II 

109TH CONGRESS 

2D SESSION S. 2307 

To enhance fair and open competition in the production and sale of 

agricultural commodities. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 16, 2006 

Mr. HARKIN (for himself, Mr. ENZI, and Mr. THOMAS) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry 

A BILL 

To enhance fair and open competition in the production 

and sale of agricultural commodities. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Competitive and Fair Agricultural Markets Act of 

6 2006’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—AGRICULTURAL FAIR PRACTICES 
2 

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Sec. 101. Agricultural fair practices. 

Sec. 102. Application. 

TITLE II—PACKERS AND STOCKYARDS 

Sec. 201. Investigation of live poultry dealers. 

Sec. 202. No competitive injury requirement. 

Sec. 203. Attorneys fees. 

Sec. 204. Appointment of outside counsel. 

Sec. 205. Competitive harm. 

Sec. 206. Regulations. 

1 TITLE I—AGRICULTURAL FAIR 

2 PRACTICES 

3 SEC. 101. AGRICULTURAL FAIR PRACTICES. 

4 The Agricultural Fair Practices Act of 1967 (7 

5 U.S.C. 2301 et seq.) is amended to read as follows: 

6 ‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

7 ‘‘(a) IN GENERAL.—This Act may be cited as the 

8 ‘Agricultural Fair Practices Act of 1967’. 

9 ‘‘(b) TABLE OF CONTENTS.—The table of contents 

10 of this Act is as follows: 

‘‘Sec. 1. Short title; table of contents. 

‘‘Sec. 2. Definitions. 

‘‘TITLE I—AGRICULTURAL TRADE PRACTICES 

‘‘Sec. 101. Office of Special Counsel for Competition Matters. 

‘‘Sec. 102. Report on corporate structure. 

‘‘TITLE II—UNFAIR OR DECEPTIVE ACTS OR PRACTICES IN 

AGRICULTURAL COMMERCE 

‘‘Sec. 201. Prohibition on unfair or deceptive acts or practices in agricultural commerce. 

‘‘Sec. 202. Agricultural contracts. 

‘‘Sec. 203. Production contracts. 

‘‘Sec. 204. Authority of Secretary to promulgate rules and regulations. 

‘‘Sec. 205. Enforcement. 

‘‘Sec. 206. Effect on other laws. 

‘‘Sec. 207. Assignment of association dues and fees. 

‘‘Sec. 208. Severability. 
3 

•S 2307 IS

1 ‘‘SEC. 2. DEFINITIONS. 

2 ‘‘In this Act: 

3 ‘‘(1) AGRICULTURAL COMMODITY.—The term 

4 ‘agricultural commodity’ has the meaning given the 

5 term in section 102 of the Agricultural Trade Act of 

6 1978 (7 U.S.C. 5602). 

7 ‘‘(2) AGRICULTURAL CONTRACT.—The term 

8 ‘agricultural contract’ means a marketing contract 

9 or a production contract. 

10 ‘‘(3) AGRICULTURAL COOPERATIVE.—The term 

11 ‘agricultural cooperative’ means an association of 

12 persons engaged in the production, marketing, or 

13 processing of an agricultural commodity that meets 

14 the requirements of the Act entitled ‘An Act to au15 thorize association of producers of agricultural prod16 ucts’ (commonly known as the ‘Capper-Volstead 

17 Act’) (7 U.S.C. 291 et seq.). 

18 ‘‘(4) ASSOCIATION OF PRODUCERS.— 

19 ‘‘(A) IN GENERAL.—The term ‘association 

20 of producers’ means an association of producers 

21 of agricultural commodities that engages in the 

22 marketing, bargaining, shipping, or processing 

23 of agricultural commodities or of agricultural 

24 services. 

25 ‘‘(B) INCLUSIONS.—The term ‘association 

26 of producers’ includes— 
4 

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1 ‘‘(i) an organization dedicated to pro2 moting the common interest and general 

3 welfare of producers of agricultural com4 modities; 

5 ‘‘(ii) a cooperative association (as de6 fined in section 15(a) of the Agricultural 

7 Marketing Act (12 U.S.C. 1141j(a))); and 

8 ‘‘(iii) an association described in the 

9 first section of the Act entitled ‘An Act to 

10 authorize association of producers of agri11 cultural products’ (commonly known as the 

12 ‘Capper-Volstead Act’) (7 U.S.C. 291). 

13 ‘‘(5) CAPITAL INVESTMENT.—The term ‘capital 

14 investment’ means an investment in— 

15 ‘‘(A) a structure, such as a building or ma16 nure storage structure; or 

17 ‘‘(B) machinery or equipment associated 

18 with producing an agricultural commodity that 

19 has a useful life of more than 1 year. 

