[Federal Register Volume 72, Number 152 (Wednesday, August 8, 2007)]
[Proposed Rules]
[Pages 44672-44722]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-3857]



[[Page 44671]]

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Part IV





Department of Agriculture





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Agricultural Marketing Service



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7 CFR Part 59



Livestock Mandatory Reporting; Reestablishment and Revision of the 
Reporting Regulation for Swine, Cattle, Lamb, and Boxed Beef; Proposed 
Rule

Federal Register / Vol. 72, No. 152 / Wednesday, August 8, 2007 / 
Proposed Rules

[[Page 44672]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 59

[Docket No. AMS-LS-07-0106; LS-07-01]
RIN 0581-AC67


Livestock Mandatory Reporting; Reestablishment and Revision of 
the Reporting Regulation for Swine, Cattle, Lamb, and Boxed Beef

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: On April 2, 2001, the Agricultural Marketing Service (AMS) 
implemented the Livestock Mandatory Reporting (LMR) program as required 
by the Livestock Mandatory Reporting Act of 1999 (1999 Act). The 
statutory authority for the program lapsed on September 30, 2005. In 
October 2006, legislation was enacted to reauthorize the 1999 Act until 
September 30, 2010, and to amend the swine reporting requirements of 
the 1999 Act (Pub. L. 109-296) (Reauthorization Act). This rulemaking 
is necessary to re-establish the regulatory authority for the program's 
continued operation and incorporate the swine reporting changes 
contained within the Reauthorization Act as well as make other changes 
to enhance the program's overall effectiveness and efficiency based on 
AMS' experience in the administration of the program over the last 6 
years.

DATES: Written comments on the regulatory provisions of this proposed 
rule must be received on or before September 7, 2007 to be assured of 
consideration. Written comments on the information collection and 
recordkeeping provisions of this proposed rule must be received on or 
before October 9, 2007 to be assured of consideration.

ADDRESSES: Comments can be submitted on the Internet at: http://www.regulations.gov. Written comments can be sent to Warren P. Preston, 
Chief, Livestock and Grain Market News Branch, Docket No. LS-07-01, 
1400 Independence Ave., SW., Room 2619-S, Washington, DC 20250-0252, or 
by facsimile to (202) 690-3732. All comments received will be posted to 
the Web site at: http://www.regulations.gov. Comments that specifically 
pertain to the information collection and recordkeeping requirements of 
this action should also be sent to the Desk Officer for Agriculture, 
Office of Information and Regulatory Affairs, Office of Management and 
Budget, New Executive Office Building, 725 17th Street, NW., Room 725, 
Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Warren P. Preston, Chief, Livestock 
and Grain Market News Branch at (202) 720-6231, fax (202) 690-3732, or 
e-mail <a href="/cdn-cgi/l/email-protection#6235031010070c4c32100711160d0c22171106034c050d14"><span class="__cf_email__" data-cfemail="7b2c1a09091e15552b091e080f14153b0e081f1a551c140d">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Background

    The 1999 Act was enacted into law on October 22, 1999, (Pub. L. 
106-78) as an amendment to the Agriculture Marketing Act of 1946 (7 
U.S.C. 1621 et seq.). In the December 1, 2000, Federal Register, AMS 
published a final rule implementing the program (65 FR 75464) (2000 
final rule) with an effective date of January 30, 2001. This effective 
date was subsequently delayed until April 2, 2001.
    The statutory authority for the program lapsed on September 30, 
2005. In October 2006, legislation was passed to reauthorize the 1999 
Act until September 30, 2010, and amend swine reporting requirements.
    Because reauthorization was not completed by September 30, 2005, 
AMS sent letters to each packer required to report under the 1999 Act 
requesting their voluntary cooperation in continuing to submit 
information. Based on the response to AMS's request for voluntary 
packer participation in LMR, most reports have continued to be 
published. The only reports that are not being published are imported 
boxed lamb cuts and slaughter cow reports. AMS has continued compliance 
audits during the lapse in authority for the mandatory program for 
companies that agreed to continue submitting information and will 
continue this practice until the effective date of this regulatory 
action.
    The 1999 Act as originally passed provided for the mandatory 
reporting of market information by Federally inspected livestock 
processing plants that have slaughtered an average number of livestock 
during the immediately preceding 5 calendar years (125,000 for cattle 
and 100,000 for swine), including any processing plant that did not 
slaughter during the immediately preceding 5 calendar years if the 
Secretary determines that the plant should be considered a packer based 
on the plant's capacity. For entities that did not slaughter during the 
immediately preceding 5 calendar years, such as a new plant or existing 
plant that begins operations, AMS projects the plant's annual slaughter 
or production based upon the plant's estimate of annual slaughter 
capacity to determine which entities meet the definition of a packer as 
defined in this regulation.
    The 1999 Act also gave the Secretary of Agriculture (Secretary) the 
latitude to provide for the reporting of lamb information. Under the 
2000 final rule implementing the program, Federally inspected lamb 
processing plants that slaughtered an average of 75,000 head of lambs 
or processed an average of 75,000 lamb carcasses during the immediately 
preceding 5 calendar years were required to submit information to AMS. 
Additionally, a lamb processing plant that did not slaughter an average 
of 75,000 lambs or process an average of 75,000 lamb carcasses during 
the immediately preceding 5 calendar years was required to report 
information if the Secretary determined the processing plant should be 
considered a packer based on its capacity. In addition, the final rule 
also established that for any calendar year, an importer of lamb that 
imported an average of 5,000 metric tons of lamb meat products per year 
during the immediately preceding 5 calendar years report information on 
the domestic sales of imported boxed lamb cuts. Additionally, an 
importer that did not import an average of 5,000 metric tons of lamb 
meat products during the immediately preceding 5 calendar years was 
required to report information if the Secretary determined that the 
person should be considered an importer based on their volume of lamb 
imports. On September 2, 2004, AMS published a final rule (69 FR 53783) 
(2004 final rule) that revised the threshold for importers to 2,500 
metric tons and modified the definition of carlot when used in 
reference to boxed lamb cuts.

Key Components of the Statute

Cattle

    The Reauthorization Act did not modify the cattle reporting 
requirements contained in the 1999 Act. The 1999 Act requires that a 
cattle packer whose Federally inspected plant slaughtered an average of 
at least 125,000 cattle per year for the preceding 5 calendar years or 
did not slaughter cattle during the preceding 5 calendar years but is 
considered a packer based on plant capacity as determined by the 
Secretary, report market information to the Secretary. They are 
required to report the prices for each type of cattle purchase, 
categorized to clearly delineate imported from domestic market 
purchases, negotiated purchase, formula marketing arrangement, and 
forward contract; the quantity of cattle, categorized to clearly 
delineate imported from domestic market purchases, purchased on a live 
weight

[[Page 44673]]

basis and a carcass basis; and the weight, the quality grade, and 
premiums and discounts. This information would be reported twice a day 
not later than 10 a.m. and 2 p.m. central time. The Secretary would 
issue reports to the public of this information at least three times 
each day.
    The 1999 Act further requires that a packer report marketing 
information not later than 9 a.m. central time on the first reporting 
day of each week for cattle bought by the type of purchase for the 
prior week. In addition, the 1999 Act states that packers must report 
weekly information on the first reporting day not later than 9 a.m. 
central time for cattle purchased on a formula or contract marketing 
arrangement and slaughtered the prior week. However, under this 
proposed regulation, the required information for the weekly submission 
for cattle purchased on a formula would be obtained by aggregating 
packers' daily submissions of this information. Therefore, no 
additional weekly submission would be required for this purchase type. 
The Secretary would issue a public report not later than 10 a.m. 
central time on the first reporting day of the current slaughter week.
    The 1999 Act also mandates that a packer report information on 
boxed beef cut sales to the Secretary at least twice each reporting day 
not less frequently than once before and once after 12 noon central 
time. This information includes the price per hundredweight, the 
quantity in each lot of boxed beef cuts sold, information regarding the 
characteristics of each lot (i.e., domestic vs. export sale, USDA 
Quality Grade, etc.), the type of beef cut and the trim specification. 
The Secretary would report this information to the public twice each 
reporting day.

Swine

    The Reauthorization Act revised the requirements for swine 
reporting. Under the 1999 Act, the term packer includes a Federally 
inspected plant that slaughtered an average of at least 100,000 swine 
per year during the immediately preceding 5 calendar years. Under the 
Reauthorization Act, the term packer also includes a person that 
slaughtered an average of at least 200,000 sows, boars, or combination 
thereof per year during the immediately preceding 5 calendar years. 
Additionally, in the case of a swine processing plant or person that 
did not slaughter swine during the immediately preceding 5 calendar 
years, it shall be considered a packer if the Secretary determines the 
processing plant or person should be considered a packer under this 
subpart after considering its capacity.
    The Reauthorization Act separated the reporting requirements for 
sows and boars from barrows and gilts. For barrows and gilts, the 
packer must report to the Secretary not later than 7 a.m. central time 
on each reporting day information regarding all swine purchased or 
priced, during the prior business day of the packer. The 
Reauthorization Act modified the reporting time for information 
regarding all barrows and gilts slaughtered during the prior business 
day from not later than 7 a.m. central time to not later than 9 a.m. 
central time on each reporting day. The packer must report all purchase 
data including the number of barrows and gilts purchased, barrows and 
gilts scheduled for delivery and the base price and purchase data for 
slaughtered barrows and gilts for which a price has been established. 
The information also includes all slaughter data for the total number 
of barrows and gilts slaughtered including information concerning the 
net price, average net price, lowest net price, highest net price, 
average carcass weight, average sort loss, average backfat, average 
lean percentage, and total slaughter quantity. However, the information 
on the lowest net price and highest net price can be obtained from the 
LMR system from packers' submissions. Therefore, under this proposed 
rule, there is no requirement for packers to submit this information 
separately. Packers reporting the average lean percentage must report 
the manner in which the average lean percentage is calculated as well 
as whenever a change in such calculation is made. In doing so, 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 will convert 
to the carcass measurements or lean percentage of the swine of the 
individual packer to correlate to a common percent lean measurement. 
Additionally, the information to be reported includes packer purchase 
commitments, which shall be equal to the number of barrows and gilts 
scheduled for delivery to a packer for slaughter each of the next 14 
calendar days.
    The Secretary would publish the information in a prior day report 
not later than 8 a.m. central time for all swine purchased and 10 a.m. 
central time for all barrows and gilts slaughtered on the reporting day 
on which the information is received from the packer. In addition, as 
required by the Reauthorization Act, the Secretary shall publish a net 
price distribution for all barrows and gilts slaughtered on the 
previous day not later than 3 p.m. central time.
    The Reauthorization Act also requires packers that process barrows 
and gilts to report to the Secretary in the morning not later than 10 
a.m. central time and in the afternoon not later than 2 p.m. central 
time each reporting day. The reporting requirements for the morning and 
afternoon reports contained in the Reauthorization Act for barrows and 
gilts were not altered from those contained in the 1999 Act. The 
information to be reported is the same for the morning and afternoon 
reports and includes an estimate of (1) the total number of barrows and 
gilts purchased by each method of pricing, (2) the total number of 
barrows and gilts purchased, and (3) the base price paid for all 
negotiated purchases of market hogs and the base price paid for each 
type of purchase of market hogs other than through a negotiated 
purchase. This information must be submitted for all covered 
transactions made up to within one half hour of each specified 
reporting time. Packers completing transactions during the one half 
hour prior to the previous reporting time will report those 
transactions at the next prescribed reporting time. The Secretary will 
make the morning report available to the public not later than 11 a.m. 
central time and the afternoon report at 3 p.m. central time on each 
reporting day.
    The Reauthorization Act requires each packer of sows and boars to 
report to the Secretary not later than 9:30 a.m. central time, or such 
other time as the Secretary considers appropriate, on each reporting 
day, information regarding all sows and boars purchased or priced 
during the prior business day of the packer. The information to be 
reported includes the total number of sows and boars purchased, each 
divided into at least three weight classes specified by the Secretary, 
the number of sows and boars that qualify as packer-owned swine, the 
average price paid for all sows and boars, the average price paid for 
sows and boars in each weight class, the number of sows and boars for 
which prices are determined, by each type of purchase, and the average 
prices for sows and boars for which prices are determined, by each type 
of purchase. The Secretary would publish the information in a prior day 
report not later than 11 a.m. central time on the reporting day on 
which the information is received from the packer. Under the 1999 Act, 
the reporting requirements for sows and boars were the same as the

[[Page 44674]]

reporting requirements for barrows and gilts.
    The Secretary will compile and issue a weekly noncarcass merit 
premium report on the first reporting day of the week not later than 5 
p.m. central time. This report would be prepared from information 
furnished to the Secretary by packers who must report not later than 4 
p.m. central time on the first reporting day of the week. The 
information required includes noncarcass merit premiums used and paid 
to producers during the prior slaughter week by category.
    The 1999 Act provides that the Secretary review the information 
required to be reported by packers at least once every two years. Also, 
the 1999 Act directs the Secretary to promulgate regulations that 
specify additional information to be reported by packers if the 
Secretary determines information currently reported does not accurately 
reflect the methods by which swine are valued or priced, or account for 
the fact that packers that slaughter a significant majority of the 
swine produced in the United States no longer use backfat or lean 
percentage factors as indicators of price.

Lamb

    The Reauthorization Act did not change the lamb reporting 
provisions contained in the 1999 Act. The 1999 Act gives the Secretary 
the authority to establish a mandatory lamb price reporting program 
that will provide timely, accurate, and reliable market information. It 
does not specify the requirements for establishing a mandatory lamb 
price reporting program as it does for cattle and swine. Accordingly, 
in the 2000 final rule, AMS established a mandatory lamb price 
reporting program based upon its extensive knowledge of the lamb 
industry and market news reporting of lamb.
    Under the established program, a lamb packer whose Federally 
inspected plant slaughtered or processed an average of at least the 
equivalent of 75,000 lambs each year for the preceding 5 calendar years 
reports to the Secretary once daily the price of each type of lamb 
purchase, negotiated purchase, formula marketing arrangements, forward 
contract, quantity of lamb purchased on live weight or carcass weight, 
a range and average estimated live weights, quality grade, premiums and 
discounts, class type, pelt type, state of origin, and estimated 
dressing percentage. The Secretary issues a report to the public on 
this information not less than once each day.
    Lamb packers are required to report to the Secretary on a weekly 
basis on the second reporting day of the week information from the 
prior week. This information includes the quantity and certain carcass 
characteristics of lambs purchased through a formula marketing 
arrangement or forward contract that were slaughtered, and the quantity 
and carcass characteristics of packer owned lamb that were slaughtered. 
Reported information includes, by type of purchase, the quantity of 
lamb purchased on live weight and carcass weight basis that were 
slaughtered, the quality grade, premiums and discounts paid, and 
dressing percentage. In addition, a lamb packer is required to report 
the quantity and basis level for forward contracts, the range and 
average of intended premiums and discounts, and the expected slaughter 
date. Under this proposed rule, packers would also be required to 
report information on the quantity of lambs purchased on a negotiated 
basis.
    The Secretary makes available to the public the information on the 
second reporting day of the current slaughter week.
    Packers report information on daily sales of carcass lamb and sales 
of boxed lamb cuts each reporting day. Under this proposed rule, 
packers would also be required to report carcass purchases. Due to the 
changing structure of the lamb industry, an increasing number of 
transactions are not required to be reported under the existing 
regulation. Requiring packers to also report their carcass purchases 
would greatly increase the volume of covered transactions.
    For sales and purchases of carcass lamb, the information includes 
prices for each lot, the type of sale, the quantity of each sale quoted 
in number of carcasses, the USDA grade, the estimated weight range, and 
delivery date. For sales of boxed lamb cuts, the packer reports the 
price for each lot, the quantity for each lot quoted by product weight, 
the type of sale, branded product characteristics, if applicable, the 
USDA quality and yield grade, the cut of lamb, the product state of 
refrigeration, the weight range of each cut, and the delivery period. 
The Secretary issues to the public a report on carcass lamb sales and 
boxed lamb cut sales once each reporting day.
    For any calendar year, a lamb importer who imports an average of 
2,500 metric tons of lamb meat products per year during the immediately 
preceding 5 calendar years reports to the Secretary weekly the prices 
received for imported lamb cuts sold on the domestic market. 
Additionally, an importer that does not import an average of 2,500 
metric tons of lamb meat products during the immediately preceding 5 
calendar years is also required to report the above information, if the 
Secretary determines that the person should be considered an importer 
based on their volume of lamb imports.

Other Provisions of the Act Involving Administration

    The administrative provisions of the 1999 Act set forth the 
requirements for maintaining confidentiality regarding the packer 
reporting of proprietary information and list the conditions under 
which Federal employees can release such information. These 
administrative provisions also establish that the Secretary can make 
necessary adjustments in the information reported by packers and take 
action to verify the information reported, and directs the Secretary to 
report and publish reports by electronic means to the maximum extent 
practical. The 1999 Act provides for what constitutes violations of 
that Act, such as failure to report the required information on time or 
failure to report accurate information. The Reauthorization Act did not 
change any of these provisions.
    The section on enforcement establishes a civil penalty--$10,000--
for each violation and provides for the Secretary's issuance of cease 
and desist orders. This section also provides for notice and hearing of 
violations before the Secretary, judicial review, issuance of an 
injunction or restraining order, and establishes a civil penalty for 
failure to obey a cease and desist order.
    The fees section directs the Secretary to not charge or assess fees 
for the submission, reporting, receipt, availability, or access to 
published reports or information collected through this program.
    The section on recordkeeping requires each packer to make available 
to the Secretary on request for 2 years the original contracts, 
agreements, receipts, and other records associated with any transaction 
relating to the purchase, sale, pricing, transportation, delivery, 
weighing, slaughter, or carcass characteristics of all livestock and 
livestock products, as well as such records or other information that 
is necessary or appropriate to verify the accuracy of information 
required to be reported. Also, the 1999 Act provides that reporting 
entities will not be required to report new or additional information 
that they do not generally have available or maintain, or the 
provisions of which would be unduly burdensome.

[[Page 44675]]

    Further, the 1999 Act provides that the Secretary may suspend any 
requirement if the Secretary determines that the application of the 
requirement would be inconsistent with the Act.

Proposed Requirements

Summary of Changes

    The requirements of this proposed regulation are discussed in 
detail in the sections immediately following. However, for the ease of 
the reader, this section contains descriptions and rationale of the 
substantive changes that have been made as compared to the December 1, 
2000, and September 2, 2004, (that modified reporting requirements for 
lamb) final rules that were published in the Federal Register.

Recordkeeping

    To reduce the recordkeeping burden on lamb importers, the Agency is 
proposing to modify the recordkeeping requirement to allow lamb 
importers to maintain a record of sale that evidences only the date the 
sale occurred rather than the time and date. Because lamb importers are 
required to report only weekly, the date the sale occurred is 
sufficient for recordkeeping purposes.

Definitions

    The Agency is proposing to modify the definition of the term 
``discount'' by adding ``or other characteristic'' to allow for the 
inclusion of other types of discounts such as a discount for an 
animal's age, which is currently utilized by several reporting packers.
    The Agency is also proposing to modify the definitions of the terms 
``negotiated purchased'' and ``negotiated sale'' by removing the 
language ``and agreement on a delivery day.'' Under the current 
program, a transaction is not required to be reported if the specific 
delivery day is not known. Deleting this language would provide for 
more timely price reporting if the only piece of information not known 
is the delivery day.
    The Agency is proposing to add a definition for the term 
``negotiated grid purchase.'' When the LMR program was first 
implemented on April 2, 2001, negotiated grid purchases, purchases in 
which the base price is determined by seller-buyer interaction from 
which premiums are added and discounts are subtracted, were coded in 
packer submissions as formulas, as the system was not initially 
configured to allow these two distinct transaction types to be coded 
separately. The Agency subsequently made a programming change to 
rectify this problem and is proposing this definition for clarity.
    The Agency is proposing to add a definition for the term ``percent 
lean'' for clarification with respect to cow and bull reporting 
requirements. The Agency is also proposing to add a definition for the 
term ``person'' for clarity.

Cattle Reporting

    The majority of the changes that are being proposed with respect to 
cattle reporting relate to the separation of the reporting requirements 
for cows and bulls. Separation of the reporting requirements for cows 
and bulls is being proposed to minimize the reporting burden on cow and 
bull packers where possible and to make the information published for 
cows and bulls and the resulting meat products more meaningful to the 
industry.
    The Agency is proposing to modify the definition of the term 
``boxed beef'' to remove references to age limitations on products and 
to require packers to report transactions for frozen primals, 
subprimals, and cuts in addition to the current requirement for packers 
to submit information on frozen beef trimmings and boneless processing 
beef. Neither the 1999 Act nor the Reauthorization Act defines the term 
``boxed beef.'' Hence the term must be defined by regulation. These 
proposed modifications to the definition would provide for more 
complete reporting of the boxed beef trade, consistent with the law's 
purpose of improving the price and supply reporting conditions of USDA. 
Although the revised definition of ``boxed beef'' potentially would 
result in the reporting of more transactions by packers to AMS, the 
Agency believes that there would be little to practically no increase 
in the reporting burden to packers. The cost to packers of reporting 
all trades versus sorting out trades beyond certain parameters is 
minimal, and in many cases, may even be less burdensome than sorting 
out transactions prior to submission to AMS.
    In the 2000 final rule, the definition of ``boxed beef'' specified 
that the product not exceed one of three different dates from 
manufacture, depending on the specific item in question. For example, 
primals, subprimals, and cuts fabricated from subprimals were not to be 
older than 14 days from the date of manufacture, while fresh ground 
beef, beef trimmings, and boneless processing beef were not to be older 
than 7 days from the date of manufacture. By removing references to 
these different cutoff dates, there would be less confusion in terms of 
what information reporting packers are required to submit, and hence, 
less uncertainty regarding the information that is subsequently 
reported and disseminated by AMS. In addition, new technologies in 
packaging and processing continue to extend the shelf life of meat 
products, and product that may have been considered aged or distressed 
at the time of the 2000 final rule may now be well within its usable 
shelf life. Removing references to product age in the definition of 
``boxed beef'' would reflect such changes in the state of the industry.
    The 2000 final rule defined ``boxed beef'' to include fresh 
primals, subprimals, cuts fabricated from subprimals, ground beef, beef 
trimmings, and boneless processing beef. The definition also included 
frozen beef trimmings and boneless processing beef. By removing the 
references to fresh or frozen product, the proposed rule would reduce 
confusion on the part of reporting packers regarding whether or not to 
submit information on particular trades. AMS believes that this 
modification of the definition of ``boxed beef'' would result in 
minimal to virtually no increase in burden to reporting packers. In the 
case of frozen products, numerous reporting packers already submit 
information on all frozen products. Due to the nature of their 
electronic systems, it is in many cases often less burdensome for 
packers to submit everything rather than having to sort through 
eligible transactions. AMS believes that reporting of trade in frozen 
products would provide a more accurate and comprehensive picture of the 
market for boxed beef, consistent with the purposes of the 1999 Act to 
improve the price and supply reporting services of USDA. For instance, 
trading of frozen product picked up with the reopening of foreign 
markets following the closures that resulted from the discovery of a 
cow with bovine spongiform encephalopathy in the United States in 
December 2003. Because a majority of packers are reporting frozen boxed 
beef trades, AMS has been able to show the number of frozen export 
loads in its comprehensive boxed beef cutout report. Requiring all 
packers to submit information on frozen product trades would ensure 
that such reporting would represent a more complete reflection of 
market conditions.
    Comments are invited on the proposed modifications to the 
definition of ``boxed beef'' with respect to removing references to the 
age of the product and whether it is fresh or frozen. In particular, 
comments are invited on the potential utility of obtaining information 
on trades that would be excluded under the definition

