[Federal Register Volume 59, Number 199 (Monday, October 17, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25610]
Federal Register / Vol. 59, No. 199 / Monday, October 17, 1994 /
[[Page Unknown]]
[Federal Register: October 17, 1994]
VOL. 59, NO. 199
Monday, October 17, 1994
DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection Service
9 CFR Part 51
[Docket No. 94-093-1]
Brucellosis in Cattle and Bison; Payment of Indemnity
AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Interim rule.
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SUMMARY: We are increasing the amount of Federal indemnity for
brucellosis reactor and brucellosis-exposed cattle and bison destroyed
during herd depopulation, and are increasing the amount of Federal
indemnity for cattle and bison destroyed after being sold or traded
from a herd that is subsequently found to be affected with brucellosis.
These actions are necessary to give owners sufficient financial
incentive to promptly destroy brucellosis-affected cattle and bison, in
order to accelerate the eradication of brucellosis in the United States
and protect other cattle and bison from brucellosis.
DATES: Interim rule effective October 17, 1994. Consideration will be
given only to comments received on or before December 16, 1994.
ADDRESSES: Please send an original and three copies of your comments to
Chief, Regulatory Analysis and Development, PPD, APHIS, USDA, P.O.
Drawer 810, Riverdale, MD 20738. Please state that your comments refer
to Docket No. 94-093-1. Comments received may be inspected at USDA,
room 1141, South Building, 14th Street and Independence Avenue SW.,
Washington, DC, between 8 a.m. and 4:30 p.m., Monday through Friday,
except holidays. Persons wishing to inspect comments are requested to
call ahead on (202) 690-2817 to facilitate entry into the comment
reading room.
FOR FURTHER INFORMATION CONTACT: Dr. M.J. Gilsdorf, National
Brucellosis Epidemiologist, Cattle Diseases and Surveillance Staff,
Veterinary Services, APHIS, USDA, room 731, Federal Building, 6505
Belcrest Road, Hyattsville, MD 20782, (301) 436-4918.
SUPPLEMENTARY INFORMATION:
Background
Brucellosis, also called Bang's disease or undulant fever, is a
serious infectious disease of cattle, bison, and other species,
including humans, caused by bacteria of the genus Brucella. Brucellosis
in cattle and bison is characterized by fever, sterility, slow
breeding, abortion, and loss of milk production. To help prevent the
spread of brucellosis, the regulations in 9 CFR part 51 (referred to
below as the regulations) provide for payment of Federal indemnity to
owners of certain animals destroyed because of brucellosis. The payment
of indemnity is intended to provide owners with financial incentive to
promptly destroy animals infected with or exposed to brucellosis.
Because the continued presence of brucellosis in a herd seriously
threatens the health of animals in that herd and other herds, the
prompt destruction of brucellosis-affected cattle or bison is critical
if brucellosis eradication efforts in the United States are to succeed.
Under Sec. 51.3(a)(2)(i) of the regulations, the Administrator of
the Animal and Plant Health Inspection Service may authorize the
payment of Federal indemnity by the United States Department of
Agriculture to any owner whose herd of cattle or bison is destroyed
because of brucellosis. Section 51.3(a)(2)(ii) of the regulations sets
forth the amount of Federal indemnity that will be paid for such cattle
and bison. Under the regulations prior to the effective date of this
interim rule, in all of the United States except Alaska, Hawaii, Puerto
Rico, and the Virgin Islands of the United States, the amount of
Federal indemnity paid per animal could not exceed $250 for any
registered cattle or nonregistered dairy cattle, $150 for any
nonregistered cattle other than dairy cattle, and $150 for any bison.
In Alaska, Hawaii, Puerto Rico, and the Virgin Islands of the United
States, the amount of Federal indemnity could not exceed $250 for any
cattle or bison.