20 ‘‘(6) COMMISSION MERCHANT.—The term ‘com21 mission merchant’ means any person engaged in the 

22 business of receiving in interstate or foreign com23 merce any agricultural commodity for sale on com24 mission. 
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1 ‘‘(7) CONTRACT LIVESTOCK FACILITY.—The 

2 term ‘contract livestock facility’ means a facility in 

3 which livestock or a product of live livestock is pro4 duced under a production contract by a contract 

5 producer. 

6 ‘‘(8) CONTRACTOR.—The term ‘contractor’ 

7 means a person that, in accordance with a produc8 tion contract, owns, or will own, an agricultural 

9 commodity that is produced by a contract producer. 

10 ‘‘(9) CONTRACT PRODUCER.—The term ‘con11 tract producer’ means a producer that produces an 

12 agricultural commodity under a production contract. 

13 ‘‘(10) COVERED PERSON.—The term ‘covered 

14 person’ means a dealer, handler, contractor, proc15 essor, or commission merchant. 

16 ‘‘(11) CROP.—The term ‘crop’ means an agri17 cultural commodity produced from a plant. 

18 ‘‘(12) DEALER.—The term ‘dealer’ means any 

19 person engaged in the business of buying, selling, or 

20 marketing agricultural commodities in interstate or 

21 foreign commerce. 

22 ‘‘(13) DEPARTMENT.—The term ‘Department’ 

23 means the Department of Agriculture. 

24 ‘‘(14) HANDLER.—The term ‘handler’ means 

25 any person engaged in the business or practice of— 
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1 ‘‘(A) acquiring agricultural commodities 

2 from producers or associations of producers for 

3 processing or sale; 

4 ‘‘(B) grading, packaging, handling, storing, 

5 or processing agricultural commodities received 

6 from producers or associations of producers; 

7 ‘‘(C) contracting or negotiating contracts 

8 or other arrangements, written or oral, with or 

9 on behalf of producers or associations of pro10 ducers with respect to the production or mar11 keting of any agricultural commodity; or 

12 ‘‘(D) acting as an agent or broker for a 

13 handler in the performance of any function or 

14 act described in subparagraph (A), (B), or (C). 

15 ‘‘(15) INVESTMENT REQUIREMENT.—The term 

16 ‘investment requirement’ means a provision in a pro17 duction contract that requires a contract producer to 

18 make a capital investment associated with producing 

19 an agricultural commodity that, but for the produc20 tion contract, the contract producer would not have 

21 made. 

22 ‘‘(16) LIVESTOCK.—The term ‘livestock’ means 

23 beef cattle, dairy cattle, swine, sheep, or poultry. 

24 ‘‘(17) MARKETING CONTRACT.—The term ‘mar25 keting contract’ means a written agreement between 
7 

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1 a covered person and a producer for the purchase of 

2 an agricultural commodity produced or raised by the 

3 producer. 

4 ‘‘(18) PERSON.—The term ‘person’ includes an 

5 individual, partnership, corporation, limited liability 

6 company, limited partnership, or association. 

7 ‘‘(19) PROCESSOR.—The term ‘processor’ 

8 means— 

9 ‘‘(A) any person (other than an agricul10 tural cooperative) engaged in the business of 

11 handling, preparing, or manufacturing (includ12 ing slaughtering) an agricultural commodity or 

13 the products of an agricultural commodity for 

14 sale or marketing in interstate or foreign com15 merce; and 

16 ‘‘(B) an agricultural cooperative that han17 dles, prepares, or manufactures (including 

18 slaughtering) agricultural commodities of its 

19 members’ own production. 

20 ‘‘(20) PRODUCE.—The term ‘produce’ means— 

21 ‘‘(A) to provide feed or services relating to 

22 the care and feeding of livestock, including 

23 milking dairy cattle and storing raw milk; or 

24 ‘‘(B) to plant, raise, harvest, and store a 

25 crop, including preparing soil for planting and 
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1 applying a fertilizer, soil conditioner, or pes2 ticide to a crop. 

3 ‘‘(21) PRODUCER.—The term ‘producer’ means 

4 a person engaged in the production of an agricul5 tural commodity as a farmer, planter, rancher, 

6 dairyman, poultryman, or fruit, vegetable, or nut 

7 grower. 

8 ‘‘(22) PRODUCTION CONTRACT.— 

9 ‘‘(A) IN GENERAL.—The term ‘production 

10 contract’ means a written agreement that pro11 vides for— 

12 ‘‘(i) the production of an agricultural 

13 commodity by a contract producer; or 

14 ‘‘(ii) the provision of a management 

15 service relating to the production of an ag16 ricultural commodity by a contract pro17 ducer. 

