Brucellosis; Increased Indemnity for Cattle and Bison

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 51

[Docket No. 98-016-2]

Brucellosis; Increased Indemnity for Cattle and Bison

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

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SUMMARY: We are adopting as a final rule, with two changes, an interim

rule that amended the regulations governing Federal indemnity paid

under the brucellosis eradication program to increase the amount of

indemnity that may be paid for certain cattle and bison destroyed

because of brucellosis. The interim rule described two indemnity

methods--an appraisal method and a fixed-rate method--from which owners

of certain animals approved for destruction may choose. As amended by

this document, the rule now allows owners to receive Federal indemnity

for unweaned, neutered calves in herds approved for depopulation, and

the fixed-rate indemnity method now accounts for the higher value of

registered beef cattle and dairy cattle compared to nonregistered beef

cattle and bison. This action will provide sufficient financial

incentive for cattle and bison owners to depopulate brucellosis-

affected herds. The continued existence of these herds increases the

risk of disease spread and prolongs the eradication process.

EFFECTIVE DATE: September 8, 1998.

FOR FURTHER INFORMATION CONTACT: Dr. Valerie Ragan, Senior Staff

Veterinarian, National Animal Health Programs Staff, VS, APHIS, 4700

River Road Unit 36, Riverdale, MD 20737-1231, (301) 734-3754.

SUPPLEMENTARY INFORMATION:

Background

The regulations in part 78 of title 9 of the Code of Federal

Regulations (CFR) govern the interstate movement of cattle, bison, and

swine to help prevent the interstate spread of brucellosis, a

contagious disease affecting animals and humans caused by bacteria of

the genus Brucella. In humans, brucellosis initially causes flulike

symptoms, but the disease may develop into a number of chronic

conditions, such as arthritis. In cattle and bison, brucellosis causes,

among other things, decreased milk production and loss of young through

abortion or birth of weak calves. Humans can be treated for brucellosis

with antibiotics; there is no feasible means of curing brucellosis in

food animals.

The regulations in part 78 are part of a cooperative Federal and

State program, administered by the Animal and Plant Health Inspection

Service (APHIS), U.S. Department of Agriculture (USDA), to eradicate

brucellosis from the United States. Program officials are striving to

eradicate the field strain of Brucella abortus from domestic cattle and

bison herds by the end of December 1998. Among other things, the

regulations in part 78 provide a system for classifying States or

portions of States (areas) according to the rate of B. abortus

infection present and the general effectiveness of the brucellosis

control and eradication program in the State or area. The

classifications are Class Free, Class A, Class B, Class C, and

quarantined States and areas, with Class Free States being those in

which there has been no finding of brucellosis in cattle or bison for

the 12 months preceding classification and quarantined States and areas

being those States and areas with the highest rates of brucellosis. As

of July 31, 1998, there were only 8 known affected cattle herds and 1

known affected bison herd, and APHIS had declared 43 States, Puerto

Rico, and the U.S. Virgin Islands free of the disease.

Brucellosis is commonly transmitted to susceptible animals by

direct contact with infected animals. The disease is also transmitted

to susceptible animals in contact with an environment that has been

contaminated by discharges from infected animals. Infected pregnant

cows may discharge billions of Brucella bacteria at calving or

abortion. Although it is not common, infected bulls can spread the

disease to cows during breeding. Because brucellosis is transmitted by

sexually intact animals, steers and spayed heifers do not pose a risk

of transmitting brucellosis.

The basic approach to brucellosis eradication in cattle and bison

has been to test cattle and bison for infection and send sexually

intact infected and exposed animals to slaughter. Brucellosis-exposed

cattle and brucellosis-exposed bison have a high probability of

contracting brucellosis, and may, in fact, be contagious before they

react to an official test for 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

sexually intact brucellosis-affected cattle or bison is critical to the

success of the eradication program.

To encourage destruction of sexually intact cattle and bison that

are infected with or that have been exposed to brucellosis, USDA pays

Federal indemnity to owners of certain animals that are destroyed

because of brucellosis. The regulations governing indemnification under

the brucellosis eradication program are in 9 CFR part 51 (referred to

below as the regulations). Without sufficient financial incentive to

destroy exposed animals or depopulate affected herds, many owners

prefer to quarantine exposed animals or, when the exposed animals in a

herd cannot be isolated, the entire herd. Quarantining is a lengthy and

expensive process for both the owner and USDA. USDA has to pay to have

the quarantined herd tested periodically, until the herd is found to be

free of brucellosis, and the owner may not sell or move any animals

while they are under quarantine, except for slaughter, which provides

less revenue than sales for breeding purposes.