The rates for indemnity payments prior to this interim rule have
made a number of owners reluctant to destroy their herds, due to the
financial loss that could result from selling an animal at slaughter
prices, rather than breeding prices. For instance, in 1993, the
slaughter value of nonregistered cattle other than dairy cattle
averaged approximately $475 per head, whereas the cost of replacing
such an animal for breeding averaged close to $770 per head. Therefore,
even by combining slaughter value with the $150 Federal indemnity
payment, an owner suffered a significant loss per head when
depopulating. Owners of dairy cattle experienced even greater losses
when depopulating. Combining the average slaughter value of
approximately $475 and the Federal indemnity payment of $250 provided
an owner with approximately $725 per head, compared to approximately
$1,160 in replacement cost.
The reluctance of some owners to depopulate their herds resulted in
increased exposure of cattle and bison to infected animals and
increased incidence of brucellosis infection. This, in turn, has
resulted in increased brucellosis eradication costs.
Therefore, in this interim rule, we are increasing the amount of
indemnity that will be paid for cattle and bison destroyed during herd
depopulation. Under this interim rule, in States other than Class Free
States, the amount of Federal indemnity shall not exceed $250 for any
nonregistered cattle other than dairy cattle, and $250 for any bison.
For any registered cattle, nonregistered dairy cattle, or, in Class
Free States, any cattle or bison from herds affected with brucellosis,
the amount of Federal indemnity shall not exceed the lesser of 95
percent of appraised value, minus salvage value, or $750. These rates
shall apply to brucellosis reactor cattle and bison, as well as to
other sexually intact cattle and bison in the herd. (See discussion
below under the heading ``Brucellosis-Exposed Female Calves.'') The
appraisal is to be conducted by an independent appraiser assigned by
the Administrator. The higher indemnity rates for nonregistered cattle
other than dairy cattle in Class Free States are necessary to ensure
that brucellosis is not spread in those States that have been freed of
the disease.
Additionally, we will pay these new rates to owners who have
brucellosis-exposed cattle or bison destroyed that were previously sold
or traded from a herd that, subsequent to the sale or trade, is found
to be affected with brucellosis. On April 26, 1994, we published in the
Federal Register (59 FR 21634-21635, Docket No. 93-023-2) a final rule
that provided for payment of indemnity for the destruction of such
animals. The amount of indemnity was the same as that provided for
cattle and bison destroyed as part of herd depopulation under
Sec. 51.3(a)(2)(ii). Providing for payment of indemnity for these
animals was considered necessary to help protect the herd to which the
cattle or bison were moved, by encouraging prompt destruction of
potentially infected additions to the herd. In order to provide owners
with the financial incentive to destroy such potentially infected
cattle and bison, we are amending Sec. 51.3(a)(4) to provide the same
rates of indemnity for these cattle and bison as for cattle and bison
destroyed as part of herd depopulation.
Brucellosis-Exposed Female Calves
We are also amending Sec. 51.3 to raise the maximum allowable
indemnity payment for exposed female calves destroyed during herd
depopulation. Prior to the effective date of this interim rule, the
regulations provided that the Administrator could authorize the payment
of Federal indemnity of not more than $50 per head to any owner whose
exposed female calf or calves were destroyed because of brucellosis.
(Under Sec. 51.1 of the regulations prior to the effective date of this
interim rule, exposed female calf meant ``a female bovine less than 6
months of age which is nursed by a brucellosis reactor at the time such
reactor is condemned.'')
The indemnity rate for exposed female calves was lower than that
for older cattle due to the relatively low value of calves. However,
this relatively low rate has discouraged owners from considering whole
herd depopulation. Therefore, to encourage the prompt destruction of
all potentially infected animals in a herd, we are amending
Sec. 51.3(a)(3) to provide that the maximum $50 indemnity payment for a
female calf exposed to brucellosis does not apply to female calves that
are destroyed during herd depopulation. The indemnity for exposed
female calves destroyed during herd depopulation will be the same as
that for other cattle and bison included in herd depopulation.