[[Page 44676]]

of ``boxed beef'' in the 2000 final rule and on the change in reporting 
burden to packers. In any case, the Agency notes that it will accept 
all data submitted if reporting entities find that it is less 
burdensome to do so, provided that sufficient information is submitted 
to allow AMS to sort the information according to definitions in the 
final rule.
    The Agency is proposing to modify the definition of the term 
``carlot-based'' such that for cow and bull boxed beef items, the term 
``carlot-based'' would include any transaction between a buyer and 
seller consisting of 5,000 pounds or more of one or more individual 
items. This modification reflects current industry practice with 
respect to the marketing of cow and bull products.
    The Agency is proposing to modify the definition of the term 
``terms of trade'' to clarify that the requirement to report the terms 
of trade applies only to steers and heifers to coincide with the 
proposed separation of reporting requirements for cows and bulls from 
steers and heifers. The definition of ``terms of trade'' has also been 
modified to require packers to distinguish between negotiated 
transactions that are scheduled for delivery not later than 14 days and 
those negotiated transactions that are scheduled for delivery more than 
14 days, but fewer than 30 days. Under current guidance provided by 
AMS, transactions that are for delivery more than 14 days out are to be 
coded as forward contracts. This proposed modification would not 
require packers to submit additional transactions, but it would allow 
AMS to separately identify these types of transactions, which is a 
concern of some in the industry.
    The Agency is proposing to modify the definition of the term ``type 
of purchase'' to include ``negotiated grid purchase'' as a type of 
purchase.
    The Agency is proposing to add a definition for the term ``white 
cow'' to provide clarity to the cow and bull reporting requirements.
    The Agency has modified and renumbered the sections that relate to 
the daily and weekly reporting requirements for live cattle. Section 
59.101 and section 59.103 contain the daily and weekly reporting 
requirements for steers and heifers. Section 59.102 contains the daily 
reporting requirements for cows and bulls.
    With regard to section 59.101, packers would no longer be required 
to report the range of weights of cattle purchased. In addition, the 
phrase ``or other characteristics'' has been added to the premium and 
discount reporting requirement to allow for the reporting of other 
kinds of premiums and discounts such as those associated with an 
animal's age.
    Section 59.102 contains the reporting requirements for cow and bull 
purchases. In an effort to reduce the reporting burden on cow and bull 
packers, only the information that pertains to the way cows and bulls 
are marketed would be required to be reported. For example, cow and 
bull packers no longer have to report committed and delivered 
information. In addition, there would no longer be a weekly reporting 
requirement for cows and bulls.
    With regard to section 59.103, packers would be required to report 
the quantity of cattle purchased on a negotiated basis and on a 
negotiated grid basis that were slaughtered in addition to the current 
requirement to report the number of cattle purchased through forward 
contracts, formula marketing arrangements and the quantity and carcass 
characteristics of packer-owned cattle that were slaughtered. In 
addition, packers would be required to provide the basis level month 
and delivery year for all cattle purchased through forward contracts in 
addition to the current requirement to report the basis level and 
delivery month. These changes are necessary to make the information 
published in AMS market reports more meaningful and useable by the 
industry by providing a complete picture of the prior week's slaughter 
with respect to the numbers of cattle harvested under each purchase 
type. Prices for negotiated purchases and negotiated grid purchases are 
collected currently, but prior week slaughter numbers for these types 
of purchases are not now collected. However, the addition of this 
reporting requirement is expected to have little impact on the 
reporting burden to packers, while contributing to the completeness of 
the information disseminated under the program.
    Another change under section 59.103 is that packers would be 
required to provide the basis level month and delivery year for all 
cattle purchased through forward contracts in addition to the current 
requirement to report the basis level and delivery month. The basis 
level month and delivery year are necessary to provide a more accurate 
picture of the forward contract market and would allow AMS to publish 
more meaningful information. Also, the added information reflects the 
current industry practice of sometimes contracting out very far into 
the future, making it necessary to know the delivery year to categorize 
transactions properly according to not only the month but also the year 
of delivery.
    Finally, in another effort to reduce the burden on reporting 
packers, the weekly requirement to report information for cattle 
purchased through a formula marketing arrangement and slaughtered 
during the prior slaughter week has been removed as the Agency can 
obtain this information by aggregating packers' daily submissions.

Swine

    As required by the Reauthorization Act, the reporting requirements 
for sows and boars have been separated from the reporting requirements 
for barrows and gilts. Thus under this proposed rule, section 59.202 
contains the reporting requirements for barrows and gilts and section 
59.303 contains the reporting requirements for sows and boars.
    The Reauthorization Act also made a few other modifications to the 
swine reporting provisions. Specifically, the definition of a packer 
has been modified to also include a person that slaughtered an average 
of 200,000 head of sows, boars, or combination thereof per year during 
the immediately preceding 5 calendar years. Under the 1999 Act, a 
packer was defined as a swine processing plant that slaughtered an 
average of at least 100,000 swine per year during the immediately 
preceding 5 calendar years. The Reauthorization Act also changes the 
reporting timeframe for packers to submit prior day slaughtered swine 
information from 7 a.m. central time to 9 a.m. central time and 
requires the Secretary to publish a net price distribution on all 
barrows and gilts slaughtered the previous day.
    In addition to the changes required by the Reauthorization Act, the 
Agency has made a few other minor modifications to reduce the reporting 
burden on swine packers. A definition of the term ``inferior hog'' has 
been added to allow packers to exclude information on inferior hogs, 
which are discounted in the marketplace, from their data submissions to 
AMS. Also, the requirement to submit information on the lowest net 
price and the highest net price has been removed as the Agency can 
obtain this information from the LMR system from packer submissions.

Lamb

    As previously discussed, the Reauthorization Act did not change the 
reporting provisions for lamb. However, the Agency is proposing a few 
changes to reduce the reporting burden on lamb packers where possible 
and to provide more meaningful information in AMS market reports.
    The Agency is proposing to delete the definitions for the terms 
``lambs committed'' and ``terms of trade'' as the

[[Page 44677]]

requirements to submit this information have been deleted to reduce the 
reporting burden on packers. The Agency is proposing to add a 
definition for the term ``yield grade lamb carcass reporting'' to add 
further clarification to the requirement to report yield grade 
information.
    With respect to weekly reporting, the Agency is proposing to 
require packers to submit information on the quantity of lambs 
purchased through a negotiated purchase that were slaughtered in 
addition to the current requirement to submit this type of information 
on packer-owned lambs, lambs purchased through forward contracts, and 
lambs purchased under a formula arrangement. This change would allow 
AMS to publish more meaningful market information in AMS market 
reports.
    With respect to reporting requirements for lamb carcasses, the 
Agency is proposing to require packers to submit information on their 
carcass purchases in addition to the current requirement to report 
carcass sales. Due to the changing structure of the lamb industry, an 
increasing number of transactions are not required to be reported under 
the existing regulation. Requiring packers to also report their carcass 
purchases will greatly increase the volume of covered transactions and 
will allow AMS to publish more meaningful information in AMS market 
reports.

General Provisions

    Proposed Subpart A of Part 59, General Provisions, covers those 
requirements pertinent to all aspects of mandatory reporting. Section 
59.10 details how packers and importers would be required to report 
information and how reporting will be handled over weekends and 
holidays. Electronic reporting would be required for all information 
collection. Electronic reporting would involve the transfer of data 
from a packer's or importer's existing electronic recordkeeping system 
to a centrally located AMS electronic database. The packer or importer 
would be required to organize the information in an AMS-approved format 
before electronically transmitting the information to AMS.
    Once the required information has been entered into the AMS 
database, it would be aggregated and processed into various market 
reports that would be released according to the daily and weekly time 
schedule set forth in these proposed regulations.
    Section 59.20 identifies the recordkeeping requirements imposed by 
the 1999 Act and these regulations on packers and importers. Reporting 
packers and importers would be required to maintain and to make 
available the original contracts, agreements, receipts, and other 
records associated with any transaction relating to the purchase, sale, 
pricing, transportation, delivery, weighing, slaughter, or carcass 
characteristics of all livestock. In addition, they would be required 
to maintain such records or other information as is necessary or 
appropriate to verify the accuracy of the information required to be 
reported under these regulations. All of the above mentioned paperwork 
must be maintained by packers and importers for at least 2 years. 
Further, packers would be required to maintain a record to indicate the 
time a lot of cattle or swine was purchased, or a unit of boxed beef 
cuts was sold, as occurring either before 10 a.m. central time, between 
10 a.m. and 2 p.m. central time, or after 2 p.m. central time. Lamb 
packers would be required to maintain a record to indicate the time a 
lot of lambs was purchased or a lot of lamb carcasses was purchased or 
sold or boxed lamb cuts was sold, as occurring either before 2 p.m. 
central time or after 2 p.m. central time. For lamb importers, the 
record of sale shall evidence the date the sale occurred. However, to 
allow packers and importers time to collect, assemble and submit the 
information to AMS by the prescribed deadlines, all covered 
transactions up to within one half hour of the specified reporting 
times would be reported.
    Lastly, under Subpart A, Section 59.30 details the general 
definitions of terms used throughout the regulations, which would be 
applicable to all subparts. The majority of these definitions remain 
unchanged from those that were published in the 2000 final rule. 
However, as previously discussed, the following changes have been made: 
Minor modifications to the definitions of ``discount'', ``negotiated 
purchase'', and ``negotiated sale''; the addition of a definition for 
``negotiated grid purchase''; the addition of a definition of ``percent 
lean''; and the addition of a definition of ``person''.

Cattle

    Proposed Subpart B of Part 59 states what is required to be 
reported in the cattle and boxed beef sectors. For the most part, the 
reporting requirements are similar to those published in the December 
1, 2000, final rule. The specific changes that are being proposed have 
been discussed in a previous section in this document. Section 59.100 
provides definitions of cattle terms used in Subpart B, including the 
definition of packer, which identifies which entities would be required 
to report under this proposed rule. In any calendar year, the term 
cattle packer includes any Federally inspected cattle plant that 
slaughtered an average of 125,000 head of cattle a year for the 
immediately preceding 5 calendar years. Additionally, the term includes 
any processing plant that did not slaughter cattle during the 
immediately preceding 5 calendar years if the Secretary determines that 
the plant should be considered a packer based on its capacity.
    For entities that did not slaughter cattle during the immediately 
preceding 5 calendar years, such as a new plant or existing plant that 
begins operations, AMS will project the plant's annual slaughter or 
production based upon the plant's estimate of annual slaughter capacity 
to determine which entities meet the definition of a packer as defined 
in these regulations.
    The definition of ``boxed beef'' includes fresh and frozen primals, 
subprimals, cuts fabricated from subprimals (with some exclusions), and 
fresh and frozen ground beef, beef trimmings, and boneless processing 
beef.
    The definition of ``terms of trade'' applies to steers and heifers 
only and includes the percentage of steers and heifers purchased by a 
packer as a negotiated purchase that are scheduled to be delivered to 
the plant for slaughter not later than 14 days and the percentage of 
slaughter steers and heifers purchased by a packer as a negotiated 
purchase that are scheduled to be delivered to the plant for slaughter 
more than 14 days but fewer than 30 days.
    The term ``type of purchase'' with respect to cattle, means a 
negotiated purchase, negotiated grid purchase, a formula market 
arrangement, and a forward contract.
    The term ``white cow'' means a cow on a ration that tends to 
produce white fat.
    As previously discussed, the reporting requirements for cows and 
bulls have been separated from the reporting requirements for steers 
and heifers, which will reduce the reporting burden on cow and bull 
packers. Section 59.101 discusses the daily reporting requirements for 
steer and heifer transactions, including what information would be 
reported, when it would be reported, and when it would be published. 
Steer and heifer plants covered under the rule would report the details 
of their purchases twice each day to AMS (once by 10 a.m. central time, 
and once by 2 p.m. central time) and

[[Page 44678]]

would include all covered transactions made up to within one half hour 
of the specified reporting time. Packers completing transactions during 
the one half hour prior to the previous reporting time would report 
those transactions at the next prescribed reporting time. The Secretary 
would publish the information not less than three times each day. 
Section 59.102 discusses the daily reporting requirements for cows and 
bulls, including what information would be reported, when it would be 
reported, and when it would be published. Cow and bull plants covered 
under this rule would be required to report the base bid price intended 
to be paid for slaughter cow and bull carcasses on that day not later 
than 10 a.m. central time and the prices for cattle purchased during 
the previous day not later than 2 p.m. central time. The Secretary 
would publish the information within one hour of the required reporting 
time on the reporting day on which the information is received by the 
packer. Section 59.103 discusses the requirements for weekly reporting 
for steers and heifers. Packers would be required to report information 
regarding the prior slaughter week on the first reporting day of each 
week not later than 9 a.m. central time. This information includes the 
quantity of cattle purchased through a negotiated basis that were 
slaughtered; the quantity of cattle purchased through a negotiated grid 
basis that were slaughtered; the quantity of cattle purchased through 
forward contracts that were slaughtered; the quantity of cattle 
delivered under a formula marketing arrangement that were slaughtered; 
the quantity and carcass characteristics of packer-owned cattle that 
were slaughtered; the quantity, basis level, basis level month, and 
delivery month and year for all cattle purchased through forward 
contracts; and the range and average of intended premiums and discounts 
that are expected to be in effect for the current slaughter week. This 
information would be published by the Secretary on the same day by 10 
a.m. central time. Finally, under Subpart B, Section 59.104 details the 
information required to be reported concerning sales of boxed beef cuts 
including what would be reported, when it would be reported, and when 
it would be published. Cattle plants producing boxed beef cuts would be 
required to report their domestic and export sales of boxed beef cuts 
including branded boxed beef cuts to AMS twice each reporting day, once 
by 10 a.m. central time and once by 2 p.m. central time. This should 
include all covered transactions made up to within one half hour of the 
specified reporting time. Cattle plants completing transactions during 
the one half hour prior to the previous reporting time would report 
those transactions at the next prescribed reporting time. This 
information would be published by the Secretary twice each day. These 
plants would be required to reference the Institutional Meat Purchase 
Specifications (IMPS) for Fresh Beef Products Series 100, United States 
Department of Agriculture, Agricultural Marketing Service, Livestock 
and Seed Program, when applicable.

Swine

    The Reauthorization Act made several changes to the swine reporting 
provisions. The Agency made a few other minor modifications, which are 
discussed in detail in a previous section in this document, for clarity 
and to reduce the reporting burden on packers.
    Proposed Subpart C of Part 59 lists the requirements of swine 
reporting beginning with Section 59.200, which establishes definitions 
for terms used throughout the subpart including the definition of a 
packer. In any calendar year, the term swine packer includes a 
Federally inspected plant that slaughtered an average of at least 
100,000 swine per year during the immediately preceding 5 calendar 
years and a person that slaughtered an average of at least 200,000 
sows, boars, or combination thereof per year during the immediately 
preceding 5 calendar years. Additionally, in the case of a swine 
processing plant or person that did not slaughter swine during the 
immediately preceding 5 calendar years, it shall be considered a packer 
if the Secretary determines the processing plant or person should be 
considered a packer under this subpart after considering its capacity. 
For entities that did not slaughter swine during the immediately 
preceding 5 calendar years, such as a new plant or existing plant that 
begins operations, AMS will project the plant's annual slaughter or 
production based upon the plant's estimate of annual slaughter capacity 
to determine which entities meet the definition of a packer as defined 
in these regulations.
    Section 59.202 discusses the daily reporting requirements for 
barrows and gilts including what information would be reported, when it 
would be reported, and when it would be published.
    For barrows and gilts, packers required to report under this rule 
would report the details of their barrows and gilts purchases three 
times each day including a prior day report not later than 7 a.m. 
central time, a morning report not later than 10 a.m. central time, and 
an afternoon report not later than 2 p.m. central time, including all 
covered transactions made up to within one half hour of each specified 
reporting time. Packers completing transactions during the one half 
hour prior to the previous reporting time would report those 
transactions at the next prescribed reporting time. This information 
would be published by the Secretary each reporting day not later than 8 
a.m. central time, 11 a.m. central time, and 3 p.m. central time, 
respectively. For barrows and gilts, packers required to report under 
this rule would also have to report not later than 9 a.m. central time 
on each reporting day information regarding all barrow and gilts 
slaughtered during the prior business day. This information would be 
published by the Secretary each reporting day not later than 10 a.m. 
central time. In addition, the Secretary would publish a net price 
distribution for all barrow and gilts slaughtered on the previous day 
not later than 3 p.m. central time. Section 59.203 details the 
reporting requirements for sows and boars. Under this proposed rule, 
each sow and boar packer would report to the Secretary not later than 7 
a.m. central time on each reporting day information regarding all sows 
and boars purchased or priced during the prior business day of the 
packer. This information would be published by the Secretary each 
reporting day not later than 8 a.m. central time. Section 59.204 
details the requirements for reporting weekly swine information to AMS 
including what would be reported, when it would be reported, and when 
it would be published. On the first reporting day of each week, not 
later than 4 p.m. central time, packers would be required to report 
information on noncarcass merit premiums used and paid to producers 
during the prior slaughter week by category. This information would be 
published on the first reporting day of each week not later than 5 p.m. 
central time.

Lamb

    Proposed Subpart D of Part 59 covers the mandatory reporting of 
lambs. The 1999 Act gives the Secretary the authority to establish a 
mandatory lamb price reporting program but does not set forth the 
requirements. AMS proposes to resume the previously established 
mandatory lamb price reporting program with some modifications as 
discussed in a previous section in this document.
    Section 59.300 provides definitions for terms used throughout 
Subpart D including definitions for packer and for

[[Page 44679]]

importer, which identifies the entities that would be required to 
report under this proposed rule. For any calendar year, the term lamb 
packer includes any Federally inspected lamb processing plant that 
slaughtered or processed the equivalent of an average of 75,000 head of 
lambs a year for the immediately preceding 5 calendar years. 
Additionally, the term includes any processing plant that did not 
slaughter or process an average of 75,000 lambs during the immediately 
preceding 5 calendar years if the Secretary determines that the plant 
should be considered a packer based on the capacity of the processing 
plant.
    For entities that did not slaughter lambs during the immediately 
preceding 5 calendar years, such as a new plant or existing plant that 
begins operations, AMS will project the plant's annual slaughter or 
production based upon the plant's estimate of annual slaughter capacity 
to determine which entities meet the definition of a packer as defined 
in these regulations.
    For any calendar year, the term lamb importer includes any importer 
that imported an average of 2,500 metric tons of lamb meat products per 
year during the immediately preceding 5 calendar years. Additionally, 
for any calendar year, the term importer includes any lamb importer 
that did not import an average of 2,500 metric tons of lamb meat 
products during the immediately preceding 5 calendar years if the 
Secretary determines that the person should be considered an importer 
based on their volume of lamb imports.
    For importers of lamb meat products, AMS will annually review 
import lamb volume data obtained from the United States Bureau of 
Customs and Border Protection to determine which importers are required 
to report imported boxed lamb cut sales information under these 
regulations.
    Under this proposed rule, several changes have been made to the 
definitions section that was published in the 2000 final rule. To 
facilitate the publication of more meaningful information in AMS market 
reports, a definition of ``yield grade lamb carcass reporting'' has 
been added, which will help clarify the requirements for reporting USDA 
yield grade information. In addition, the definitions of ``lambs 
committed'' and ``terms of trade'' have been deleted as the requirement 
to submit the information associated with these definitions has been 
removed as it is not used by the industry.
    Section 59.301 covers the daily reporting requirements for live 
lamb transactions including what would be reported, when it would be 
reported, and when it would be published. Lamb plants covered under the 
rule would report the details of their live lamb purchases once each 
day to AMS, to include all covered transactions made up to within one 
half hour of the specified reporting time. Lamb plants completing 
transactions during the one half hour prior to the previous reporting 
time would report those transactions at the next prescribed reporting 
time. The Secretary would publish this information not less than once 
each day. Section 59.302 covers the same type of information for weekly 
reporting of live lamb transactions. Packers would be required to 
report information regarding the prior slaughter week, including among 
other things the number of lambs purchased through a negotiated 
purchase that were slaughtered, on the first reporting day of each week 
to be published by the Secretary on the same day. Finally, Section 
59.303 covers the reporting requirements for transactions of lamb 
carcasses and boxed lamb cuts including what would be reported, when it 
would be reported, and when it would be published. Packers would be 
required to report details of their sales and purchases of carcass 
lambs once each day and the Secretary would publish the information 
once each day. Packers would be required to report details of their 
sales of boxed lamb cuts, including applicable branded product. This 
information would be published once each day. These plants would be 
required to reference the Institutional Meat Purchase Specifications 
(IMPS) for Fresh Lamb and Mutton Series 200, United States Department 
of Agriculture, Agricultural Marketing Service, Livestock and Seed 
Program, where applicable.
    Importers of boxed lamb cuts would be required to report the 
required information of their prior week sales of imported boxed lamb 
cuts on the domestic market, including applicable branded product on 
the first reporting day of each week and this information would be 
published by the Secretary on the same day.

OMB Control Numbers

    Subpart E of Part 59 covers the OMB control number 0581-0186 
assigned pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35) for the information collection requirements listed in 
Subparts B through D of Part 59. All required information must be 
reported to AMS in a standardized format. The standardized format is 
embodied in 16 data collection forms that are included in Appendix E at 
the end of this document. Cattle packers will utilize up to seven of 
these forms (not all cattle packers must submit all cattle forms) 
(Appendix A) when reporting information to AMS including four for daily 
cattle reporting, two for weekly cattle reporting, and one for daily 
boxed beef cuts reporting. Swine packers will utilize up to three forms 
(not all swine packers must submit all swine forms) (Appendix B), two 
for daily reporting of swine purchases and one for weekly reporting of 
non-carcass merit premium information. Lamb packers will utilize up to 
six of these forms (not all lamb packers must submit all lamb forms) 
(Appendix C) when reporting information to AMS, including one for daily 
lamb reporting, three for weekly lamb reporting, one for daily and 
weekly boxed lamb cuts reporting, and one for daily lamb carcass 
reporting. Lamb importers will utilize one of these forms when 
reporting information to AMS for reporting weekly imported boxed lamb 
cut sales.

Appendices

    The final section of this document contains a series of five 
appendices. These appendices will not appear in the Code of Federal 
Regulations. The first three appendices, Appendices A to C, have 
already been discussed above. They describe the forms that will be used 
by those required to report information under this program. Appendix D 
contains guidelines for those entities required to report information 
on how to use the forms. The actual forms are contained in Appendix E.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This rule is not intended to have retroactive 
effect. Section 259 of the 1999 Act prohibits States or political 
subdivisions of a State to impose any requirement that is in addition 
to, or inconsistent with, any requirement of the 1999 Act with respect 
to the submission or reporting of information, or the publication of 
such information, on the prices and quantities of livestock or 
livestock products. In addition, the 1999 Act does not restrict or 
modify the authority of the Secretary to administer or enforce the 
Packers and Stockyards Act of 1921 (7 U.S.C. 181 et seq.); administer, 
enforce, or collect voluntary reports under the 1999 Act or any other 
law; or access documentary evidence as provided under Sections 9 and 10 
of the Federal Trade Commission Act (15 U.S.C. 49, 50). There are no 
administrative procedures that must be

[[Page 44680]]

exhausted prior to any judicial challenge to the provisions of this 
rule.

Civil Rights Review

    AMS has considered the potential civil rights implications of this 
rule on minorities, women, or persons with disabilities to ensure that 
no person or group shall be discriminated against on the basis of race, 
color, national origin, gender, religion, age, disability, sexual 
orientation, marital or family status, political beliefs, parental 
status, or protected genetic information. This review included persons 
that are employees of the entities that are subject to this regulation. 
This proposed rule does not require affected entities to relocate or 
alter their operations in ways that could adversely affect such persons 
or groups. Further, this proposed rule would not deny any persons or 
groups the benefits of the program or subject any persons or groups to 
discrimination.

Executive Order 13132

    This proposed rule has been reviewed under Executive Order 13132, 
Federalism. This Order directs agencies to construe, in regulations and 
otherwise, a Federal Statute to preempt State law only when the statute 
contains an express preemption provision. This rule is required by the 
1999 Act. Section 259 of the 1999 Act, Federal Preemption, states, ``In 
order to achieve the goals, purposes, and objectives of this title on a 
nationwide basis and to avoid potentially conflicting State laws that 
could impede the goals, purposes, or objectives of this title, no State 
or political subdivision of a State may impose a requirement that is in 
addition to, or inconsistent with, any requirement of this subtitle 
with respect to the submission or reporting of information, or the 
publication of such information, on the prices and quantities of 
livestock or livestock products.''
    Prior to the passage of the 1999 Act, several States enacted 
legislation mandating, to various degrees, the reporting of market 
information on transactions of cattle, swine, and lambs conducted 
within that particular State. However, since the National program was 
implemented on April 2, 2001, these State programs are no longer in 
effect. Therefore, there are no Federalism implications associated with 
this rulemaking.