In an interim rule effective March 24, 1998, and published in the

Federal Register on March 31, 1998 (63 FR 15281-15284, Docket No. 98-

016-1), we amended the regulations to provide additional financial

incentive for owners to choose depopulation when USDA offers to pay

indemnity for destruction of a herd. We amended Sec. 51.3, ``Payment to

owners for animals destroyed,'' by changing the system of determining

the indemnity to be paid for all cattle and bison destroyed under

[[Page 47420]]

the program, except for individual reactors and sexually intact exposed

female calves that are not part of a whole-herd depopulation.

As a result of the interim rule, the Administrator may authorize

the payment of indemnity by USDA to any owner of the following animals

destroyed under the brucellosis eradication program: (1) Cattle and

bison identified as reactors as a result of a complete herd test and

any sexually intact exposed female calves (defined in Sec. 51.1 as ``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''), (2) cattle and bison

in a herd that has been approved by APHIS for depopulation, and (3)

brucellosis-exposed cattle and brucellosis-exposed bison that were

previously sold or traded from any herd that has, subsequent to the

sale or trade, been found to be affected with brucellosis.

For individual cattle and bison identified as reactors on a

complete herd test and for any sexually intact exposed female calves,

the interim rule provided a fixed indemnity rate: $250 for any

registered cattle and nonregistered dairy cattle and $50 for any bison,

nonregistered cattle other than dairy cattle, or sexually intact

exposed female calves. For cattle and bison herds that have been

approved for depopulation and for brucellosis-exposed cattle and

brucellosis-exposed bison that meet the conditions described above, the

interim rule allowed owners to choose an appraisal method or a fixed-

rate method for determining the indemnity amounts. As specified in the

interim rule, under the appraisal method, the indemnity is the

appraised market value of the animal minus the salvage value, and under

the fixed-rate method, the indemnity will not exceed $250 per animal.

The method chosen must be used for all animals to be destroyed.

According to the interim rule, owners have the option of having an

appraisal of their animals done prior to choosing the method used.

Appraisals are conducted by an independent appraiser selected by the

APHIS Administrator, and the cost of the appraisals is borne by APHIS.

In all cases, the amount of Federal indemnity is determined in

accordance with the regulations that were in effect on the date that

reactors were found or the date that depopulation or removal of

individual exposed animals was approved. Prior to payment of indemnity,

proof of destruction 1 must be furnished to the Veterinarian

in Charge. The Administrator shall authorize the maximum per-head

amount for animals approved for indemnity under the brucellosis

eradication program unless: (1) Sufficient funds are not available, (2)

the State or area in which the animal is located is under Federal

quarantine, (3) the State does not request payment of Federal

indemnity, or (4) the State requests a rate lower than the maximum.

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\1\ The Veterinarian in Charge shall accept any of the following

documents as proof of destruction: (a) A postmortem report; (b) a

meat inspection certification of slaughter; (c) a written statement

by a State representative, APHIS representative, or accredited

veterinarian attesting to the destruction of the animal; (d) a

written, sworn statement by the owner or caretaker of the animal

attesting to the destruction of the animal; (e) a permit (VS Form 1-

27) consigning the animal from a farm or livestock market directly

to a recognized slaughtering establishment; or (f) in unique

situations where the documents listed above are not available, other

similarly reliable forms of proof of destruction.

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We solicited comments concerning the interim rule for 60 days

ending June 1, 1998. We received 14 comments by that date. The comments

were from cattle industry associations, State departments of

agriculture, and veterinary associations. All of the commenters were in

favor of the intent of the interim rule: Many stated that increased

indemnification is important for the rapid completion of the

brucellosis eradication program because some producers have been

reluctant to depopulate their affected herds. However, all but one of

the commenters requested changes to the provisions of the interim rule.

The suggestions made in the comments are discussed in detail below.

The comments primarily dealt with two concerns. The most prevalent

suggestion was to allow cows and nursing calves in herds approved for

depopulation to be appraised as a pair because these animals are

generally worth more as a unit than as individuals.

