### United States

Department of Agriculture Animal and Plant Health Inspection Service February 2011 Analysis in Support of Certification that the

Rule will not have a Significant Economic Impact on a Substantial Number of Small Enti ties

Interim Rule APHIS - 2011 - 00 05 RIN 0579 - [XXXX]
Brucellosis in Swine: Add Texas to List of Validated Brucellosis - Free States

Policy & Program Development Policy Analysis & Development0



### Summary Swine brucellosis is a contagious disease that cau ses abortions in sows and infertility in boars. There is no treatment for the disease and no effective vaccine. T his rule upgrade s the status of Texas from Class A to Class Free. Breeding swine moved interstate other than for slaughter that originate fr om a Class A State and a herd that is not validated brucellosis

- free are required to have tested negative to an official test for brucellosis within 30 days prior to interstate
movement. Listing Texas as Class Free will allow swine producers in Texas to f orgo this test when moving non

- slaughter sows and boars in interstate commerce

. Brucellosis testing, including veterinary fees and handling expenses, costs about $ 3 to $ 5 per test. The average per head value of a breeding sow was $ 263 in 20 10

. Thus, the cost of testing represents about 1 to 2 percent of the average value of a tested animal. Total savings by Texas swine operations due to removal of the testing requirement is estimated to range between $123,750 and $206,250, based on the $3 to $5 range in test costs and an estimated 41,250 non

slaughter sows and boars moved interstate.
R eceipts of Texas farms from the sale of swine averaged $58,600 per operation , based on a per head value of $85 . Eight y - three percent of the farms had annual receipts that a veraged about $400, and over 99 percent of the farms had annual receipts that averaged less than $1,900.
The small

- entity standard for swine farms is annual receipts of not more than $750,000. Clearly, most swine operations in Texas are small entities.
T he extent to which a particular operation will benefit from the interim rule will depend upon the number of non

- slaughter sows and boars moved interstate. While nearly all Texas farms that sell swine are small, the rule will not have a significant economi c impact on a substantial number of small entities.1



### Introduction

Swine brucellosis is a contagious disease caused by the bacteri um , Brucella suis

. It is very similar to the organism that causes brucellosis in cattle. Swine brucellosis causes abortions in sows and infertility in boars. Although this disease does not kill swine outright, it causes losses in reproduction that decrease profits for swine producers. There is no treatment for the disease and no effective vaccine . Depopulation of infected an d exposed animals is the only way to contain and eradicate the disease. Humans can contract swine brucellosis by handling infected swine tissues

. The State of Texas has met all the requirements for obtaining Class Free status for swine brucellosis , and t h is rule upgrade s the status of Texas from Class A to Class Free. Breeding swine moved interstate other than for slaughter that originate from a Class A State and a herd that is not validated brucellosis

- free are required to have tested negative to an offic ial test for brucellosis within 30 days prior to interstate movement. Listing Texas as Class Free will allow swine producers in Texas to forgo this test when moving non

- slaughter sows and boars in interstate commerce

. When an agency promulgates a rule, it is required by the Regulatory Flexibility Act (RFA) to prepare a regulatory flexibility analysis, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. The analysis that follows p rovides a factual basis for certification, as required in Section 605(b) of the RFA.2



### Potential Impact on Small Entities
At the end of 2007, there were 1,155,790 swine in Texas on 4,471 farms. 1 S wine used or intended to be used for breeding numbered 94,918 head, that is, ab out 8.2 percent of the State’s
swine population

. The number of Texas swine sold during 2007 was 2,794,334 head. Although i t is not known how many of these animals were moved interstate , it has been estimated that about 300,000 swine were shipped from Texas to other States for breeding and feeding purposes in
2001

. 2 As reported in the Census of Agriculture, Texas swine sold in 2002 numbered 1,659,834 head. Assuming the number of swine sold in 2001 was similar to the number sold in 2002, non slaughter i nterstate sales would have comprised about 18 percent of all Texas swine sales in
2001

. 3 If, similarly, about 18 percent of Texas swine sold in 2007 were moved interstate and assuming that the percentage of swine sold that were sows and bo ars was similar to the share of the Texas swine inventory in 2007 comprised of breeding stock (8.2 percent), then about 41,250 sows and boars would have been required to test negative to an official brucellosis test before moving interstate in 2007

. 4 This estimate of the number of tested animals does not take into
account swine moved interstate that would not have require d testing because the operations ha d validated brucellosis

- free herds.

1 These statistics are from the 2007 Census of Agriculture

– State Data, Table 12. http://www.agcensus.usda.gov/Publicat ions/2007/Full_Report/Volume_1,_Chapter_2_US_State_Level/st99_2_012_ 012.pdf 2 USDA ERS. Interstate Livestock Movements: State

- to

- State Flows. http://www.ers.usda.gov/Data/InterstateLivestockMovements/View.asp?Geog=Texas&Species=Hog&Flow=Out 3 300,000 swine moved interstate divided by 1,659,834 swine sold. 4 A total of 2,794,334 Texas swine sold in 2007, multiplied by 18 percent (assumed shar e that were moved interstate other than to slaughter), multiplied by 8.2 percent (assumed share that were sows and boars).3

Brucellosis testing, including veterinary fees and handling exp enses, costs about $ 3 to $ 5 per test in 2010

. The average per head value of a breeding sow was $ 263 in 20 10

. Thus, the cost of testing represents about 1 to 2 percent of the average value of a tested animal. Total savings due to removal of the testing r equirement is estimated to range between $123,750 and $206,250,
based on the $3 to $5 range in test costs and an estimated 41,250 non - slaughter s ows and boars moved interstate. The Small Business Administration has established guidelines for determining th e number of firms considered small under the Regulatory Flexibility Act. There were 4,053 Texas farms that sold swine in 200 7

. 5 A swine operation is considered small if it has annual receipts of $750,000 or less. 6 Annual r eceipts of Texas farms from the sale of swine averaged $58,600 , based on a per head value of $85. Eighty

- three percent of the farms had annual receipts that averaged about $400 , and over 99 percent of the farms had annual receipts that averaged less than $1,900

. (The remaining 0.7 per cent of Texas farms , 28 operations , had receipts that averaged about $8.2 million.) Clearly, most swine operations in Texas are small entities.
T he interim rule will benefit Texas swine producers who sell non - slaughter boars and sows interstate (other tha n those Texas swine farms that a lready have validated brucellosis

- free herds) . They will be able to forgo testing costs that are equivalent to between 1 and 2 percent of the average value of a breeding sow. The extent to which a particular operation will benefit from the interim rule will depend upon the number of non - slaughter s ows and boars moved interstate

. Although nearly all Texas farms t hat sell swine are small, the rule will not have a significant economic impact on a substantial number of small e ntities.

5 2007 Census of Agriculture. 6 SBA, Table of Small Business Size Standards, Effective October 1, 2007.