18 ‘‘(B) INCLUSIONS.—The term ‘production 

19 contract’ includes— 

20 ‘‘(i) a contract between a contractor 

21 and a contract producer for the production 

22 of an agricultural commodity; and 

23 ‘‘(ii) a contract between a contractor 

24 and a contract producer for the provision 
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1 of a management service in the production 

2 of an agricultural commodity. 

3 ‘‘(23) SECRETARY.—The term ‘Secretary’ 

4 means the Secretary of Agriculture. 

5 ‘‘TITLE I—AGRICULTURAL 

6 TRADE PRACTICES 

7 ‘‘SEC. 101. OFFICE OF SPECIAL COUNSEL FOR COMPETI8 TION MATTERS. 

9 ‘‘(a) ESTABLISHMENT.— 

10 ‘‘(1) IN GENERAL.—There is established within 

11 the Department an office to be known as the ‘Office 

12 of Special Counsel for Competition Matters’. 

13 ‘‘(2) DUTIES.—The Office shall— 

14 ‘‘(A) investigate and prosecute violations of 

15 this Act, the Packers and Stockyards Act, 1921 

16 (7 U.S.C. 181 et seq.), and any other Act that 

17 the Secretary determines to be appropriate; 

18 ‘‘(B) serve as a liaison between the De19 partment and the Department of Justice and 

20 the Federal Trade Commission with respect to 

21 competition and trade practices in the food and 

22 agricultural sector; and 

23 ‘‘(C) maintain a staff of attorneys and 

24 other professionals with the appropriate exper25 tise. 
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1 ‘‘(b) SPECIAL COUNSEL FOR COMPETITION MAT2 TERS.— 

3 ‘‘(1) IN GENERAL.—The Office shall be headed 

4 by the Special Counsel for Competition Matters, who 

5 shall be appointed by the President, by and with the 

6 advice and consent of the Senate. 

7 ‘‘(2) PROSECUTORIAL AUTHORITY.—Notwith8 standing title 28, United States Code, the Special 

9 Counsel for Competition Matters shall have the au10 thority to bring any civil or administrative action au11 thorized under this Act or any other Act that the 

12 Secretary determines to be appropriate. 

13 ‘‘SEC. 102. REPORT ON CORPORATE STRUCTURE. 

14 ‘‘(a) IN GENERAL.—A covered person with annual 

15 sales in excess of $100,000,000 shall annually file with 

16 the Secretary a report that describes, with respect to do17 mestic activities and foreign activities, the strategic alli18 ances, ownership in other covered persons, joint ventures, 

19 subsidiaries, brand names, and interlocking boards of di20 rectors with other covered persons. 

21 ‘‘(b) CONFIDENTIALITY.—A report filed under sub22 section (a) shall be confidential commercial or financial 

23 information for the purposes of section 552(b)(4) of title 

24 5, United States Code. 
11 

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1 ‘‘TITLE II—UNFAIR OR DECEP2 TIVE ACTS OR PRACTICES IN 

3 AGRICULTURAL COMMERCE 

4 ‘‘SEC. 201. PROHIBITION ON UNFAIR OR DECEPTIVE ACTS 

5 OR PRACTICES IN AGRICULTURAL COM6 MERCE. 

7 ‘‘(a) UNFAIR OR DECEPTIVE ACTS OR PRACTICES IN

8 AGRICULTURAL COMMERCE.—Any unfair or deceptive act 

9 or practice in or affecting the marketing, receiving, pur10 chasing, sale, or contracting for the production of any ag11 ricultural commodity by any covered person shall be un12 lawful. 

13 ‘‘(b) UNFAIR OR DECEPTIVE ACTS OR PRACTICES

14 CONCERNING PRODUCER ASSOCIATIONS.—Subject to sub15 section (a), it shall be unlawful for any covered person 

16 knowingly— 

17 ‘‘(1)(A) to interfere with, restrain, or coerce 

18 any producer in the exercise of the right of the pro19 ducer to join and belong to, or to refrain from join20 ing or belonging to, an association of producers; or 

21 ‘‘(B) to refuse to deal with any producer be22 cause of the exercise of the right of the producer to 

23 join and belong to the association; 

24 ‘‘(2) to discriminate against any producer with 

25 respect to price, quantity, quality, or other terms of 
12 

•S 2307 IS

1 purchase, acquisition, or other handling of an agri2 cultural commodity because of the membership of 

3 the producer in, or the contract of the producer 

4 with, an association of producers; 

5 ‘‘(3) to coerce or intimidate any producer to 

6 enter into, maintain, breach, cancel, or terminate a 

7 membership agreement or marketing contract with 

8 an association of producers or a contract with a cov9 ered person; 