Executive Order 12866

    This proposed rule has been determined to be significant for 
purposes of Executive Order 12866 and therefore has been reviewed by 
the Office of Management and Budget (OMB). In accordance with Executive 
Order 12866, this preliminary regulatory analysis contains a statement 
of the need for the proposed rule, an examination of alternative 
approaches, and an analysis of benefits and costs.

Executive Summary

    This proposed rule implements the Reauthorization Act, which 
reauthorized the 1999 Act and amended the swine reporting provisions of 
that Act. As stated in the 1999 Act, the purpose of the Act is to 
establish a program of information regarding the marketing of cattle, 
swine, lambs, and the products of such livestock that provides 
information that can be readily understood by producers; improves the 
price and supply reporting services of the Department of Agriculture; 
and encourages competition in the marketplace for livestock and 
livestock products. (7 U.S.C. 1635)
    This proposed rule facilitates open, transparent price discovery 
and provides all market participants, both large and small, with 
comparable levels of market information. The proposed rule is expected 
to reduce the time and resources that market participants would 
otherwise expend to assess current market conditions, reduce risk and 
uncertainty, and contribute to considerations of fairness and equity to 
all participants in the marketplace. However, these anticipated 
benefits are difficult to measure and quantify.
    This proposed rule is strictly an informational measure and does 
not impose any restrictions on the form, timing, or location of 
procurement and sales arrangements in which subject packers and 
importers may engage. Therefore, costs of the proposed rule are simply 
the costs associated with system development and maintenance, data 
submission, and recordkeeping activities of the packers and importers 
required to report information under this proposed rule, plus the costs 
to the Federal government for operation of the program. However, most 
of the entities that would be required to report under this proposed 
rule already reported information prior to expiration of the 1999 Act 
on September 30, 2005, and have since continued to do so voluntarily. 
As a result, incremental costs for implementation of this proposed rule 
are negligible relative to total costs associated with the program. 
Moreover, total costs estimated for this proposed rule are lower than 
costs estimated in the 2000 final rule expressed in comparable current 
(May 2007) dollar values.
    Total costs to reporting packers and importers are estimated at 
approximately $724,000 per year, while costs to the Federal government 
for operation of the program total $6.3 million per year. By 
comparison, the total costs to reporting packers and importers in the 
2000 final rule (65 FR 75464) were estimated at $836,000 per year in 
current dollars, while costs to the Federal government in FY 2001 were 
estimated at $6.9 million in current dollars. In current dollar terms, 
the proposed rule represents a reduction of $112,000 in estimated 
annual costs to reporting packers and importers, and a reduction of 
$600,000 in estimated annual costs to the Federal government.
    For both respondents and the Federal government, total costs for 
the proposed rule are estimated at approximately $7.0 million annually, 
while total costs for the 2000 final rule were estimated at $7.8 
million annually in current dollars. Because the Act expires on 
September 30, 2010, the proposed rule is assumed to have a life cycle 
of 4 years. At a real discount rate of 3 percent, the discounted 
present value of the total private and public sector costs for the 
proposed rule is estimated at $26.9 million for the duration of the 
program, compared to $29.7 million for the 2000 final rule (expressed 
in current dollars over a 4-year life cycle). This represents a 
reduction of $2.8 million over the life of the proposed rule in 
comparison to the 2000 final rule. At a real discount rate of 7 
percent, the discounted present value of the total private and public 
sector costs for the proposed rule is estimated at $25.5 million for 
the duration of the program, compared to $28.1 million for the 2000 
final rule (expressed in current dollars over a 4-year life cycle). 
This represents a reduction of more than $2.6 million over the life of 
the proposed rule in comparison to the 2000 final rule.

Need for Federal Regulatory Action

    This proposed rule implements the Reauthorization Act, which 
reauthorized the 1999 Act and amended the swine reporting provisions of 
that Act. The 1999 Act first became law on October 22, 1999, as an 
amendment to the Agricultural Marketing Act of 1946. The first reports 
disseminated under LMR were issued in April 2001. In December 2004, the 
1999 Act was reauthorized through September 30, 2005. The legislative 
authority lapsed until October 5, 2006, when it was reauthorized 
through September 30, 2010, with the Reauthorization Act. During the 
two periods of lapsed mandatory reporting authority, most firms that 
would have been required to report information under the requirements 
of LMR continued to

[[Page 44681]]

report the same information voluntarily. As a result, AMS continued to 
release most of the reports that would have been released under the 
mandatory reporting program.
    The 1999 Act as amended by the Reauthorization Act directs the 
Department of Agriculture (USDA) ``to establish a program of 
information regarding the marketing of cattle, swine, lambs, and 
products of such livestock.'' This Act contains specific requirements 
that provide limited discretionary authority for regulatory 
implementation of many of the law's provisions. As a result, many of 
the provisions within this proposed rule represent straightforward 
implementation of the requirements of this Act.
    As stated in the 1999 Act, the purpose of the statute is to 
establish a program 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. (7 U.S.C. 1635)
    Increasingly, transactions between livestock producers and meat 
packers occur by way of private negotiations rather than through public 
trades. Compared to prices established in public markets, prices 
established in private transactions are difficult to observe, collect, 
summarize, and disseminate. Data reported by USDA's Grain Inspection, 
Packers and Stockyards Administration (GIPSA) show that of total cattle 
purchases by reporting packers, the share purchased in public markets 
declined from 30.2 percent in 1977 to 12.0 percent in 2004.1 For hogs, 
the decline was larger, dropping from 27.5 percent in 1977 to just 1.7 
percent in 2004.\1\ For sheep and lambs, public market purchases 
declined from 23.4 percent to 8.3 percent of total purchases by 
reporting packers over the same period.
---------------------------------------------------------------------------

    \1\ GIPSAQ, USDA. Packers and Stockyards Statistical Report, 
2005 Reporting Year. GIPSA SR-07-1, February 2007.
---------------------------------------------------------------------------

    Open, transparent price discovery provides all market participants 
with comparable levels of market information, providing each economic 
agent with similar information. The decline in public market trading of 
livestock over the years led to increasingly opaque price discovery in 
these markets. As stated in the 1999 Act, mandatory livestock reporting 
provides a means of providing information to market participants and 
improving the price and supply reporting services of USDA.
    Similar to many sectors of the economy, both the livestock 
production and meat packing industries have undergone substantial 
consolidation during the past few decades. However, the rate and extent 
of the consolidation among meat packers has been greater compared to 
livestock producers.
    The four-firm concentration ratio for steer and heifer slaughter 
increased from 35.7 percent in 1980 to 81.1 percent in 2004.\2\ Over 
the same period, the four-firm concentration ratio for cow and bull 
slaughter increased from 9.7 percent to 48.0 percent. Hog slaughter 
concentration by the top four firms increased from 33.6 percent to 61.3 
percent over the same period, while sheep and lamb slaughter 
concentration increased from 55.9 percent to 66.9 percent. Between 1986 
and 2005, the number of bonded packers reporting to GIPSA declined from 
691 to 312.
---------------------------------------------------------------------------

    \2\ Ibid.
---------------------------------------------------------------------------

    According to the National Agricultural Statistics Service (NASS), 
the number of cattle operations in the United States declined from 1.6 
million in 1980 to 983,000 in 2005. Over the same time period, the 
number of hog and pig operations declined from 667,000 to 67,000, while 
the number of sheep and lamb operations declined from 120,000 to 
68,000. Thus, consolidation occurred among livestock production 
operations, but the number of livestock operations still far exceeds 
the number of livestock packers.
    For slaughter livestock, the predominant marketing relationship is 
characterized by comparatively small livestock operations dealing with 
large meat packing firms. In addition, markets for slaughter livestock 
are local or regional in geographic scope. The distances over which it 
is economically rational to transport slaughter livestock is dictated 
by differences in relative prices for livestock in different geographic 
areas versus shipping costs. Shipping costs include not only costs of 
trucking equipment, labor, fuel, insurance and other out-of-pocket 
expenses, but also include additional stress and weight shrink of 
animals hauled for greater distances and longer periods of time. In 
these regionalized trade areas, there typically are relatively large 
numbers of livestock operations, but only a handful of packers for any 
given type of slaughter animal. As a result, relatively few packers 
engage in many, frequent negotiations and completed transactions with a 
large number of producers. In contrast, even larger livestock 
operations typically engage in negotiations with a few packers within 
their economically viable trade area and may only complete transactions 
with one or two packers. Smaller livestock operations may only engage 
in sales transactions a few times per year, while packers procure 
livestock to run their plants every business day of the year. The 1999 
Act and the Reauthorization Act were passed by Congress in light of 
these structural and organizational conditions present in the livestock 
and meat industries.
    The proposed rule does not constitute economic regulation of the 
permissible business practices in which meat packers and importers may 
engage. Affected entities are free to conduct their businesses in any 
manner consistent with other relevant Federal, State, and local laws 
and regulations. The proposed rule only requires that the subject 
entities disclose information about their livestock purchases and meat 
sales to AMS, which will then process, summarize, and disseminate the 
information. The identity of persons, including parties to a contract, 
and proprietary business information will be kept confidential in 
accordance with the 1999 Act.

Alternative Regulatory Approaches

    AMS believes that the proposed rule represents the most cost 
effective means of fulfilling the statutory mandate of 1999 Act as 
amended by the Reauthorization Act. While this Act provides some 
discretionary authority for operation of the program, many of the 
definitions, reporting times, and disclosure requirements are specified 
in the law itself. Since the program was first implemented in April 
2001, experience has proven that electronic reporting is the least-cost 
means for both subject entities and AMS to comply with the requirements 
of the Reauthorization Act. During the periods in which mandatory 
reporting requirements lapsed (including October 2005 through the 
present), entities that continued to report voluntarily did so through 
electronic submission of information in the same manner as had been 
required under mandatory reporting authority.
    The LMR system provides two methods for firms to transmit livestock 
mandatory reporting data to the system: A web interface and electronic 
data transfer. For most firms, electronic data transfer provides the 
most efficient

[[Page 44682]]

mechanism for transferring required data. USDA provides a software 
utility for users to transfer comma-delimited ASCII files directly to 
the LMR system. The comma-delimited files can be generated 
electronically from livestock purchase and meat sales records. For 
smaller operations with relatively few transactions, the web interface 
may be more efficient than electronic data transfer. The web interface 
module is available over the Internet using a web browser, but requires 
more manual inputting of data compared to the electronic data transfer 
option. Nonetheless, the web interface option provides smaller 
operations with a mechanism for submitting the required data without 
the need to incur fixed costs of developing a software application to 
prepare data for electronic data transfer. Historically, about 90 
percent of plants and importers have submitted data electronically, 
with the remaining 10 percent of respondents submitting data through 
the web interface.

Analysis of Benefits and Costs

    The baseline for this analysis is the LMR program as it currently 
operates. Specifically, the baseline is the LMR program as directed by 
the 1999 Act and implemented by the 2000 final rule. Although the 2000 
final rule expired when the 1999 Act expired on September 30, 2005, the 
current voluntary participation by most packers allows the LMR program 
to function nearly identically to how it operated under the mandatory 
authority of the 1999 Act.
    Despite the fundamental role played by market information for 
private and public decision-making, research, outlook, and analysis, 
there is comparatively little empirical research on market reporting in 
and of itself. Likewise, there is a paucity of quantitative research 
regarding the benefits and costs of LMR specifically.
    Perry, et al. note that some local and regional market news reports 
were no longer available after the implementation of LMR because of the 
program's confidentiality restrictions.\3\ However, the authors also 
conclude that far more information on formula transactions became 
available, allowing for comparisons with negotiated transactions that 
had not been possible before. Formula prices for cattle were found to 
closely mirror prices for negotiated purchases. The study found that 
volatility in weekly reported cattle prices rose after implementation 
of LMR, but was unable to determine whether the change resulted from 
the change in the reporting system or from changes in cattle markets. 
The authors observed that the trend toward formula pricing arrangements 
in cattle markets slowed after LMR was implemented, and cautiously 
speculated that the program may have played a role in stabilizing the 
volume of negotiated transactions.
---------------------------------------------------------------------------

    \3\ Perry, J., J. MacDonald, K. Nelson, W. Hahn, C. Arnade, and 
G. Plato. ``Did the Mandatory Requirement Aid the Market? Impact of 
the Livestock Mandatory Reporting Act.'' Economic Research Service, 
U.S. Department of Agriculture, LDP-M-135-01, September 2005.
---------------------------------------------------------------------------

    Ward provides perhaps the most comprehensive review and assessment 
of research relating to LMR.\4\ Ward notes that satisfaction or 
dissatisfaction with mandatory reporting depends on individuals' 
expectations regarding what the Reauthorization Act would achieve or 
the problems that it would address. Ward concludes that mandatory 
reporting provides more information in some areas than what was 
previously available and has increased transparency and price reporting 
accuracy. He suggests that satisfaction with the program likely has 
increased due to increased familiarity with the data and information 
available through mandatory reporting and enhanced confidence in 
reported prices.
---------------------------------------------------------------------------

    \4\ Ward, C.E. ``An Assessment of the Livestock Mandatory 
Reporting Act.'' Paper presented at the NCCC-134 Conference on 
Applied Commodity Price Analysis, Forecasting, and Market Risk 
Management, St. Louis, Missouri, April 17-18, 2006.
---------------------------------------------------------------------------

    Benefits. One of the fundamental conditions underlying the theory 
of competitive markets is that market participants possess relevant 
information necessary to make the correct economic decisions. This 
proposed rule seeks to ensure market transparency by providing current 
and potential participants in livestock and meat markets with timely, 
accurate, and comprehensive information about prices paid and received 
for livestock and meat products. Market transparency facilitates market 
efficiency by reducing search costs for market participants and by 
reducing risk and uncertainty. Widely available market information 
reduces the time and resources that market participants would otherwise 
expend to assess current market conditions. With reliable market 
information, market participants can make informed marketing decisions 
and thus reduce exposure to risks associated with buying or selling at 
prices inconsistent with the prevailing market norms. Unrestricted 
availability of market information may also contribute to 
considerations of equity and fairness in the marketplace. Unrestricted 
dissemination of market news reporting provides all market participants 
with comparable access to current market information regardless of the 
size or financial resources of their respective operations.
    Livestock mandatory reporting under this proposed rule will provide 
comprehensive information on slaughter livestock, beef, and lamb meat 
prices. Using the information submitted by packers under the provisions 
of the 1999 Act, AMS publishes over 100 daily, weekly, and monthly 
reports covering market transactions for fed cattle, swine, lamb, beef, 
and lamb meat. Based on the information available, AMS estimates that 
reports issued under LMR cover approximately 95 percent of slaughter 
hogs, 77 percent of the slaughter cattle, 60 percent of slaughter 
sheep, 41 percent of boxed lamb, 26 percent of the carcass lamb, and 93 
percent of boxed beef. AMS market reports are utilized by producers and 
others in the marketing chain to formulate contracts and make marketing 
decisions, and by other Government agencies to make policy decisions, 
settle trade disputes, and in a variety of other functions. Despite the 
fundamental role played by price information in underpinning fair, 
competitive, and efficient markets, quantifying the impact of mandatory 
livestock reporting is difficult. There is a considerable economic 
literature addressing the value of information, but little research on 
the economics of market reporting in and of itself.\5\ Research mainly 
has addressed the accuracy and adequacy of price reporting, but no 
published works have been identified that monetize the benefits of 
mandatory reporting programs such as that contained in this proposed 
rule.
---------------------------------------------------------------------------

    \5\ Ward, op. cit.
---------------------------------------------------------------------------

    Costs. This proposed rule is strictly an informational measure and 
does not impose any restrictions on the form, timing, or location of 
procurement and sales arrangements in which subject packers and 
importers may engage. The proposed rule places no additional 
limitations on current or future business relationships into which 
affected firms may enter, although other local, State, and Federal laws 
and regulations regarding such relationships continue to apply. 
Therefore, costs of the proposed rule are simply the costs associated 
with system development and maintenance, data submission, and 
recordkeeping activities of the packers and importers that would be 
required to report information under this proposed rule, plus the costs 
to the Federal government for operation of the program.

[[Page 44683]]

    Although this proposed rule is not identical to the 2000 final 
rule, most of the regulatory provisions are the same or only slightly 
modified from that rule. As such, costs for firms subject to the 
proposed rule will be similar to costs required to comply with the 2000 
final rule. Hence, the methods for developing the cost estimates 
presented in this preliminary impact analysis largely follow from the 
methods used in developing the cost estimates contained in the final 
impact analysis published in the Federal Register along with the 2000 
final rule. As applicable, estimates of employer costs for employee 
compensation are updated using recent statistics from the Bureau of 
Labor Statistics.
    For reporting packers and importers, there are essentially three 
phases required to comply with this proposed rule: (1) Development or 
modification of a system for electronic reporting of data and periodic 
system maintenance, updating, and compliance; (2) ongoing submission of 
required data; and (3) maintenance of records for a period of 2 years 
following submission of data to AMS. AMS estimates that most costs 
associated with this proposed rule will result from costs associated 
with ongoing submission of required data. As explained below, AMS 
expects that there will be relatively low costs imposed on reporting 
packers and importers for program startup, systems maintenance and 
updating, and records maintenance.
    AMS estimates that approximately 65 packers and importers, 
representing approximately 115 plants or establishments, would be 
required to submit information under this proposed rule. However, most 
of these firms already have established systems for reporting 
information to AMS because they were subject to the requirements of the 
program when it was in effect from 2001 through 2005. Moreover, most 
firms have continued to report data voluntarily to AMS during the 
period that the Act expired on September 30, 2005, to the present. 
These firms will need to modify their current data reporting systems to 
be compatible with the requirements of the proposed rule.
    AMS estimates that there will be an average of about three 
additional packers and importers annually that will reach the size 
thresholds for reporting under this proposed rule, but that had not 
previously reported under the requirements of the Act. Some of these 
firms will be new entrants to the industry and others will have 
increased their slaughter volume to the level at which they are 
required to submit data under the requirements of the law and this 
proposed rule. These firms will need to develop an electronic interface 
to translate the information from their existing computerized 
recordkeeping systems into the standardized format required for 
automated submission of the data to AMS. Firms with existing reporting 
systems will need to modify the electronic interface to accommodate 
changes in reporting requirements. AMS estimates that 15 hours of 
development and computer programming time per plant will be required to 
develop or modify the interface.
    Electronic data transmission of information is accomplished using 
an interface with an existing electronic recordkeeping system. In most 
cases, the information packers and importers are required to report 
already exists in internal computerized recordkeeping systems. Packers 
and importers will provide for the translation of the information from 
their existing electronic recordkeeping system into the required AMS 
standardized format. Once accomplished, the information will be 
electronically transmitted to AMS where it will be automatically loaded 
into an AMS database. AMS estimates that the development and computer 
programming to establish and maintain this interface will require an 
industry average of 15 hours per respondent per year. AMS estimates the 
employer costs for employee total compensation per hour to average 
$44.82, which is the average for all civilian management, professional, 
and related occupations for the second quarter of 2006 according to 
Bureau of Labor Statistics. The management, professional, related 
occupations category includes the managers who would oversee 
development and maintenance of the electronic interface and the 
computer systems and programming personnel who would actually implement 
and maintain the interface. With 15 hours of time, AMS estimates the 
total cost, on average, for the electronic interface development and 
maintenance to be $672.30 per year.

Electronic Submission Development and Annual System Maintenance Cost per
                               Respondent
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Hours to develop and maintain interface......................         15
Employee compensation cost per hour..........................   x $44.82
                                                              ----------
Total annual cost per respondent.............................   $672.30
------------------------------------------------------------------------
\*\ hours required annually to develop and maintain electronic interface
  between existing company electronic recordkeeping system and AMS
  required electronic submission format.

    Additionally, AMS estimates the annual cost per respondent for the 
storage of the electronic data files submitted to AMS in compliance 
with the reporting provisions of this rule to be $1,923.10 (see 
Paperwork Reduction Act section for a full discussion). This estimate 
includes the cost of electronic data storage media, backup electronic 
data storage media, and backup software required to maintain an 
estimated annual electronic recordkeeping and backup burden of 20 
megabytes, on average, per respondent. In addition, this estimate 
includes the cost per employee to maintain such records which is 
estimated to average 70 hours per year at $21.33 per hour for a total 
employee compensation component cost of $1,493.10 per year. For this 
record maintenance activity, AMS estimates the employer costs for 
employee total compensation per hour to average $21.33, which is the 
average for all civilian office and administrative support occupations 
for the second quarter of 2006 according to data from the Bureau of 
Labor Statistics.

                Annual Recordkeeping Cost Per Respondent
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Labor hours per year.......................................           70
Labor cost per hour........................................     x $21.33
                                                            ------------
  Sub-total labor cost per year............................    $1,493.10
  Electronic storage cost\*\...............................    + $430.00
                                                            ------------
    Total Recordkeeping Cost...............................   $1,923.10
------------------------------------------------------------------------
\*\ includes cost of hard electronic storage (estimated to average 20
  Megabytes/year), backup media, backup drive, and backup software.

    In this rule, information collection requirements include the 
submission of the required information on a daily and weekly basis in 
the standard format provided in the following forms: (1) Live Cattle 
Daily Report (Current Established Prices), (2) Live Cattle Daily Report 
(Committed and Delivered Cattle), (3) Live Cattle Weekly Report, (4) 
Cattle Premiums and Discounts Weekly Report, (5) Cow/Bull Plant 
Delivered Bids (Dressed Basis), (6) Live Cow/Bull Daily Purchase 
Report, (7) Boxed Beef Daily Report, (8) Swine Prior Day Report, (9) 
Swine Daily Report, (10) Swine Noncarcass Merit Premium Weekly Report, 
(11) Live Lamb Daily Report (Current Established Prices), (12) Live 
Lamb Weekly Report (13) Live Lamb Weekly Report (Formula Purchases), 
(14) Lamb Premiums and Discounts Weekly Report, (15) Boxed Lamb Daily 
Report, and (16) Lamb Carcass Report. Copies of these 16 forms are 
included in Appendices at the end of this proposed rule.

[[Page 44684]]

    Cattle packers will utilize up to seven of these forms (Appendix A) 
when reporting information to AMS including two for daily cattle 
reporting, three for weekly cattle reporting, and one for daily boxed 
beef cuts reporting. AMS estimates the total data submission cost 
burden to cattle packers to be $237,734. In comparison, the annual data 
submission cost burden to cattle packers was estimated at $266,560 in 
the 2000 final rule, which took effect in April 2001. According to the 
Bureau of Labor Statistics CPI inflation calculator, $1.00 in 2001 has 
the same buying power as $1.17 today. More precisely, the inflation 
factor to convert the average Consumer Price Index for 2001 to the 
current (May 2007) value is 1.174. In current dollar terms, then, the 
estimated data submission cost burden to cattle packers under the 2000 
final rule equals $312,941. Thus, the total data submission cost burden 
to cattle packers is estimated at $75,207 less in the proposed rule 
compared to the 2000 final rule expressed in comparable current dollar 
terms.
    Swine packers will utilize up to three forms (Appendix B), two for 
daily reporting of swine purchases and one for weekly reporting of non-
carcass merit premium information. AMS estimates the total data 
submission cost burden to swine packers to be $153,329. In comparison, 
the annual data submission cost burden to swine packers was estimated 
at $166,400 in the 2000 final rule. In current dollar terms using the 
CPI inflation calculator, the estimated data submission cost burden to 
swine packers under the 2000 final rule would be $195,354. Thus, the 
total data submission cost burden to swine packers is estimated at 
$42,025 less in the proposed rule compared to the 2000 final rule 
expressed in comparable current dollar terms.
    Lamb packers will utilize up to six of these forms (Appendix C) 
when reporting information to AMS including two for daily lamb 
reporting, three for weekly lamb reporting, one for daily and weekly 
boxed lamb cuts reporting and one for daily and weekly lamb carcass 
reporting. Lamb importers will utilize one of these forms when 
reporting information to AMS for reporting weekly imported boxed lamb 
cut sales. AMS estimates the total data submission cost burden to lamb 
packers and lamb importers to be $31,846. In comparison, the annual 
data submission cost burden to lamb packers and lamb importers was 
estimated at $48,390 in the 2000 final rule. In current dollar terms 
using the CPI inflation calculator, the estimated data submission cost 
burden to lamb packers and lamb importers under the 2000 final rule 
would be $56,810. Thus, the total data submission cost burden to lamb 
packers and lamb importers is estimated at $24,964 less in the proposed 
rule compared to the 2000 final rule expressed in comparable current 
dollar terms.
    The cost estimates for the proposed rule are discussed in detail in 
the Paperwork Reduction Act Section.

