### United States

Department of Agriculture Animal and Plant Health Inspection Service May 2011 Initial Regulatory Flexibility Analysis

Proposed Rule APHIS - 2011 - 0007 RIN 0579 -AD42 Importation of Chinese Sand Pear s from China

Policy & Program Development Policy Analysis & Developmenti



### Summary This proposed rule would amend the regulations to allow, under certain conditions, the importation into the United States of Chinese sand pear ( Pyrus p yrifolia ) from China

. This fruit is produced in the United States in limited quantities, primarily in Illinois, Virginia, West Virginia, and Maryland. The average 2007 market value of crops sold by fruit and tree nut farms was less than $188,000, an amount well below the SBA small

- entity standard of annual receipts of not more than $750,000. We infer that the majority of farms producing pears, including sand pears, are small entities. China is expecting to export 24,000 metric tons of Chinese sand pear annually to the United States. W e do not know the quantity or value of Chinese sand pear produced in the United States , or the quantity or value of Chinese sand pear imported from other countries. Nor do we know the substitutability of Chinese sand pear for other types of pears produced domestically

. Without basic production and trade information, we are unable to evaluate potential impacts of th e proposed rule. We welcome information of this type that would permit an anal ys is of possible effects for U.S. entities.

### Table of Contents

Summary

................................ ................................ ................................ .............................. i Introduction

................................ ................................ ................................ ......................... 1 U.S. Pear Production and Trade

................................ ................................ .......................... 2 Initial Regulatory

Flexibility

Anal ys is

................................ ................................ ................ 5 Reasons Action is Being Considered

................................ ................................ .............. 5 Objectives of and Legal Basis for the Rule

................................ ................................ .... 5 Potentially

Affected Small Entities

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

................. 8 Duplication, Overlap, or Confl ict with Existing Rules and Regulations

........................ 8 Alternatives to minimize Significant Economic Impacts of the Rule

............................. 8 References

................................ ................................ ................................ ........................... 9

### Introduction

APHI S received a request from the National Plant Protection Organization of China to allow the importation of commercial shipments of the Chinese sand pear, Pyrus p yrifolia , from China ( including from the special administrative regions of Hong Kong and Macau) into the United States . A systems approach would be used to mitigate the risks posed by certain plant pests. U.S. demand for new fruit s such as the Chinese sand pear is expanding d ue to the increasing popularity of exotic foods and a growing interest in healthier diets

. The Chinese sand pear is a good source of iron, potassium , vitamin C , and phosphorous

. 1 The Chinese sand pear is produced in the United States in limited quantities, primarily in the S tates of Illinois, Virginia, West Virginia, and Maryland. However, published information on the quantity

or value of domestic comm ercial production of the Chinese sand pear is not available. C hina expects to export 24,000 metric tons of Chinese sand pear to the United States, but we do not know the quantity or value of Chinese sand pear imported from other countries. Nor do we know the substitutability of Chinese sand pear for other types of pears produced domestically

. This analysis fulfills requirements of the Regulatory Flexibility

Act for the evaluation of potential effects of proposed rule on small businesses, small organizatio ns and small governmental jurisdictions. La ck of production and trade data specific to the Chinese sand pear prevents an informed examination of expected market effects of the proposed rule. However, as context, we provide information on U.S. pear produc tion and trade generally . We welcome information regarding Chinese sand pear production and sales in the United States that would

1 Pears
- pyrus communis, pyrus pyrifolia. (2004). Retrieved from http://www.fruit

- crops.com/pear.html#productionallow insight into possible effects of the proposed rule for U.S. producers of this fruit and for

U.S. pear producers in general. 

### U.S. Pear Production and Trade
U.S. pear production levels and farm value s, 2004 to 200 9, are shown in t able 1 . As depicted, the amount of pear produced has not varied greatl y from year to year

. A lmost 870,000 metric tons were produced in 2009.

Table 1 . U.S. p ear production and value, 2004

- 2009

Source: USDA, National Agricultural Statistics Service, Noncitrus Fruits and Nuts Summary, various issues. Data on the amount of pear produced in each S tate are not available, but as shown in table 2, approximately one - third of the farms that prod uced pears in 2007 were located in Washington , Oregon, and California, and the farms in these three States comprised nearl y 90 percent of the total U.S. acreage devoted to pear production

.

Year Production

(metric tons ) Value (million dollar s ) 2004 796 , 757.5 242.14 2005 746 , 915.9 242.58 2006 763 , 894.2 275.12 2007 791 , 940.2 298.87 2008 789 , 127.9 326.45 2009 868 , 390 .0 293.06Table 2
. Number of commercial pear farms and acreages, b y State, 2007 Number of Pear Farms Percentage

Share of U.S. Farms Acres in Pear

Production Percentage

Share of U.S. Acreage Washington 1,530 15.5 25,514 37.4 Oregon 888 9.0 18,416 27.0 California 739 7.5 15,859 23.2 Pennsylvania 647 6.5 1,041 1.5 Texas 548 5.5 545 0.8 All Other States 5526 56.0 6,841 10.0 United States 9878 100 68,216 100 Source: USDA NASS, 2007 Census of Agriculture, Table 3 2 , Fruits and Nuts