10 ‘‘(4) to pay or loan money, give any thing of 

11 value, or offer any other inducement or reward to a 

12 producer for refusing to or ceasing to belong to an 

13 association of producers; 

14 ‘‘(5) to make false reports about the finances, 

15 management, or activities of an association of pro16 ducers or handlers; 

17 ‘‘(6) to conspire, combine, agree, or arrange 

18 with any other person to do, or aid or abet the per19 formance of, any act made unlawful by this Act; 

20 ‘‘(7)(A) to interfere with the formation or ad21 ministration of any association of producers; or 

22 ‘‘(B) to contribute financial or other support to 

23 an association of producers; or 

24 ‘‘(8) to fail to bargain in good faith. 
13 

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1 ‘‘(c) UNFAIR OR DECEPTIVE ACTS OR PRACTICES IN

2 AGRICULTURAL CONTRACTS.—It shall be unlawful for a 

3 covered person that is a party to an agricultural con4 tract— 

5 ‘‘(1) to fail to act in good faith (as defined in 

6 applicable State law provisions of the Uniform Com7 mercial Code) with respect to the performance and 

8 enforcement of the agricultural contract; 

9 ‘‘(2) to fail to include 1 or more cover pages 

10 that disclose provisions of the agricultural contract 

11 relating to— 

12 ‘‘(A) duration; 

13 ‘‘(B) termination; 

14 ‘‘(C) renewal and renegotiation standards; 

15 ‘‘(D) responsibility for environmental dam16 age; 

17 ‘‘(E) factors to be used in determining 

18 payment; 

19 ‘‘(F) responsibility for obtaining and com20 plying with Federal, State, and local permits; 

21 ‘‘(G) assignability; 

22 ‘‘(H) the applicable State law and venue; 

23 ‘‘(I) the effect of oral modifications; 

24 ‘‘(J) remedies for breach; 
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•S 2307 IS

1 ‘‘(K) in the case of a livestock or poultry 

2 production contract, the minimum number of 

3 animals subject to the contract; 

4 ‘‘(L) other rules or provisions incorporated 

5 in the contract by reference; and 

6 ‘‘(M) any other terms that the Secretary 

7 determines to be appropriate for disclosure; or 

8 ‘‘(3) to violate any of the requirements relating 

9 to production contracts under section 203. 

10 ‘‘(d) PUBLIC POLICY CONSIDERATIONS.— 

11 ‘‘(1) IN GENERAL.—In determining whether an 

12 act or practice is unfair, a court may consider estab13 lished public policies as evidence to be considered 

14 with all other evidence. 

15 ‘‘(2) LIMITATION.—Notwithstanding paragraph 

16 (1), public policy considerations may not serve as a 

17 primary basis for the determination. 

18 ‘‘SEC. 202. AGRICULTURAL CONTRACTS. 

19 ‘‘(a) CONFIDENTIALITY.—Any provision of an agri20 cultural contract that requires that the agricultural con21 tract remain confidential is void, except as the provision 

22 applies to a trade secret to which section 552 of title 5, 

23 United States Code, applies. 

24 ‘‘(b) ARBITRATION.—If a livestock or poultry con25 tract provides for the use of arbitration to resolve a con-
15 

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1 troversy under the livestock or poultry contract, arbitra2 tion may be used to settle the controversy only if, after 

3 the controversy arises, both parties consent in writing to 

4 use arbitration to settle the controversy. 

5 ‘‘SEC. 203. PRODUCTION CONTRACTS. 

6 ‘‘(a) RIGHT OF CONTRACT PRODUCERS TO CANCEL

7 PRODUCTION CONTRACTS.— 

8 ‘‘(1) IN GENERAL.—A contract producer may 

9 cancel a production contract by mailing a cancella10 tion notice to the contractor not later than the later 

11 of— 

12 ‘‘(A) the date that is 3 business days after 

13 the date on which the production contract is ex14 ecuted; or 

15 ‘‘(B) any cancellation date specified in the 

16 production contract. 

17 ‘‘(2) DISCLOSURE.—A production contract shall 

18 clearly disclose— 

19 ‘‘(A) the right of the contract producer to 

20 cancel the production contract; 

21 ‘‘(B) the method by which the contract 

22 producer may cancel the production contract; 

23 and 

24 ‘‘(C) the deadline for canceling the produc25 tion contract. 
16 

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1 ‘‘(b) PRODUCTION CONTRACT LIENS.— 

2 ‘‘(1) DEFINITION OF LIEN STARTING DATE.—In 

3 this subsection, the term ‘lien starting date’ 

4 means— 

5 ‘‘(A) in the case of an annual crop, the 

6 date on which the annual crop is planted; 

7 ‘‘(B) in the case of a perennial crop, the 

8 starting date on which the perennial crop is 

9 subject to a production contract; 

10 ‘‘(C) in the case of livestock, the date on 

11 which the livestock arrive at the contract live12 stock facility; and 

13 ‘‘(D) in the case of milk or any other prod14 uct of live livestock, the date on which the milk 

15 or other product is produced. 