                               Breakdown of Estimated Data Submission Cost Burden
----------------------------------------------------------------------------------------------------------------
                                                                                                       Total
                   Form                    Reporting days   x            Responses             =     responses
----------------------------------------------------------------------------------------------------------------
                                 I. Number of Responses per Respondent per Year
----------------------------------------------------------------------------------------------------------------
Cattle:
    LS-113...............................             260  ..  2 daily......................  ..             520
    LS-114...............................             260  ..  2 daily......................  ..             520
    LS-115...............................              52  ..  1 weekly.....................  ..              52
    LS-117...............................              52  ..  1 weekly.....................  ..              52
    LS-126...............................             260  ..  2 daily......................  ..             520
    LS-131...............................             260  ..  1 daily......................  ..             260
    LS-132...............................             260  ..  1 daily......................  ..             260
Swine:
    LS-118...............................             260  ..  1 daily......................  ..             260
    LS-119...............................             260  ..  2 daily......................  ..             520
    LS-120...............................              52  ..  1 weekly.....................  ..              52
Lamb:
 Domestic:
    LS-121...............................             260  ..  1 daily......................  ..             260
    LS-123...............................              52  ..  1 weekly.....................  ..              52
    LS-124...............................              52  ..  1 weekly.....................  ..              52
    LS-125...............................              52  ..  1 weekly.....................  ..              52
    LS-128...............................             260  ..  1 daily......................  ..             260
    LS-129...............................             260  ..  1 daily......................  ..             260
 Importer:
    LS-128...............................              52  ..  1 weekly.....................  ..              52


 
----------------------------------------------------------------------------------------------------------------
                                                           Submissions/           Hours/           Total hours/
                          Form                                 year        x    submission     =       year
----------------------------------------------------------------------------------------------------------------
                             II. Number of Submission Hours per Respondent per Year
----------------------------------------------------------------------------------------------------------------
Cattle:
    LS-113..............................................             520  ..            .17   ..           88.40
    LS-114..............................................             520  ..            .17   ..           88.40
    LS-115..............................................              52  ..            .25   ..           13.00
    LS-117..............................................              52  ..            .08   ..            4.16
    LS-126..............................................             520  ..            .125  ..           65.00
    LS-131..............................................             260  ..            .08   ..           20.80
    LS-132..............................................             260  ..            .17   ..           44.20
Swine:
    LS-118..............................................             260  ..            .25   ..           65.00
    LS-119..............................................             520  ..            .17   ..           88.40

[[Page 44685]]

 
    LS-120..............................................              52  ..            .25   ..           13.00
Lamb:
 Domestic:
    LS-121..............................................             260  ..            .34   ..           88.40
    LS-123..............................................              52  ..            .25   ..           13.00
    LS-124..............................................              52  ..            .25   ..           13.00
    LS-125..............................................              52  ..            .08   ..            4.16
    LS-128..............................................             260  ..            .167  ..           43.42
    LS-129..............................................             260  ..            .167  ..           43.42
 Importer:
    LS-128..............................................              52  ..            .084  ..            4.37


 
----------------------------------------------------------------------------------------------------------------
                                                           Total hours/                           Total dollars/
                          Form                                 year        x     Cost/hour     =       year
----------------------------------------------------------------------------------------------------------------
                               III. Total Submission Cost per Respondent per Year
----------------------------------------------------------------------------------------------------------------
Cattle:
    LS-113..............................................           88.40  ..          $21.33  ..          $1,886
    LS-114..............................................           88.40  ..           21.33  ..           1,886
    LS-115..............................................           13.00  ..           21.33  ..             277
    LS-117..............................................            4.16  ..           21.33  ..              89
    LS-126..............................................           65.00  ..           21.33  ..           1,386
    LS-131..............................................           20.80  ..           21.33  ..             444
    LS-132..............................................           44.20  ..           21.33  ..             943
                                                         -------------------------------------------------------
        Totals..........................................          323.96  ..           21.33  ..           6,911
Swine:
    LS-118..............................................           65.00  ..           21.33  ..           1,386
    LS-119..............................................           88.40  ..           21.33  ..           1,886
    LS-120..............................................           13.00  ..           21.33  ..             277
                                                         -------------------------------------------------------
        Totals..........................................          166.40  ..           21.33  ..           3,549
Lamb:
 Domestic:
    LS-121..............................................           88.40  ..           21.33  ..           1,886
    LS-123..............................................           13.00  ..           21.33  ..             277
    LS-124..............................................           13.00  ..           21.33  ..             277
    LS-125..............................................            4.16  ..           21.33  ..              89
    LS-128..............................................           43.42  ..           21.33  ..             926
    LS-129..............................................           43.42  ..           21.33  ..             926
 Importer:
    LS-128..............................................            4.37  ..           21.33  ..              93
                                                         -------------------------------------------------------
        Totals..........................................          209.77  ..           21.33  ..           4,474
                                                         -------------------------------------------------------


 
----------------------------------------------------------------------------------------------------------------
                                                          Total dollars/
                          Form                                 year        x    Respondents    =    Total cost
----------------------------------------------------------------------------------------------------------------
                              IV. Total Yearly Submission Cost for All Respondents
----------------------------------------------------------------------------------------------------------------
Cattle:
    LS-113..............................................          $1,886  ..              34  ..         $64,124
    LS-114..............................................           1,886  ..              34  ..          64,124
    LS-115..............................................             277  ..              34  ..           9,418
    LS-117..............................................              89  ..              34  ..           3,026
    LS-126..............................................           1,386  ..              48  ..          66,528
    LS-131..............................................             444  ..              22  ..           9,768
    LS-132..............................................             943  ..              22  ..          20,746
                                                         -------------------------------------------------------
        Subtotal........................................  ..............  ..  ..............  ..         237,734
Swine:
    LS-118..............................................           1,386  ..              52  ..          72,072
    LS-119..............................................           1,886  ..              40  ..          75,440
    LS-120..............................................             277  ..              21  ..           5,817
                                                         -------------------------------------------------------
        Subtotal........................................  ..............  ..  ..............  ..         153,329
Lamb:
 Domestic:
    LS-121..............................................           1,886  ..               6  ..          11,316
    LS-123..............................................             277  ..               5  ..           1,385

[[Page 44686]]

 
    LS-124..............................................             277  ..               5  ..           1,385
    LS-125..............................................              89  ..               6  ..             534
    LS-128..............................................             926  ..              10  ..           9,260
    LS-129..............................................             926  ..               8  ..           7,408
 Importer:
    LS-128..............................................              93  ..               6  ..             558
                                                         -------------------------------------------------------
        Subtotal........................................  ..............  ..  ..............  ..          31,846
                                                         =======================================================
        Grand total.....................................  ..............  ..  ..............  ..         422,909
----------------------------------------------------------------------------------------------------------------

    The total cost burden to packers and importers required to submit 
information under this proposed rule includes initial startup and 
annual maintenance costs for electronic submission of data, annual 
recordkeeping costs, and annual data submission costs. Total reporting 
costs to cattle packers are estimated to be $7,548 per plant, $5,544 
for swine packers, $5,724 for lamb slaughtering plants, and $2,688 for 
lamb importers. In comparison, total reporting costs in the 2000 final 
rule were estimated to be $7,420 per plant for cattle packers, $5,308 
for swine packers, $7,860 for lamb slaughtering plants, and $2,070 for 
lamb importers. In current dollar values, however, estimated costs in 
the 2000 final rule equal $8,711 per plant for cattle packers, $6,232 
for swine packers, $9,228 for lamb slaughtering plants, and $2,430 for 
lamb importers. With the exception of lamb importers, which have an 
increase of $258, estimated total reporting costs per plant for all 
respondents are lower in the proposed rule than in the 2000 final rule 
expressed in comparable current dollar values.

                                     Total Annual Cost Burden to Respondents
----------------------------------------------------------------------------------------------------------------
                                                                Cost per            Number of         Total cost
                                                               respondent     x    respondents    =      \*\
----------------------------------------------------------------------------------------------------------------
Cattle:
    Startup/Maintenance....................................           $ 672  ..              48  ..      $32,256
    Recordkeeping..........................................           1,923  ..              48  ..       92,304
    Data Submission........................................           4,953  ..              48  ..      237,734
                                                            ----------------------------------------------------
                                                                                                         362,294
 
Average Cost per Respondent: $362,294 / 48 = $7,548.
 
Swine:
    Startup/Maintenance....................................           $ 672  ..              52  ..     $ 34,944
    Recordkeeping..........................................           1,923  ..              52  ..       99,996
    Data Submission........................................           2,949  ..              52  ..      153,329
                                                            ----------------------------------------------------
                                                                                                         288,269
 
Average Cost per Respondent: $288,269 / 52 = $5,544.
 
Lamb:
 Domestic:
    Startup/Maintenance....................................           $ 672  ..              10  ..       $6,720
    Recordkeeping..........................................           1,923  ..              10  ..       19,230
    Data Submission........................................           3,129  ..              10  ..       31,288
                                                            ----------------------------------------------------
                                                                                                          57,238
 
Average Cost per Respondent: $57,238 / 10 = $5,724.
 
Importer:
    Startup/Maintenance....................................           $ 672  ..               6  ..      $ 4,032
    Recordkeeping..........................................           1,923  ..               6  ..       11,538
    Data Submission........................................              93  ..               6  ..          558
                                                            ----------------------------------------------------
                                                                                                          16,128
                                                            ====================================================
 
Average Cost per Respondent: $16,128 / 6 = $2,688.
        Grand total, all species...........................                                             $723,929
----------------------------------------------------------------------------------------------------------------
\*\ Totals may reflect differences in numerical rounding.

    In addition to these costs to packers for submitting information, 
the mandatory price reporting program will cost approximately $6.3 
million per fiscal year to the Federal government. The 50 staff years 
required to administer and produce high quality mandatory price reports 
include reporters, auditors, clerical personnel, and computer 
specialists. These employees will be located in three AMS offices 
located across the country. Salary-related costs

[[Page 44687]]

are estimated at $4.9 million per year. Other costs include 
approximately $0.3 million for travel and transportation; and $1.1 
million for miscellaneous costs such as office space, utilities, 
communications costs, printing, training, office supplies, equipment 
(including computers, software, and licenses), and contractual services 
necessary to maintain the system. In the 2000 final rule, costs to the 
Federal government for the program were estimated at $5.9 million for 
fiscal year 2001, which equals $6.9 million in current dollar value. 
Thus, estimated costs to the Federal government are $600,000 less in 
the proposed rule compared to the 2000 final rule expressed in current 
dollar values.
    The authority for the Act expires on September 30, 2010. Therefore, 
this proposed rule would be effective for approximately 4 years (2007-
2010). Annual costs for this proposed rulemaking are estimated at 
approximately $7.0 million per year: $723,929 for respondents to submit 
and maintain data plus $6.3 million to USDA for operation of the LMR 
program. At a real discount rate of 3 percent, the discounted present 
value of the total cost to the private sector and the Federal 
government for the life of the program would be $26.9 million. Using 
estimated costs from the 2000 final rule and assuming the same 4-year 
duration, the comparable discounted present value for the life of the 
program would be $29.7 million expressed in current dollars. Thus, 
estimated total program costs are reduced by $2.8 million over the life 
cycle of the proposed rule in comparison to the 2000 final rule at the 
3 percent discount rate. At a real discount rate of 7 percent, the 
discounted present value of the total cost to the private sector and 
the Federal government for the life of the program would be $25.5 
million. Using estimated costs from the 2000 final rule and assuming 
the same 4-year duration, the comparable discounted present value for 
the life of the program would be $28.1 million expressed in current 
dollars. Estimated total program costs are reduced by more than $2.6 
million over the life cycle of the proposed rule in comparison to the 
2000 final rule at the 7 percent discount rate. The present values for 
the 4-year life of the program assume that all costs are incurred at 
the beginning of each year of the program.

Regulatory Flexibility Act

    In General. This proposed rule has been reviewed under the 
requirements of the Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et 
seq.). The purpose of the RFA is to consider the economic impact of a 
rule on small business entities. Alternatives, which would accomplish 
the objectives of the rule without unduly burdening small entities or 
erecting barriers that would restrict their ability to compete in the 
marketplace, have been evaluated. Regulatory action should be 
appropriate to the scale of the businesses subject to the action. The 
collection of information is necessary for the proper performance of 
the functions of AMS concerning the mandatory reporting of livestock 
information. The Act requires AMS to collect and publish livestock 
market information. The required information is only available directly 
from those entities required to report under these proposed regulations 
and exists nowhere else. Therefore, this proposed rule does not 
duplicate market information reasonably accessible to the Agency.
    Objectives and Legal Basis. The objective of this proposed rule is 
to improve the price and supply reporting services of USDA in order to 
increase the amount of information available to participants. This is 
accomplished through the establishment of a program of information 
regarding the marketing of cattle, swine, lambs, and products of such 
livestock as specifically directed by the Reauthorization Act and these 
regulations, as described in detail in the background section.
    Estimated Number of Small Businesses. AMS estimates that 
approximately 65 firms operating approximately 115 plants will be 
required to report market information under this proposed rule. AMS 
estimates that 60 of these firms represent cattle, swine, and sheep 
slaughtering companies, with approximately 5 additional firms that 
import lamb carcasses and lamb meat.
    According to Small Business Administration (SBA) definitions, a 
meat packing firm having fewer than 500 employees is a small business. 
This criterion applies to most of the firms required to report under 
the proposed rule, including all of the cattle and swine packers. Some 
of the lamb importers required to report under this proposed rule are 
brokerage operations that do not slaughter lambs. For meat and meat 
product merchant wholesalers, the SBA defines a firm having fewer than 
100 employees as a small business.
    In formulating this proposed rule, particular consideration was 
given to reducing the burden on entities while still achieving the 
objectives of the rule. Under the proposed rule, thresholds are set 
that define those entities that are required to report information on 
purchases of live cattle, swine and lambs, as well as information on 
domestic and export sales of boxed beef cuts including applicable 
branded product, and sales of lamb carcasses, boxed lamb cuts including 
applicable branded product, and imported boxed lamb cuts including 
applicable branded product.
    These packers and importers are required to report to AMS the 
details of all transactions involving purchases of livestock, domestic 
and export sales of boxed beef cuts including applicable branded 
product, sales of domestic boxed lamb cuts including applicable branded 
product, imported boxed lamb cuts including applicable branded product, 
and lamb carcasses. Cattle and swine information will be reported to 
AMS according to the schedule directed by this proposed rule with 
purchases of swine reported three times each day, purchases of cattle 
twice each day, and sales of domestic and exported boxed beef cuts, 
including applicable branded product, reported twice each day. Lamb 
information will be reported to AMS according to the schedule mandated 
by this rule with purchases of lambs reported once each day and sales 
of lamb carcasses reported once each day. Previous week sales of 
imported boxed lamb cuts including applicable branded boxed lamb cuts 
will be reported once weekly on the first reporting day of the week.
    In any calendar year, only Federally inspected cattle plants that 
slaughtered an average of 125,000 head of cattle a year for the 
immediately preceding 5 calendar years are required to report. 
Additionally, any Federally inspected cattle plant that did not 
slaughter cattle during the immediately preceding 5 calendar years is 
required to report if the Secretary determines that the plant should be 
considered a packer required to report based on its capacity. For 
entities that did not slaughter cattle during the immediately preceding 
5 calendar years, such as a new plant or existing plant that resumes 
operations, the AMS will project the plant's annual slaughter or 
production based upon the plant's estimate of annual slaughter capacity 
to determine which entities meet the definition of a packer as defined 
in the law and these proposed regulations. This accounts for an 
expected 49 out of 636 Federally inspected cattle plants or 7.7 percent 
of all Federally inspected cattle plants.
    For any calendar year, any Federally inspected swine plant that 
slaughtered an average of 100,000 head of swine a year for the 
immediately preceding 5 calendar years is required to report 
information, as is any person that

[[Page 44688]]

slaughtered and average of at least 200,000 sows, boars, or any 
combination thereof, per year during the immediately preceding 5 
calendar years. Additionally, any Federally inspected swine plant or 
person that did not slaughter swine during the immediately preceding 5 
calendar years if the Secretary determines that the plant should be 
considered a packer based on the capacity of the processing plant is 
required to report. This accounts for an expected 52 out of 614 
Federally inspected swine plants or 8.5 percent of all Federally 
inspected swine plants.
    In any calendar year, a Federally inspected lamb plant that 
slaughtered the equivalent of an average of 75,000 head of lambs a year 
for the immediately preceding 5 calendar years is considered a packer 
and required to report. A packer includes a Federally inspected 
processing plant that purchases and processes an average of 75,000 lamb 
carcasses annually rather than slaughter live lambs. Additionally, any 
Federally inspected processing plant that did not slaughter an average 
of 75,000 lambs during the immediately preceding 5 calendar years if 
the Secretary determines that the plant should be considered a packer 
based on the capacity of the processing plant is required to report. 
This accounts for an expected 10 lamb plants and 6 importers. The 
expected total of 10 out of 484 lamb plants amounts to 2.1 percent of 
all Federally inspected lamb plants.
    For any calendar year, lamb importers that imported an average of 
2,500 metric tons of lamb meat products per year during the immediately 
preceding 5 calendar years are required to report. Additionally, any 
lamb importer that did not import an average of 2,500 metric tons of 
lamb meat products during the immediately preceding 5 calendar years if 
the Secretary determines that the person should be considered an 
importer based on the volume of lamb imports is required to report. 
Some lamb plants may also be importers.
    An estimated 92.3 percent of all Federally inspected cattle plants, 
91.5 percent of all Federally inspected swine plants, and 97.9 percent 
of all Federally inspected lamb plants in the U.S. are exempted by this 
proposed rule from reporting information. For all livestock species, 
there were 793 slaughter plants under Federal inspection and 2,060 
slaughter plants under other forms of inspection (such as State 
inspection) on January 1, 2007. Plants that are not under Federal 
inspection are smaller operations that would be considered small 
businesses. An estimated 110 livestock slaughter plants will be 
required to report under this proposed rule. Conversely, 2,743 or 96.1 
percent of all livestock plants in the United States would be exempt 
from mandatory reporting under this proposed rule.
    According to U.S. Census Bureau Statistics of U.S. Businesses, 
there were 1,718 animal (except poultry) slaughtering \6\ firms with 
payroll in the United States in 2004. These firms operated 1,816 
establishments. Of these concerns, there were 46 firms with 500 
employees or more, accounting for 136 establishments. Conversely, there 
were 1,672 firms with fewer than 500 employees, accounting for 1,680 
establishments.
---------------------------------------------------------------------------

    \6\ North American Industry Classification System (NAICS) code 
311611. U.S. Census Bureau 2004 Nonemployer Statistics show that 
there were 1,921 nonemployer establishments in the animal 
slaughtering and processing industry (NAICS code 31161), but 
nonemployer statistics at the more disaggregated NAICS six-digit 
level are not reported. A nonemployer is a business without paid 
employees that is subject to federal income tax. Most nonemployers 
are self-employed individuals operating very small unincorporated 
businesses. The NASS data on the number of livestock slaughter 
plants includes businesses with payroll as well as nonemployer 
firms, but does not report the size of firms nor the number of 
employees. Therefore, the NASS data provides the most accurate 
measure of the number of businesses potentially subject to the 
proposed rule, while the Census Bureau data provide a means for 
estimating the number of small businesses potentially subject to the 
proposed rule.
---------------------------------------------------------------------------

    The companies required to report under the Act and this proposed 
rule represent the largest slaughtering operations in each respective 
species. This proposed rule will require mandatory reporting by an 
estimated 60 livestock slaughtering firms representing the largest 
cattle, swine, and sheep slaughtering companies. This fact, coupled 
with the Statistics of U.S. Businesses data leads to the conclusion 
that 46 of the livestock slaughtering firms required to report under 
this proposed rule have 500 employees or more. Therefore, AMS estimates 
that 14 of the 60 livestock slaughtering firms required to report under 
this proposed rule are small businesses as defined by SBA. In 
percentage terms, about 23 percent of the animal slaughtering companies 
required to report under this proposed rule are small businesses. In 
terms of the industry, this rule requires reporting by only 0.8 percent 
of all small businesses in the animal (except poultry) slaughtering 
industry. Moreover, the firms required to report are the largest of the 
firms in the industry classified as small businesses.
    U.S. Census Bureau statistics are not sufficiently disaggregated to 
enable inferences to be drawn about the small business classification 
of the lamb carcass and lamb meat importers required to report under 
the proposed rule. However, based on its knowledge of the industry and 
previous experience with livestock mandatory reporting, AMS estimates 
that all of the lamb importers would be classified as small businesses 
under the SBA size standard of fewer than 100 employees for meat and 
meat product merchant wholesalers.\7\ In combination with the animal 
slaughtering firms, AMS estimates that a total of 19 firms out of 65 
firms required to report under this proposed rule meet the SBA 
definition for small businesses. In percentage terms, about 29 percent 
of the firms required to report under this proposed rule would be 
classified as small businesses. Although classified as small 
businesses, these firms are the largest firms in their respective 
specialties.
---------------------------------------------------------------------------

    \7\ North American Industry Classification System code 424470.
---------------------------------------------------------------------------

    Projected Reporting. This proposed rule requires the reporting of 
specific market information regarding the buying and selling of 
livestock and livestock products. The information will be reported to 
AMS by electronic means. Electronic reporting involves the transfer of 
data from a packer's or importer's electronic recordkeeping system to a 
centrally located AMS electronic database. The packer or importer is 
required to organize the information in an AMS-approved format before 
electronically transmitting the information to AMS (Appendices A-C).
    Once the required information has been entered into the AMS 
database, it will be aggregated and processed into various market 
reports which will be released according to the daily and weekly time 
schedule set forth in these regulations.
    As an alternative, based on prior experience, AMS found that some 
of the smaller entities covered under mandatory reporting would benefit 
from a web-based system for data submission. Accordingly, AMS developed 
a system that will be available to firms that find it to be more cost 
effective than developing an electronic interface to submit data to 
AMS.
    AMS estimates the total annual burden on each cattle packer and 
boxed beef processing firm to average $7,548, including $4,953 for 
annual costs associated with electronically submitting data, $672 for 
startup/annual maintenance costs, and $1,923 for the storage and 
maintenance of electronic files that were submitted to AMS. This figure 
was calculated by estimating the time required to complete the 
necessary data submission and factoring by the