The second most prevalent suggestion was to allow indemnity to be

paid for all unweaned calves in herds approved for depopulation and to

exempt any neutered calves from ``B'' branding and slaughter

requirements. (Currently, the regulations allow for indemnity to be

paid for sexually intact calves of both sexes but not for spayed

heifers or steers, with the exception of work oxen, because neutered

animals do not present a threat of spreading brucellosis. However, a

common herd-management practice involves neutering nursing calves,

especially the males. Owners of herds approved for depopulation are

reluctant to slaughter cows with nursing calves that have been neutered

because these calves are not eligible for indemnity and feeding

unweaned calves is a labor-intensive and frequently unsuccessful

undertaking.) The commenters expressed concern that owners of herds

approved for depopulation may either delay depopulation until the

neutered calves can be weaned (generally at about 6 months of age) or

opt to test the herd with removal of reactors until the herd qualifies

for release from quarantine. In either case, the herd remains as a

potential source of disease transmission for an extended period of

time. Several commenters stated that herd owners whose management

practices include neutering of calves are ``seriously disadvantaged''

by the provisions in the interim rule.

One commenter stated that it is important to pay adequate indemnity

to the owners of cows with nursing bull calves. The commenter stated

that 4 to 6 months after weaning, the nursing bull calf becomes a

valuable steer worth approximately $500. Without being offered adequate

indemnity, owners of exposed cows with nursing bull calves may resist

depopulation. The commenter further stated that either ``an indemnity

option to encourage such owners to depopulate should be provided'' or

the Federal fixed indemnity should be increased by $100 and the States

should be permitted to apply State indemnity funds to address this

issue.

One commenter suggested several other changes to the regulations.

(1) State clearly that bull calves are eligible for indemnity. These

calves would include weaned and unweaned bull calves that are to be

used for breeding and unweaned bull calves that are not to be used for

breeding. (2) Require destruction of all sexually intact males and

females for which indemnity is paid. However, bull calves under 18

months of age for which indemnity is paid could be castrated and not

destroyed and exempted from reactor tagging and ``B'' branding

requirements. (3) For the purpose of herd depopulation, define a

``steer'' as a castrated male that has been weaned and a ``not weaned

steer'' as a castrated male that has not been weaned. Allow indemnity

to be paid for not weaned steer calves and exempt these calves from

reactor tagging, ``B'' branding, and slaughter.

One commenter ``encourages APHIS to continue to vigorously attack

the remaining vestiges of this contagious disease affecting animals and

humans.'' The commenter urged that, as the

[[Page 47421]]

eradication program winds down, APHIS continue adequate monitoring and

surveillance at first points of market concentration and/or slaughter

to prevent reinfection of the Nation's cattle herd from undetected

animals.

Our final rule incorporates some of the suggestions made in the

comments.

We agree with the comments about the increased value of cow--calf

pairs over individual animals, and the appraisals made under the

brucellosis program already take into account the increased value of

such pairs. We further believe that adequate indemnity is currently

offered for both weaned and unweaned bull calves and that no

clarification needs to be made to the regulations regarding the

eligibility of bull calves for indemnity. We also do not believe that

definitions of steer and bull calves need to be added to the

regulations. However, we will amend the regulations to allow for

payment of indemnity for certain neutered calves as explained below.

In regard to the suggestions regarding unweaned calves in herds

approved for depopulation, we recognize the problems described

previously for herd owners caused by slaughtering cows that have

nursing calves. We have decided to offer herd owners indemnity for

unweaned, neutered cattle and bison in herds approved for depopulation.

We are changing the regulations in paragraph (d) of Sec. 51.9, ``Claims

not allowed,'' to allow for such payment. However, for reasons

described below, we are not changing our regulations to incorporate the

suggestion to allow indemnity to be paid for these calves but not

require them to be destroyed.

