United States 

Department of 

Agriculture

Animal and 

Plant Health 

Inspection 

Service

January 2013

Final Regulatory Flexibility Analysis

Final Rule

APHIS-2010-0048

RIN 0579-AD29

Citrus Canker, Citrus Greening, and Asian 

Citrus Psyllid; Interstate Movement of 

Regulated Nursery Stock

Policy & Program Development

Policy Analysis & Development
i

Summary

Citrus canker, citrus greening, and ACP are among some of the most damaging citrus 

pests and diseases that have plagued the U.S. citrus industry. If their spread were not restricted, 

they would threaten the long-term profitability and vitality of the industry. The movement of 

infected citrus nursery stock is a primary means by which these citrus pests and diseases are 

newly introduced into citrus-producing areas.

In recent years, State and Federal regulatory measures have been implemented to mitigate 

the spread of these citrus pests to commercial citrus-producing areas where they are not known 

to exist. Prior to an interim rule that we published in the Federal Register on April 27, 2011, the 

citrus canker and citrus greening regulations generally prohibited the interstate movement of 

regulated nursery stock from areas quarantined for those diseases, with certain limited 

exceptions. Restrictions were also placed on the interstate movement of nursery stock from 

areas quarantined for ACP because it is a vector of the bacterial pathogen that causes citrus 

greening.

On April 27, 2011, we published an interim rule in the Federal Register that amended the 

regulations governing the interstate movement of regulated articles from areas quarantined for 

citrus canker, citrus greening, and/or Asian citrus psyllid (ACP) to allow the movement of 

regulated nursery stock under a certificate to any area within the United States. In order to be 

eligible to move regulated nursery stock, a nursery had to enter into a compliance agreement 

with APHIS that specified the conditions under which the nursery stock must be grown, 

maintained, and shipped. The interim rule also amended the regulations that allow the 

movement of regulated nursery stock from an area quarantined for ACP, but not for citrus 
ii

greening, to amend the existing regulatory requirements for the issuance of limited permits for 

the interstate movement of the nursery stock.

The interim rule provided citrus nurseries in quarantined areas with access to previous 

unavailable markets throughout the United States. The majority of the citrus nurseries in 

quarantined areas were small entities. They benefitted from the rule by acquiring access to 

nationwide markets, although compliance costs may have reduced their competitiveness in 

comparison to suppliers of citrus nursery stock from non-quarantined areas.

This rule finalizes that interim rule with several nonsubstantive changes. These changes 

have the effect of removing a prohibition on the movement of regulated articles from areas 

quarantined only for ACP to the Northern Mariana Islands, which we have also quarantined for 

ACP. Operationally, this prohibition was removed when we imposed a quarantine for ACP on 

the Northern Mariana Islands, and we are not aware of any movement of regulated articles from 

such quarantined areas to the Northern Mariana Islands since then. 

Because the Northern Mariana Islands are geographically isolated from most of the 

United States, the producers most likely to benefit from market access to the Northern Mariana 

Islands are producers in Guam, the closest U.S. commercial citrus-producing area that is 

quarantined only for ACP to the Northern Mariana Islands. 
iii

Contents

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

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

Need for and Objectives of the Rule................................................................................... 2

Significant Issues raised by Public Comment in response to the Initial Regulatory

Flexibility Analysis............................................................................................................. 3

Comments filed by the Small Business Administration in response to the Proposed Rule 3

Potentially Affected Small Entities..................................................................................... 3

Projected Reporting, Recordkeeping, and Other Compliance Requirements..................... 9

Steps taken by APHIS to minimize Significant Economic Impacts on Small Entities ...... 9
1

Introduction

The U.S. citrus industry has been plagued by numerous pests and diseases that, left

uncontrolled, would threaten the long-term profitability and vitality of the industry. Citrus 

canker, citrus greening, and the Asian citrus psyllid (ACP) are among some of the most 

damaging of citrus pests and diseases and can cause significant agricultural losses. Citrus canker

is a bacterial disease that causes lesions on the fruit of infected plants, making the fruit 

unmarketable. It also results in defoliation and other serious damage to the leaves and twigs of 

susceptible plants; infected fruit may drop from the trees before reaching maturity. Citrus 

greening, also a bacterial disease, greatly reduces production and can eventually kill infected 

trees. In areas of the world where citrus greening is endemic, the trees decline and die within a 

few years. ACP’s principal threat is as a vector for the bacterium that causes citrus greening, but 

it also damages citrus in nurseries and groves by direct feeding. 