[[Page 44689]]

number of times reporting is required per day for an estimated total of 
260 reporting days in a year (see Paperwork Reduction Act section for a 
complete, detailed discussion). Because data submission costs are 
directly associated with the volume of data submissions, total annual 
costs for smaller operations likely will be less than the average, 
while costs for larger operations likely will exceed the average.
    AMS estimates the total annual burden on each swine packing firm to 
be $5,544, including $2,949 for annual costs associated with 
electronically submitting data, $672 for startup/annual maintenance 
costs, and $1,923 for the storage and maintenance of electronic files 
that were submitted to AMS. This estimate does not include costs 
associated with reporting sales of pork products, which are not 
required to be reported. As with cattle packers, annual costs for 
smaller swine packing operations likely will be less than the average, 
while costs for larger operations likely will exceed the average.
    AMS estimates the total annual burden on each lamb packer to be 
$5,724 including $3,129 for annual costs associated with electronically 
submitting data, $672 for startup/annual maintenance costs, and $1,923 
for the storage and maintenance of electronic files that were submitted 
to AMS. AMS estimates the total annual burden on each importer of lamb 
to be $2,688, including $93 for annual costs associated with 
electronically submitting data, $672 for startup/annual maintenance 
costs, and $1,923 for the storage and maintenance of electronic files 
that were submitted to AMS.
    Projected Recordkeeping. Each packer and importer required to 
report information to the Secretary must maintain such records as are 
necessary to verify the accuracy of the information provided to AMS. 
This includes information regarding price, class, head count, weight, 
quality grade, yield grade, and other factors necessary to adequately 
describe each transaction. These records are already kept by the 
industry. Reporting packers and importers are required by these 
regulations to maintain and to make available the original contracts, 
agreements, receipts, and other records associated with any transaction 
relating to the purchase, sale, pricing, transportation, delivery, 
weighing, slaughter, or carcass characteristics of all livestock. 
Reporting packers and importers are also required to maintain copies of 
the information provided to AMS. All of the above-mentioned paperwork 
must be kept for at least 2 years. Packers and importers are not 
required to report any other new or additional information that they do 
not generally have available or maintain. Further, they are not 
required to keep any information that would prove unduly burdensome to 
maintain. The paperwork burden that is imposed on the packers and 
importers is further discussed in the section entitled Paperwork 
Reduction Act that follows.
    In addition, AMS has not identified any relevant Federal rules that 
are currently in effect that duplicate, overlap, or conflict with this 
proposed rule. AMS will continue to report market information collected 
through its voluntary market reporting program provided the collection 
of such information does not duplicate the information collection 
requirements of this proposed rule.
    Professional skills required for recordkeeping under this proposed 
rule are not different than those already employed by the reporting 
entities. Reporting will be accomplished using computers or similar 
electronic means. AMS believes the skills needed to maintain such 
systems are already in place in those small businesses affected by this 
proposed rule.
    Alternatives. This proposed rule, as directed by the 
Reauthorization Act, requires cattle and swine packing plants of a 
certain size to report information to the Secretary at prescribed times 
throughout the day and week. Further, lamb slaughter and processing 
plants and lamb importers of a certain size are required by these 
proposed regulations to report information to the Secretary at 
prescribed times throughout the day and week. The Act and these 
proposed regulations exempt the vast majority of small businesses by 
the establishment of slaughter, processing, and import capacity 
thresholds.
    AMS recognizes that most economic impact of this proposed rule on 
those small entities required to report involves the manner in which 
information must be reported to the Secretary. However, in developing 
this proposed rule, AMS considered other means by which the objectives 
of this rule could be accomplished, including reporting the required 
information by telephone, facsimile and regular mail. AMS believes 
these alternatives are not capable of meeting the program objectives, 
especially timely reporting. The Reauthorization Act prescribes 
specific times that reporting entities must report to AMS and similarly 
prescribes specific times for publication of reports by AMS. AMS 
believes electronic submission to be the only method capable of 
allowing AMS to collect, review, process, aggregate and publish reports 
while complying with the specific time-frames set forth in the Act.
    To respond to concerns of smaller operations, AMS developed a web-
based input forms for submitting data online. Based on prior 
experience, AMS found that some of the smaller entities covered under 
mandatory price reporting would benefit from such a web-based 
submission system. Accordingly, AMS developed such a system for program 
implementation.
    Additionally, to further assist small businesses, AMS may provide 
for an exception to electronic reporting in emergencies, such as power 
failures or loss of Internet accessibility, or in cases when an 
alternative is agreeable to AMS and the reporting entity.
    Other than these alternatives, there are no other practical and 
feasible alternatives to the methods of data transmission that are less 
burdensome to small businesses. AMS will work actively with those small 
businesses required to report to minimize the burden on them to the 
maximum extent practicable.
    To assist the industry in achieving compliance with this rule, 
during the period between publication of this proposed rule and its 
effective date, AMS will provide assistance and training to covered 
entities as needed to ensure that they have been given the technical 
information necessary to comply with the electronic data transmission 
requirements.

Paperwork Reduction Act.

    In accordance with OMB regulation (5 CFR Part 1320) that implements 
the Paperwork Reduction Act (44 U.S.C. 3501-3520) (PRA), the 
information collection requirements associated with this program have 
been previously approved by OMB and assigned OMB control number 0581-
0186. A revised information collection package has been submitted to 
OMB for approval of a 2,862 hour decrease in total burden hours. In 
accordance with 5 CFR Part 1320, we have included below a description 
of the reporting and recordkeeping requirements and an estimate of the 
annual burden on packers that would be required to report information 
under this proposed rule.
    Title: Livestock Mandatory Reporting Act of 1999.
    OMB Number: 0581-0186.
    Expiration Date: December 31, 2007.
    Type of Request: Revision of currently approved information 
collection.
    Abstract: The information collection and recordkeeping requirements 
in this regulation are essential to operating a

[[Page 44690]]

mandatory program of livestock and livestock products reporting. Based 
on the information available, AMS estimates that there are 48 beef 
packer plants, 52 pork packer plants, 12 lamb packer plants and 6 lamb 
importers that are required to report market information under this 
rule (1 lamb entity is both a packer and an importer). These companies 
have similar recordkeeping systems and business operation practices and 
conduct their operations in a similar manner. AMS believes that all of 
the information required under this rule can be collected from existing 
materials and systems. In addition, most of these firms already have 
established systems for reporting information to AMS because they were 
subject to the requirements of the program when it was in effect from 
April 2, 2001, through September 30, 2005. Moreover, most firms have 
continued to report data voluntarily to AMS. These firms will have 
minimal startup costs, requiring only minor modifications of their 
current data reporting systems to be compatible with the requirements 
of the proposed rule. The PRA also requires AMS to measure the 
recordkeeping burden. Under this proposed rule, each packer and 
importer required to report must maintain and make available upon 
request for 2 years such records as are necessary to verify the 
accuracy of the information required to be reported. These records 
include original contracts, agreements, receipts, and other records 
associated with any transaction relating to the purchase, sale, 
pricing, transportation, delivery, weighing, slaughter, or carcass 
characteristics of all livestock. Under this proposed rule, the 
electronic data files which the packers are required to utilize when 
submitting information to AMS will have to be maintained as these files 
provide the best record of compliance. The recordkeeping burden 
includes the amount of time needed to store and maintain records. AMS 
estimates that, since records of original contracts, agreements, 
receipts, and other records associated with any transaction relating to 
the purchase, sale, pricing, transportation, delivery, weighing, 
slaughter, or carcass characteristics of all livestock are stored and 
maintained as a matter of normal business practice by these companies 
for a period in excess of 2 years, additional annual costs will be 
nominal. AMS estimates the annual cost per respondent for the storage 
of the electronic data files which were submitted to AMS in compliance 
with the reporting provisions of this rule to be $1,923.10. This 
estimate includes the cost of electronic data storage media, backup 
electronic data storage media, and backup software required to maintain 
an estimated annual electronic recordkeeping and backup burden of 20 
megabytes, on average, per respondent. In addition, this estimate 
includes the cost per employee to maintain such records, which is 
estimated to average 70 hours per year at $21.33 per hour for a total 
salary component cost of $1,493.10 per year.

                Annual Recordkeeping Cost per Respondent
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Labor hours per year.......................................           70
Labor cost per hour........................................     x $21.33
                                                            ------------
Sub-total labor cost per year..............................    $1,493.10
Electronic storage cost *..................................    + $430.00
============================================================------------
    Total Recordkeeping Cost...............................   $1,923.10
------------------------------------------------------------------------
* Includes cost of hard electronic storage (estimated to average 20 Mb/
  year), backup tape media, backup tape drive, and backup software.

    In this rule, information collection requirements include the 
submission of the required information on a daily and weekly basis in 
the standard format provided in the following forms: (1) Live Cattle 
Daily Report (Current Established Prices), (2) Live Cattle Daily Report 
(Committed and Delivered Cattle), (3) Live Cattle Weekly Report, (4) 
Cattle Premiums and Discounts Weekly Report, (5) Cow/Bull Plant 
Delivered Bids (Dressed Basis), (6) Live Cow/Bull Daily Purchase 
Report, (7) Boxed Beef Daily Report, (8) Swine Prior Day Report, (9) 
Swine Daily Report, (10) Swine Noncarcass Merit Premium Weekly Report, 
(11) Live Lamb Daily Report (Current Established Prices), (12) Live 
Lamb Weekly Report, (13) Live Lamb Weekly Report (Formula Purchases), 
(14) Lamb Premiums and Discounts Weekly Report, (15) Boxed Lamb Daily 
Report, and (16) Lamb Carcass Report. Copies of these 16 forms are 
included in Appendices at the end of this rule. Cattle packers will 
utilize up to seven of these forms (not all cattle packers must submit 
all cattle forms) (Appendix A) when reporting information to AMS, 
including four for daily cattle reporting, two for weekly cattle 
reporting, and one for daily boxed beef cuts reporting. Swine packers 
will utilize up to three forms (not all swine packers must submit all 
swine forms) (Appendix B), two for daily reporting of swine purchases 
and one for weekly reporting of non-carcass merit premium information. 
Lamb packers will utilize up to six of these forms (not all lamb 
packers must submit all lamb forms) (Appendix C) when reporting 
information to AMS, including one for daily lamb reporting, three for 
weekly lamb reporting, one for daily and weekly boxed lamb cuts 
reporting, and one for daily lamb carcass reporting. Lamb importers 
will utilize one of these forms when reporting information to AMS for 
reporting weekly imported boxed lamb cut sales.
    These information collection requirements have been designed to 
minimize disruption to the normal business practices of the affected 
entities. Each of these forms requires the minimal amount of 
information necessary to properly describe each reportable transaction, 
as required under this proposed rule. The number of forms is a result 
of an attempt to reduce the complexity of each form.
Live Cattle Daily Report (Current Established Prices): Form LS-113
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .17 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live cattle purchases to the Secretary.
    Estimated Number of Respondents: 34 plants.
    Estimated Number of Responses per Respondent: 520 (2 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 3,006 hours.
    Total Cost: $64,118.
Live Cattle Daily Report (Committed and Delivered Cattle): Form LS-114
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .17 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live cattle purchases to the Secretary.
    Estimated Number of Respondents: 34 plants.
    Estimated Number of Responses per Respondent: 520 (2 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 3,006 hours.
    Total Cost: $64,118.
Live Cattle Weekly Report: Form LS-115
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .25 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live cattle purchases to the Secretary.
    Estimated Number of Respondents: 34 plants.

[[Page 44691]]

    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 442 hours.
    Total Cost: $9,428.
Cattle Premiums and Discounts Weekly Report: Form LS-117
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .08 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live cattle purchases to the Secretary.
    Estimated Number of Respondents: 34 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 141 hours.
    Total Cost: $3,008.
Cow/Bull Plant Delivered Bids (Dressed Basis): Form LS-131
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .08 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on bid prices for cows and bulls to the Secretary.
    Estimated Number of Respondents: 22 plants.
    Estimated Number of Responses per Respondent: 260 (1 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 458 hours.
    Total Cost: $9,769.
Live Cow/Bull Daily Purchase Report: Form LS-132
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .17 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on cow and bull purchases to the Secretary.
    Estimated Number of Respondents: 22 plants.
    Estimated Number of Responses per Respondent: 260 (1 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 972 hours.
    Total Cost: $20,733.
Boxed Beef Daily Report: Form LS-126
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .125 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on domestic and export boxed beef cut sales to the 
Secretary.
    Estimated Number of Respondents: 48 plants.
    Estimated Number of Responses per Respondent: 520 (2 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 3,120 hours.
    Total Cost: $66,550.
Swine Prior Day Report: Form LS-118
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .25 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live swine purchases to the Secretary.
    Estimated Number of Respondents: 52 plants.
    Estimated Number of Responses per Respondent: 260 (1 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 3,380 hours.
    Total Cost: $72,095.
Swine Daily Report: Form LS-119
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .17 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live swine purchases to the Secretary.
    Estimated Number of Respondents: 40 plants.
    Estimated Number of Responses per Respondent: 520 (2 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 3,536 hours.
    Total Cost: $75,423.
Swine Noncarcass Merit Premium Weekly Report: Form LS-120
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .25 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live swine purchases to the Secretary.
    Estimated Number of Respondents: 21 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 273 hours.
    Total Cost: $5,823.
Live Lamb Daily Report (Current Established Prices): Form LS-121
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .34 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live lamb purchases to the Secretary.
    Estimated Number of Respondents: 6 plants.
    Estimated Number of Responses per Respondent: 260 (1 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 530 hours.
    Total Cost: $11,305.
Live Lamb Weekly Report: Form LS-123
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .25 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live lamb purchases to the Secretary.
    Estimated Number of Respondents: 5 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 65 hours.
    Total Cost: $1,386.
Live Lamb Weekly Report (Formula Purchases): Form LS-124
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .25 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live lamb purchases to the Secretary.
    Estimated Number of Respondents: 5 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 65 hours.
    Total Cost: $1,386.
Lamb Premiums and Discounts Weekly Report: Form LS-125
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .08 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live lamb purchases to the Secretary.
    Estimated Number of Respondents: 6 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 25 hours.
    Total Cost: $533.
Boxed Lamb Report: Form LS-128
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .167 hours per

[[Page 44692]]

electronically submitted response for domestic packing plants and .084 
hours per electronically submitted response for importers.
    Respondents: Packer processing plants and importers required to 
report information on boxed lamb cut sales to the Secretary.
    Estimated Number of Respondents: 16 entities (including 1 entity 
that both processes and imports).
    Estimated Number of Responses per Respondent: 260 (1 per day for 
260 days) for domestic packing plants; 52 (1 per week for 52 weeks) for 
importers.
    Estimated Total Annual Burden on Respondents: 434 hours for 
domestic packing plants and 26 hours for importers.
    Total Cost: $9,257 for domestic packing plants and $555 for 
importers for a total of $9,812.
Lamb Carcass Report: Form LS-129
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .167 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on lamb carcass sales to the Secretary.
    Estimated Number of Respondents: 8 entities.
    Estimated Number of Responses per Respondent: 260 (1 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 347 hours.
    Total Cost: $7,402.

                               Breakdown of Estimated Data Submission Cost Burden
----------------------------------------------------------------------------------------------------------------
                                                                                                       Total
                   Form                    Reporting days   x            Responses             =     responses
----------------------------------------------------------------------------------------------------------------
                                 I. Number of Responses per Respondent per Year
----------------------------------------------------------------------------------------------------------------
Cattle:
    LS-113...............................             260  ..  2 daily......................  ..             520
    LS-114...............................             260  ..  2 daily......................  ..             520
    LS-115...............................              52  ..  1 weekly.....................  ..              52
    LS-117...............................              52  ..  1 weekly.....................  ..              52
    LS-126...............................             260  ..  2 daily......................  ..             520
    LS-131...............................             260  ..  1 daily......................  ..             260
    LS-132...............................             260  ..  1 daily......................  ..             260
Swine:
    LS-118...............................             260  ..  1 daily......................  ..             260
    LS-119...............................             260  ..  2 daily......................  ..             520
    LS-120...............................              52  ..  1 weekly.....................  ..              52
Lamb:
 Domestic:
    LS-121...............................             260  ..  1 daily......................  ..             260
    LS-123...............................              52  ..  1 weekly.....................  ..              52
    LS-124...............................              52  ..  1 weekly.....................  ..              52
    LS-125...............................              52  ..  1 weekly.....................  ..              52
    LS-128...............................             260  ..  1 daily......................  ..             260
    LS-129...............................             260  ..  1 daily......................  ..             260
 Importer:
    LS-128...............................              52  ..  1 weekly.....................  ..              52


----------------------------------------------------------------------------------------------------------------
                                                           Submissions/           Hours/           Total hours/
                          Form                                 year        x    submission     =       year
----------------------------------------------------------------------------------------------------------------
                             II. Number of Submission Hours per Respondent per Year
----------------------------------------------------------------------------------------------------------------
Cattle:
    LS-113..............................................             520  ..            .17   ..           88.40
    LS-114..............................................             520  ..            .17   ..           88.40
    LS-115..............................................              52  ..            .25   ..           13.00
    LS-117..............................................              52  ..            .08   ..            4.16
    LS-126..............................................             520  ..            .125  ..           65.00
    LS-131..............................................             260  ..            .08   ..           20.80
    LS-132..............................................             260  ..            .17   ..           44.20
Swine:
    LS-118..............................................             260  ..            .25   ..           65.00
    LS-119..............................................             520  ..            .17   ..           88.40
    LS-120..............................................              52  ..            .25   ..           13.00
Lamb:
 Domestic:
    LS-121..............................................             260  ..            .34   ..           88.40
    LS-123..............................................              52  ..            .25   ..           13.00
    LS-124..............................................              52  ..            .25   ..           13.00
    LS-125..............................................              52  ..            .08   ..            4.16
    LS-128..............................................             260  ..            .167  ..           43.42
    LS-129..............................................             260  ..            .167  ..           43.42
 Importer:
    LS-128..............................................              52  ..            .084  ..            4.37


[[Page 44693]]


----------------------------------------------------------------------------------------------------------------
                                                           Total hours/                           Total dollars/
                          Form                                 year        x     Cost/hour     =       year
----------------------------------------------------------------------------------------------------------------
                               III. Total Submission Cost per Respondent per Year
----------------------------------------------------------------------------------------------------------------
Cattle:
    LS-113..............................................           88.40  ..          $21.33  ..          $1,886
    LS-114..............................................           88.40  ..           21.33  ..           1,886
    LS-115..............................................           13.00  ..           21.33  ..             277
    LS-117..............................................            4.16  ..           21.33  ..              89
    LS-126..............................................           65.00  ..           21.33  ..           1,386
    LS-131..............................................           20.80  ..           21.33  ..             444
    LS-132..............................................           44.20  ..           21.33  ..             943
                                                         -------------------------------------------------------
        Totals..........................................          323.96  ..           21.33  ..           6,911
Swine:
    LS-118..............................................           65.00  ..           21.33  ..           1,386
    LS-119..............................................           88.40  ..           21.33  ..           1,886
    LS-120..............................................           13.00  ..           21.33  ..             277
                                                         -------------------------------------------------------
        Totals..........................................          166.40  ..           21.33  ..           3,549
Lamb:
 Domestic:
    LS-121..............................................           88.40  ..           21.33  ..           1,886
    LS-123..............................................           13.00  ..           21.33  ..             277
    LS-124..............................................           13.00  ..           21.33  ..             277
    LS-125..............................................            4.16  ..           21.33  ..              89
    LS-128..............................................           43.42  ..           21.33  ..             926
    LS-129..............................................           43.42  ..           21.33  ..             926
 Importer:
    LS-128..............................................            4.37  ..           21.33  ..              93
                                                         -------------------------------------------------------
        Totals..........................................          209.77  ..           21.33  ..           4,474


----------------------------------------------------------------------------------------------------------------
                                                          Total dollars/
                          Form                                 year        x    Respondents    =    Total Cost
----------------------------------------------------------------------------------------------------------------
                              IV. Total Yearly Submission Cost for All Respondents
----------------------------------------------------------------------------------------------------------------
Cattle:
    LS-113..............................................          $1,886  ..              34  ..        $ 64,124
    LS-114..............................................           1,886  ..              34  ..          64,124
    LS-115..............................................             277  ..              34  ..           9,418
    LS-117..............................................              89  ..              34  ..           3,026
    LS-126..............................................           1,386  ..              48  ..          66,528
    LS-131..............................................             444  ..              22  ..           9,768
    LS-132..............................................             943  ..              22  ..          20,746
                                                         -------------------------------------------------------
        Subtotal........................................  ..............  ..  ..............  ..         237,734
Swine:
    LS-118..............................................           1,386  ..              52  ..          72,072
    LS-119..............................................           1,886  ..              40  ..          75,440
    LS-120..............................................             277  ..              21  ..           5,817
                                                         -------------------------------------------------------
        Subtotal........................................  ..............  ..  ..............  ..         153,329
Lamb:
 Domestic:
    LS-121..............................................           1,886  ..               6  ..          11,316
    LS-123..............................................             277  ..               5  ..           1,385
    LS-124..............................................             277  ..               5  ..           1,385
    LS-125..............................................              89  ..               6  ..             534
    LS-128..............................................             926  ..              10  ..           9,260
    LS-129..............................................             926  ..               8  ..           7,408
 Importer:
    LS-128..............................................              93  ..               6  ..             558
                                                         -------------------------------------------------------
        Subtotal........................................  ..............  ..  ..............  ..          31,846
                                                         =======================================================
        Grand total.....................................  ..............  ..  ..............  ..         422,909
----------------------------------------------------------------------------------------------------------------

    Estimated Total Annual Burden on Respondents by Species:
    Live Cattle and Boxed Beef: $362,302 including $237,723 for annual 
costs associated with electronically submitted responses (11,145 annual 
hours @ $21.33 per hour), electronic submission development and annual 
system maintenance costs of $32,270 ($672.30 per 48 respondents), and 
$92,309 ($1,923.10 per 48 respondents) for the

[[Page 44694]]

storage and maintenance of electronic files that were submitted to AMS.
    Live Swine: $288,302 including $153,341 for annual costs associated 
with electronically submitted responses (7,189 annual hours @ $21.33 
per hour), electronic submission development and annual system 
maintenance costs of $34,960 ($672.30 per 52 respondents), and $100,001 
($1,923.10 per 52 respondents) for the storage and maintenance of 
electronic files that were submitted to AMS.
    Live Lambs, Boxed Lamb, and Lamb Carcasses: $83,620 including 
$57,224 for packers ($31,270 for annual costs associated with 
electronically submitted responses (1,466 annual hours @ $21.33 per 
hour), electronic submission development and annual system maintenance 
costs of $6,723 ($672.30 per 10 respondents), and $19,231 ($1,923.10 
per 10 respondents) for the storage and maintenance of electronic files 
that were submitted to AMS) and $16,128 for importers ($555 for annual 
costs associated with electronically submitted responses (26 annual 
hours @ $21.33 per hour), electronic submission development and annual 
system maintenance costs of $4,034 ($672.30 per 6 respondents), and 
$11,539 ($1,923.10 per 6 respondents) for the storage and maintenance 
of electronic files that were submitted to AMS).
    AMS is committed to complying with the E-Government Act to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services and for other purposes.
    AMS is inviting comments from all interested parties concerning the 
information collection and recordkeeping requirements contained in this 
proposed rule. Comments are specifically invited on: (1) The accuracy 
of the Agency's burden estimate of the proposed collection of 
information including the validity of the methodology and the 
assumptions used; (2) ways to minimize the burden of the collection of 
information on those who would be required to respond, including 
through the use of appropriate electronic collection methods; (3) 
whether the proposed collection of information was sufficient or 
necessary for the proper performance of the functions of the agency as 
mandated by the Act; and (4) ways to enhance the quality, utility, and 
clarity of the information to be collected. Comments can be submitted 
on the Internet at: http://www.regulations.gov. Written comments can be 
sent to Warren P. Preston, Chief, Livestock and Grain Market News 
Branch, Docket No. LS-07-01, 1400 Independence Ave. SW., Room 2619-S, 
Washington, DC 20250-0252, or by facsimile to (202)-690-3732. All 
comments received will be posted to Web site at: http://www.regulations.gov. Comments that specifically pertain to the 
information collection and recordkeeping requirements of this action 
should also be sent to the Desk Officer for Agriculture, Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
New Executive Office Building, 725 17th Street, NW., Room 725, 
Washington, DC 20503, and should reference the date and page number of 
this issue of the Federal Register. All responses to this action will 
be summarized and included in the request for OMB approval. All 
comments will become a matter of public record.
    A 30-day comment period is provided for interested persons to 
comment on the regulatory provisions of this proposed rule. The 30-day 
period is deemed appropriate in order to provide a sufficient amount of 
time to comment while resuming the program's operation under the Act as 
soon as possible. The comment period for the information collection and 
recordkeeping requirements contained in this proposed rule is 60 days.

