PUBLIC LAW 109–296—OCT. 5, 2006

LIVESTOCK MANDATORY REPORTING

REAUTHORIZATION

120 STAT. 1464 PUBLIC LAW 109–296—OCT. 5, 2006

Public Law 109–296

109th Congress

An Act

To reauthorize the Livestock Mandatory Reporting Act of 1999 and to amend

the swine reporting provisions of that Act.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. EXTENSION.

(a) IN GENERAL.—Chapter 5 of subtitle B of the Agricultural

Marketing Act of 1946 (7 U.S.C. 1636 et seq.) is amended by

adding at the end the following new section:

‘‘SEC. 260. TERMINATION OF AUTHORITY.

‘‘The authority provided by this subtitle terminates on September 30, 2010.’’.

(b) CONFORMING AMENDMENT AND EXTENSION.—Section 942 of

the Livestock Mandatory Reporting Act of 1999 (7 U.S.C. 1635

note; Public Law 106–78) is amended by striking ‘‘terminate on

September 30, 2005’’ and inserting ‘‘(other than section 911 of

subtitle A and the amendments made by that section) terminate

on September 30, 2010’’.

SEC. 2. DEFINITIONS.

(a) BASE MARKET HOGS.—Section 231(4) of the Agricultural

Marketing Act of 1946 (7 U.S.C. 1635i(4)) is amended to read

as follows:

‘‘(4) BASE MARKET HOG.—The term ‘base market hog’ means

a barrow or gilt for which no discounts are subtracted from

and no premiums are added to the base price.’’.

(b) BOARS.—Section 231(5) of such Act (7 U.S.C. 1635i(5)) is

amended to read as follows:

‘‘(5) BOAR.—The term ‘boar’ means a sexually-intact male

swine.’’.

(c) PACKER OF SOWS AND BOARS.—Section 231(12) of such Act

(7 U.S.C. 1635i(12)) is amended by—

(1) striking subparagraph (B) and inserting the following

new subparagraph:

‘‘(B) for any calendar year, the term includes only—

‘‘(i) a swine processing plant that slaughtered an

average of at least 100,000 swine per year during

the immediately preceding five calendar years; and

‘‘(ii) a person that slaughtered an average of at

least 200,000 sows, boars, or any combination thereof,

per year during the immediately preceding five calendar years; and’’; and

(2) in subparagraph (C)—

7 USC 1636i.

Oct. 5, 2006

[H.R. 3408]

PUBLIC LAW 109–296—OCT. 5, 2006 120 STAT. 1465

(A) by inserting ‘‘or person’’ after ‘‘swine processing

plant’’;

(B) by inserting ‘‘or person’’ after ‘‘plant capacity of

the processing plant’’; and

(C) by inserting ‘‘or person’’ after ‘‘determining whether

the processing plant’’.

SEC. 3. REPORTING; BARROWS AND GILTS.

Section 232(c) of the Agricultural Marketing Act of 1946 (7

U.S.C. 1635j(c)) is amended to read as follows:

‘‘(c) DAILY REPORTING; BARROWS AND GILTS.—

‘‘(1) PRIOR DAY REPORT.—

‘‘(A) IN GENERAL.—The corporate officers or officially

designated representatives of each packer processing plant

that processes barrows or gilts shall report to the Secretary,

for each business day of the packer, such information as

the Secretary determines necessary and appropriate to—

‘‘(i) comply with the publication requirements of

this section; and

‘‘(ii) provide for the timely access to the information

by producers, packers, and other market participants.

‘‘(B) REPORTING DEADLINE AND PLANTS REQUIRED TO

REPORT.—A packer required to report under subparagraph

(A) shall—

‘‘(i) not later than 7:00 a.m. Central Time on each

reporting day, report information regarding all barrows

and gilts purchased or priced, and

‘‘(ii) not later than 9:00 a.m. Central Time on

each reporting day, report information regarding all

barrows and gilts slaughtered,

during the prior business day of the packer.

‘‘(C) INFORMATION REQUIRED.—The information from

the prior business day of a packer required under this

paragraph shall include—

‘‘(i) all purchase data, including—

‘‘(I) the total number of—

‘‘(aa) barrows and gilts purchased; and

‘‘(bb) barrows and gilts scheduled for

delivery; and

‘‘(II) the base price and purchase data for

slaughtered barrows and gilts for which a price

has been established;

‘‘(ii) all slaughter data for the total number of

barrows and gilts slaughtered, including—

‘‘(I) information concerning the net price,

which shall be equal to the total amount paid

by a packer to a producer (including all premiums,

less all discounts) per hundred pounds of carcass

weight of barrows and gilts delivered at the plant—

‘‘(aa) including any sum deducted from

the price per hundredweight paid to a producer that reflects the repayment of a balance

owed by the producer to the packer or the

accumulation of a balance to later be repaid

by the packer to the producer; and

120 STAT. 1466 PUBLIC LAW 109–296—OCT. 5, 2006

‘‘(bb) excluding any sum earlier paid to

a producer that must later be repaid to the

packer;