The movement of citrus nursery stock is a primary means by which these pests and 

diseases can be introduced to previously unaffected citrus-producing areas. In recent years, State 

and Federal regulatory measures have been implemented to mitigate the spread of these citrus

pests. Along with these regulatory measures, the devastating impacts of these pests and the 

citrus industry’s demand for pest-free nursery stock have predicated significant changes in the 

way the industry produces, maintains, and ships citrus nursery stock. 

Prior to publication of the interim rule, regulations prohibited the interstate movement of 

regulated nursery stock from areas quarantined for citrus canker (other than products for 

immediate export and kumquat plants, which have a natural resistance to citrus canker). 

Similarly, the regulations prohibited the interstate movement of regulated nursery stock from 

areas quarantined for citrus greening, unless the nursery stock was destined for immediate 
2

export. Interstate movement of regulated nursery stock from areas quarantined for ACP, but not 

also quarantined for citrus greening or citrus canker, was allowed, provided that measures had 

been taken to kill or sterilize any ACP that may be present.

The interim rule provided a degree of relief to citrus nursery stock producers in 

quarantined areas by allowing them access to all domestic markets, while continuing to prevent 

the spread of these quarantine pests by the movement of affected nursery products.

The Regulatory Flexibility Act requires agencies to evaluate the potential effects of their 

proposed and final rules on small businesses, small organizations and small governmental 

jurisdictions. This final regulatory flexibility analysis describes expected impacts of this rule on 

small entities, as required by section 604 of the Act.

Need for and Objectives of the Rule

Prior to publication of the interim rule, quarantines for citrus canker, citrus greening, and 

ACP prohibited nearly all interstate movement of citrus nursery stock. The comprehensive 

restrictions were sanctioned to mitigate agricultural losses from the spread of these pests into 

other citrus-producing areas. APHIS recognized the economic cost of these measures for 

producers in quarantined areas, and, in consultation with States and the citrus nursery industry, 

developed a systems approach to allow citrus nursery producers and handlers in quarantined 

areas to have access to nationwide markets while still providing for pest mitigation measures that 

sufficiently safeguard against the spread of these pests.
3

Significant Issues raised by Public Comment in response to 

the Initial Regulatory Flexibility Analysis

APHIS solicited comments concerning the April 2011 interim rule for a period of 60 days 

ending on June 27, 2011. We received seven comments by that date, from nursery stock 

producers and a State department of agriculture. However, none of the comments received were 

in response to the Initial Regulatory Flexibility Analysis. 

Comments filed by the Small Business Administration in 

response to the Interim Rule

APHIS did not receive any comments from the Small Business Administration in 

response to the interim rule.

Potentially Affected Small Entities

Citrus nurseries are categorized within the North American Industry Classification 

System (NAICS) code 111421, Nursery and Tree Production. The Small Business 

Administration small-entity standard for this industry is annual receipts of not more than 

$750,000. While we do not have comprehensive and proprietary data on revenue earned 

specifically by citrus nurseries contained within this industry category, the average annual 

market value of products sold by NAICS 111421 enterprises in 2007 was less than $260,000, 

which is well within the small-entity standard.1

 

1 USDA NASS. 2007 Census of Agriculture, Table 46. 

http://www.agcensus.usda.gov/Publications/2007/Full_Report/Volume_1,_Chapter_1_US/st99_1_046_046.pdf
4

By narrowing the scope to available data on nursery production, we found the gross value 

of sales of fruit and nut nursery plants in 2006 was $276 million.

2

 These revenues comprised 6 

percent of earnings by all nurseries, and represented an increase of 28 percent over sales in 2003. 

In 2006, average gross sales by fruit and nut nurseries earning more than $100,000 was about 

$248,000 in Florida, and about $118,000 in Texas, further evidence that most entities that may

be affected by the rule in those two States are likely to be small entities. In 2007, Arizona and 

Louisiana did not have nurseries reporting more than $100,000 in earnings according to NASS 

data. Only in California did the average gross sales by fruit and nut nurseries earning more than 

$100,000 exceed the small-entity standard, at roughly $1.3 million. Again, however, these data 

are not specific to citrus stock nurseries.

Alabama

APHIS does not have information on the size distribution of affected nursery operations 

in Alabama, but, according to the 2007 Census of Agriculture, nearly 91 percent of greenhouse, 

nursery, and floriculture operations (NAICS 1114) in that State had annual sales in 2007 of less 

than $500,000, which is below the SBA’s small-entity threshold of $750,000.3

Arizona

APHIS identified 5 citrus nursery stock producers in the State of Arizona. All of these 

had annual sales of less than $750,000 during each of the last three years, and are classified as 

small entities in accordance with the SBA’s small-entity threshold of $750,000.4 We have 

 

2 USDA NASS. Nursery Crops, 2006 Summary. September 2007. Most recent data available at: 

http://usda.mannlib.cornell.edu/usda/current/NursProd/NursProd-09-26-2007.pdf 

3 NASS, United States Department of Agriculture (USDA), “Alabama: State and County Data, Volume 1, 

Geographic Area Series, Part 1” 2007 Census of Agriculture, issued February 2009 and updated December 2009.