List of Subjects in 7 CFR Part 59

    Cattle, Hogs, Sheep, Livestock, Lamb.
    For the reasons set forth in the preamble, it is proposed that 
Title 7, Chapter I of the Code of Federal Regulations be amended as 
follows:
    1. Part 59 is revised to read as follows:

PART 59--LIVESTOCK MANDATORY REPORTING

Subpart A--General Provisions
Sec.
59.10 General administrative provisions.
59.20 Recordkeeping.
59.30 Definitions.
Subpart B--Cattle Reporting
59.100 Definitions.
59.101 Mandatory daily reporting for steers and heifers.
59.102 Mandatory daily reporting for cows and bulls.
59.103 Mandatory weekly reporting for steers and heifers.
59.104 Mandatory reporting of boxed beef sales.
Subpart C--Swine Reporting
59.200 Definitions.
59.201 General reporting provisions.
59.202 Mandatory daily reporting for barrows and gilts.
59.203 Mandatory daily reporting for sows and boars.
59.204 Mandatory weekly reporting for swine.
Subpart D--Lamb Reporting
59.300 Definitions.
59.301 Mandatory daily reporting for lambs.
59.302 Mandatory weekly reporting for lambs.
59.303 Mandatory reporting of lamb carcasses and boxed lamb.
Subpart E--OMB Control Number
59.400 OMB control number assigned pursuant to the Paperwork 
Reduction Act.

    Authority: 7 U.S.C. 1635-1636h

Subpart A--General Provisions


Sec.  59.10  General administrative provisions.

    (a) Reporting by Packers and Importers. A packer or importer shall 
report all information required under this Part on an individual lot 
basis.
    (b) Reporting Schedule. Whenever a packer or importer is required 
to report information on transactions of livestock and livestock 
products under this Part by a set time, all covered transactions up to 
within one half hour of the reporting deadline shall be reported. 
Transactions completed during the one half hour prior to the previous 
reporting time, but not reported in the previous report, shall be 
reported at the next scheduled reporting time.
    (c) Regional Reporting and Aggregation. The Secretary shall make 
information obtained under this Part available to the public only in a 
manner that:
    (1) Ensures that the information is published on a national and a 
regional or statewide basis as the Secretary determines to be 
appropriate;
    (2) Ensures that the identity of a reporting person or the entity 
which they represent is not disclosed; and
    (3) Market information reported to the Secretary by packers and 
importers shall be aggregated in such a manner that the market reports 
issued will not disclose the identity of persons, packers and 
importers, including parties to a contract and packer's and importer's 
proprietary information.
    (d) Adjustments. Prior to the publication of any information 
required under this Part, the Secretary may make reasonable adjustments 
in information reported by packers and importers to reflect price 
aberrations or other unusual or unique occurrences that the Secretary 
determines would distort the published information to the detriment of 
producers, packers, or other market participants.
    (e) Reporting of Activities on Weekends and Holidays. Livestock and 
livestock products committed to a packer, or importer, or purchased, 
sold, or slaughtered by a packer or importer on a weekend day or 
holiday shall be

[[Page 44695]]

reported to the Secretary in accordance with the provisions of this 
Part and reported by the Secretary on the immediately following 
reporting day. A packer shall not be required to report such actions 
more than once on the immediately following reporting day.
    (f) Reporting Methods. Whenever information is required to be 
reported under this Part, it shall be reported by electronic means and 
shall adhere to a standardized format established by the Secretary to 
achieve the objectives of this Part, except in emergencies or in cases 
when an alternative method is agreeable to the entity required to 
report and AMS.


Sec.  59.20  Recordkeeping.

    (a) In General. Each packer or importer required to report 
information to the Secretary under the Act and this Part shall maintain 
for 2 years and make available to the Secretary the following 
information on request:
    (1) The original contracts, agreements, receipts, and other records 
associated with any transaction relating to the purchase, sale, 
pricing, transportation, delivery, weighing, slaughter, or carcass 
characteristics of all livestock or livestock products; and
    (2) Such records or other information as is necessary or 
appropriate to verify the accuracy of the information required to be 
reported under the Act and this Part.
    (b) Purchases of Cattle and Swine and Sales of Boxed Beef Cuts. A 
record of a purchase of a lot of cattle or swine, or a sale of a unit 
of boxed beef cuts, by a packer shall evidence whether the purchase or 
sale occurred:
    (1) Before 10 a.m. central time;
    (2) Between 10 a.m. and 2 p.m. central time; or
    (3) After 2 p.m. central time.
    (c) Purchases of Lambs. A record of a purchase of a lot of lambs by 
a packer shall evidence whether the purchase occurred:
    (1) Before 2 p.m. central time; or
    (2) After 2 p.m. central time.
    (d) Sales of Lamb Carcasses and Sales of Boxed Lamb Cuts. A record 
of a sale by a packer of lamb carcasses and cuts, shall evidence time 
and date the sale occurred:
    (1) Before 2 p.m. central time; or
    (2) After 2 p.m. central time.
    A record of sale by an importer of lamb cuts shall evidence the 
date the sale occurred.
    (e) Reporting Sales of Boxed Beef Cuts and Sales of Boxed Lamb 
Cuts. (1) Beef packers must report all sales of boxed beef items by the 
applicable Institutional Meat Purchase Specifications (IMPS) item 
number or the boxed beef items' cutting and trimming specifications.
    (3) Lamb packers and importers must report all sales of boxed lamb 
items by the applicable Institutional Meat Purchase Specifications 
(IMPS) item number or the boxed lamb items' cutting and trimming 
specifications.


Sec.  59.30  Definitions.

    The following definitions apply to this part.
    Act. The term ``Act'' means Subtitle B of the Agricultural 
Marketing Act of 1946, as amended; 7 U.S.C. 1635-1636h.
    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 hot 
carcass weight.
    Basis level. The term `basis level' means the agreed on adjustment 
to a future price to establish the final price paid for livestock.
    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.
    Discount. The term `discount' means the adjustment, expressed in 
dollars per one hundred pounds, subtracted from the base price due to 
weight, quality characteristics, yield characteristics, livestock 
class, dark cutting, breed, dressing percentage, or other 
characteristic.
    Exported. The term `exported' means livestock or livestock products 
that are physically shipped to locations outside of the 50 States.
    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 (e.g., F.O.B. Plant, F.O.B. Feedlot).
    Imported. The term `imported' means livestock that are raised to 
slaughter weight outside of the 50 States or livestock products 
produced outside of the 50 States.
    Institutional Meat Purchase Specifications. Specifications 
describing various meat cuts, meat products, and meat food products 
derived from all livestock species, commonly abbreviated ``IMPS'', and 
intended for use by any meat procuring activity. Copies of the IMPS may 
be obtained from the U.S. Department of Agriculture, Agricultural 
Marketing Service, Livestock and Seed Program located at Room 2603 
South Building, 1400 Independence Ave, SW., Washington, DC 20250. Phone 
(202) 720-4486 or Fax (202) 720-1112. Copies may also be obtained over 
the Internet at: http://www.ams.usda.gov/lsg/stand/st-pubs.htm.
    Livestock. The term `livestock' means cattle, swine, and lambs.
    Lot. (1) When used in reference to livestock, the term `lot' means 
a group of one or more livestock that is identified for the purpose of 
a single transaction between a buyer and a seller;
    (2) When used in reference to lamb carcasses, the term `lot' means 
a group of one or more lamb carcasses sharing a similar weight range 
category and comprising a single transaction between a buyer and 
seller; or
    (3) When used in reference to boxed beef and lamb, the term `lot' 
means a group of one or more boxes of beef or lamb items sharing 
cutting and trimming specifications and comprising a single transaction 
between a buyer and seller.
    Marketing. The term `marketing' means the sale or other disposition 
of livestock, livestock products, or meat or meat food products in 
commerce.
    Negotiated purchase. The term `negotiated purchase' means a cash or 
spot market purchase by a packer of livestock from a producer under 
which the base price for the livestock is determined by seller-buyer 
interaction. The livestock are scheduled for delivery to the packer not 
more than 14 days after the date on which the livestock are committed 
to the packer.
    Negotiated grid purchase. The term `negotiated grid purchase' in 
reference to cattle means the negotiation of a base price determined by 
seller-buyer interaction from which premiums are added and discounts 
are subtracted. The livestock are scheduled for delivery to the packer 
not more than 14 days after the date on which the livestock are 
committed to the packer.
    Negotiated sale. The term `negotiated sale' means a cash or spot 
market sale by a producer of livestock to a packer under which the base 
price for the livestock is determined by seller-buyer interaction. 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. 
When used in reference to sales of boxed beef or lamb cuts or lamb 
carcasses the term `negotiated sale' means a sale by a packer selling 
boxed beef or lamb cuts or lamb carcasses to a buyer of boxed beef or 
lamb cuts or lamb carcasses under which the price for the boxed beef or 
lamb cuts or lamb carcasses is determined by seller-buyer interaction.
    Origin. The term `origin' means the State where the livestock were 
fed to slaughter weight.

[[Page 44696]]

    Percent lean. The term `percent lean' means the value equal to the 
average percentage of the carcass weight comprised of lean meat.
    Person. The term `person' means any individual, group of 
individuals, partnership, corporation, association, or other entity.
    Premium. The term `premium' means the adjustment, expressed in 
dollars per one hundred pounds, added to the base price due to weight, 
quality characteristics, yield characteristics, livestock class, and 
breed.
    Priced. The term `priced' means the time when the final price is 
determined either through buyer-seller interaction and agreement or as 
a result of some other price determining method.
    Prior slaughter week. The term `prior slaughter week' means the 
Monday through Sunday prior to a reporting day.
    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).
    Purchased. The term `purchased' means the agreement on a price, or 
the method for calculating a price, determined through buyer-seller 
interaction and agreement.
    Reporting day. The term `reporting day' means a day on which a 
packer conducts business regarding livestock committed to the packer, 
or livestock purchased, sold, or slaughtered by the packer; the 
Secretary is required to make such information available to the public; 
and the Department of Agriculture is open to conduct business.
    Secretary. The term `Secretary' means the Secretary of Agriculture 
of the United States or any other officer or employee of the Department 
of Agriculture to whom authority has been delegated or may hereafter be 
delegated to act in the Secretary's stead.
    State. The term `State' means each of the 50 States.

Subpart B--Cattle Reporting


Sec.  59.100   Definitions.

    The following definitions apply to this subpart.
    Boxed Beef. The term `boxed beef' means those carlot-based portions 
of a beef carcass including fresh and frozen primals, subprimals, cuts 
fabricated from subprimals (excluding portion-control cuts such as 
chops and steaks similar to those portion cut items described in the 
Institutional Meat Purchase Specifications (IMPS) for Fresh Beef 
Products Series 100), thin meats (e.g. inside and outside skirts, 
pectoral meat, cap and wedge meat, and blade meat), and fresh and 
frozen ground beef, beef trimmings, and boneless processing beef.
    Branded. The term `branded' means boxed beef cuts produced and 
marketed under a corporate trademark (for example, products that are 
marketed on their quality, yield, or breed characteristics), or boxed 
beef cuts produced and marketed under one of USDA's Meat Grading and 
Certification Branch, Certified Beef programs.
    Carcass characteristics. The term `carcass characteristics' means 
the range and average carcass weight in pounds, the quality grade and 
yield grade (if applicable), and the average cattle dressing 
percentage.
    Carlot-based. The term `carlot-based' means any transaction between 
a buyer and a seller destined for two or less delivery stops consisting 
of one or more individual boxed beef items. When used in reference to 
cow and bull boxed beef items, the term `carlot-based' means any 
transaction between a buyer and seller consisting of 5,000 pounds or 
more of one or more individual items.
    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.
    Cattle type. The term `cattle type' means the following types of 
cattle purchased for slaughter:
    (1) Fed steers;
    (2) Fed heifers;
    (3) Fed Holsteins and other fed dairy steers and heifers;
    (4) Cows; and
    (5) Bulls.
    Established. The term `established', when used in connection with 
prices, means that point in time when the buyer and seller agree upon a 
net price.
    Formula marketing arrangement. (1) When used in reference to live 
cattle, 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.
    (2) When used in reference to boxed beef, the term `formula 
marketing arrangement' means the advance commitment of boxed beef 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.
    Forward contract. (1) When used in reference to live cattle, the 
term `forward contract' means an agreement for the purchase of cattle, 
executed in advance of slaughter, under which the base price is 
established by reference to prices quoted on the Chicago Mercantile 
Exchange, or other comparable publicly available prices.
    (2) When used in reference to boxed beef, the term `forward 
contract' means an agreement for the sale of boxed beef, executed in 
advance of manufacture, under which the base price is established by 
reference to publicly available quoted prices.
    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. For any calendar year, the 
term `packer' includes only a federally inspected cattle processing 
plant that slaughtered an average of 125,000 head of cattle per year 
during the immediately preceding 5 calendar years. Additionally, in the 
case of a cattle processing plant that did not slaughter cattle during 
the immediately preceding 5 calendar years, it shall be considered a 
packer if the Secretary determines the processing plant should be 
considered a packer under this subpart after considering its capacity.
    Packer-owned cattle. The term `packer-owned cattle' means cattle 
that a packer owns for at least 14 days immediately before slaughter.
    Prices for cattle. The term `prices for cattle' includes the price 
per hundredweight; the purchase type; the quantity on a live and a 
dressed weight basis; the estimated live weight range; the average live 
weight; the estimated percentage of cattle of a USDA quality grade 
Choice or better; beef carcass classification; any premiums or 
discounts associated with weight, quality grade, yield grade, or type 
of purchase; cattle State of origin; estimated cattle dressing 
percentage; and price basis as F.O.B. feedlot or delivered at the 
plant.
    Terms of trade. The term `terms of trade' means, with respect to 
the purchase of steers and heifers for slaughter:
    (1) Whether a packer provided any financing agreement or 
arrangement with regard to the steers and heifers;
    (2) Whether the delivery terms specified the location of the 
producer or the location of the packer's plant;
    (3) Whether the producer is able to unilaterally specify the date 
and time during the business day of the packer that the cattle are to 
be delivered for slaughter; and

[[Page 44697]]

    (4) The percentage of steers and heifers purchased by a packer as a 
negotiated purchase that are scheduled to be delivered to the plant for 
slaughter not later than 14 days and the percentage of slaughter steers 
and heifers purchased by a packer as a negotiated purchase that are 
scheduled to be delivered to the plant for slaughter more than 14 days, 
but fewer than 30 days.
    Type of purchase. The term `type of purchase' with respect to 
cattle, means a negotiated purchase, negotiated grid purchase, a 
formula market arrangement, and a forward contract.
    Type of sale. The term `type of sale' with respect to boxed beef, 
means a negotiated sale, a formula market arrangement, and a forward 
contract.
    White cow. Cow on a ration that tends to produce white fat.


Sec.  59.101   Mandatory daily reporting for steers and heifers.

    (a) In General. The corporate officers or officially designated 
representatives of each steer and heifer packer processing plant shall 
report to the Secretary at least two times each reporting day not later 
than 10 a.m. central time and not later than 2 p.m. central time the 
following information, inclusive since the last reporting, categorized 
to clearly delineate domestic from imported market purchases as 
described in 59.10(b).
    (1) The prices for cattle (per hundredweight) established on that 
day, categorized by:
    (i) The type of purchase;
    (ii) The quantity of cattle purchased on a live weight basis;
    (iii) The quantity of cattle purchased on a dressed weight basis;
    (iv) The estimated weights of cattle purchased;
    (v) An estimate of the percentage of the cattle purchased that were 
of a quality grade of Choice or better; and
    (vi) Any premiums or discounts associated with weight, quality 
grade, yield grade, or other characteristic expressed in dollars per 
hundredweight on a dressed basis.
    (2) The quantity of cattle delivered to the packer (quoted in 
numbers of head) on that day, categorized by:
    (i) The type of purchase;
    (ii) The quantity of cattle delivered on a live weight basis; and
    (iii) The quantity of cattle delivered on a dressed weight basis.
    (3) The quantity of cattle committed to the packer (quoted in 
numbers of head) as of that day, categorized by:
    (i) The type of purchase;
    (ii) The quantity of cattle committed on a live weight basis; and
    (iii) The quantity of cattle committed on a dressed weight basis.
    (4) The terms of trade regarding the cattle, as applicable.
    (b) Publication. The Secretary shall make the information available 
to the public not less frequently than three times each reporting day.


Sec.  59.102   Mandatory daily reporting for cows and bulls.

    (a) In General. The corporate officers or officially designated 
representatives of each cow and bull packer processing plant shall 
report to the Secretary each reporting day the following information 
for each cattle type, inclusive since the last reporting, categorized 
to clearly delineate domestic from imported market purchases as 
described in Sec.  59.10(b).
    (1) The base bid price (per hundredweight) intended to be paid for 
slaughter cow and bull carcasses on that day not later than 10 a.m. 
central time categorized by:
    (i) Weight; and
    (ii) For slaughter cows, percent lean (e.g., breaker, boner, cutter 
(lean)).
    (2) The prices for cattle (per hundredweight) purchased during the 
previous day not later than 2 p.m. central time categorized by:
    (i) The type of purchase;
    (ii) The quantity of cattle purchased on a live weight basis;
    (iii) The quantity of cattle purchased on a dressed weight basis;
    (iv) The estimated weight of the cattle purchased;
    (v) The quality classification; and
    (vi) Any premiums or discounts associated with weight or quality 
expressed in dollars per hundredweight on a dressed basis.
    (3) The volume of cows and bulls slaughtered the previous day.
    (b) Publication. The Secretary shall make the information available 
to the public within one hour of the required reporting time on the 
reporting day on which the information is received from the packer.


Sec.  59.103   Mandatory weekly reporting for steers and heifers.

    (a) In General. The corporate officers or officially designated 
representatives of each steer and heifer packer processing plant shall 
report to the Secretary on the first reporting day of each week, not 
later than 9 a.m. central time, the following information applicable to 
the prior slaughter week, categorized to clearly delineate domestic 
from imported market purchases:
    (1) The quantity of cattle purchased through a negotiated basis 
that were slaughtered;
    (2) The quantity of cattle purchased through a negotiated grid 
basis that were slaughtered;
    (3) The quantity of cattle purchased through forward contracts that 
were slaughtered;
    (4) The quantity of cattle delivered under a formula marketing 
arrangement that were slaughtered;
    (5) The quantity and carcass characteristics of packer-owned cattle 
that were slaughtered;
    (6) The quantity, basis level, basis level month, and delivery 
month and year for all cattle purchased through forward contracts;
    (7) The range and average of intended premiums and discounts 
(including those associated with weight, quality grade, yield grade, or 
type of cattle) that are expected to be in effect for the current 
slaughter week.
    (b) Publication. The Secretary shall make available to the public 
the information obtained under paragraph (a) of this section on the 
first reporting day of the current slaughter week by 10 a.m. central 
time.


Sec.  59.104   Mandatory reporting of boxed beef sales.

    (a) Daily Reporting. The corporate officers or officially 
designated representatives of each packer processing plant shall report 
to the Secretary at least twice each reporting day (once by 10 a.m. 
central time, and once by 2 p.m. central time) the following 
information on total boxed beef domestic and export sales established 
on that day inclusive since the last reporting as described in Sec.  
59.10(b):
    (1) The price for each lot of each boxed beef sale, quoted in 
dollars per hundredweight on a F.O.B. plant basis;
    (2) The quantity for each lot of each sale, quoted by number of 
pounds sold; and
    (3) The information regarding the characteristics of each sale is 
as follows:
    (i) The type of sale;
    (ii) The branded product characteristics, if applicable;
    (iii) The grade for steer and heifer beef (e.g., USDA Prime, USDA 
Choice or better, USDA Choice, USDA Select, ungraded no-roll product);
    (iv) The grade for cow beef or packer yield and/or quality sort for 
cow beef (e.g., Breakers, Boners, White Cow, Cutters (lean));
    (v) The cut of beef, referencing the most recent version of the 
Institutional Meat Purchase Specifications (IMPS), when applicable;
    (vi) The trim specification;
    (vii) The weight range of the cut;
    (viii) The product delivery period; and

[[Page 44698]]

    (ix) The beef type (steer/heifer, dairy steer/heifer, or cow).
    (b) Publication. The Secretary shall make available to the public 
the information obtained under paragraph (a) of this section not less 
frequently than twice each reporting day.

Subpart C--Swine Reporting


Sec.  59.200   Definitions.

    The following definitions apply to this subpart.
    Affiliate. The term `affiliate', with respect to a packer, means:
    (1) A person that directly or indirectly owns, controls, or holds 
with power to vote, 5 percent or more of the outstanding voting 
securities of the packer;
    (2) A person 5 percent or more of whose outstanding voting 
securities are directly or indirectly owned, controlled, or held with 
power to vote, by the packer; and
    (3) A person that directly or indirectly controls, or is controlled 
by or under common control with, the packer.
    Applicable reporting period. The term `applicable reporting period' 
means the period of time prescribed by the prior day report, the 
morning report, and the afternoon report, as provided in Sec.  59.202.
    Average carcass weight. The term `average carcass weight' means the 
weight obtained by dividing the total carcass weight of the swine 
slaughtered at the packing plant during the applicable reporting period 
by the number of these same swine.
    Average lean percentage. The term `average lean percentage' means 
the value equal to the average percentage of the carcass weight 
comprised of lean meat for the swine slaughtered during the applicable 
reporting period. Whenever the packer changes the manner in which the 
average lean percentage is calculated, 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 either to the carcass 
measurements or lean percentage of the swine of the individual packer 
to correlate to a common percent lean measurement.
    Average net price. The term `average net price' means the quotient 
(stated per hundred pounds of carcass weight of swine) obtained by 
dividing the total amount paid for the swine slaughtered at a packing 
plant during the applicable reporting period (including all premiums 
and less all discounts) by the total carcass weight of the swine (in 
hundred pound increments).
    Average sort loss. The term `average sort loss' means the average 
discount (in dollars per hundred pounds carcass weight) for swine 
slaughtered during the applicable reporting period, resulting from the 
fact that the swine did not fall within the individual packer's 
established carcass weight range or lot variation range.
    Backfat. The term `backfat' means the fat thickness (in inches) 
measured between the third and fourth rib from the last rib, 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 swine slaughtered during the applicable 
reporting period.
    Barrow. The term `barrow' means a neutered male swine, with the 
neutering performed before the swine reached sexual maturity.
    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.
    Base price. The term `base price' means the price from which no 
discounts are subtracted and no premiums are added.
    Boars. The term `boar' means a sexually-intact male swine.
    Bred female swine. The term `bred female swine' means any female 
swine, whether a sow or gilt, that has been mated or inseminated, or 
has been confirmed, to be pregnant.
    Formula price. The term `formula price' means a price determined by 
a mathematical formula under which the price established for a 
specified market serves as the basis for the formula.
    Gilt. The term `gilt' means a young female swine that has not 
produced a litter.
    Hog Class. The term `hog class' means, as applicable, barrows or 
gilts; sows; or boars or stags.
    Inferior hogs. The term `inferior hogs' means swine that are 
discounted in the market place due to light-weight, health, or physical 
conditions that affects their value.
    Loin depth. The term `loin depth' means the muscle depth (in 
inches) measured between the third and fourth ribs from the last rib, 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 swine slaughtered during the applicable 
reporting period.
    Net price. The term `net price' means the total amount paid by a 
packer to a producer (including all premiums, less all discounts) per 
hundred pounds of carcass weight of swine delivered at the plant. The 
total amount paid shall include 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. The total 
amount paid shall exclude any sum earlier paid to a producer that must 
be repaid to the packer.
    Noncarcass merit premium. The term `noncarcass merit premium' means 
an increase in the base price of the swine offered by an individual 
packer or packing plant, based on any factor other than the 
characteristics of the carcass, if the actual amount of the premium is 
known before the sale and delivery of the swine.
    Other market formula purchase. The term `other market formula 
purchase' means a purchase of swine by a packer in which the pricing 
mechanism is a formula price based on any market other than the market 
for swine, pork, or a pork product. The term `other market formula 
purchase' includes a formula purchase in a case which the price formula 
is based on 1 or more futures or options contracts.
    Other purchase arrangement. The term `other purchase arrangement' 
means a purchase of swine by a packer that is not a negotiated 
purchase, swine or pork market formula purchase, or other market 
formula purchase; and does not involve packer-owned swine.
    Packer. The term `packer' means any person engaged in the business 
of buying swine in commerce for purposes of slaughter, of manufacturing 
or preparing meats or meat food products from swine for sale or 
shipment in commerce, or of marketing meats or meat food products from 
swine in an unmanufactured form acting as a wholesale broker, dealer, 
or distributor in commerce. For any calendar year, the term `packer' 
includes only a federally inspected swine processing plant that 
slaughtered an average of 100,000 head of swine per year during the 
immediately preceding 5 calendar years and a person that slaughtered an 
average of 200,000 head of sows, boars, or combination thereof per year 
during the immediately preceding 5 calendar years. Additionally, in the 
case of a swine processing plant or person that did not slaughter swine 
during the immediately preceding 5 calendar years, it shall be 
considered a packer if the Secretary determines the processing plant or 
person should be considered a packer

[[Page 44699]]

under this subpart after considering its capacity.
    Packer-owned swine. The term `packer-owned swine' means swine that 
a packer (including a subsidiary or affiliate of the packer) owns for 
at least 14 days immediately before slaughter.
    Packer-sold swine. The term `packer-sold swine' means the swine 
that are owned by a packer (including a subsidiary or affiliate of the 
packer) for more than 14 days immediately before sale for slaughter; 
and sold for slaughter to another packer.
    Pork. The term `pork' means the meat of a porcine animal.
    Pork product. The term `pork product' means a product or byproduct 
produced or processed in whole or in part from pork.
    Purchase data. The term `purchase data' means all of the applicable 
data, including base price and weight (if purchased live), for all 
swine purchased during the applicable reporting period, regardless of 
the expected delivery date of the swine, reported by:
    (1) Hog class;
    (2) Type of purchase; and
    (3) Packer-owned swine.
    Slaughter data. The term `slaughter data' means all of the 
applicable data for all swine slaughtered by a packer during the 
applicable reporting period, regardless of whether the price of the 
swine was negotiated or otherwise determined, reported by:
    (1) Hog class;
    (2) Type of purchase; and
    (3) Packer-owned swine.
    Sow. The term `sow' means an adult female swine that has produced 1 
or more litters.
    Stag. The term `stag' means a male swine that was neutered after 
reaching sexual maturity.
    Swine. The term `swine' means a porcine animal raised to be a 
feeder pig, raised for seedstock, or raised for slaughter.
    Swine committed. The term `swine committed' means swine scheduled 
and delivered to a packer within the 14-day period beginning on the 
date of an agreement to sell the swine.
    Swine or pork market formula purchase. The term `swine or pork 
market formula purchase' means a purchase of swine by a packer in which 
the pricing mechanism is a formula price based on a market for swine, 
pork, or a pork product, other than a future or option for swine, pork, 
or a pork product.
    Type of purchase. The term `type of purchase,' with respect to 
swine, means:
    (1) A negotiated purchase;
    (2) Other market formula purchase;
    (3) A swine or pork market formula purchase; and
    (4) Other purchase arrangement.