As with all other animals for which Federal indemnity is provided

under the brucellosis eradication program, we will require that owners

of unweaned, neutered cattle and bison in herds approved for

depopulation send these unweaned calves to slaughter or otherwise

destroy them in accordance with the regulations in order to receive

indemnity for them. Although these animals do not pose a threat of

spreading brucellosis, we believe that it is important to require their

destruction because we do not want to establish a situation in which it

is financially beneficial for owners to have brucellosis infection in

their herds. By providing indemnity for these calves and then allowing

the owners to keep them, the possibility exists that the owners could

profit from this action if the animals are raised and then sold at a

later date. As stated previously, our goal in providing indemnification

to owners under the brucellosis eradication program is to provide

sufficient financial incentive to encourage destruction of infected and

exposed animals. Therefore, we are not amending the requirement in

Sec. 51.3 of the regulations that owners must provide proof of

destruction of their animals in order to collect Federal indemnity for

them. We are also not amending the requirements in Sec. 51.5, which

specifies methods of identification, including an option for ``B''

branding, for animals to be destroyed. Owners who choose to seek

Federal indemnity for unweaned, neutered calves in herds approved for

depopulation must identify and move these calves to slaughter in

accordance with Sec. 51.5 of the regulations and provide proof of

destruction for them in accordance with Sec. 51.3 of the regulations.

In regard to the comment concerning continued efforts by APHIS to

identify and eliminate the last vestiges of brucellosis, we recognize

the need to ensure adequate monitoring and surveillance to detect and

eliminate any newly discovered sources of the disease and are committed

to continuing efforts in this regard.

We are also making a change to the interim rule to correct an

inadvertent omission. As stated previously, the interim rule specifies

that, for owners of herds and individual exposed animals that qualify

for either the appraisal method or the fixed-rate method of indemnity,

the indemnity rate under the fixed-rate method shall not exceed $250

per animal. For reasons explained below, the interim rule should have

stated that, under the fixed-rate system, the indemnity shall not

exceed $250 per animal for bison and nonregistered cattle other than

dairy cattle and $750 per animal for registered cattle and

nonregistered dairy cattle. We are amending the language in Sec. 51.3

(a)(2)(ii)(B) accordingly.

Prior to publication of the interim rule, the indemnity regulations

for herd depopulation in States other than Class Free States took into

account the higher value of dairy cattle and registered beef cattle in

comparison with bison and nonregistered beef cattle. The former

regulations provided that, in States other than Class Free States, the

indemnity for animals in herds depopulated because of brucellosis would

not exceed $250 per animal for any bison and nonregistered cattle other

than dairy cattle and the lesser of 95 percent of appraised value minus

salvage value or $750 for any registered cattle or nonregistered dairy

cattle. The regulations essentially provided a fixed-rate system with

an appraisal component in States other than Class Free States: For

regulated animals with comparatively lower values (bison and

nonregistered beef cattle), the indemnity was capped at $250; for

regulated animals with comparatively higher values (registered beef

cattle and dairy cattle), the indemnity was capped at $750.

As stated previously, under the new indemnity system established by

the interim rule, owners of herds approved for depopulation must choose

one of the two methods (appraisal or fixed rate) for all of the animals

in the herd. While the appraisal method obviously accounts for

differences in value of animals, the fixed-rate method ($250 per

animal) does not account for any differences in value. In changing the

former indemnity regulations to the interim rule, we inadvertently

omitted under the fixed-rate method the higher rates (up to $750 per

animal) that had been in place under the former regulations for

registered animals and dairy cattle in States other than Class Free

States.

Under the interim rule, owners of nonregistered beef cattle herds

are expected to choose the fixed-rate method because the rate of $250

per animal plus salvage value is fair compensation for these animals;

owners of registered beef cattle herds are expected to choose the

appraisal method because $250 per animal plus salvage value is

inadequate compensation for such animals. Owners of beef cattle herds

with a mixture of registered and nonregistered animals would have to

choose the appraisal method to obtain adequate compensation for all

their animals. However, in certain situations, the fixed-rate method

can be advantageous to both APHIS and the owner, i.e., APHIS can avoid

the cost of conducting the appraisals, and the owner can receive the

indemnity money quickly. To make the fixed-rate method under the

interim rule commensurate with the former indemnity regulations, which

accounted for the higher value of registered beef cattle and dairy

cattle, we are splitting the fixed-rate method into the two levels

described above. This change in the fixed-rate method should not cause

a significant difference in program expenditures and will facilitate

depopulation of affected herds with a mixture of registered and

nonregistered animals.

Therefore, based on the rationale set forth in the interim rule and

in this document, we are adopting the provisions of the interim rule as

a final rule with the changes discussed in this document.