16 ‘‘(2) LIENS.—Except as provided in paragraph 

17 (8), in the case of a production contract that pro18 vides for the production of an agricultural com19 modity by a contract producer, the contract pro20 ducer shall have a lien in the amount owed to the 

21 contract producer under the production contract 

22 on— 

23 ‘‘(A)(i) the agricultural commodity until 

24 the agricultural commodity is sold or processed 

25 (including slaughtered) by the contractor; and 
17 

•S 2307 IS

1 ‘‘(ii) the cash proceeds of the sale of the 

2 agricultural commodity, including any cash pro3 vided as part of the sale; and 

4 ‘‘(B) any property of the contractor that 

5 may be subject to a security interest. 

6 ‘‘(3) LIEN PERIOD.—A lien for the production 

7 of an agricultural commodity under this subsection 

8 shall apply during the period— 

9 ‘‘(A) beginning on the lien starting date; 

10 and 

11 ‘‘(B) ending 1 year after the agricultural 

12 commodity is no longer under the control of the 

13 contract producer. 

14 ‘‘(4) PERFECTING OF LIENS.—To perfect a lien 

15 for the production of an agricultural commodity 

16 under this subsection, a contract producer shall file 

17 a lien statement under applicable State law provi18 sions based on Article 9 of the Uniform Commercial 

19 Code. 

20 ‘‘(5) PRIORITY OF LIENS.—A lien created under 

21 this subsection shall be superior to, and have pri22 ority over, any conflicting lien or security interest in 

23 the agricultural commodity, including a lien or secu24 rity interest that was perfected prior to the creation 

25 of the lien under this subsection. 
18 

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1 ‘‘(6) ENFORCEMENT.— 

2 ‘‘(A) CONTROL.—Before an agricultural 

3 commodity leaves the control of a contract pro4 ducer, the contract producer may foreclose a 

5 lien created under this subsection in the man6 ner provided for the foreclosure of a secured 

7 transaction under applicable State law provi8 sions based on Article 9 of the Uniform Com9 mercial Code. 

10 ‘‘(B) POST-CONTROL.—After an agricul11 tural commodity leaves the control of the con12 tract producer, the contract producer may en13 force the lien in the manner provided under ap14 plicable State law provisions based on Article 9 

15 of the Uniform Commercial Code. 

16 ‘‘(7) ELECTION OF OTHER REMEDIES.—In lieu 

17 of obtaining a lien under this subsection, a contract 

18 producer described in paragraph (2) may seek to col19 lect funds due under a production contract in ac20 cordance with— 

21 ‘‘(A) the Packers and Stockyards Act, 

22 1921 (7 U.S.C. 181 et seq.); or 

23 ‘‘(B) the Perishable Agricultural Commod24 ities Act, 1930 (7 U.S.C. 499a et seq.). 
19 

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1 ‘‘(8) EXEMPTION.—This subsection does not 

2 apply to a contract producer that is an agricultural 

3 cooperative, at least 50 percent of the ownership in4 terests of which are held by producers. 

5 ‘‘(c) PRODUCTION CONTRACTS INVOLVING INVEST6 MENT REQUIREMENTS.— 

7 ‘‘(1) APPLICABILITY.—This subsection applies 

8 only to a production contract between a contract 

9 producer and a contractor if, but for the production 

10 contract, the contract producer would not have made 

11 a capital investment of $100,000 or more. 

12 ‘‘(2) RESTRICTIONS ON CONTRACT TERMI13 NATION.— 

14 ‘‘(A) NOTICE OF TERMINATION.—Except 

15 as provided in subparagraph (C), a contractor 

16 shall not terminate or cancel a production con17 tract unless the contractor provides the contract 

18 producer with written notice of the intention of 

19 the contractor to terminate or cancel the pro20 duction contract at least 180 days before the ef21 fective date of the termination or cancellation. 

22 ‘‘(B) REQUIREMENTS.—The written notice 

23 required under subparagraph (A) shall include 

24 alleged causes of the termination. 
20 

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1 ‘‘(C) EXCEPTIONS.—A contractor may ter2 minate or cancel a production contract without 

3 notice as required under subparagraph (A) if 

4 the basis for the termination or cancellation 

5 is— 

6 ‘‘(i) a voluntary abandonment of the 

7 contractual relationship by the contract 

8 producer, such as a complete failure of the 

9 contract producer to perform under the 

10 production contract; 

11 ‘‘(ii) the conviction of the contract 

12 producer of an offense of fraud or theft 

13 committed against the contractor; or 

14 ‘‘(iii) the natural end of the produc15 tion contract in accordance with the terms 

16 of the production contract. 