Also, in this interim rule, we are amending Sec. 51.3(a)(3) of the
regulations to clarify that indemnity payments for exposed female
calves shall apply only to sexually intact female calves. Female
bovines that are not sexually intact are not capable of transmitting
brucellosis, and their destruction is not necessary to prevent the
spread of the disease. Our policy, therefore, has been not to pay
indemnity for female calves that are not sexually intact. We are adding
a definition of sexually intact exposed female calf to Sec. 51.1 to
mean a female bovine less than 6 months of age that is nursed by a
brucellosis reactor at the time such reactor is condemned, and that has
not been altered to make it incapable of reproduction. Because
brucellosis is a disease of sexually intact animals, steer calves,
which have been castrated, do not pose a risk of transmitting
brucellosis. Because male calves can be more easily altered than female
calves, and it is economically more advantageous to owners to alter
such male calves than to have them destroyed, the regulations do not
specifically address the destruction of exposed male calves.
Acceleration of Brucellosis Eradication
We estimate that, under the indemnity payment rates provided for
prior to the effective date of this interim rule, it would have taken 6
to 12 years to reach the goal of complete eradication of brucellosis
from domestic cattle and bison in the United States, with a cost to the
Federal Government of between $14,619,000 and $25,975,000. In contrast,
because the provisions of this interim rule will encourage the rapid
depopulation of herds known to be affected with brucellosis, and
therefore increase program effectiveness, total eradication of
brucellosis from domestic cattle and bison could be accomplished by
1998, with projected costs of approximately $3,290,000. Thus, we expect
the approximate cost savings to the Federal Government from the
accelerated program to be between $11.3 million and $22.7 million.
Immediate Action
The Administrator of the Animal and Plant Health Inspection Service
has determined that there is good cause for publishing this interim
rule without prior opportunity for public comment. Immediate action is
necessary to prevent the spread of brucellosis that might occur if
owners of cattle and bison were to cease entirely the depopulation of
herds affected with the disease.
Under normal conditions, owners of cattle and bison affected with
brucellosis are most willing to depopulate their herds in the fall,
because steer calves are usually old enough to wean in the fall, and
depopulating in the fall saves the expense of buying feed for the
winter. However, if the increase in indemnity payments provided for in
this rule were to be effected using proposed rulemaking, owners, in
anticipation of an increase, would likely refuse to depopulate until
the rule is made final. This would cause a cessation of the
depopulation of affected herds for several months, which would
seriously hinder eradication efforts and increase the risk of the
spread of brucellosis.
Because prior notice and other public procedures with respect to
this action are impracticable and contrary to the public interest under
these conditions, we find good cause under 5 U.S.C. 553 to make it
effective upon 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. It 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 interim rule has been reviewed under Executive Order 12866.
The rule has been determined to be not significant for purposes of
Executive Order 12866, and, therefore, has not been reviewed by the
Office of Management and Budget.
In this interim rule, we are increasing the amount of Federal
indemnity for brucellosis reactor and brucellosis-exposed cattle and
bison destroyed during herd depopulation, and are increasing the amount
of Federal indemnity for cattle and bison destroyed after being sold or
traded from a herd that is subsequently found to be affected with
brucellosis. Under this interim rule, in States other than Class Free
States, the amount of Federal indemnity shall not exceed $250 for any
nonregistered cattle other than dairy cattle, and $250 for any bison.
For any registered cattle, nonregistered dairy cattle, or, in Class
Free States, any cattle or bison from herds affected with brucellosis,
the amount of Federal indemnity shall not exceed the lesser of 95
percent of appraised value, minus salvage value, or $750. Prior to this
interim rule, indemnity paid per animal could not exceed $250 for any
registered cattle or nonregistered dairy cattle, $150 for any
nonregistered cattle other than dairy cattle, and $150 for any bison.
In Alaska, Hawaii, Puerto Rico, and the Virgin Islands of the United
States, the amount of Federal indemnity could not exceed $250 for any
cattle or bison.
In 1993, beef and cull dairy cows sold for slaughter brought an
average of $476 per 1,000-pound animal. The replacement cost of a steer
or heifer averaged $768 in 1993, while a dairy herd replacement cow
averaged $1,160.
Under Federal regulations, owners cannot be required to depopulate
their herds because of brucellosis. However, because having diseased
animals and/or having a herd under quarantine creates a severe
competitive disadvantage for an owner, we expect the increase in
indemnity rates provided for in this interim rule to encourage more
owners to agree to whole herd depopulation.