This final rule also affirms the information contained in the

interim rule concerning Executive Orders 12372

[[Page 47422]]

and 12988 and the Paperwork Reduction Act. Because the emergency nature

of the interim rule made compliance with section 603 and timely

compliance with section 604 of the Regulatory Flexibility Act (5 U.S.C.

601 et seq.) impracticable, we are addressing the Regulatory

Flexibility Act in this document as set forth below.

Effective Date

This is a substantive rule that relieves restrictions concerning

the payment of indemnity for certain cattle and bison. Therefore,

pursuant to the provisions of 5 U.S.C. 553, it may be made effective

less than 30 days after publication in the Federal Register.

Executive Order 12866 and Regulatory Flexibility Act

This rule has been reviewed under Executive Order 12866. The rule

has been determined to be not significant for the purposes of Executive

Order 12866 and, therefore, has not been reviewed by the Office of

Management and Budget.

In its effort to eradicate brucellosis, an infectious and

contagious bacterial disease affecting animals and humans, the Federal

Government offers indemnity payments to owners of cattle and bison

destroyed because of brucellosis in accordance with the regulations in

9 CFR part 51. As completion of the brucellosis eradication program

approaches, whole-herd depopulation of affected herds has become

critical. Program officials recently determined that the Federal

indemnity payments needed to be increased to provide sufficient

incentive for owners to agree to depopulate herds. When whole-herd

depopulation is necessary, producers incur costs related not only to

animal loss, but also to transactions, including expenses of gathering

and loading, transportation, and commission fees. Furthermore, with the

loss of an entire herd, producers suffer production losses; dairy

operations lose milk production, and beef operations lose calves.

Registered herds may experience the irretrievable loss of valuable

breeding characteristics.

In an interim rule published in the Federal Register on March 31,

1998, (63 FR 15281-15284, Docket No. 98-016-1), APHIS increased the

Federal indemnity payments under the brucellosis eradication program to

better reflect the appraised value, or fair market value, of certain

animals destroyed under the program. Program officials believe that the

increased payments will provide the necessary inducement for producers

to depopulate affected herds and replace slaughtered animals with

healthier ones. The continued existence of these herds increases the

risk of disease spread and prolongs the eradication process.

In 1997, the total number of cattle and bison in the United States

was approximately 101.2 million, valued at about $53 billion. Gross

income of the U.S. cattle industry was about $31 billion, and total

U.S. earnings from exports of live cattle, beef, and veal was

approximately $2.6 billion. More than 97 percent of the 1,167,910 U.S.

cattle and bison operations had gross cash values of less than

$500,000, which, according to standards for agricultural producers set

by the Small Business Administration, categorizes these operations as

small entities.

The number of brucellosis-affected herds varies over time.

According to an informal APHIS estimate, for each herd in quarantine,

program officials expect the possible existence of two potential

suspect herds. As of July 31, 1998, eight cattle herds and one bison

herd were under quarantine. However, only six herds (all owned by

persons considered to be small entities) were potential candidates for

depopulation. Five were nonregistered beef herds with a total of

approximately 1,367 head of cattle, and one was a registered beef herd

with about 155 head.

According to the indemnity regulations in place prior to

publication of the interim rule, the producers accepting herd

depopulation would have received $250 per head as indemnity payment for

bison and nonregistered beef cattle destroyed and the lesser of either

95 percent of appraised value minus salvage value or $750 for any

registered cattle or nonregistered dairy cattle. In addition to these

Federal indemnity payments, these owners would have received the

salvage value for each animal and possibly a State supplement to the

Federal indemnity payment.

In 1997, beef and cull dairy cows sold for slaughter brought an

average of $270 salvage value per 900-lb animal. The replacement cost

of a nonregistered beef cow with calf averaged $750, and a cow with no

calf, $500. A replacement cow from a registered beef herd averaged

$1,200. These figures show that, even before taking into account the

other costs, the total compensation (the sum of the salvage value and

the indemnity amounts in place at that time) paid to a nonregistered

herd owner still fell short of the replacement costs. Specifically, the

shortfall averaged $230 per nonregistered beef cow with calf. As a

result, many producers would not opt for whole-herd depopulation if

offered. The continued existence of affected herds can result in the

spread of brucellosis, hindering the eradication process and increasing

long-term costs.

