after

publication in the Federal Register.

We will consider comments that are

received within 60 days of publication

of this rule in the Federal Register.

After the comment period closes, we

will publish another document in the

Federal Register. The document will

include a discussion of any comments

we receive and any amendments we are

making to the rule as a result of the

comments.

Executive Order 12866 and Regulatory

Flexibility Act

This rule has been reviewed under

Executive Order 12866. The rule has

been determined to be significant for the

purposes of Executive Order 12866 and,

therefore, has been reviewed by the

Office of Management and Budget.

The following economic analysis

provides a cost-benefit analysis as

required by Executive Order 12866 and

an analysis of the potential economic

effects on small entities as required by

the Regulatory Flexibility Act.

This rule amends the citrus canker

regulations to establish provisions

under which eligible owners of

commercial citrus groves may receive

payments to replace commercial citrus

trees removed because of citrus canker.

The payment of these tree replacement

funds is necessary as a first step toward

reducing the economic effect of the

citrus canker quarantine on affected

commercial citrus growers. As for the

second step, we anticipate that

additional funds will be made available

for USDA to provide payments to

growers for losses in production income

resulting from the destruction of trees

due to citrus canker. In order to make

those funds available, we expect to

publish a proposed rule that details our

estimates of per-acre losses and

discusses the information and

methodology upon which those

estimates are based.

The value of citrus produced in the

United States in 1998 was $2.6 billion,

and Florida produced a substantial

share of the total. In 1997–1998, Florida

accounted for 43.67 percent of U.S.

orange production, 76.2 percent of

grapefruit production, 72.72 percent of

lime production, 63.41 percent of

tangerine production, and 100 percent

of both temple and K-Early citrus

production (USDA, National

Agricultural Statistics Service,

Agricultural Statistics, 1999). Removing

the infected and exposed trees protects

a substantial investment in other citrus

groves. While the entire value of citrus

produced is not at risk immediately

from citrus canker, the disease would, if

left unchecked, continue to spread. In

time, the entire industry would be at

risk.

According to the data provided to

APHIS by the State of Florida, during

the current citrus canker outbreak,

approximately 484,900 commercial

citrus trees were removed to control

citrus canker by July 19, 2000, and

another 238,900 commercial citrus trees

are expected to be destroyed by

September 30, 2000. Paid at the rate of

$26 per tree, the costs of replacing those

723,800 trees would be approximately

$18.8 million. However, we expect that

the actual amount paid out will be

lower due to the per-acre cap on tree

replacement payments provided for by

this interim rule; as noted previously,

we have placed this cap on tree

replacement payments in order to

ensure that no grower receives

combined tree replacement and lost

production payments that exceed the

total estimated per-acre loss. The State

of Florida has also identified another

87,731 trees from 5 groves in Manatee

and Highlands Counties that were

destroyed because of citrus canker

between 1986 and 1990 (i.e., before the

start of the current outbreak); the costs

of replacing those trees at $26 per tree

would be approximately $2.28 million.

Again, we expect that the per-acre cap

on tree replacement payments provided

for by this interim rule will result in the

actual amount paid out being lower.

Effects on Small Entities

This rule establishes provisions under

which eligible owners of commercial

citrus groves could, subject to the

availability of appropriated funds,

receive payments to replace commercial

citrus trees removed because of citrus

canker. Therefore, the entities who will

be affected by this rule are commercial

citrus growers. The Regulatory

Flexibility Act requires that the Agency

specifically consider the economic

effects of its rules on small entities. The

Small Business Administration (SBA)

defines a firm engaged in agriculture as

‘‘small’’ if it has less than $500,000 in

annual receipts. While the majority of

citrus growers in Florida would be

considered small entities under those

SBA guidelines, those growers who

would not be classified as small entities

account for the majority of the citrusgrowing acreage in the State. Based on

available information, it appears that

most of the citrus-canker-related losses

in Florida have been incurred by those

larger citrus producers. Regardless of

the size of the entities affected, we

expect that this rule will benefit those

commercial citrus growers who are

eligible for tree replacement payments

by helping to defray some of the losses

and expenses that they have incurred as

a result of the ongoing State and Federal

efforts to eradicate citrus canker in

Florida.

Under these circumstances, 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.

Executive Order 12372

This program/activity is listed in the

Catalog of Federal Domestic Assistance

under No. 10.025 and is subject to

Executive Order 12372, which requires

intergovernmental consultation with

State and local officials. (See 7 CFR part

3015, subpart V.)

Executive Order 12988

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. This rule: (1) Preempts all State

and local laws and regulations that are

inconsistent with this rule; (2) has no

retroactive effect; and (3) does not

require administrative proceedings

before parties may file suit in court

challenging this rule.

Paperwork Reduction Act

In accordance with section 3507(j) of

the Paperwork Reduction Act of 1995

(44 U.S.C. 3501 et seq.), the information

collection and recordkeeping

requirements included in this interim

rule have been submitted for emergency

approval to the Office of Management

and Budget (OMB). OMB has assigned

control number 0579–0163 to the

information collection and

recordkeeping requirements.

We plan to request continuation of

that approval for 3 years. Please send

written comments on the 3-year

approval request to the following

addresses: (1) Office of Information and

61080 Federal Register / Vol. 65, No. 200 / Monday, October 16, 2000 / Rules and Regulations

Regulatory Affairs, OMB, Attention:

Desk Officer for APHIS, Washington, DC

20503, and (2) Docket No. 00–037–1,

Regulatory Analysis and Development,

PPD, APHIS, suite 3C03, 4700 River

Road Unit 118, Riverdale, MD 20737–

1238. Please state that your comments

refer to Docket No. 00–037–1 and send

your comments within 60 days of

publication of this rule.