As of June 30, 1994, there were 204 herds under quarantine for
brucellosis. These include 200 beef herds with a total of approximately
10,000 head of cattle and 4 dairy herds with a total of about 5,000
head. All of the owners of the beef herds that are under quarantine,
but none of the owners of the dairy herds, can be considered small
entities (annual gross receipts of $0.5 million or less, according to
Small Business Administration size standards). There are no registered
herds under quarantine. The approximately 15,000 head of cattle under
quarantine represent less than .015 percent of the total cattle
population in the United States.
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 12778
This rule has been reviewed under Executive Order 12778, Civil
Justice Reform. This rule (1) Preempts all State and local laws and
regulations that are in conflict 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
This document contains no information collection or recordkeeping
requirements under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501
et seq.).
List of Subjects in 9 CFR Part 51
Animal diseases, Cattle, Hogs, Indemnity payments, Reporting and
recordkeeping requirements.
Accordingly, 9 CFR part 51 is amended as follows:
PART 51--ANIMALS DESTROYED BECAUSE OF BRUCELLOSIS
1. The authority citation for part 51 continues to read as follows:
Authority: 21 U.S.C. 111-113, 114, 114a, 114a-1, 120, 121, 125,
134b; 7 CFR 2.17, 2.51, and 371.2(d).
2. Section 51.1 is amended by removing the definition of exposed
female calf, and adding a definition of sexually intact exposed female
calf, in alphabetical order, to read as follows:
Sec. 51.1 Definitions.
* * * * *
Sexually intact exposed female calf. A female bovine less than 6
months of age that is nursed by a brucellosis reactor at the time such
reactor is condemned, and that has not been altered to make it
incapable of reproduction.
* * * * *
3. In Sec. 51.3, paragraph (a)(1), the second sentence is amended
by removing the words ``The indemnity'' and adding in their place the
words ``Except for cattle and bison destroyed as part of whole herd
depopulation in accordance with paragraph (a)(2)(i) of this section,
the indemnity''; paragraph (a)(2)(i) is amended by removing the last
sentence; paragraph (a)(2)(ii) is revised to read as set forth below;
paragraph (a)(3) is amended by revising the third sentence to read as
set forth below; and, in paragraph (a)(4), the fourth and fifth
sentences are removed and three new sentences are added in their place
to read as set forth below.
Sec. 51.3 Payment to owners for animals destroyed.
* * * * *
(a) * * *
(2) * * *
(ii) Amount of Federal indemnity. Payments of Federal indemnity
shall be made at the rates in effect at the time the Administrator
approves depopulation for the herd. In States other than Class Free
States, the amount of Federal indemnity shall not exceed $250 for any
nonregistered cattle other than dairy cattle, and $250 for any bison.
For any registered cattle, nonregistered dairy cattle, or, in Class
Free States, any cattle or bison from herds affected with brucellosis,
the amount of Federal indemnity shall not exceed the lesser of 95
percent of appraised value, minus salvage value, or $750. The appraisal
shall be conducted by an independent appraiser assigned by the
Administrator.
(3) * * * Except for sexually intact exposed female calves
destroyed as part of herd depopulation under paragraph (a)(2)(ii) of
this section, the indemnity for sexually intact exposed female calves
destroyed because of brucellosis shall not exceed $50 per head. * * *
(4) * * * In States other than Class Free States, the amount of
Federal indemnity shall not exceed $250 for any nonregistered cattle
other than dairy cattle, and $250 for any bison. For any registered
cattle, nonregistered dairy cattle, or, in Class Free States, any
cattle or bison from herds affected with brucellosis, the amount of
Federal indemnity shall not exceed the lesser of 95 percent of
appraised value, minus salvage value, or $750. The appraisal shall be
conducted by an independent appraiser assigned by the Administrator. *
* *
* * * * *
Done in Washington, DC, this 11th day of October 1994.
Lonnie J. King,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 94-25610 Filed 10-14-94; 8:45 am]
BILLING CODE 3410-34-P