‘‘(II) information concerning the average net

price, which shall be equal to the quotient (stated

per hundred pounds of carcass weight of barrows

and gilts) obtained by dividing—

‘‘(aa) the total amount paid for the barrows and gilts slaughtered at a packing plant

during the applicable reporting period,

including all premiums and discounts, and

including any sum deducted from the price

per hundredweight paid to a producer that

reflects the repayment of a balance owed by

the producer to the packer, or the accumulation of a balance to later be repaid by the

packer to the producer, less all discounts; by

‘‘(bb) the total carcass weight (in hundred

pound increments) of the barrows and gilts;

‘‘(III) information concerning the lowest net

price, which shall be equal to the lowest net price

paid for a single lot or a group of barrows or

gilts slaughtered at a packing plant during the

applicable reporting period per hundred pounds

of carcass weight of barrows and gilts;

‘‘(IV) information concerning the highest net

price, which shall be equal to the highest net price

paid for a single lot or group of barrows or gilts

slaughtered at a packing plant during the

applicable reporting period per hundred pounds

of carcass weight of barrows and gilts;

‘‘(V) the average carcass weight, which shall

be equal to the quotient obtained by dividing—

‘‘(aa) the total carcass weight of the barrows and gilts slaughtered at the packing

plant during the applicable reporting period,

by

‘‘(bb) the number of the barrows and gilts

described in item (aa),

adjusted for special slaughter situations (such as

skinning or foot removal), as the Secretary determines necessary to render comparable carcass

weights;

‘‘(VI) the average sort loss, which shall be

equal to the average discount (in dollars per hundred pounds carcass weight) for barrows and gilts

slaughtered during the applicable reporting period,

resulting from the fact that the barrows and gilts

did not fall within the individual packer’s established carcass weight or lot variation range;

‘‘(VII) the average backfat, which shall be

equal to the average of the backfat thickness (in

inches) measured between the third and fourth

from the last ribs, 7 centimeters from the carcass

split (or adjusted from the individual packer’s

measurement to that reference point using an

adjustment made by the Secretary) of the barrows

PUBLIC LAW 109–296—OCT. 5, 2006 120 STAT. 1467

and gilts slaughtered during the applicable

reporting period;

‘‘(VIII) the average lean percentage, which

shall be equal to the average percentage of the

carcass weight comprised of lean meat for the barrows and gilts slaughtered during the applicable

reporting period, except that when a packer is

required to report the average lean percentage

under this subclause, the packer shall make available to the Secretary the underlying data,

applicable methodology and formulae, and supporting materials used to determine the average

lean percentage, which the Secretary may convert

to the carcass measurements or lean percentage

of the barrows and gilts of the individual packer

to correlate to a common percent lean measurement; and

‘‘(IX) the total slaughter quantity, which shall

be equal to the total number of barrows and gilts

slaughtered during the applicable reporting period,

including all types of purchases and barrows and

gilts that qualify as packer-owned swine; and

‘‘(iii) packer purchase commitments, which shall

be equal to the number of barrows and gilts scheduled

for delivery to a packer for slaughter for each of the

next 14 calendar days.

‘‘(D) PUBLICATION.—

‘‘(i) IN GENERAL.—The Secretary shall publish the

information obtained under this paragraph in a prior

day report—

‘‘(I) in the case of information regarding barrows and gilts purchased or priced, not later than

8:00 a.m. Central Time, and

‘‘(II) in the case of information regarding barrows and gilts slaughtered, not later than 10:00

a.m. Central Time,

on the reporting day on which the information is

received from the packer.

‘‘(ii) PRICE DISTRIBUTIONS.—The information published by the Secretary under clause (i) shall include

a distribution of net prices in the range between and

including the lowest net price and the highest net

price reported. The publication shall include a delineation of the number of barrows and gilts at each

reported price level or, at the option of the Secretary,

the number of barrows and gilts within each of a

series of reasonable price bands within the range of

prices.

‘‘(2) MORNING REPORT.—

‘‘(A) IN GENERAL.—The corporate officers or officially

designated representatives of each packer processing plant

that processes barrows or gilts shall report to the Secretary

not later than 10:00 a.m. Central Time each reporting

day—

‘‘(i) the packer’s best estimate of the total number

of barrows and gilts, and barrows and gilts that qualify

as packer-owned swine, expected to be purchased

Deadlines.

120 STAT. 1468 PUBLIC LAW 109–296—OCT. 5, 2006

throughout the reporting day through each type of

purchase;

‘‘(ii) the total number of barrows and gilts, and

barrows and gilts that qualify as packer-owned swine,

purchased up to that time of the reporting day through

each type of purchase;

‘‘(iii) the base price paid for all base market hogs

purchased up to that time of the reporting day through

negotiated purchases; and

‘‘(iv) the base price paid for all base market hogs

purchased through each type of purchase other than

negotiated purchase up to that time of the reporting

day, unless such information is unavailable due to

pricing that is determined on a delayed basis.