Under this final rule, which gives producers of herds approved for

depopulation the option of receiving a fixed rate for their animals or

an amount based on an appraisal, it is anticipated that many producers

will choose the fixed-rate method for claiming indemnity for bison and

nonregistered beef cattle and the appraisal method for registered

cattle and nonregistered dairy cattle. For owners of bison and

nonregistered beef cattle, the value per animal would be about $520

(the fixed rate plus the estimated salvage value), which is very close

to the market value of the animals. Owners of registered cattle and

nonregistered dairy cattle would not incur a direct market loss because

the new indemnity payments would amount to the appraised market value

of the live animals minus the salvage value realized. Owners of herds

comprising registered and nonregistered beef cattle could choose either

indemnity method to receive adequate compensation for their animals as

a result of a change from the interim rule to the final rule that split

the flat rate into two levels--$250 for bison and nonregistered beef

cattle and $750 for registered beef cattle and dairy cattle. Another

change from the interim rule to the final rule is the inclusion in the

indemnity payment program of neutered calves that are nursing cows in

herds approved for depopulation. These calves were formerly excluded

from eligibility for indemnity. This change will have an additional

mitigating impact on the losses certain producers would incur through

herd depopulation.

The cost to APHIS for paying indemnity to the six eligible herd

owners if they had decided to participate in whole-herd depopulation

under the former indemnity regulations would have been approximately

$322,375; the cost to APHIS under the regulations created by the

interim and final rules would be approximately $352,450--a difference

of $30,075. (We estimate that $26,625 of that total is the result of

paying indemnity for the neutered calves.) Because keeping potentially

diseased animals or having a herd under quarantine creates a severe

competitive disadvantage, these producers can be expected to

participate in whole-herd depopulation if their losses are reasonably

reduced. These figures do not take into account any currently

unidentified affected herds for which APHIS may want to encourage

depopulation in the future. However, the total compensation that APHIS

will provide in fiscal year 1998 will be limited by available

appropriated

[[Page 47423]]

funding and will not exceed $3.41 million on a nationwide basis.

Compared with the value of the U.S. cattle industry and its

importance to the national economy, the actual costs of increased

indemnity for depopulating all animals in all brucellosis-affected

herds is small. Competitiveness in the international market depends

upon a reputation for producing high-quality, disease-free animals.

Both the actual product and the purchasers' perception of the product's

quality contribute to continued world market acceptance. While isolated

brucellosis outbreaks resulting in relatively small potential losses in

cattle production can reduce the confidence of importers and cause a

loss of trade, the damage that would result from a widespread

brucellosis infection would be extremely costly and harmful to U.S.

gross national income. Therefore, efforts to eradicate brucellosis and

secure the health of the cattle industry continue to serve the economic

interests of the Nation. The increased indemnity payments promulgated

by this rule are expected to provide a stronger incentive for whole-

herd depopulation of affected cattle. This rule should result in

savings to the eradication program because the rule will facilitate the

program's progress. The overall effect of this rule upon supply, price,

and competitiveness is expected to be minor or none.

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.

List of Subjects in 9 CFR Part 51

Animal diseases, Cattle, Hogs, Indemnity payments, Reporting and

recordkeeping requirements.

Accordingly, we are amending 9 CFR part 51 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,

and 134b; 7 CFR 2.22, 2.80, and 371.2(d).

2. In Sec. 51.3, paragraph (a)(2)(ii)(B) is revised to read as

follows:

Sec. 51.3 Payment to owners for animals destroyed.

(a) * * *

(2) * * *

(ii) * * *

(B) Fixed-rate method. The indemnity shall not exceed $250 per

animal for bison and nonregistered cattle other than dairy cattle and

$750 per animal for registered cattle and nonregistered dairy cattle.

* * * * *

3. In Sec. 51.9, paragraph (d) is revised to read as follows:

Sec. 51.9 Claims not allowed.

* * * * *

(d) If the animals are:

(1) Barrows or gilts maintained for feeding purposes; or

(2) Spayed heifers or steers, unless the steers are work oxen, or

unless the spayed heifers or steers are unweaned animals in a herd

approved for depopulation in accordance with Sec. 51.3 of this part.

* * * * *

Done in Washington, DC, this 28th day of August, 1998.

Joan M. Arnoldi,

Acting Administrator, Animal and Plant Health Inspection Service.

[FR Doc. 98-24016 Filed 9-4-98; 8:45 am]

BILLING CODE 3410-34-P