United States 

Department of 

Agriculture

Animal and 

Plant Health 

Inspection 

Service

February 2015

Initial Regulatory Flexibility Analysis

Proposed Rule

APHIS 2014-0099

RIN 0579-AE06

Importation of Tomato Plantlets in Approved 

Growing Media from Mexico

Policy & Program Development

Policy Analysis & Development
i

Summary

The proposed rule would allow the importation of tomato plantlets in approved growing 

media from Mexico into the continental United States. Currently, only tomato plantlets from 

Canada can be imported into the United States. The tomato plantlets from Mexico would be 

allowed to be imported only to APHIS-approved facilities under compliance agreement, and 

would be used only for fruit production, not for the selling of the imported plantlets themselves.

Data are not available on the production or trade for tomato plantlets. However, U.S. 

greenhouse (protected-culture) tomato production and import levels provide evidence of the 

expanding derived demand for tomato plantlets. In 2011, protected-culture tomatoes made up 40 

percent of the U.S. tomato supply, up from less than 10 percent in 2004; they now dominate the 

retail industry. The value of protected-culture tomato imports by the United States grew by twothirds between 2009 and 2013, in response to expanding consumer demand, from $795 million to 

$1.33 billion.

Protected-culture tomato producers are classified in the North American Industry

Classification System within Other Vegetable (except Potato) and Melon Farming (NAICS 

111219), for which the Small Business Administration small-entity standard is annual receipts of 

not more than $750,000. The average market value of agricultural products sold by operations in 

this industry in 2012 was about $314,000. While we are unable to determine the number of 

businesses that would be affected by the proposed rule, we can assume that most of them are 

small entities.

The proposed rule would enable U.S. producers of protected culture tomatoes to draw 

upon Mexican plantlet suppliers in addition to Canadian and domestic suppliers. The NPPO of 

Mexico has stated that, if this rule were finalized, they would expect the exportation of 
ii

approximately 4 million plantlets annually to the United States. It is unknown to what extent 

these tomato plantlets imported from Mexico will displace tomato plantlet imports from Canada, 

and we therefore cannot project the net increase in imports. If there were no import 

displacement, we think that the tomato plantlet imports from Mexico could result in an increase 

in U.S. protected-culture tomato production of between 5 and 10 percent. However, we 

understand that the U.S. protected-culture tomato industry is in favor of having an additional 

source of tomato plantlet imports besides those from Canada.
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Table of Contents

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

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

Reasons Action is Being Considered.................................................................................. 3

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

Projected Reporting, Recordkeeping, and Other Compliance Requirements..................... 4

Duplication, Overlap, or Conflict with Existing Rules and Regulations............................ 4

Alternatives to minimize Significant Economic Impacts of the Rule................................. 4
1

Introduction

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 initial regulatory flexibility analysis describes expected impacts of this 

proposed rule on small entities, as required by section 603 of the Act.

The proposed rule would allow the importation of tomato plantlets in approved growing 

media from Mexico into the continental United States. The imported plantlets in growing media

would be required to have been produced and transported under a systems approach to pest risk 

mitigation, as specified in a bilateral operational workplan. The imported plantlets would be 

allowed to be imported only to APHIS-approved facilities under compliance agreement, and 

would be used only for fruit production. No increase of these plants such as by cuttings, 

grafting, or seeds would be authorized, and distribution of the imported tomato plantlets beyond 

the confines of the importing facility would be prohibited. While U.S. greenhouse producers of 

organic tomatoes have expressed interest in gaining access to organic tomato plantlets from 

Mexico, the proposed action is not restricted to organic plants.

Data are not available on the production or trade for tomato plantlets. However, U.S. 

greenhouse tomato production and import levels provide evidence of the expanding derived

demand for tomato plantlets.

The North American greenhouse (more generally termed protected-culture) tomato 

industry began in earnest in the late 1990s. By 2005, U.S., Mexican, and Canadian growers were

producing nearly equal amounts of protected-culture tomatoes for the U.S. market. Since then, 

production has increased in all three countries, but Mexico has emerged as the dominant supplier 
2

to the United States, with 62 percent of the market in 2011.1 The value of protected-culture 

tomato imports by the United States grew by two-thirds between 2009 and 2013, in response to 

rapidly expanding consumer demand, from $795 million to $1.33 billion.2

In 2011, protected-culture tomatoes made up 40 percent of the U.S. tomato supply, up 

from less than 10 percent in 2004; they now dominate the retail industry.