4

Source: Reporting State Official.
5

determined that the majority of citrus production/nurseries are located within Yuma County, 

where areas are quarantined for ACP. 

California

APHIS identified 354 licensed citrus nursery stock producers at 404 locations in the State 

of California.5 APHIS does not have information on the size distribution of affected nursery

operations in California, but, according to the 2007 Census of Agriculture, more than 85 percent 

of greenhouse, nursery, and floriculture operations (NAICS 1114) in that State had annual sales 

in 2007 of less than $500,000, which is below the SBA’s small-entity threshold of $750,000.6 

Furthermore, according to the most recent data available from the California Citrus Nursery

Program, at least 57 percent of the 28 citrus nurseries that pay assessments have annual gross 

sales of citrus trees of less than $750,000. 

The majority of citrus nurseries are located within San Diego and Imperial counties—that 

is, within counties containing areas quarantined for ACP. While information on cash receipts by

size of operation is not readily available, it is reasonable to assume that the majority of citrus 

operations in these counties qualify as small entities.

Florida

APHIS identified 62 citrus nursery stock producers in the State of Florida. APHIS does 

not have information on the size distribution of affected nursery operations in Florida, but, 

according to the 2007 Census of Agriculture, more than 90 percent of greenhouse, nursery, and 

 

5

Source: Reporting State Official.

6 NASS, United States Department of Agriculture (USDA), “California: State and County Data, Volume 1, 

Geographic Area Series, Part 5” 2007 Census of Agriculture, issued February 2009 and updated December 2009.
6

floriculture operations (NAICS 1114) in that State had annual sales in 2007 of less than 

$500,000, which is below the SBA’s small-entity threshold of $750,000.7 

All registered citrus nurseries in Florida are already in compliance with the final rule’s 

protocol, due to their compliance with the Florida Department of Agriculture and Consumer 

Services’ Division of Plant Industry Rule Chapter 5B-2.8 While information on cash receipts by

size of operation is not readily available, it is reasonable to assume that the majority of the citrus 

nurseries qualify as small entities.

Georgia

APHIS does not have information on the size distribution of affected nursery operations 

in Georgia, but according to the 2007 Census of Agriculture, nearly 94 percent of greenhouse, 

nursery, and floriculture operations (NAICS 1114) in that State had annual sales in 2007 of less 

than $500,000, which is below the SBA’s small-entity threshold of $750,000.9

Guam

APHIS does not have information on the size distribution of affected nursery operations 

in Guam, but, according to the 2007 Census of Agriculture, the total industry value of nursery

crops in 2007 was $604,868, which is below the SBA’s small-entity threshold of $750,000.10

Editorial changes that we are making to the interim rule in this final rule may benefit 

producers in Guam. The changes will have the effect of removing a prohibition on the 

movement of regulated articles from areas quarantined only for ACP to the Northern Mariana 

Islands, which we have also quarantined for ACP. Operationally, this prohibition was removed 

 

7 NASS, United States Department of Agriculture (USDA), “Florida: State and County Data, Volume 1, 

Geographic Area Series, Part 9” 2007 Census of Agriculture, issued February 2009 and updated December 2009.

8

Source: State Reporting Official.

9 NASS, United States Department of Agriculture (USDA), “Georgia: State and County Data, Volume 1, 

Geographic Area Series, Part 10” 2007 Census of Agriculture, issued February 2009 and updated December 2009.

10 NASS, United States Department of Agriculture (USDA), “Guam: Island Data, Volume 1, Geographic Area 

Series, Part 53” 2007 Census of Agriculture, issued February 2009.
7

when we imposed a quarantine for ACP on the Northern Mariana Islands, and we are not aware 

of any movement of regulated articles from such quarantined areas to the Northern Mariana 

Islands since then. 

However, because the Northern Mariana Islands are geographically isolated from most of 

the United States, the producers most likely to benefit from market access to the Northern 

Mariana Islands are producers in Guam, the closest commercial citrus-producing area to the 

Northern Mariana Islands. 