This rule amends the citrus canker

regulations to establish provisions

under which eligible owners of

commercial citrus groves may receive

payments to replace commercial citrus

trees removed because of citrus canker.

Implementing this program would

necessitate the use of an information

collection activity in the form of an

application for funds.

We are soliciting comments from the

public concerning our information

collection and recordkeeping

requirements. These comments will

help us:

(1) Evaluate whether the information

collection is necessary for the proper

performance of our agency’s functions,

including whether the information will

have practical utility;

(2) Evaluate the accuracy of our

estimate of the burden of the

information collection, including the

validity of the methodology and

assumptions used;

(3) Enhance the quality, utility, and

clarity of the information to be

collected; and

(4) Minimize the burden of the

information collection on those who are

to respond (such as through the use of

appropriate automated, electronic,

mechanical, or other technological

collection techniques or other forms of

information technology; e.g., permitting

electronic submission of responses).

Estimate of burden: Public reporting

burden for this collection of information

is estimated to average 0.21 hours per

response.

Respondents: Eligible commercial

citrus grove owners in Florida.

Estimated annual number of

respondents: 65.

Estimated annual number of

responses per respondent: 1.08.

Estimated annual number of

responses: 70.

Estimated total annual burden on

respondents: 15 hours.

(Due to rounding, the total annual

burden hours may not equal the product

of the annual number of responses

multiplied by the average reporting

burden per response.)

Copies of this information collection

can be obtained by calling Mrs. Celeste

Sickles, APHIS’ Information Collection

Coordinator, at (301) 734–7477.

List of Subjects in 7 CFR Part 301

Agricultural commodities, Plant

diseases and pests, Quarantine,

Reporting and recordkeeping

requirements, Transportation.

Accordingly, 7 CFR part 301 is

amended as follows:

PART 301—DOMESTIC QUARANTINE

NOTICES

1. The authority citation for part 301

is revised to read as follows:

Authority: Title IV, Pub. L. 106–224, 114

Stat. 438, 7 U.S.C. 7701–7772; 7 U.S.C. 166;

7 CFR 2.22, 2.80, and 371.3.

Section 301.75–15 also issued under Sec.

204, Title II, Pub. L. 106–113, 113 Stat.

1501A–293, and sec. 203, title II, Pub. L.

106–224, 114 Stat. 400 (7 U.S.C. 1421 note).

2. Section 301.75–1 is amended by

adding, in alphabetical order,

definitions of the terms commercial

citrus grove and public order to read as

follows:

§ 301.75–1 Definitions.

* * * * *

Commercial citrus grove. An

establishment maintained for the

primary purpose of producing citrus

fruit for commercial sale.

* * * * *

Public order. Either an ‘‘Agreement to

Destroy and Covenant Not to Sue’’

signed by the grove owner and the

Florida Department of Food and

Consumer Services, Division of Plant

Industry (DPI), or an ‘‘Immediate Final

Order’’ issued by DPI, both of which

identify citrus trees infected with or

exposed to citrus canker and order their

destruction.

* * * * *

3. In Subpart—Citrus Canker, a new

§ 301.75–15 is added to read as follows:

§ 301.75–15 Funds for the replacement of

commercial citrus trees.

Subject to the availability of

appropriated funds, the owner of a

commercial citrus grove may be eligible

to receive funds to replace commercial

citrus trees in accordance with the

provisions of this section.

(a) Eligibility. The owner of a

commercial citrus grove may be eligible

to receive funds to replace commercial

citrus trees removed to control citrus

canker if the trees were removed

pursuant to a public order between 1986

and 1990 or on or after September 28,

1995.

(b) Tree replacement payments. The

owner of a commercial citrus grove who

is eligible under paragraph (a) of this

section to receive funds to replace

commercial citrus trees will, upon

approval of an application submitted in

accordance with paragraph (c) of this

section, receive a payment of $26 per

tree up to the following per-acre

maximum payments:

Variety

Maximum

payment

per acre

Grapefruit, red seedless ............. $2,704

Orange, Valencia ........................ 3,198

Orange, early/midseason/navel .. 3,068

Tangelo ....................................... 2,964

Lime ............................................ 4,004

Other or mixed citrus .................. 2,704

(c) How to apply for tree replacement

funds. The form necessary to apply for

funds to replace commercial citrus trees

may be obtained from any local citrus

canker eradication program office in

Florida, or from the USDA Citrus

Canker Project, 10300 SW 72nd Street,

Suite 150, Miami, FL 33173. The

completed application should be

accompanied by a copy of the public

order directing the destruction of the

trees and its accompanying inventory

that describes the number and the

variety of trees removed. Your

completed application must be sent to

the USDA Citrus Canker Eradication

Project, Attn: Commercial Tree

Replacement Program, c/o Division of

Plant Industry, 3027 Lake Alfred Road,

Winter Haven, FL 33881. Claims for

trees destroyed on or before the effective

date of this rule must be received within

60 days after the effective date of this

rule. Claims for trees destroyed after the

effective date of this rule must be

received within 60 days after the

destruction of the trees.

(Approved by the Office of Management and

Budget under control number 0579–0163.)

Done in Washington, DC, this 12th day of

October 2000.

Charles P. Schwalbe,

Acting Administrator, Animal and Plant

Health Inspection Service.

[FR Doc. 00–26591 Filed 10–13–00; 8:45 am]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

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AGENCY: Agricultural Marketing Service,

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