NOTICES
Plum Pox Virus Commercial Orchard Fruit Tree Indemnity Program
[30 Pa.B. 6608] The Department of Agriculture (Department) established the procedures and requirements pursuant to which it awards grants under the Plum Pox Virus Commercial Orchard Fruit Tree Indemnity Program (Program) by publication of a notice at 30 Pa.B. 4014 (August 5, 2000). In summary, the Program provides commercial stone fruit producers reimbursement for 15% of the losses they will sustain as a result of the destruction of peach trees, nectarine trees and other stone fruit trees as part of the Department's Plum Pox Virus (PPV) eradication effort. The Program complements a current initiative of the United States Department of Agriculture (USDA) to reimburse commercial stone fruit producers for 85% of these losses. Both the Program and its Federal counterpart use the same formula for calculating losses.
The following clarifications are made with respect to the referenced procedures and requirements:
1. Age of Trees. The referenced notice establishing the procedures and requirements for the Program contained a table that assigned a particular net present value (Net Present Value Table) to stone fruit trees based upon the age of the trees involved. Since stone fruit trees might grow for several years at a nursery before being planted in a commercial orchard, though, the ''age'' of a stone fruit tree shall be determined from the date it is planted at a commercial orchard. By way of example: If 2-year old stone fruit nursery stock is planted in a commercial orchard on May 1, 2000, it will not be considered to be 1 year of age until May 1 of 2001.
In addition, for purposes of calculating reimbursement under the Net Present Value Table the age of a stone fruit tree will increase by 1 year after each harvest of stone fruit from the tree. By way of example: Once fruit has been harvested from a 6-year old block of stone fruit trees, that block will be considered 7 years old for purposes of reimbursement under the Net Present Value Table.
2. Net Present Value of Trees that are Less Than 1 Year of Age. The referenced Net Present Value Table did not assign a net present value to stone fruit trees that are less than 1 year of age. The net present value of stone fruit trees that are planted in a commercial orchard and are less than 1 year of age shall be $2,827 per acre. This figure is consistent with the USDA's loss reimbursement formula.
3. Reimbursement for Inputs. Commercial orchard owners invest in pesticides, herbicides, labor and other ''inputs'' in preparing a stone fruit orchard to produce a crop. The notice establishing the procedures and requirements for the Program did not make provision for reimbursement of these inputs when--through Order of the Department--a stone fruit crop cannot be harvested. The Department will reimburse the owner of a commercial orchard for these lost inputs with respect to stone fruit trees that are 4 years of age or older. Stone fruit trees are generally considered to be pre-productive or non-bearing until they are 4 years of age or older. For example, trees planted in 1996 or earlier would be considered 4 years of age or older. The reimbursement for these lost inputs shall be as follows:
(a) If the Department issues an Order on or before July 1, requiring the removal and destruction of stone fruit trees that are 4 years of age or older, reimbursement for lost inputs shall be $699-per-acre.
(b) If the Department issues an Order after July 1, requiring the removal and destruction of stone fruit trees that are 4 years of age or older, reimbursement for lost inputs shall be $854-per-acre.
Once fruit is harvested from a block of stone fruit trees, that block is ineligible for reimbursement of input costs. This reimbursement for lost inputs shall be in addition to payments made in accordance with the Net Present Value Table. Reimbursement of input costs shall be effective for Treatment Orders issued after June 1, 2000.
Additional Information
Further information may be obtained by contacting the Pennsylvania Department of Agriculture, Attn: Lyle B. Forer, Director, Bureau of Plant Industry, 2301 North Cameron Street, Harrisburg, PA 17110-9408, (717) 772- 5203.
SAMUEL E. HAYES, Jr.,
Secretary
[Pa.B. Doc. No. 00-2216. Filed for public inspection December 22, 2000, 9:00 a.m.]
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