28606 Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 59 

[Docket No. AMS–LS–07–0106] 

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: Final rule. 

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 

final rule will 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: Effective Date: This final rule is 

effective July 15, 2008. 

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 

Warren.Preston@usda.gov. 

Information about these regulations 

will be posted on the Livestock and 

Grain Market News Web site: http:// 

www.ams.usda.gov/lsmnpubs/. 

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’ 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. 

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 

basis and a carcass basis; and the 

weight, the quality grade, and premiums 

and discounts. This information will be 

reported twice a day not later than 10 

a.m. and 2 p.m. central time. The 

Secretary will 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 regulation, the required 

information for the weekly submission 

for cattle purchased on a formula will be 

obtained by aggregating packers’ daily 

submissions of this information. 

Therefore, no additional weekly 

submission will be required for this 

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purchase type. The Secretary will 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 will 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 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 will 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 will 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 

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 will 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 very 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 

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28608 Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 

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 rule, packers will 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 rule, packers will 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 will 

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 enumerates unlawful 

acts and provides for what constitutes 

violations of that Act. To be unlawful 

and a violation, a packer or other subject 

person must willfully engage in a 

prohibited practice. Prohibited acts 

include failing to report the required 

information timely; failing to report 

accurate information; soliciting that any 

person fail to provide the required 

information accurately or timely, as a 

condition of any transaction; failing or 

refusing to comply with the 

requirements; or reporting estimated 

information in a manner that 

demonstrates a pattern of significant 

variance when compared to the actual 

information that is reported for the same 

period. The Reauthorization Act did not 

change any of these provisions. 

The section on enforcement 

establishes a civil penalty—not more 

than $10,000—that may be assessed for 

each violation and provides that the 

Secretary may issue a cease and desist 

order in addition to, or in lieu of, a civil 

penalty. Each day that a violation 

continues shall be considered to be a 

separate violation. Factors to be 

considered in determining the amount 

of a civil penalty are the gravity of the 

offense, the size of the business 

involved, and the effect of the penalty 

on the ability of the involved person to 

remain in business. In determining 

whether to assess a civil penalty, the 

Secretary shall consider whether the 

person engaged in a pattern of errors, 

delays, or omissions that were in 

violation. 

The section on enforcement also 

provides that no civil penalty shall be 

assessed, or cease and desist order 

issued, unless the person involved is 

given notice and opportunity for a 

hearing before the Secretary with 

respect to the violation. This section 

also spells out requirements for judicial 

review, details procedures for issuance 

of an injunction or restraining order, 

and establishes a civil penalty of not 

more than $10,000 for each offense 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 

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Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 28609 

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. 

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. 

Requirements 

Summary of Changes 

The requirements of this 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 and the August 8, 

2007, proposed rule that were published 

in the Federal Register. 

Recordkeeping 

To reduce the recordkeeping burden 

on lamb importers, the Agency modifies 

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 modifies 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. 

In the proposed rule published in the 

August 8, 2007 Federal Register, the 

Agency proposed to modify the 

definitions of the terms ‘‘negotiated 

purchased’’ and ‘‘negotiated sale’’ by 

removing the language ‘‘and agreement 

on a delivery day.’’ As discussed in the 

comments and responses section, the 

language is reinserted into the 

respective definitions. 

The Agency adds 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 adds this definition for 

clarity. 

The Agency adds a definition for the 

term ‘‘percent lean’’ for clarification 

with respect to cow and bull reporting 

requirements. The Agency also added a 

definition for the term ‘‘person’’ for 

clarity. 

Cattle Reporting 

The majority of the changes being 

made 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 made 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 modifies 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 

modifications to the definition will 

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 will result 

in the reporting of more transactions by 

packers to AMS, the Agency believes 

that there will 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 will 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’’ will reflect such changes in the 

state of the industry. As discussed in the 

comments and responses section, 

however, the reporting form for boxed 

beef is modified from the proposed rule 

by delineating between fresh product 

that is 14 days or less from that which 

is more than 14 days from the date of 

manufacture. 

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 

final rule reduces 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’’ will 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 will 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 

will ensure that such reporting will 

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28610 Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 

represent a more complete reflection of 

market conditions. 

The Agency modifies the definition of 

the term ‘‘carlot-based’’ such that for 

cow and bull boxed beef items, the term 

‘‘carlot-based’’ includes any transaction 

between a buyer and seller consisting of 

2,000 pounds or more of one or more 

individual items. As discussed in the 

comments and responses, the 2,000 

pound threshold is a reduction from the 

5,000 pound threshold provided for in 

the proposed rule. This modification 

reflects current industry practice with 

respect to the marketing of cow and bull 

products. 

The Agency modifies 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 separation of 

reporting requirements for cows and 

bulls from steers and heifers. The 

definition of ‘‘terms of trade’’ is also 

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. Currently, 

transactions that are for delivery more 

than 14 days out are to be coded as 

forward contracts. This modification 

does not require packers to submit 

additional transactions, but does allow 

AMS to identify separately these types 

of transactions, which is a concern of 

some in the industry. 

The Agency modifies the definition of 

the term ‘‘type of purchase’’ to include 

‘‘negotiated grid purchase’’ as a type of 

purchase. 

The Agency adds a definition for the 

term ‘‘white cow’’ to provide clarity to 

the cow and bull reporting 

requirements. 

Compared to the 2000 final rule, the 

Agency modifies and renumbers 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 

no longer are required to report the 

range of weights of cattle purchased. In 

addition, the phrase ‘‘or other 

characteristics’’ is 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 is required to be reported. For 

example, cow and bull packers no 

longer have to report committed and 

delivered information. In addition, there 

no longer is a weekly reporting 

requirement for cows and bulls. 