17 ‘‘(D) RIGHT TO CURE.— 

18 ‘‘(i) IN GENERAL.—If, not later than 

19 180 days after the date on which the con20 tract producer receives written notice 

21 under subparagraph (A), the contract pro22 ducer remedies each cause of the breach of 

23 contract alleged in the written notice, the 

24 contractor may not terminate or cancel a 

25 production contract under this paragraph. 
21 

•S 2307 IS

1 ‘‘(ii) NO ADMISSION OF BREACH.— 

2 The remedy or attempt to remedy the 

3 causes for the breach of contract by the 

4 contract producer under clause (i) does not 

5 constitute an admission of breach of con6 tract. 

7 ‘‘(d) ADDITIONAL CAPITAL INVESTMENTS IN PRO8 DUCTION CONTRACTS.— 

9 ‘‘(1) IN GENERAL.—A covered person shall not 

10 require a contract producer to make additional cap11 ital investments in connection with a production con12 tract that exceed the initial investment requirements 

13 of the production contract. 

14 ‘‘(2) EXCEPTIONS.—Notwithstanding para15 graph (1), a covered person may require additional 

16 capital investments if— 

17 ‘‘(A) the additional capital investments are 

18 offset by reasonable additional consideration, 

19 including compensation or a modification to the 

20 terms of the production contract; and 

21 ‘‘(B) the contract producer agrees in writ22 ing that there is acceptable and satisfactory 

23 consideration for the additional capital invest24 ment. 
22 

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1 ‘‘SEC. 204. AUTHORITY OF SECRETARY TO PROMULGATE 

2 RULES AND REGULATIONS. 

3 ‘‘The Secretary, acting through the Special Counsel 

4 for Competition Matters, may promulgate such rules and 

5 regulations as are necessary to carry out this Act and the 

6 Packers and Stockyards Act, 1921 (7 U.S.C. 181 et seq.), 

7 including rules and regulations— 

8 ‘‘(1) relating to unfair or deceptive acts or 

9 practices in agriculture; 

10 ‘‘(2) that define with specificity acts or prac11 tices that are to be prohibited as unfair or deceptive 

12 acts or practices in agriculture under section 201; 

13 and 

14 ‘‘(3) to prevent unfair or deceptive acts or prac15 tices from occurring in agriculture. 

16 ‘‘SEC. 205. ENFORCEMENT. 

17 ‘‘(a) CIVIL ACTIONS BY THE SECRETARY AGAINST

18 COVERED PERSONS.—In any case in which the Secretary 

19 has reasonable cause to believe that any covered person 

20 has engaged in any act or practice that violates this Act, 

21 the Secretary may bring a civil action in the United States 

22 district court of the jurisdiction of residence of the covered 

23 person by filing a complaint requesting preventive relief, 

24 including an application for a permanent or temporary in25 junction, restraining order, or other order, against the cov26 ered person. 
23 

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1 ‘‘(b) CIVIL ACTIONS AGAINST COVERED PERSONS.— 

2 ‘‘(1) PREVENTIVE RELIEF.— 

3 ‘‘(A) IN GENERAL.—In any case in which 

4 any covered person has engaged, or there are 

5 reasonable grounds to believe that any covered 

6 person is about to engage, in any act or prac7 tice prohibited by this Act, a civil action for 

8 preventive relief, including an application for a 

9 permanent or temporary injunction, restraining 

10 order, or other order, may be instituted by the 

11 person aggrieved in the United States district 

12 court of the jurisdiction of residence of the ag13 grieved person. 

14 ‘‘(B) SECURITY.—The court may provide 

15 that no restraining order or preliminary injunc16 tion shall issue unless security is provided by 

17 the applicant, in such sum as the court deter18 mines to be appropriate, for the payment of 

19 such costs and damages as may be incurred or 

20 suffered by any party that is found to have 

21 been wrongfully enjoined or restrained. 

22 ‘‘(2) DAMAGES.— 

23 ‘‘(A) IN GENERAL.—Any person injured in 

24 the business or property of the person by rea25 son of any violation of, or combination or con-
24 

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1 spiracy to violate, this Act may bring a civil ac2 tion in the United States district court of the 

3 jurisdiction of residence of the injured person 

4 or any State court of competent jurisdiction to 

5 recover— 

6 ‘‘(i) damages sustained by the person 

7 as a result of the violation; and 

8 ‘‘(ii) any additional penalty that the 

9 court may allow, but not more than $1,000 

10 per violation. 