‘‘(B) PUBLICATION.—The Secretary shall publish the

information obtained under this paragraph in the morning

report as soon as practicable, but not later than 11:00

a.m. Central Time, on each reporting day.

‘‘(3) AFTERNOON REPORT.—

‘‘(A) IN GENERAL.—The corporate officers or officially

designated representatives of each packer processing plant

that processes barrows or gilts shall report to the Secretary

not later than 2:00 p.m. Central Time each reporting day—

‘‘(i) the packer’s best estimate of the total number

of barrows and gilts, and barrows and gilts that qualify

as packer-owned swine, expected to be purchased

throughout the reporting day through each type of

purchase;

‘‘(ii) the total number of barrows and gilts, and

barrows and gilts that qualify as packer-owned swine,

purchased up to that time of the reporting day through

each type of purchase;

‘‘(iii) the base price paid for all base market hogs

purchased up to that time of the reporting day through

negotiated purchases; and

‘‘(iv) the base price paid for all base market hogs

purchased up to that time of the reporting day through

each type of purchase other than negotiated purchase,

unless such information is unavailable due to pricing

that is determined on a delayed basis.

‘‘(B) PUBLICATION.—The Secretary shall publish the

information obtained under this paragraph in the afternoon

report as soon as practicable, but not later than 3:00 p.m.

Central Time, on each reporting day.’’.

SEC. 4. REPORTING; SOWS AND BOARS.

Section 232 of the Agricultural Marketing Act of 1946 (7 U.S.C.

1635j) is amended by—

(1) redesignating subsection (d) as subsection (e); and

(2) inserting after subsection (c) the following new subsection:

‘‘(d) DAILY REPORTING; SOWS AND BOARS.—

‘‘(1) PRIOR DAY REPORT.—The corporate officers or officially

designated representatives of each packer of sows and boars

shall report to the Secretary, for each business day of the

packer, such information reported by hog class as the Secretary

determines necessary and appropriate to—

Deadline.

Deadline.

PUBLIC LAW 109–296—OCT. 5, 2006 120 STAT. 1469

‘‘(A) comply with the publication requirements of this

section; and

‘‘(B) provide for the timely access to the information

by producers, packers, and other market participants.

‘‘(2) REPORTING.—Not later than 9:30 a.m. Central Time,

or such other time as the Secretary considers appropriate,

on each reporting day, a packer required to report under paragraph (1) shall report information regarding all sows and boars

purchased or priced during the prior business day of the packer.

‘‘(3) INFORMATION REQUIRED.—The information from the

prior business day of a packer required under this subsection

shall include all purchase data, including—

‘‘(A) the total number of sows purchased and the total

number of boars purchased, each divided into at least three

reasonable and meaningful weight classes specified by the

Secretary;

‘‘(B) the number of sows that qualify as packer-owned

swine;

‘‘(C) the number of boars that qualify as packer-owned

swine;

‘‘(D) the average price paid for all sows;

‘‘(E) the average price paid for all boars;

‘‘(F) the average price paid for sows in each weight

class specified by the Secretary under subparagraph (A);

‘‘(G) the average price paid for boars in each weight

class specified by the Secretary under subparagraph (A);

‘‘(H) the number of sows and the number of boars

for which prices are determined, by each type of purchase;

‘‘(I) the average prices for sows and the average prices

for boars for which prices are determined, by each type

of purchase; and

‘‘(J) such other information as the Secretary considers

appropriate to carry out this subsection.

‘‘(4) PRICE CALCULATIONS WITHOUT PACKER-OWNED SWINE.—

A packer shall omit the prices of sows and boars that qualify

as packer-owned swine from all average price calculations, price

range calculations, and reports required by this subsection.

‘‘(5) REPORTING EXCEPTION: PUBLIC AUCTION PURCHASES.—

The information required to be reported under this subsection

shall not include purchases of sows or boars made by agents

of the reporting packer at a public auction at which the title

of the sows and boars is transferred directly from the producer

to such packer.

‘‘(6) PUBLICATION.—The Secretary shall publish the

information obtained under this paragraph in a prior day report

not later than 11:00 a.m. Central Time on the reporting day

on which the information is received from the packer.

Deadline.

120 STAT. 1470 PUBLIC LAW 109–296—OCT. 5, 2006

LEGISLATIVE HISTORY—H.R. 3408:

CONGRESSIONAL RECORD:

Vol. 151 (2005): Sept. 14, considered and passed House.

Vol. 152 (2006): Sept. 20, considered and passed Senate.

Æ

‘‘(7) ELECTRONIC SUBMISSION OF INFORMATION.—The Secretary of Agriculture shall provide for the electronic submission

of any information required to be reported under this subsection

through an Internet website or equivalent electronic means

maintained by the Department of Agriculture.’’.

Approved October 5, 2006.