Hawaii

APHIS does not have information on the size distribution of affected nursery operations 

in Hawaii, but, according to the 2007 Census of Agriculture, nearly 98 percent of greenhouse, 

nursery, and floriculture operations (NAICS 1114) in that State had annual sales in 2007 of less 

than $500,000, which is below the SBA’s small-entity threshold of $750,000.11

Louisiana

APHIS identified 20 citrus nursery stock producers in the State of Louisiana. APHIS 

does not have information on the size distribution of affected nursery operations in Louisiana, 

but, according to the 2007 Census of Agriculture, more than 96 percent of greenhouse, nursery, 

and floriculture operations (NAICS 1114) in that State had annual sales in 2007 of less than 

$500,000, which is below the SBA’s small-entity threshold of $750,000.12 

In 2008, the majority of the State’s citrus nursery stock production was located within 

Plaquemines Parish, an area quarantined for ACP.13 There were approximately 10 nurseries in 

 

11 NASS, United States Department of Agriculture (USDA), “Hawaii: State and County Data, Volume 1, 

Geographic Area Series, Part 11” 2007 Census of Agriculture, issued February 2009 and updated December 2009.

12 NASS, United States Department of Agriculture (USDA), “Louisiana: State and Parish Data, Volume 1, 

Geographic Area Series, Part 18” 2007 Census of Agriculture, issued February 2009 and updated December 2009.

13 Source: Louisiana Department of Agriculture and Forestry. Correspondence with APHIS, September 2008.
8

this parish that altogether produced roughly 350,000 to 400,000 trees per year. While 

information on cash receipts by size of operation is not readily available, it is reasonable to 

assume that a majority qualify as small entities. Moreover, approximately 60 to 70 percent of 

Louisiana’s citrus nursery stock is currently shipped interstate. Thus, it is reasonable to assume 

that a majority of the affected small entities within the State are already bearing compliance costs

comparable to those associated with this final rule.

Mississippi

APHIS identified 5 citrus nursery stock producers in the State of Mississippi. We do not 

have information on the size distribution of affected nursery operations in Mississippi, but, 

according to the 2007 Census of Agriculture, nearly 99 percent of greenhouse, nursery, and 

floriculture operations (NAICS 1114) in that State had annual sales in 2007 of less than 

$500,000, which is below the SBA’s small-entity threshold of $750,000.14 

Puerto Rico

APHIS identified 2 operations producing citrus nursery stock in the Commonwealth of 

Puerto Rico.15 APHIS does not have information on the size distribution of affected nursery

operations in Puerto Rico, but, according to the 2007 Census of Agriculture, average annual sales 

of greenhouse, nursery, and floriculture operations (NAICS 1114) in Puerto Rico in 2007 were 

less than $100,000, which is below the SBA’s small-entity threshold of $750,000.16

South Carolina 

 

14 NASS, United States Department of Agriculture (USDA), “Mississippi: State and County Data, Volume 1, 

Geographic Area Series, Part 24” 2007 Census of Agriculture, issued February 2009 and updated December 2009.

15 Source: Reporting State Official.

16 NASS, United States Department of Agriculture (USDA), “Puerto Rico: Island and Municipio Data, Volume 1, 

Geographic Area Series, Part 52” 2007 Census of Agriculture, issued February 2009 and updated December 2009.
9

APHIS identified 2 citrus nursery stock producers in the State of South Carolina.17 

APHIS does not have information on the size distribution of affected nursery operations in South 

Carolina, but, according to the 2007 Census of Agriculture, nearly 96 percent of greenhouse, 

nursery, and floriculture operations (NAICS 1114) in that State had annual sales in 2007 of less 

than $500,000, which is below the SBA’s small-entity threshold of $750,000.18 

Texas

APHIS identified 72 citrus nursery stock producers in the State of Texas. APHIS does 

not have information on the size distribution of affected nursery operations in Texas, but, 

according to the 2007 Census of Agriculture, more than 93 percent of greenhouse, nursery, and 

floriculture operations (NAICS 1114) in that State had annual sales in 2007 of less than 

$500,000, which is below the SBA’s small-entity threshold of $750,000.19 

Projected Reporting, Recordkeeping, and Other Compliance 

Requirements

The reporting and recordkeeping requirements associated with the final rule are identical 

to those of the interim rule. Those requirements were approved by the Office of Management 

and Budget under control number 0579-0369.

Steps taken by APHIS to minimize Significant Economic 

Impacts on Small Entities

 

17 Source: State Reporting Official.

18 NASS, United States Department of Agriculture (USDA), “South Carolina: State and County Data, Volume 1, 

Geographic Area Series, Part 40” 2007 Census of Agriculture, issued February 2009 and updated December 2009.

19 NASS, United States Department of Agriculture (USDA), “Texas: State and County Data, Volume 1, Geographic 

Area Series, Part 43A” 2007 Census of Agriculture, issued February 2009 and updated December 2009.
10

Based on our review of available information, APHIS does not expect the rule to have a 

significant economic impact on small entities. In the absence of significant economic impacts, 

we have not identified alternatives that would minimize such impacts.