. Trade data solel y for pears also are not available; pears are grouped with quinces. Table 3 shows the combined quantity of pears (all ty pes) and quinces imported, 2006

- 2010
. The United States receives the largest share of these fruits from Argentina

– 44 percent of imports in 2010. As shown, 8 percent of pear and quince imports in 2010 came from China.
Table 3 . Quantity of U.S. pears and quinces imports, 2006

- 20 10 , metric tons

Source: U.S. Census Bureau, as reported in the Global Trade Atlas. Table 4 shows the value of U.S. pear and quince imports , 2006

- 2010, and the 2010 composite price. The average value of pear and quince imports over the five years was Source Quantity Percent Share 20 1 0 200 6 200 7 200 8 200 9 20 10 World 89,586 107,695 86,217 82,095 62,042 100.0 Argentina 43,693 52,357 37,014 38,460 27,039 44 Chile 25,266 24,598 25,438 18,980 17,226 28 Korea South 7,821 15,057 8,904 10,286 9,671 16 China 8,952 8,841 11,954 11,013 5,252 8 New Zealand 2,806 5,636 2,005 2,490 2,048 3 South Africa 757 866 420 696 591 1 Canada 6 63 212 50 146 0 Japan 286 276 202 118 69 0 Brazil

- - 69

- - 0 Mexico

- - - 1

- 0approximately $101 million, with the largest single share of this amount , over $41 million, paid for fruit imported from Argentina.
Table 4
. Value of U.S. pear and quince imports, 2006

- 2010, million dollars

Source: U.S. Census Bureau, as reported in the Global Trade Atlas. In contrast, the quantities of pear and quince exported by the United States totaled about 152,000 MT in 2010 (more than twice the amount imported), and was valued at $155 million (table 5). The majority

of exports in 2010 and in previous years were shipped to Canada and Mexico.

T able 5
. Quantity and value of U.S. pear and quince exports, 2008

- 2010 Source Value 2010 Unit Value 2006 2007 2008 2009 2010 Percent Share 2010 Dollars per

Metric Ton World 102.2 125.4 96.8 98.6 83.2 100.00 1,340 Argentina 47.0 54.0 36.2 38.1 32.5 39.04 1,201 Chile 19.7 19.9 21.7 23.4 23.5 28.27 1,365 Korea South 21.5 23.9 22.2 19.0 14.7 17.63 1,516 China 8.3 18.2 12.3 10.1 6.2 7.41 1,174 New Zealand 3.4 7.0 2.6 6.1 4.7 5.62 2,283 South Africa 1.1 1.1 0.8 1.6 1.2 1.41 1,987 Canada 1.4 1.2 0.8 0.5 0.4 0.49 2,803 Japan 0.0 0.0 0.1 0.0 0.1 0.12 1,395 Brazil

- - 0.0

- - 0.00

- Mexico

- - - 0.0

- 0.00

-

Quantity 20 10 Value 20 10 Unit Value 2008 2009 2010 Percent Share 2010 Million

Dollars Percent

Share Dollars per

Metric Ton World 158,802 156,951 152,163 100 155.2 100. 1,020 Canada 39,757 38,922 42,399 28 49.6 32 1,170 Mexico 73,592 60,250 52,154 34 43.1 28 826 Russia 6,602 10,254 11,720 8 12.2 8 1,039 Brazil 7,466 11,039 8,006 5 9.7 6 1,212Source: U.S. Census Bureau, as reported in the Global Trade Atlas.

While the United States is a net exporter of pears overall, it is likely that the U.S. supply of Chinese sand pear is largel y imported. Without information on the domestic and foreign quantities suppl ied and the substitutability of Chinese sand pear for other pear varieties, we are unable to evaluate potential effects of the rule for U.S. producers. We welcome information that would allow a more complete understanding of possible effects of the proposed rule for small entities. 

### Initial Regulatory Flexibility Analysis Reasons Action is Being Considered The proposed rule is in response to a request made by the National Plant Protection Organization of China for APHI S to amend the regulations to allow for the commercial shipment into the United States of the Chinese sand pear, Pyrus p yrifolia

. A s ys tems approach would be used to mitigate the risks posed by certain plant pests. Objectives of and Legal Basis for the Rule The objective of the rule is to allow Chinese sand pears to be imported into the United States from China ( including from the special administrative regions of Hong Kong and Macau)

. The legal basis for this action is the Plant Protection Act (7 U.S.C. 7701

- 7772 ) , which authorizes the Secretary

of Agriculture to prohibit or restrict the importation of any plant product if the Secretary determines that the prohibition or restriction is necessary to prevent the introduction of
a plant pest or noxious weed into the United States. The proposed rule is part of a continuing All Other Countries 31,385 36,486 37,883 25 40.7 26 1,073program to allow the importation of foreign agricultural products that APHIS has determined are

without significant risk of introducing pests or diseases into the United States. Potentially Affected Smal l Entities Farms producing pears are classified within the North American Industry Classification System under Other Noncitrus Fruit Farming (NAICS 111 339). For this industry classification,
a business is considered to be a small entity if its annual receipts are not more than $750,000. 2 The average 2007 market value of crops sold by farms classified within Fruit and Tree Nut Farming (which includes Other Noncitrus Fruit Farming) was less than $188,000. 3 We infer that the majority

of farms producing pears, both sand pear and other types, are small entities. The 2007 Census of Agriculture also contains data on certain sub