11 ‘‘(B) LIMITATION ON ACTIONS.—A civil ac12 tion under subparagraph (A) shall be barred 

13 unless commenced within 2 years after the 

14 cause of action accrues. 

15 ‘‘(3) ATTORNEY’S FEES.—In any action com16 menced under paragraph (1) or (2), the court may 

17 allow the prevailing party a reasonable attorney’s fee 

18 as part of the costs. 

19 ‘‘(c) JURISDICTION OF DISTRICT COURTS.—Not later 

20 than 2 years after the date on which a violation of this 

21 Act occurs, an action to enforce this Act may be brought 

22 in— 

23 ‘‘(1) the United States district court of the ju24 risdiction of residence of the aggrieved person, not25 withstanding the fact that an aggrieved person has 
25 

•S 2307 IS

1 not exhausted all administrative or other remedies 

2 provided by law; or 

3 ‘‘(2) any other court of competent jurisdiction 

4 in the State of residence of the aggrieved person. 

5 ‘‘(d) CHOICE OF LAW, JURISDICTION, AND VENUE.— 

6 ‘‘(1) CHOICE OF LAW.—Any provision in an ag7 ricultural contract requiring the application of the 

8 law of a State other than the State in which the pro9 ducer resides is void and unenforceable. 

10 ‘‘(2) JURISDICTION.—A covered person that en11 ters into an agricultural contract with a producer 

12 shall be subject to personal jurisdiction in the State 

13 in which the producer resides. 

14 ‘‘(3) VENUE.—Venue shall be determined on 

15 the basis of the residence of the producer. 

16 ‘‘(e) LIABILITY FOR ACTS OF AGENTS.—In the con17 struction and enforcement of this Act, the act, omission, 

18 or failure of any officer, agent, or person acting for or 

19 employed by any other person within the scope of the em20 ployment or office of the officer, agent, or person, shall 

21 be considered to be the act, omission, or failure of the 

22 other person. 

23 ‘‘SEC. 206. EFFECT ON OTHER LAWS. 

24 ‘‘(a) STATE LAWS.— 
26 

•S 2307 IS

1 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

2 this Act does not annul, alter, or affect, or exempt 

3 any person subject to this Act from complying with, 

4 the law of any State with respect to trade practices 

5 in agriculture. 

6 ‘‘(2) EXCEPTION.— 

7 ‘‘(A) IN GENERAL.—This Act annuls, al8 ters, or affects, or exempts a person from, a 

9 State law referred to in paragraph (1) to the 

10 extent the State law is inconsistent with this 

11 Act. 

12 ‘‘(B) INCONSISTENCY.—For the purposes 

13 of this paragraph, a State law is not incon14 sistent with this Act if the protection that the 

15 law affords any producer is greater than the 

16 protection provided to a producer by this Act. 

17 ‘‘(b) STATE COURTS.—This Act does not deprive a 

18 State court of jurisdiction under a State law dealing with 

19 the same subject as this Act. 

20 ‘‘SEC. 207. ASSIGNMENT OF ASSOCIATION DUES AND FEES. 

21 ‘‘(a) IN GENERAL.—A producer of an agricultural 

22 commodity or service may execute, as a clause in an agri23 cultural contract, an assignment of dues or fees to, or the 

24 deduction of a sum to be retained by, an association of 
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1 producers authorized by contract to represent the pro2 ducer, under which assignment a covered person shall— 

3 ‘‘(1) deduct a portion of the amount to be paid 

4 for products or services of the producer under a pro5 duction contract; and 

6 ‘‘(2) pay, on behalf of the producer, the portion 

7 over to the association as dues or fees or a sum to 

8 be retained by the association. 

9 ‘‘(b) DUTY OF COVERED PERSON.—After a covered 

10 person receives notice from a producer of an assignment 

11 under subsection (a), the covered person shall— 

12 ‘‘(1) deduct the amount authorized by the as13 signment from the amount paid for any agricultural 

14 commodity sold by the producer or for any service 

15 rendered under any production contract; and 

16 ‘‘(2) on payment to producers for the product 

17 or service, pay the amount over to the association or 

18 the assignee of the association. 

19 ‘‘SEC. 208. SEVERABILITY. 

20 ‘‘If any provision of this Act or application of any 

21 provision of this Act is held invalid, the remainder of this 

22 Act and the application of the provision to other persons 

23 and circumstances shall not be affected by the invalidity.’’. 
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1 SEC. 102. APPLICATION. 

2 The amendment made by section 101 applies to any 

3 contract entered into on or after the date of enactment 

4 of this Act. 