3 U.S. production of

protected-culture tomatoes totaled 1.17 billion pounds in 2013.

4

 

Allowing tomato plantlets in growing media to be imported from Mexico would provide 

U.S. greenhouse producers with additional plantlet sources. Currently, tomato plantlets in 

growing media (and bare-rooted plants) are only permitted entry into the United States from 

Canada. The proposed rule would enable U.S. producers of protected-culture tomatoes to draw 

upon Mexican plantlet suppliers in addition to Canadian and domestic operations.

The quantity of tomato plantlets expected to be initially imported from Mexico is about 

four million per year. We do not know the extent to which these plantlets will displace tomato 

plantlet imports from Canada and therefore cannot project the net increase in imports. If there 

were no import displacement, the tomato plantlet imports from Mexico could result in an 

increase in U.S. protected-culture tomato production of between 5 and 10 percent.

5

 However, a

principal industry objective is to establish an alternative to Canadian imports; the net impact of 

the proposed rule on U.S. protected-culture tomato production is not expected to be this large. 

 

1 USDA ERS, Amber Waves, February 2013. 

2 Department of Commerce, compiled by U.S. International Trade Commission, special request.

3 USDA ERS, Amber Waves, February 2013.

4 USDA ERS, Vegetables and Pulses Outlook, September 2014, 

http://www.ers.usda.gov/media/1680444/vgs-354.pdf

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Four million tomato plantlets * 16 to 30 pounds of tomatoes per plant (http://aggiehorticulture.tamu.edu/greenhouse/hydroponics/economics.html) = 64 million to 120 million pounds of 

protected-culture tomatoes; 64 million/1.17 billion = 5.5 percent, and 120 million/ 1.17 billion = 10.3 

percent. 
3

Reasons Action is Being Considered

APHIS has determined that the current prohibition on imports of tomato plantlets in

approved growing media from Mexico is unnecessary because the pest risks can be successfully 

mitigated. Currently, tomato plantlets in growing media are not admissible into the United States 

except from Canada. The imported plantlets in approved growing media would be required to 

have been produced and transported under a systems approach to pest risk mitigation, and could 

only be imported to APHIS-approved facilities in the continental United States under compliance 

agreement for fruit production. The proposed rule is part of a continuing program 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, if appropriate mitigation measures are 

applied.

Objectives of and Legal Basis for the Rule

The objective of the rule is to allow tomato plantlets in approved growing media from 

Mexico to be imported into the continental United States under certain conditions. 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. 

Potentially Affected Small Entities

The U.S. greenhouses that would have access to tomato plantlets in growing media from 

Mexico are the businesses that would be directly affected by the proposed rule. They are 

classified in the North American Industry Classification System within Other Vegetable (except 
4

Potato) and Melon Farming (NAICS 111219). The Small Business Administration small-entity

standard for this industry is annual receipts of not more than $750,000.

According to the 2012 Census of Agriculture, that year the average market value of 

agricultural products sold by operations classified within NAICS 111219 was about $314,000.6 

While we are unable to determine the number of businesses that would be affected by the 

proposed rule, we can assume that most of them are small entities. 

Projected Reporting, Recordkeeping, and Other Compliance 

Requirements

Reporting and recordkeeping requirements associated with the proposed rule are 

discussed in the rule under the heading "Paperwork Reduction Act."

Duplication, Overlap, or Conflict with Existing Rules and 

Regulations

APHIS 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

Based on our review of available information, APHIS does not expect effects of the 

proposed rule for small entities would be significant. As noted earlier in this document, while 

about four million plantlets would be exported annually from Mexico to the United States if this 

rule is finalized, we know that a principal objective of the U.S. protected-culture tomato industry

 

6

2012 Census of Agriculture, 

http://www.agcensus.usda.gov/Publications/2012/Full_Report/Volume_1,_Chapter_1_US/st99_1_051_05

2.pdf
5

is to establish an alternative to Canadian imports. However, we do not know the extent to which 

these plantlets would displace tomato plantlet imports from Canada. We also lack information 

about the size and structure of the U.S. tomato plantlet industry and the number of tomato 

plantlet producers that qualify as small entities, and have, accordingly, prepared an initial 

regulatory flexibility analysis. Based on the information we do have, and the apparent absence 

of significant economic impacts, we have not identified alternatives that would minimize such 

impacts. We welcome informed public comment in order to better determine the extent to which 

U.S. small entities may be affected by this proposed rule.