Sec.  59.201  General reporting provisions.

    (a) Packer-Owned Swine. Information required under this section for 
packer-owned swine shall include quantity and carcass characteristics, 
but not price.
    (b) Type of Purchase. If information regarding the type of purchase 
is required under this section, the information shall be reported 
according to the numbers and percentages of each type of purchase 
comprising:
    (1) Packer-sold swine; and
    (2) All other swine.


Sec.  59.202  Mandatory daily reporting for barrows and gilts.

    (a) Prior Day Report. The corporate officers or officially 
designated representatives of each packer that processes barrows and 
gilts shall report to the Secretary for each business day of the packer 
not later than 7 a.m. central time on each reporting day information 
regarding all barrows and gilts purchased or priced, during the prior 
business day of the packer, and not later than 9 a.m. central time on 
each reporting day information regarding all barrows and gilts 
slaughtered, excluding inferior swine, as specified in Sec.  59.10(b):
    (1) All purchase data, reported by lot, including:
    (i) The total number of barrows and gilts purchased;
    (ii) The total number of barrows and gilts scheduled for delivery 
to a packer for slaughter;
    (iii) The base price and weight for all barrows and gilts purchased 
on a live weight basis; and
    (iv) The base price and premiums and discounts paid for carcass 
characteristics for all barrows and gilts purchased on a carcass basis 
for which a price has been established. For barrows and gilts that were 
not priced, this information shall be reported on the next prior day 
report after the price is established.
    (2) The following slaughter data for the total number of barrows 
and gilts slaughtered:
    (i) The average net price;
    (ii) The average carcass weight;
    (iii) The average sort loss;
    (iv) The average backfat;
    (v) The average loin depth;
    (vi) The average lean percentage; and
    (vii) Total quantity slaughtered.
    (3) 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.
    (4) The Secretary shall publish the information obtained under this 
paragraph (a) in a prior day report not later than 8 a.m. central time 
for all barrows and gilts purchased and 10 a.m. central time for all 
barrows and gilts slaughtered on the reporting day on which the 
information is received from the packer. In addition, the Secretary 
shall publish a net price distribution for all barrows and gilts 
slaughtered on the previous day not later than 3 p.m. central time.
    (b) Morning Report. The corporate officers or officially designated 
representatives of each packer processing plant that processes barrows 
and gilts shall report to the Secretary not later than 10 a.m. central 
time each reporting day as described in Sec.  59.10(b):
    (1) 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;
    (2) 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;
    (3) All purchase data for base market hogs purchased up to that 
time of the reporting day through negotiated purchases; and
    (4) All purchase data for 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. The packer shall report 
information on such purchases on the first reporting day or scheduled 
reporting time on a reporting day after the price has been determined.
    (5) The Secretary shall publish the information obtained under this 
paragraph (b) in the morning report as soon as practicable, but not 
later than 11 a.m. central time, on each reporting day.
    (c) Afternoon Report. The corporate officers or officially 
designated representatives of each packer processing plant that 
processes barrows and gilts shall report to the Secretary not later 
than 2 p.m. central time each reporting day as described in Sec.  
59.10(b):
    (1) 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;
    (2) 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;
    (3) The base price paid for all base market hogs purchased up to 
that time

[[Page 44700]]

of the reporting day through negotiated purchases; and
    (4) 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. The packer shall report 
information on such purchases on the first reporting day or scheduled 
reporting time on a reporting day after the price has been determined.
    (5) The Secretary shall publish the information obtained under this 
paragraph (c) in the afternoon report as soon as practicable, but not 
later than 3 p.m. central time, on each reporting day.


Sec.  59.203  Mandatory daily reporting for sows and boars.

    (a) 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 not later 
than 7 a.m. central time on each reporting day information regarding 
all sows and boars purchased or priced, excluding inferior swine, 
during the prior business day of the packer. All purchase data, 
reported by lot, including:
    (1) The total number of sows and boars purchased divided into at 
least three weight groups as specified by the Secretary;
    (2) The average price paid by each purchase type for all sows in 
each weight class specified by the Secretary; and
    (3) The average price paid by each purchase type for all boars in 
each weight class specified by the Secretary.
    (4) The packer is required to report only the volume of sows and 
boars that qualify as packer owned swine and shall omit packer owned 
sows and boars from all average price calculations.
    (5) The Secretary shall publish the information obtained under this 
paragraph (a) as soon as practicable, but not later than 8 a.m. central 
time, on the reporting day on which the information is received from 
the packer.
    (b) [Reserved]


Sec.  59.204  Mandatory weekly reporting for swine.

    (a) Weekly Noncarcass Merit Premium Report. Not later than 4 p.m. 
central time in accordance with Sec.  59.10(b) on the first reporting 
day of each week, the corporate officers or officially designated 
representatives of each packer processing plant shall report to the 
Secretary a noncarcass merit premium report that lists:
    (1) Each category of standard noncarcass merit premiums used by the 
packer in the prior slaughter week; and
    (2) The dollar value (in dollars per hundred pounds of carcass 
weight) paid to producers by the packer, by category.
    (b) Premium List. A packer shall maintain and make available to a 
producer, on request, a current listing of the dollar values (per 
hundred pounds of carcass weight) of each noncarcass merit premium used 
by the packer during the current or the prior slaughter week.
    (c) Publication. The Secretary shall publish the information 
obtained under this subsection as soon as practicable, but not later 
than 5 p.m. central time, on the first reporting day of each week.

Subpart D--Lamb Reporting


Sec.  59.300  Definitions.

    The following definitions apply to this subpart.
    Boxed Lamb. The term `boxed lamb' means those carlot-based portions 
of a lamb carcass including fresh primals, subprimals, cuts fabricated 
from subprimals (excluding portion-control cuts such as chops and 
steaks similar to those portion cut items described in the 
Institutional Meat Purchase Specifications (IMPS) for Fresh Lamb and 
Mutton Series 200, and thin meats (e.g. inside and outside skirts, 
pectoral meat, cap and wedge meat, and blade meat) not older than 14 
days from date of manufacture; fresh ground lamb, lamb trimmings, and 
boneless processing lamb not older than 7 days from date of 
manufacture; frozen primals, subprimals, cuts fabricated from 
subprimals, and thin meats not older than 180 days from date of 
manufacture; and frozen ground lamb, lamb trimmings, and boneless 
processing lamb not older than 90 days from date of manufacture.
    Branded. The term `branded' means boxed lamb cuts produced and 
marketed under a corporate trademark (for example, products that are 
marketed on their quality, yield, or breed characteristics), or boxed 
lamb cuts produced and marketed under one of USDA's Meat Grading and 
Certification Branch, Certified programs.
    Carcass characteristics. The term `carcass characteristics' means 
the range and average carcass weight in pounds, the quality grade and 
yield grade (if applicable), and the lamb average dressing percentage.
    Carlot-based. The term `carlot-based' means any transaction between 
a buyer and a seller destined for three or less delivery stops 
consisting of any combination of carcass weights. When used in 
reference to boxed lamb cuts the term `carlot-based' means any 
transaction between a buyer and seller consisting of 1,000 pounds or 
more of one or more individual boxed lamb items.
    Established. The term `established', when used in connection with 
prices, means that point in time when the buyer and seller agree upon a 
net price.
    Formula marketing arrangement. (1) When used in reference to live 
lambs, the term `formula marketing arrangement' means the advance 
commitment of lambs 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.
    (2) When used in reference to boxed lamb, the term `formula 
marketing arrangement' means the advance commitment of boxed lamb 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.
    Forward contract. (1) When used in reference to live lambs, the 
term `forward contact' means an agreement for the purchase of lambs, 
executed in advance of slaughter, under which the base price is 
established by reference to publicly available prices.
    (2) When used in reference to boxed lamb, the term `forward 
contract' means an agreement for the sale of boxed lamb, executed in 
advance of manufacture, under which the base price is established by 
reference to publicly available quoted prices.
    Importer. The term `importer' means any person engaged in the 
business of importing lamb meat products who takes ownership of such 
lamb meat products with the intent to sell or ship in U.S. commerce. 
For any calendar year, the term includes only those that imported an 
average of 2,500 metric tons of lamb meat products per year during the 
immediately preceding 5 calendar years. Additionally, the term includes 
those that did not import an average of 2,500 metric tons of lamb meat 
products during the immediately preceding 5 calendar years, if the 
Secretary determines that the person should be considered an importer 
based on their volume of lamb imports.
    Packer. The term `packer' means any person engaged in the business 
of buying lambs in commerce for purposes of slaughter, of manufacturing 
or preparing meat products from lambs for sale or shipment in commerce, 
or of marketing meats or meat products from lambs in an unmanufactured 
form acting as a wholesale broker, dealer, or

[[Page 44701]]

distributor in commerce. For any calendar year, the term includes only 
a federally inspected lamb processing plant which slaughtered or 
processed the equivalent of an average of 75,000 head of lambs per year 
during the immediately preceding 5 calendar years. Additionally, the 
term includes a lamb processing plant that did not slaughter or process 
an average of 75,000 lambs during the immediately preceding 5 calendar 
years if the Secretary determines that the processing plant should be 
considered a packer after considering its capacity.
    Packer-owned lambs. The term `packer-owned lambs' means lambs that 
a packer owns for at least 14 days immediately before slaughter.
    Type of purchase. The term `type of purchase' means a negotiated 
purchase, a formula market arrangement, and a forward contract.
    Type of sale. The term `type of sale' with respect to boxed lamb, 
means a negotiated sale, a formula market arrangement, and a forward 
contract.
    Yield grade lamb carcass reporting. The term `yield grade lamb 
carcass reporting' means if the lot includes 80 percent or more of one 
yield grade, the lot will be considered a single yield grade lot. If 
the lot contains less than 80 percent of one yield grade, the lot will 
be considered a mixed grade lot and all yield grades comprising 10 
percent or more will be used to describe the lot.


Sec.  59.301  Mandatory daily reporting for lambs.

    (a) In General. The corporate officers or officially designated 
representatives of each packer processing plant shall report to the 
Secretary at least once each reporting day not later than 2 p.m. 
central time the following information for lamb, categorized to clearly 
delineate domestic from imported market purchases as described in Sec.  
59.10(b):
    (1) The prices for lambs (per hundredweight) established on that 
day as F.O.B. feedlot or delivered at the plant, categorized by:
    (i) The type of purchase;
    (ii) The class of lamb;
    (iii) The quantity of lambs purchased on a live weight basis;
    (iv) The quantity of lambs purchased on a dressed weight basis;
    (v) A range and average of estimated live weights of lambs 
purchased;
    (vi) An estimate of the percentage of the lambs purchased that were 
of a quality grade of Choice or better;
    (vii) Any premiums or discounts associated with weight, quality 
grade, yield grade, or any type of purchase;
    (viii) Lamb State of origin;
    (ix) The pelt type; and
    (x) The estimated lamb dressing percentage.
    (2) The Secretary shall make the information available to the 
public not less than once each reporting day.
    (b) [Reserved]


Sec.  59.302   Mandatory weekly reporting for lambs.

    (a) In General. The corporate officers or officially designated 
representatives of each packer processing plant shall report to the 
Secretary the following information applicable to the prior slaughter 
week contained in paragraphs (a)(1) through (a)(5) and (a)(7) of this 
section not later than 9 a.m. central time on the second reporting day 
of the current slaughter week, and the following information applicable 
to the prior slaughter week contained in paragraph (a)(6) of this 
section not later than 9 a.m. central time on the first reporting day 
of the current slaughter week categorized to clearly delineate domestic 
from imported market purchases:
    (1) The quantity of lambs purchased through a negotiated purchase 
that were slaughtered;
    (2) The quantity of lambs purchased through forward contracts that 
were slaughtered;
    (3) The quantity of lambs delivered under a formula marketing 
arrangement that were slaughtered;
    (4) The quantity and carcass characteristics of packer-owned lambs 
that were slaughtered;
    (5) The quantity, basis level, and delivery month for all lambs 
purchased through forward contracts;
    (6) The following information applicable to the current slaughter 
week. The range and average of intended premiums and discounts 
(including those associated with weight, quality grade, yield grade, or 
type of lamb) that are expected to be in effect for the current 
slaughter week; and
    (7) The following information for lambs purchased through a formula 
marketing arrangement and slaughtered during the prior slaughter week, 
categorized to clearly delineate domestic from imported market 
purchases:
    (i) The quantity (quoted in both numbers of head and pounds) of 
lambs;
    (ii) The weighted average price paid for a carcass, including 
applicable premiums and discounts;
    (iii) The range of premiums and discounts paid;
    (iv) The weighted average of premiums and discounts paid; and
    (v) The range of prices paid.
    (b) Publication. The Secretary shall make available to the public 
the information obtained under paragraphs (a)(1) through (a)(5) and 
(a)(7) of this section on the second reporting day of the current 
slaughter week and information obtained in paragraph (a)(6) of this 
section on the first reporting day of the current slaughter week.


Sec.  59.303  Mandatory reporting of lamb carcasses and boxed lamb.

    (a) Daily Reporting of Lamb Carcass Transactions. The corporate 
officers or officially designated representatives of each packer shall 
report to the Secretary each reporting day the following information on 
total carlot-based lamb carcass transactions not later than 3 p.m. 
central time in accordance with Sec.  59.10(b):
    (1) The price for each lot of each lamb carcass transaction, quoted 
in dollars per hundredweight on an F.O.B. plant basis;
    (2) The quantity for each lot of each transaction, quoted by number 
of carcasses sold and purchased; and
    (3) The following information regarding the characteristics of each 
transaction:
    (i) The type of transaction;
    (ii) The USDA quality grade of lamb;
    (iii) The USDA yield grade;
    (iv) The estimated weight range of the carcasses; and
    (v) The product delivery period.
    (b) Daily Reporting of Domestic Boxed Lamb Sales. The corporate 
officers or officially designated representatives of each packer shall 
report to the Secretary each reporting day the following information on 
total domestic boxed lamb cut sales not later than 2:30 p.m. central 
time as described in Sec.  59.10(b):
    (1) The price for each lot of each boxed lamb cut sale, quoted in 
dollars per hundredweight on a F.O.B. plant basis;
    (2) The quantity for each lot of each sale, quoted by product 
weight sold; and
    (3) The following information regarding the characteristics of each 
transaction:
    (i) The type of sale;
    (ii) The branded product characteristics, if applicable;
    (iii) The USDA quality grade of lamb;
    (iv) The cut of lamb, referencing the most recent version of the 
Institutional Meat Purchase Specifications (IMPS), when applicable;
    (v) USDA yield grade, if applicable;
    (vi) The product state of refrigeration;
    (vii) The weight range of the cut; and
    (viii) The product delivery period.
    (c) Weekly Reporting of Imported Boxed Lamb Sales. The corporate 
officers or officially designated representatives of each lamb importer 
shall report to the Secretary on the first

[[Page 44702]]

reporting day of each week the following information applicable to the 
prior week for imported boxed lamb cut sales not later than 10 a.m. 
central time:
    (1) The price for each lot of a boxed lamb cut sale, quoted in 
dollars per hundredweight on a F.O.B. plant basis;
    (2) The quantity for each lot of a transaction, quoted by product 
weight sold; and
    (3) The following information regarding the characteristics of each 
transaction:
    (i) The type of sale;
    (ii) The branded product characteristics, if applicable;
    (iii) The cut of lamb, referencing the most recent version of the 
Institutional Meat Purchase Specifications (IMPS), when applicable;
    (iv) The product state of refrigeration;
    (v) The weight range of the cut; and
    (vi) The product delivery period.
    (d) Publication. The Secretary shall make available to the public 
the information required to be reported in paragraphs (a) and (b) of 
this section not less frequently than once each reporting day and the 
information required to be reported in paragraph (c) of this section on 
the first reporting day of the current slaughter week.

Subpart E--OMB Control Number


Sec.  59.400  OMB control number assigned pursuant to the Paperwork 
Reduction Act.

    The information collection and recordkeeping requirements of this 
part have been previously approved by the Office of Management and 
Budget (OMB) under the provisions of 44 U.S.C. Chapter 35 and have been 
assigned OMB Control Number 0581-0186.

    Dated: July 27, 2007.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.

    Note: The following Appendices will not appear in the Code of 
Federal Regulations.

Appendix A--Cattle Mandatory Reporting Forms

    The following 7 forms referenced in Subpart B Part 59 visually 
represent the mandatory cattle and boxed beef market information 
that is required to be reported to the Agricultural Marketing 
Service.

Cattle

    LS-113 Live Cattle Daily Report (Current Established Prices).
    LS-114 Live Cattle Daily Report (Committed and Delivered 
Cattle).
    LS-115 Live Cattle Weekly Report.
    LS-117 Cattle Premiums and Discounts Weekly Report.
    LS-131 Cow/Bull Plant Delivered Bids (Dressed Basis).
    LS-132 Live Cow/Bull Daily Purchase Report.
    LS-126 Boxed Beef Daily Report.

Appendix B--Swine Mandatory Reporting Forms

    The following 3 forms referenced in Subpart C of Part 59 
visually represent the mandatory swine market information that is 
required to be reported electronically to the Agricultural Marketing 
Service.

Swine

    LS-118 Swine Prior Day Report.
    LS-119 Swine Daily Report.
    LS-120 Swine Noncarcass Merit Premium Weekly Report.

Appendix C--Lamb Mandatory Reporting Forms

    The following 6 forms referenced in Subpart D of Part 59 
visually represent the mandatory lamb market information that is 
required to be reported electronically to the Agricultural Marketing 
Service.

Lamb

    LS-121 Live Lamb Daily Report (Current Established Prices).
    LS-123 Live Lamb Weekly Report.
    LS-124 Live Lamb Weekly Report (Formula Purchases).
    LS-125 Lamb Premiums and Discounts Report.
    LS-128 Boxed Lamb Report.
    LS-129 Lamb Carcass Report.