5 TITLE II—PACKERS AND 

6 STOCKYARDS 

7 SEC. 201. INVESTIGATION OF LIVE POULTRY DEALERS. 

8 (a) REMOVAL OF POULTRY SLAUGHTER REQUIRE9 MENT FROM DEFINITIONS.—Section 2(a) of the Packers 

10 and Stockyards Act, 1921 (7 U.S.C. 182), is amended— 

11 (1) by striking paragraph (8) and inserting the 

12 following: 

13 ‘‘(8) POULTRY GROWER.—The term ‘poultry 

14 grower’ means any person engaged in the business 

15 of raising or caring for live poultry under a poultry 

16 growing arrangement, regardless of whether the 

17 poultry is owned by the person or by another per18 son;’’; 

19 (2) in paragraph (9), by striking ‘‘and cares for 

20 live poultry for delivery, in accord with another’s in21 structions, for slaughter’’ and inserting ‘‘or cares for 

22 live poultry in accordance with the instructions of 

23 another person’’; and 

24 (3) in paragraph (10), by striking ‘‘for the pur25 pose of either slaughtering it or selling it for slaugh26 ter by another’’. 
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1 (b) ADMINISTRATIVE ENFORCEMENT AUTHORITY

2 OVER LIVE POULTRY DEALERS.—Sections 203, 204, and 

3 205 of the Packers and Stockyards Act, 1921 (7 U.S.C. 

4 193, 194, 195), are amended by inserting ‘‘or live poultry 

5 dealer’’ after ‘‘packer’’ each place it appears. 

6 (c) AUTHORITY TO REQUEST TEMPORARY INJUNC7 TION OR RESTRAINING ORDER.—Section 408 of the Pack8 ers and Stockyards Act, 1921 (7 U.S.C. 228a), is amend9 ed in the first sentence by striking ‘‘on account of poultry’’ 

10 and inserting ‘‘on account of poultry or poultry care’’. 

11 (d) VIOLATIONS BY LIVE POULTRY DEALERS.—Sec12 tion 411 of the Packers and Stockyards Act, 1921 (7 

13 U.S.C. 228b–2), is amended— 

14 (1) in the first sentence of subsection (a), by 

15 striking ‘‘any provision of section 207 or section 410 

16 of’’; and 

17 (2) in the first sentence of subsection (b), by 

18 striking ‘‘any provisions of section 207 or section 

19 410’’ and inserting ‘‘any provision’’. 

20 SEC. 202. NO COMPETITIVE INJURY REQUIREMENT. 

21 Section 202(a) of the Packers and Stockyards Act, 

22 1921 (7 U.S.C. 192), is amended by inserting after ‘‘de23 vice’’ the following: ‘‘, regardless of whether the practice 

24 or device causes a competitive injury or otherwise ad25 versely affects competition’’. 
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1 SEC. 203. ATTORNEYS FEES. 

2 Section 308(a) of the Packers and Stockyards Act, 

3 1921 (7 U.S.C. 209(a)) is amended by inserting before 

4 the period at the end the following: ‘‘and for the cost of 

5 the litigation, including reasonable attorneys’ fees’’. 

6 SEC. 204. APPOINTMENT OF OUTSIDE COUNSEL. 

7 Section 407(a) of the Packers and Stockyards Act, 

8 1921 (7 U.S.C. 228(a)), is amended by inserting ‘‘obtain 

9 the services of attorneys who are not employees of the 

10 Federal Government,’’ before ‘‘and make such expendi11 tures’’. 

12 SEC. 205. COMPETITIVE HARM. 

13 Title IV of the Packers and Stockyards Act, 1921 

14 (7 U.S.C. 221 et seq.), is amended by adding at the end 

15 the following: 

16 ‘‘SEC. 417. COMPETITIVE HARM. 

17 ‘‘A person affected by an unfair practice under sec18 tion 202(a) or 312(a) shall not be required to prove preda19 tory intent, competitive injury, or likelihood of injury.’’. 

20 SEC. 206. REGULATIONS. 

21 (a) IN GENERAL.—Not later than 180 days after the 

22 date of enactment of this Act, the Secretary of Agriculture 

23 shall promulgate regulations to implement the amend24 ments made by this Act, including providing a definition 

25 of the term ‘‘unreasonable preference or advantage’’ for 
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1 purposes of section 202(b) of the Packers and Stockyards 

2 Act, 1921 (7 U.S.C. 192(b)). 

3 (b) REQUIREMENTS.—Regulations promulgated 

4 under subsection (a) shall strictly prohibit any preferences 

5 or price differences based on volume except for preferences 

6 or price differences that reflect actual, verifiable lower 

7 costs of acquiring livestock from larger volume producers. 

Æ