- categories of fruit and tree nut farming operations , namely , small fami ly farms and farms having operators who belong to socially

disadvantaged groups. 4 S mall family farm s have gross farm cash income of less than $ 250 ,000
. Categories of socially disadvantaged groups are women , persons of Hispanic origin , American Indian or Alaska Native , Asian , African American , and Native Hawaiian or other Pacific. As shown in table 6 , 84 percent of fruit and tree nut farms in 2007 were small family farms. We note that residential/lifestyle farms comprise d 40 percent of small family fruit and tree nut farms. For about 30 percent of the small family fruit and tree nut farms, the operators reported that they

were retired.

2 U.S. Small Business Administration, Table of Small Business Size Standards. http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf 3 2007 Census of Agriculture , Table 62
. Selected Characteristics of Farms by North American Indu stry Classification System: 2007 , http://www.agcensus.usda.gov/Publications/2007/Full_Report/usv1.pdf 4 For definitions and information, see : USDA ERS. Structure and Finances of U.S. Farms: Family Farm Report, 20 10 edition , EIB

- 66, July 2010

. http://www.ers.usda.gov/Publications/EIB66/EIB66.pdfTable 6 . Number and percentage of small famil y farms consisting of fruit and tree nut farming ,

2007 Number of fruit and tree nut farming farms 10,705 24,019 33,212 11,034 3,527 82,497 98,281 Percentage of Small Family Farms 13 29 40 13 4 100 n/a Percentage of Total Farms 11 24 34 11 4 84 100 Source: USDA NASS, 2007 Census of Agriculture. Note: A l imited resource farm is a small family farm that has gross sales of less than $100,000 (indexed after 2003), and a household income less than the poverty level for a family of four with two children or less than half the county median income. A retirement farm is a small family farm whose operators report they are retired (excludes limited resource farms operated by retired farmers). A residential/lifestyle farm is a small family farm whose operators report a major occupation other than farming (excludes limited resource farms whose operators report a major occupation other than farming ). A f arming occupation/lower

- sales farm is a small family farm with sales less than $100,000 w

hose operators report farming as their major occupation (excludes limite d resource farms whose operators report farming as their major occupation). A f arming occupation/higher

- sales farm is a small family farm with sales between $100,000 and $249,000 w hose operators report farming as their major occupation.

Table 7 shows the number and percentage of fruit and tree nut farms that had operators belonging to sociall y disadvantaged groups in 2007. Fourteen percent of fruit and tree nut farms had a woman as the principal operator. Overall, 16 percent of fruit and tree nut farm s had one or
more operators who belong ed to a sociall y disadvantaged group. Fifty- seven percent o f the farms having one or more operators who belong ed to a socially disadvantaged group had an operator who was of Spanish, Hispanic, or Latin origin.Table 7 . Number and percentage of farms consisting of fruit and tree nut farming for which one

or more operators belong to a socially disadvantaged group, 2007

Farms where the principal operator is female Farms

where an operator is of Spanish, Hispanic, or Latino origin Farms where

an operator reports race as American Indian or Alaska Native Farms

where an operator reports race as Asian Farms

where an operator reports race as Black or African American Farms

where an operator reports race as Native Hawaiian or Other Pacific Islander All Farms

with one or mo re operators belonging to a socially disadvantaged group Total

Number of Farms

Number of f arms with fruit and tree nut farming 13,876 8,871 1,304 4,163 836 335 15,509 98,281 Percentage of special operators 89 57 8 27 5 2 100 n/a Percentage of Total Farms 14 9 1 4 <1 <1 16 100 Source: USDA NASS, 2007 Census of Agriculture. Projected Reporting, Recordkeeping, and Other Compliance Requirement s Reporting and recordkeeping requirements associated with the proposed rule are discussed in the rule under the heading "Paperwork Reduction Act." There would be no compliance costs specific to this rule for U.S. small entities. Duplication, Overlap , or Co nflict with Existing Rules and Regulations APHI S has not identified any duplication, overlap, or conflict of the proposed rule with other Federal rules. Alternatives to minimize Significant Economic Impacts of the Rule We have insufficient information for evaluating the expected effects of the proposed rule for small entities. Inthe absence of evidence of possible significant economic impacts, we have not identified alternatives that would minimize such impacts.

### References

Census of Agriculture, 200 7, http://www.agcensus.usda.gov/Publications/2007/Full_Report/index.asp Global Trade Atlas. Retrieved (2011 , April ) , http://www.gtis.com/gta/default.cfm Pears
- py rus communis, py

rus p yri folia. (2004). Retrieved from http://www.fruit

crops.com/pear.html#production U.S. Small Business Administration. U.S . Small Business Administration: Table of Small Business Size Standards Match to North American Industry Classification System http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf