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Calendar No. 296
106th CONGRESS
1st Session
S. 1672
[Report No. 106-168]
_______________________________________________________________________
A BILL
To amend the Agricultural Marketing Act of 1946 to establish a program
of mandatory market reporting for certain meat packers regarding the
prices, quantities, and terms of sale for the procurement of cattle,
swine, lambs, and products of such livestock, to improve the collection
of information regarding the marketing of cattle, swine, lambs, and
products of such livestock, and for other purposes.
_______________________________________________________________________
September 30, 1999
Read twice and placed on the calendar
Calendar No. 296
106th CONGRESS
1st Session
S. 1672
[Report No. 106-168]
To amend the Agricultural Marketing Act of 1946 to establish a program
of mandatory market reporting for certain meat packers regarding the
prices, quantities, and terms of sale for the procurement of cattle,
swine, lambs, and products of such livestock, to improve the collection
of information regarding the marketing of cattle, swine, lambs, and
products of such livestock, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 30, 1999
Mr. Lugar, from the Committee on Agriculture, Nutrition, and Forestry,
reported the following original bill; which was read twice and placed
on the calendar
_______________________________________________________________________
A BILL
To amend the Agricultural Marketing Act of 1946 to establish a program
of mandatory market reporting for certain meat packers regarding the
prices, quantities, and terms of sale for the procurement of cattle,
swine, lambs, and products of such livestock, to improve the collection
of information regarding the marketing of cattle, swine, lambs, and
products of such livestock, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) In General.--This Act may be cited as the ``Livestock Mandatory
Reporting Act of 1999''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--LIVESTOCK MANDATORY REPORTING
Sec. 101. Livestock mandatory reporting.
``Subtitle B--Livestock Mandatory Reporting
``Chapter 1--Purpose; Definitions
``Sec. 211. Purpose.
``Sec. 212. Definitions.
``Chapter 2--Cattle Reporting
``Sec. 221. Definitions.
``Sec. 222. Mandatory reporting for live cattle.
``Sec. 223. Mandatory packer reporting of boxed beef sales.
``Chapter 3--Swine Reporting
``Sec. 231. Definitions.
``Sec. 232. Mandatory reporting for swine.
``Chapter 4--Lamb Reporting
``Sec. 241. Mandatory reporting for lambs.
``Chapter 5--Administration
``Sec. 251. General provisions.
``Sec. 252. Unlawful acts.
``Sec. 253. Enforcement.
``Sec. 254. Fees.
``Sec. 255. Recordkeeping.
``Sec. 256. Voluntary reporting.
``Sec. 257. Publication of information on retail purchase
prices for representative meat products.
``Sec. 258. Suspension authority regarding specific terms of
price reporting requirements.
``Sec. 259. Federal preemption.
Sec. 102. Unjust disqualification.
Sec. 103. Conforming amendments.
TITLE II--RELATED BEEF REPORTING PROVISIONS
Sec. 201. Beef export reporting.
Sec. 202. Export certificates for meat and meat food products.
Sec. 203. Imports of beef, beef variety meats, and cattle.
Sec. 204. Authorization of appropriations.
TITLE III--RELATED SWINE REPORTING PROVISIONS
Sec. 301. Improvement of Hogs and Pigs Inventory Report.
Sec. 302. Barrow and gilt slaughter.
Sec. 303. Average trim loss correlation study and report.
Sec. 304. Swine packer marketing contracts.
Sec. 305. Authorization of appropriations.
TITLE IV--IMPLEMENTATION
Sec. 401. Regulations.
Sec. 402. Termination of authority.
TITLE I--LIVESTOCK MANDATORY REPORTING
SEC. 101. LIVESTOCK MANDATORY REPORTING.
The Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.) is
amended--
(1) by inserting before section 202 (7 U.S.C. 1621) the
following:
``Subtitle A--General Provisions'';
and
(2) by adding at the end the following:
``Subtitle B--Livestock Mandatory Reporting
``CHAPTER 1--PURPOSE; DEFINITIONS
``SEC. 211. PURPOSE.
``The purpose of this subtitle is to establish a program of
information regarding the marketing of cattle, swine, lambs, and
products of such livestock that--
``(1) provides information that can be readily understood
by producers, packers, and other market participants, including
information with respect to the pricing, contracting for
purchase, and supply and demand conditions for livestock,
livestock production, and livestock products;
``(2) improves the price and supply reporting services of
the Department of Agriculture; and
``(3) encourages competition in the marketplace for
livestock and livestock products.
``SEC. 212. DEFINITIONS.
``In this subtitle:
``(1) Base price.--The term `base price' means the price
paid for livestock, delivered at the packing plant, before
application of any premiums or discounts, expressed in dollars
per hundred pounds of carcass weight.
``(2) Basis level.--The term `basis level' means the
agreed-on adjustment to a future price to establish the final
price paid for livestock.
``(3) Current slaughter week.--The term `current slaughter
week' means the period beginning Monday, and ending Sunday, of
the week in which a reporting day occurs.
``(4) F.O.B.--The term `F.O.B.' means free on board,
regardless of the mode of transportation, at the point of
direct shipment by the seller to the buyer.
``(5) Livestock.--The term `livestock' means cattle, swine,
and lambs.
``(6) Lot.--The term `lot' means a group of 1 or more
livestock that is identified for the purpose of a single
transaction between a buyer and a seller.
``(7) Marketing.--The term `marketing' means the sale or
other disposition of livestock, livestock products, or meat or
meat food products in commerce.
``(8) Negotiated purchase.--The term `negotiated purchase'
means a cash or spot market purchase by a packer of livestock
from a producer under which--
``(A) the base price for the livestock is
determined by seller-buyer interaction and agreement on
a day; and
``(B) the livestock are scheduled for delivery to
the packer not later than 14 days after the date on
which the livestock are committed to the packer.
``(9) Negotiated sale.--The term `negotiated sale' means a
cash or spot market sale by a producer of livestock to a packer
under which--
``(A) the base price for the livestock is
determined by seller-buyer interaction and agreement on
a day; and
``(B) the livestock are scheduled for delivery to
the packer not later than 14 days after the date on
which the livestock are committed to the packer.
``(10) Prior slaughter week.--The term `prior slaughter
week' means the Monday through Sunday prior to a reporting day.
``(11) Producer.--The term `producer' means any person
engaged in the business of selling livestock to a packer for
slaughter (including the sale of livestock from a packer to
another packer).
``(12) Reporting day.--The term `reporting day' means a day
on which--
``(A) a packer conducts business regarding
livestock committed to the packer, or livestock
purchased, sold, or slaughtered by the packer;
``(B) the Secretary is required to make information
concerning the business described in subparagraph (A)
available to the public; and
``(C) the Department of Agriculture is open to
conduct business.
``(13) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``(14) State.--The term `State' means each of the 50
States.
``CHAPTER 2--CATTLE REPORTING
``SEC. 221. DEFINITIONS.
``In this chapter:
``(1) Cattle committed.--The term `cattle committed' means
cattle that are scheduled to be delivered to a packer within
the 7-day period beginning on the date of an agreement to sell
the cattle.
``(2) Cattle type.--The term `cattle type' means the
following types of cattle purchased for slaughter:
``(A) Fed steers.
``(B) Fed heifers.
``(C) Fed Holsteins and other fed dairy steers and
heifers.
``(D) Cows.
``(E) Bulls.
``(3) Formula marketing arrangement.--The term `formula
marketing arrangement' means the advance commitment of cattle
for slaughter by any means other than through a negotiated
purchase or a forward contract, using a method for calculating
price in which the price is determined at a future date.
``(4) Forward contract.--The term `forward contract'
means--
``(A) an agreement for the purchase of cattle,
executed in advance of slaughter, under which the base
price is established by reference to--
``(i) prices quoted on the Chicago
Mercantile Exchange; or
``(ii) other comparable publicly available
prices; or
``(B) such other forward contract as the Secretary
determines to be applicable.
``(5) Packer.--The term `packer' means any person engaged
in the business of buying cattle in commerce for purposes of
slaughter, of manufacturing or preparing meats or meat food
products from cattle for sale or shipment in commerce, or of
marketing meats or meat food products from cattle in an
unmanufactured form acting as a wholesale broker, dealer, or
distributor in commerce, except that--
``(A) the term includes only a cattle processing
plant that is federally inspected;
``(B) for any calendar year, the term includes only
a cattle processing plant that slaughtered an average
of at least 125,000 head of cattle per year during the
immediately preceding 5 calendar years; and
``(C) in the case of a cattle processing plant that
did not slaughter cattle during the immediately
preceding 5 calendar years, the Secretary shall
consider the plant capacity of the processing plant in
determining whether the processing plant should be
considered a packer under this chapter.
``(6) Packer-owned cattle.--The term `packer-owned cattle'
means cattle that a packer owns for at least 14 days
immediately before slaughter.
``(7) Terms of trade.--The term `terms of trade' includes,
with respect to the purchase of cattle for slaughter--
``(A) whether a packer provided any financing
agreement or arrangement with regard to the cattle;
``(B) whether the delivery terms specified the
location of the producer or the location of the
packer's plant;
``(C) whether the producer is able to unilaterally
specify the date and time during the business day of
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