Appendix D--Mandatory Reporting Forms Guideline

    The following mandatory reporting form guidelines will be used 
by persons required to report electronically transmitted mandatory 
market information to the Agricultural Marketing Service.
    The first 10 fields of each mandatory reporting form provide the 
following information: identification number (plant establishment 
number or importer ID number), company name (name of parent 
company), plant street address (street address for plant), plant 
city (city where plant is located), plant state (state where plant 
is located), plant zip code (zip code where plant is located), 
contact name (the name of the corporate representative contact at 
the plant), phone number (full phone number for the plant including 
area code), reporting date (date the information was submitted (mm/
dd/yyyy), and reporting time, if applicable (the submission time 
corresponding to the 10 a.m. and the 2 p.m. reporting requirements). 
The reporting time requirement is only applicable to forms LS-113 
Live Cattle Daily Report (current established prices), LS-114 Live 
Cattle Daily Report (Committed and Delivered Cattle), LS-126 Boxed 
Beef Daily Report, LS-131 Cow/Bull Plant Delivered Bids (Dressed 
Basis) (10 a.m. submission only), LS-132 Live Cow/Bull Daily 
Purchase Report, and LS-119 Swine Daily Report.
    (a) Cattle Mandatory Reporting Forms. (See Appendix E for 
samples).
    (1) LS-113-- Live Cattle Daily Report (current established 
prices).
    (i) Lot identification (11). Enter code used to identify the lot 
to the packer.
    (ii) Source (12). Enter `1', domestic, if cattle were purchased 
inside of the 50 States, or `2', imported, if cattle were purchased 
outside of the 50 States.
    (iii) Purchase type code (13). Enter the code that describes the 
type of purchase.
    (iv) Class code (14). Enter the code that best describes the 
type of cattle.
    (v) Selling basis (15a-b). For 15a, enter `1' if cattle were 
purchased on a live basis or `2' if cattle were purchased on a 
dressed basis. For 15b, enter `1' if cattle are shipped on an FOB 
feedlot basis or `2' if cattle are delivered at the plant.
    (vi) Head count (16). Enter the quantity of cattle in the lot in 
number of head.
    (vii) Estimated average weight (17). Enter the estimated average 
weight of the lot in pounds.
    (viii) Average price (18). Enter the price established on that 
day for the lot in dollars per hundredweight.
    (I) For negotiated purchases, enter the price that was agreed 
upon.
    (II) For formula purchases, enter the base price when 
established (with estimated grading information if not yet known). 
Then enter the final net price with all actual grading information 
when it is known.
    (III) For forward contract purchases, enter the base price when 
established (with estimated grading information if not yet known). 
Then enter the final net price paid on the contract with actual 
grading information.
    (IV) For negotiated grid purchases, enter the base price when 
established (with estimated grading information if not yet known). 
Then enter the final net price with all actual grading information.
    (ix) Percent Choice or better (19). Enter the percentage of the 
number of cattle in the lot of a quality grade of Choice or better.
    (x) Classification code (20). Enter the code which best 
describes the quality of the majority of the cattle in the lot.
    (xi) Dressing percentage (21). Enter an average dressing 
percentage for the cattle in the lot. For negotiated purchases, 
enter an estimate. For all other purchase types, enter the actual 
average dressing percentage.
    (xii) Origin (22). Enter the 2-letter postal abbreviation for 
the State in which the cattle were fed to slaughter weight. For 
imported cattle enter ``CN'' for Canada.
    (xiii) Premiums and discounts paid (23a-h). Enter the total net 
value of the adjustment for the lot (in dollars per hundredweight) 
for any premiums associated with weight, quality, yield or other 
expressed as a positive value and for any discounts associated with 
weight, quality, yield or other expressed as a negative value in 
parenthesis.
    (xiv) Terms of Trade (24a-d).
    (I) Packer financing (24a). Enter `1' (yes) or `2' (no) in 
response to: ``Did packer provide financing agreement or arrangement 
with regards to the cattle?''
    (II) Delivery location (24b). Enter `1' if delivery terms 
specify producer location, `2' if they specify packer's plant 
location.
    (III) Delivery Date (24c). Enter `1' if producer sets date of 
delivery for slaughter unilaterally; otherwise enter `2' for packer.
    (IV) Delivered (24d). Enter `1' if negotiated purchased cattle 
are to be delivered for slaughter 14 or less days from the 
committed, purchased, or priced date. Enter `2' if they are

[[Page 44703]]

to be delivered for slaughter between 15 and 30 days from the date 
the cattle were committed, purchased, or priced.
    (2) LS-114--Live Cattle Daily Report (committed and delivered 
cattle).
    (i) Lot identification (11). Enter code used to identify the lot 
to the packer.
    (ii) Purchasing basis (12). Enter `1' if cattle are delivered or 
`2' if cattle are committed.
    (iii) Source (13). Enter `1', domestic, if cattle are purchased 
within the 50 States or `2', imported, if cattle are purchased 
outside of the 50 States.
    (iv) Purchase type code (14). Enter the code that best describes 
the type of purchase.
    (v) Class Code (15). Enter the code that best describes the type 
of cattle in the lot.
    (vi) Selling basis (16). Enter `1' if cattle were purchased on a 
live basis or a `2' if cattle were purchased on a dressed basis.
    (vii) Head count (17). Enter the quantity of cattle in the lot 
in number of head.
    (viii) Origin (18). Enter the 2-letter postal abbreviation for 
the State in which the cattle were fed to slaughter weight. For 
imported cattle, enter ``CN'' for Canada.
    (ix) Terms of Trade (19a-d). Enter when applicable, otherwise 
leave blank.
    (I) Packer financing (19a). Enter `1' (yes) or `2' (no) in 
response to: ``Did packer provide financing agreement or arrangement 
with regards to the cattle?''
    (II) Delivery location (19b). Enter `1' if delivery terms 
specify producer location, `2' if they specify packer's plant 
location.
    (III) Delivery Date (19c). Enter `1' if producer sets date of 
delivery for slaughter unilaterally; otherwise enter `2' for packer.
    (IV) Delivered (19d). Enter `1' if negotiated purchased cattle 
are to be delivered for slaughter 7 or less days from the committed, 
purchased, or priced date. Enter `2' if they are to be delivered for 
slaughter between 8 and 14 days from the date the cattle were 
committed, purchased, or priced.
    (3) LS-115--Live Cattle Weekly Report
    (i) Packer-Owned lot identification (11). Enter code used to 
identify the lot of packer-owned cattle to the packer.
    (ii) Packer-Owned source (12). Enter `1', domestic, if packer-
owned cattle are from within the 50 States or `2', imported, if 
cattle are from outside of the 50 States.
    (iii) Packer-Owned head count (13). Enter the quantity of 
packer-owned cattle in the lot in number of head.
    (iv) Packer-Owned actual carcass weight range (14). Enter the 
actual average carcass weight of the lot in pounds.
    (v) Packer-Owned average dressing percentage (15). Enter the 
average dressing percentage of the lot of packer-owned cattle.
    (vi) Percentage yield grade 3 or better (16). Enter the 
percentage of packer-owned cattle in the lot of a yield grade of 3 
or better.
    (vii) Quality grade percentage (17). Enter the percentage of 
packer-owned cattle in the lot of a quality grade of Choice or 
better.
    (viii) Prior week slaughtered cattle head counts ( ) (18-25). 
Enter the total number of head of cattle slaughtered for the prior 
week that were purchased through forward contracts, the total number 
of head for cattle purchased through formula arrangements, the total 
number of head of cattle purchased through negotiated cash, and the 
total number of head purchased through negotiated grids, categorized 
by domestic or imported sources. Enter this information once per 
each week's submission.
    (ix) Forward contract purchases lot identification ( ) (26). 
Enter code used to identify forward contracted cattle to the packer.
    (x) Forward contract purchases head count (27). Enter quantity 
of forward contracted cattle in the lot in number of head.
    (xi) Forward contract purchases basis level (28). Enter the 
agreed upon adjustment to a future price to establish the final 
price of the forward contracted cattle in dollars per one hundred 
pounds.
    (xii) Forward contract purchases delivery month (29). Enter the 
delivery month of the cattle purchased through forward contracts as 
a 3-letter abbreviation.
    (xiii) Forward contract purchases delivery year (30).
    (xiv) Forward contract purchases basis level month (31). Enter 
the basis month which the contract was based off of. Use 3-letter 
abbreviation.
    (4) LS-117--Cattle Premiums and Discounts Weekly Report.
    (i) Enter the premiums and discounts (in dollars per 
hundredweight) expected to be in effect for the current slaughter 
week for each applicable category of premium and discount (11-34). 
For `other' categories (35-39), provide a brief description of the 
basis for the premium/ discount along with the value of the premium/
discount. Enter negative values in parenthesis.
    (5) LS-131--Cow/Bull Plant Delivered Bids.
    Enter the plant delivered bids the plant expects to have in 
effect for that day in dollars per cwt. for each category.
    (6) LS-132--Live Cow/Bull Daily Purchase report.
    (i) Lot identification (11). Enter code used to identify the lot 
to the packer.
    (ii) Source (12). Enter `1', domestic, if cattle were purchased 
inside of the 50 States, or `2', imported, if cattle were purchased 
outside of the 50 States.
    (iii) Purchase type code (13). Enter the code that describes the 
type of purchase.
    (iv) Class code (14). Enter the code that best describes the 
type of cattle.
    (v) Selling basis (15a-b). For 15a, enter `1' if cattle were 
purchased on a live basis or `2' if cattle were purchased on a 
dressed basis. For 15b, enter `1' if cattle are shipped on an FOB 
feedlot basis or `2' if cattle are delivered at the plant.
    (vi) Head count (16). Enter the quantity of cattle in the lot in 
number of head.
    (vii) Estimated average weight (17). Enter the estimated average 
weight of the lot in pounds.
    (viii) Average price (18). Enter the price established on that 
day for the lot in dollars per hundredweight.
    (I) For negotiated purchases, enter the final net price that was 
paid.
    (II) For formula purchases, enter the base price when 
established (with estimated grading info if not yet known). Then 
enter the final net price with all actual grading information when 
it is known.
    (III) For forward contract purchases, enter the base price when 
established (estimated grading info if not yet known). Then enter 
the final net price paid on the contract with actual grading 
information.
    (V) For negotiated grid purchases, enter the base price when 
established (estimated grading info if not yet known). Then enter 
the final net price with all actual grading information.
    (ix) Classification code (19). Enter the code which best 
describes the quality of the majority of the cattle in the lot.
    (x) Origin (20). Enter the 2-letter postal abbreviation for the 
State in which the cattle were fed to slaughter weight. For imported 
cattle enter ``CN'' for Canada.
    (xi) Premiums and discounts paid (21a-f). Enter the total net 
value of the adjustment for the lot (in dollars per hundredweight) 
for any premiums associated with weight, quality, yield or other 
expressed as a positive value and for any discounts associated with 
weight, quality, yield or other expressed as a negative value in 
parenthesis.
    (7) LS-126--Boxed Beef Daily Report. For lots comprising 
multiple items, provide information for each item in a separate 
record identified with the same lot identification or purchase order 
number.
    (i) Lot identification or purchase order number (11). Enter code 
used to identify the lot to the packer.
    (ii) Destination (12). Enter `1', domestic, for product shipped 
within the 50 States; or `2', exported, for product shipped 
overseas; or `3', exported, for product shipped NAFTA (Canada or 
Mexico).
    (iii) Purchase type code (13). Enter the code corresponding to 
the sale type of the lot of boxed beef.
    (iv) Delivery period code (14). Enter the code corresponding to 
the delivery time period of the lot of boxed beef.
    (v) Refrigeration (15). Enter `1' if the product is sold in a 
fresh condition or `2' if the product is sold in a frozen condition.
    (vi) Class code (16). Enter the code that best describes the 
class of cattle from which the boxed beef was produced.
    (vii) Classification code (17). Enter the code corresponding to 
the grade of the boxed beef.
    (viii) Beef cut (18a-b). Enter the numerical code corresponding 
to the Institutional Meat Purchase Specifications (IMPS) (3 to 4 
characters) (18a) or the internal corporate descriptor used to 
identify the product (18b). Descriptors must be entered consistently 
for all submissions.
    (ix) Trim spec code (19). Enter the code corresponding to the 
trim level of the boxed beef.
    (x) Weight (20). Enter the code corresponding to the relative 
weight of the product. Where weight is a factor, enter `1' to 
signify the lighter weight range, `2' to signify the middle weight 
range, or `3' to signify the heavier weight range. Where weight is 
not a factor, enter `4' to signify all weights or mixed.
    (xi) Total product weight (21). Enter the total weight of the 
boxed beef cut in the lot in pounds.
    (xii) Price (22). Enter the price received for each boxed beef 
cut in the lot in dollars per one hundred pounds, FOB Plant basis.
    (xiii) USDA Certified schedule code (23). Enter the code for the 
USDA Certified

[[Page 44704]]

Program schedule, if applicable (e.g.; G1, G2, etc.); otherwise 
leave blank.
    (xiv) Branded product code (24a-b). Enter the quality grade code 
(24a) and the yield grade code (24b) that best describes the brand. 
Leave blank if not applicable.
    (b) Swine Mandatory Reporting Forms (see Appendix E for 
samples). 
    (1) LS-118--Swine Prior Day Report.
    (i) Slaughtered swine lot identification (11). Enter code used 
to identify the lot of slaughtered swine to the packer.
    (ii) Slaughtered swine class code (12). Enter the code that best 
describes the type of slaughtered swine in the lot.
    (iii) Slaughtered swine purchase type code (13). Enter the code 
that describes the type of purchase for the slaughtered swine in the 
lot.
    (iv) Slaughtered swine head count (14). Enter the quantity of 
slaughtered swine in the lot in number of head.
    (v) Slaughtered swine base price (15). Enter the base price 
established on that day for the lot of slaughtered swine in dollars 
per one hundred pounds.
    (vi) Slaughtered swine average net price (16). Enter the average 
net price established on that day for the lot of slaughtered swine 
in dollars per one hundred pounds.
    (vii) Slaughtered swine average live weight (17). Enter the 
average live weight of the lot of swine in pounds if slaughtered 
swine were purchased on a live basis, otherwise leave blank.
    (viii) Slaughtered swine average carcass weight (18). Enter the 
average carcass weight of the lot of slaughtered swine in pounds.
    (ix) Slaughtered swine average sort loss (19). Enter the average 
sort loss for the lot of slaughtered swine in dollars per one 
hundred pounds.
    (x) Slaughtered swine average backfat (20). Enter the average 
backfat measurement for the lot of slaughtered swine in inches 
rounded to the nearest tenth of an inch.
    (xi) Slaughtered swine average loin depth (21). Enter the 
average loin depth measurement for the lot of slaughtered swine in 
inches rounded to the nearest tenth of an inch.
    (xii) Slaughtered swine average lean percentage (22). Enter the 
average lean percentage for the lot of slaughtered swine.
    (xiii) Purchased swine lot identification (23). Enter code used 
to identify the lot of purchased swine to the packer.
    (xiv) Purchased swine ownership code (24). Enter code which best 
describes the source of the purchased swine whether packer-owned, 
purchased from another packer, or all other swine.
    (xv) Purchased swine class code (25). Enter the code that best 
describes the type of purchased swine.
    (xvi) Purchased swine purchase type code (26). Enter the code 
that describes the type of purchase for the purchased swine.
    (xvii) Purchased swine head count (27). Enter the quantity of 
purchased swine in the lot.
    (xviii) Purchased swine average live weight (28). Enter the 
average live weight of the lot of swine in pounds if swine were 
purchased on a live basis, otherwise leave blank.
    (xix) Purchased swine base price (29). Enter the base price 
established on that day for the lot of purchased swine in dollars 
per one hundred pounds.
    (xx) Purchased swine origin (30). Enter the 2-letter postal 
abbreviation for the State in which the swine were fed to slaughter 
weight.
    (xxi) Scheduled swine (31-44). Enter the number of head of 
purchase commitment swine that were scheduled for delivery for each 
of the next 14 days. Enter the total quantity currently scheduled 
for each day at the time of reporting for each submission.
    (2) LS-119--Swine Daily Report.
    (i) Purchased swine lot identification (11). Enter code used to 
identify the lot of purchased swine to the packer.
    (ii) Purchased swine purchase type code (12). Enter the code 
that describes the type of purchase for the swine in the lot.
    (iii) Purchased swine average live weight (13). Enter the 
average live weight of the lot of swine in pounds if swine were 
purchased on a live basis, otherwise leave blank.
    (iv) Purchased swine class code (14). Enter the code that best 
describes the type of swine in the lot.
    (v) Purchased swine head count (15). Enter the quantity of swine 
in the lot in number of head.
    (vi) Purchased swine base price (16). Enter the base price 
established on that day for the lot of swine in dollars per one 
hundred pounds.
    (vii) Purchased swine origin (17). Enter the 2-letter postal 
abbreviation for the State in which the swine were fed to slaughter 
weight.
    (viii) Packer-sold swine purchases (18-25). Enter the best 
estimate of the total number of packer-sold swine expected to be 
purchased throughout the reporting day for each purchase type and 
the total number of packer-sold swine purchased up to that time of 
the reporting day for each purchase type.
    (ix) All other swine purchases (26-33). Enter the best estimate 
of the total number of all other swine expected to be purchased 
throughout the reporting day for each purchase type and the total 
number of all other swine purchased up to that time of the reporting 
day for each purchase type.
    (3) LS-120--Swine Noncarcass Merit Premium Weekly Report.
    Enter the standard noncarcass merit premiums used during the 
prior slaughter week (11-15) in dollars per hundredweight. If a 
range of standard noncarcass merit premiums was used, enter the low 
side of the range (a) and the high side of the range (b). If only 
one value was used, enter the same number in (a) and (b). If no 
value for the specified merit was used, leave blank. For `other' 
categories (16-20), provide a brief description of the basis for the 
premium along with the value of the premium.
    (c) Lamb Mandatory Reporting Forms. (See Appendix E for 
samples).
    (1) LS-121--Live Lamb Daily Report (current established prices).
    (i) Lot identification (11). Enter code used to identify the lot 
to the packer.
    (ii) Source (12). Enter `1', domestic, if lambs were purchased 
inside of the 50 States, or `2', imported, if lambs were purchased 
outside of the 50 States.
    (iii) Purchase type code (13). Enter the code that describes the 
type of purchase.
    (iv) Class code (14). Enter the code that best describes the 
type of lambs.
    (v) Selling basis (15a-b). For 15a, enter `1' if lambs were 
purchased on a live basis or `2' if lambs were purchased on a 
dressed basis. For 15b, enter `1' if lambs are shipped on an FOB 
feedlot basis or `2' if lambs are delivered at the plant.
    (vi) Head count (16). Enter the quantity of lambs in the lot in 
number of head.
    (vii) Weight range (17a & 17b). Enter the lowest (17a) and 
highest (17b) weights for lambs in the lot in pounds.
    (viii) Estimated average weight (18). Enter the estimated 
average weight of the lot in pounds.
    (ix) Average price (19). Enter the price established on that day 
for the lot in dollars per hundredweight.
    (I) For negotiated purchases, enter the final (net) price paid.
    (II) For formula purchases, enter the net price.
    (III) For forward contract purchases, enter the final (net) 
price paid.
    (x) Percent Choice or better (20). Enter the percentage of the 
number of lambs in the lot of a quality grade of Choice or better.
    (xi) Classification code (21). Enter the code which best 
describes the quality of the majority of the lambs in the lot.
    (xii) Dressing percentage (22). Enter an average dressing 
percentage for the lambs in the lot. For negotiated purchases, enter 
an estimate. For all other purchase types, enter the actual average 
dressing percentage.
    (xiii) Origin (23). Enter the 2-letter postal abbreviation for 
the State in which the lambs were fed to slaughter weight. Enter 
`CN' if lambs originate from Canada.
    (xiv) Pelt Code (24). Enter the code that best describes the 
type of pelt for the majority of lambs in the lot.
    (xv)Premiums and discounts paid (25a-f). Enter the total net 
value of the adjustment for the lot (in dollars per hundredweight) 
for any premiums associated with weight, quality, or yield expressed 
as a positive value and for any discounts associated with weight, 
quality, or yield expressed as a negative value in parenthesis.
    (2) LS-123--Live Lamb Weekly Report.
    (i) Packer-Owned lot identification (11). Enter code used to 
identify the lot of packer-owned lambs to the packer.
    (ii) Packer-Owned source (12). Enter `1', domestic, if packer-
owned lambs are from within the 50 States or `2', imported, if lambs 
are from outside of the 50 States.
    (iii) Packer-Owned head count (13). Enter the quantity of 
packer-owned lambs in the lot in number of head.
    (iv) Packer-Owned actual carcass weight range (14a & 14b). Enter 
the lowest (14a) and highest (14b) actual carcass weights for lambs 
in the lot in pounds.
    (v) Packer-Owned actual average carcass weight (15). Enter the 
actual average carcass weight of the lot of packer-owned lambs in 
pounds.
    (vi) Packer-Owned average dressing percentage (16). Enter the 
average dressing percentage of the lot of packer-owned lambs.
    (vii) Percentage yield grade 3 or better (17). Enter the 
percentage of packer-owned lambs in the lot of a yield grade of 3 or 
better.

[[Page 44705]]

    (viii) Quality grade percentage (18-). Enter the percentage of 
packer-owned lambs in the lot of a quality grade of Choice or 
better.
    (ix) Prior week slaughtered lambs head counts ( ) (19-24). Enter 
the total number of head of lambs slaughtered for the prior week 
that were purchased through forward contracts, the total number of 
head for lambs purchased through formula arrangements, and the total 
number of head of lambs purchased through negotiated cash, 
categorized by domestic or imported sources. Enter this information 
once per each week's submission.
    (x) Forward contract purchases lot identification (25). Enter 
code used to identify forward contracted lambs to the packer.
    (xi) Forward contract purchases head count (26). Enter quantity 
of forward contracted lambs in the lot in number of head.
    (xii) Forward contract purchases basis level (27). Enter the 
agreed upon adjustment to a future price to establish the final 
price of the forward contracted lambs in dollars per one hundred 
pounds.
    (xiii) Forward contract purchases delivery month (28). Enter the 
delivery month of the lambs purchased through forward contracts as a 
3-letter abbreviation.
    (3) LS-124--Live Lamb Weekly Report (formula purchases).
    (i) Lot identification (11). Enter code used to identify the lot 
to the packer.
    (ii) Source (12). Enter `1', domestic, if lambs are purchased 
within the 50 States or `2', imported, if lambs are purchased 
outside of the 50 States.
    (iii) Head count (13). Enter the quantity of lambs in the lot in 
number of head.
    (iv) Total pounds (14). Enter the total quantity of lambs in the 
lot in pounds.
    (v) Weighted average carcass price (15). Enter the average 
weighted average carcass price for the lambs in the lot in dollars 
per hundredweight.
    (vi) Range of prices paid (16a-b). Enter the lowest (16a) and 
the highest (16b) prices paid for the lambs in the lot in dollars 
per hundredweight.
    (vii) Range of premiums and discounts paid (17a-b). Enter the 
lowest (17a) and the highest (17b) premium and discount paid for the 
lot of lambs in dollars per hundredweight. Enter negative values in 
parenthesis.
    (viii) Weighted average of premiums and discounts paid (18). 
Enter the weighted average of the premiums and discounts paid for 
the lot of lambs in dollars per hundredweight. Enter negative values 
in parenthesis.
    (4) LS-125--Lamb Premiums and Discounts Weekly Report.
    Enter the premiums and discounts (in dollars per hundredweight) 
expected to be in effect for the current slaughter week for each 
applicable category of premium and discount (11-32). For `other' 
categories (33-37), provide a brief description of the basis for the 
premium/discount along with the value of the premium/discount. Enter 
negative values in parenthesis.
    (5) LS-128--Boxed Lamb Daily Report. For lots comprising 
multiple items, provide information for each item in a separate 
record identified with the same lot identification or purchase order 
number.
    (i) Lot identification or purchase order number (11). Enter code 
used to identify the lot to the packer.
    (ii) Destination/Source (12). Enter `1', domestic, for product 
originating within the 50 States or `2', imported, for product 
originating from outside of the 50 States.
    (iii) Sale type code (13). Enter the code corresponding to the 
sale type of the lot of boxed lamb.
    (iv) Delivery period code (14). Enter the code corresponding to 
the delivery time period of the lot of boxed lamb.
    (v) Refrigeration (15). Enter `1' if the product is sold in a 
fresh condition or `2' if the product is sold in a frozen condition.
    (vi) Classification code (16). Enter the code corresponding to 
the grade of the boxed lamb, if applicable.
    (vii) Lamb cut (17a-b). Enter the numerical code corresponding 
to the Institutional Meat Purchase Specifications (IMPS) (3 to 4 
characters)(17a) or the internal corporate descriptor used to 
identify the product (17b). Descriptors must be entered consistently 
for all submissions.
    (viii) Weight (18). Enter the code corresponding to the relative 
weight of the product. Where weight is a factor, enter `1' to 
signify the lighter weight range, `2' to signify the middle weight 
range, or `3' to signify the heavier weight range. Where weight is 
not a factor, enter `4' to signify all weights or mixed.
    (ix) Total product weight (19). Enter the total weight of the 
boxed lamb cut in the lot in pounds.
    (x) Price (20). Enter the price received for each boxed lamb cut 
in the lot in dollars per one hundred pounds, FOB Plant basis.
    (xi) USDA Certified schedule code (21). Enter the code for the 
USDA Certified Program schedule, if applicable (e.g. CL, etc.); 
otherwise leave blank.
    (xii) Branded product code (22a-b). Enter the quality grade code 
(22a) and the yield grade code (22b) that best describes the brand. 
Leave blank if not applicable.
    (6) LS-129--Lamb Carcass Report. For lots comprised of distinct 
carcass weight range categories with different prices, provide 
information for each weight range in a separate record identified 
with the same lot identification or purchase order number.
    (i) Lot identification or purchase order number (11). Enter code 
used to identify the lot to the packer.
    (ii) Transaction type code (12). Enter the code corresponding to 
the transaction type of the lot of carcass lamb.
    (iii) FOB Plant Price (13). Enter the price received for the 
lamb carcasses in dollars per one hundred pounds, FOB Plant basis.
    (iv) Number of carcasses (14). Enter the total number of lamb 
carcasses in the lot.
    (v) Classification code (15) Enter the corresponding USDA 
quality grade code.
    (vi) Yield grade code (16). Enter the corresponding USDA yield 
grade code.
    (vii) Estimated carcass weight range (17a-b). Enter the lowest 
(17a) and highest (17b) weights (in pounds) that best describes the 
majority of the lamb carcasses in the lot.
    (viii) Delivery period code (18). Enter the code corresponding 
to the time period the lamb carcasses will deliver.
    (ix) Transaction basis (19). Enter `1' for purchased carcasses 
or `2' for sold carcasses.

Appendix E--Mandatory Reporting Forms

    The cattle, swine, and lamb mandatory reporting forms follow:
BILLING CODE 3410-02-P

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[FR Doc. 07-3857 Filed 8-6-07; 8:45 am]
BILLING CODE 3410-02-C


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