With regard to section 59.103, packers 

are 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 previous 

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 are required to provide the basis 

level month and delivery year for all 

cattle purchased through forward 

contracts in addition to the previous 

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 are required to provide 

the basis level month and delivery year 

for all cattle purchased through forward 

contracts in addition to the previous 

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 will 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 is 

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 are separated from the 

reporting requirements for barrows and 

gilts. Thus under this rule, section 

59.202 contains the reporting 

requirements for barrows and gilts and 

section 59.203 contains the reporting 

requirements for sows and boars. 

Compared to the August 8, 2007, 

proposed rule, section 59.203 was 

modified for consistency in numbering 

and to delete a subsection that had been 

reserved. Former section 59.203(a)(5) is 

re-designated as section 59.203(b), and 

the term ‘‘Publication’’ is added to the 

beginning of the re-designated section. 

Former section 59.203(b) [Reserved] is 

deleted. 

The Reauthorization Act also makes a 

few other modifications to the swine 

reporting provisions. Specifically, the 

definition of a packer is 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 

makes a few other minor modifications 

to reduce the reporting burden on swine 

packers. A definition of the term 

‘‘inferior swine’’ is 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 makes a few changes to 

reduce the reporting burden on lamb 

packers where possible and to provide 

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more meaningful information in AMS 

market reports. 

The Agency deletes the definitions for 

the terms ‘‘lambs committed’’ and 

‘‘terms of trade’’ as the requirements to 

submit this information are deleted to 

reduce the reporting burden on packers. 

The Agency adds a definition for the 

term ‘‘yield grade lamb carcass 

reporting’’ to add further clarification to 

the requirement to report yield grade 

information. 

Compared to the August 8, 2007, 

proposed rule, section 59.301 is 

modified for consistency in numbering 

and to delete a subsection that had been 

reserved. The language from the former 

section 59.301(a)(1) is incorporated into 

section 59.301(a) with no change in 

meaning. Former sections 59.301(a)(1)(i) 

through 59.301(a)(1)(x) are re-designated 

as sections 59.301(a)(1) through 

59.301(a)(10). Former section 

59.301(a)(2) is re-designated as section 

59.301(b), and the word ‘‘Publication’’ is 

added to the beginning of the redesignated section. Finally, former 

section 59.203(b) [Reserved] is deleted. 

With respect to weekly reporting, the 

Agency requires packers to submit 

information on the quantity of lambs 

purchased through a negotiated 

purchase that were slaughtered in 

addition to the previous 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 will allow 

AMS to publish more meaningful 

market information in AMS market 

reports. 

With respect to reporting 

requirements for lamb carcasses, the 

Agency requires 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 

prior 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 

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 are required to 

report information and how reporting 

will be handled over weekends and 

holidays. Electronic reporting is 

required for all information collection. 

Electronic reporting involves 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 is required to 

organize the information in an AMSapproved format before electronically 

transmitting the information to AMS. 

Once the required information has 

been entered into the AMS database, it 

will be aggregated and processed into 

various market reports that will be 

released according to the daily and 

weekly time schedule set forth in these 

regulations. 

Section 59.20 identifies the 

recordkeeping requirements imposed by 

the 1999 Act and these regulations on 

packers and importers. Reporting 

packers and importers are 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 are 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. These records must 

be made available to employees or 

agents of USDA for routine compliance 

audits as well as for investigations 

involving suspected noncompliance or 

potential violations. More information 

regarding compliance and review 

procedures can be found in the LMR 

Information section of the Livestock and 

Grain Market News Web site. 

Further, packers are 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 are 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 were 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 are to be reported. 

Lastly, under subpart A, section 59.30 

details the general definitions of terms 

used throughout the regulations, which 

are 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 are made: Minor 

modifications to the definition of 

‘‘discount’’; 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.’’ The minor modifications to 

the definitions of ‘‘negotiated purchase’’

and ‘‘negotiated sale’’ contained in the 

proposed rule are not included in this 

final rule, and the definitions of the two 

terms remain unchanged from the 2000 

final rule. 

Cattle 

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 

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 will be required to report 

under this 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 

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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 are 

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 will be reported, when it 

will be reported, and when it will be 

published. Steer and heifer plants 

covered under the rule will 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 

will 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 will report those transactions at the 

next prescribed reporting time. The 

Secretary will 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 will 

be reported, when it will be reported, 

and when it will be published. Cow and 

bull plants covered under this rule will 

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 will 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 

will 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 will 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 will 

be reported, when it will be reported, 

and when it will be published. Cattle 

plants producing boxed beef cuts will 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 will 

report those transactions at the next 

prescribed reporting time. This 

information will be published by the 

Secretary twice each day. These plants 

will 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 makes 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. 

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 will be 

reported, when it will be reported, and 

when it will be published. 

For barrows and gilts, packers 

required to report under this rule will 

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 will report 

those transactions at the next prescribed 

reporting time. This information will 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 will 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 will be published 

by the Secretary each reporting day not 

later than 10 a.m. central time. In 

addition, the Secretary will publish a 

net price distribution for all barrows 

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 rule, each sow and boar packer will 

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 will 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 will be reported, when 

it will be reported, and when it will be 

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Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 28613 

published. On the first reporting day of 

each week, not later than 4 p.m. central 

time, packers will be required to report 

information on noncarcass merit 

premiums used and paid to producers 

during the prior slaughter week by 

category. This information will be 

published on the first reporting day of 

each week not later than 5 p.m. central 

time. 

Lamb 

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 will 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 

importer, which identifies the entities 

that will be required to report under this 

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 rule, several changes are 

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’’ is added, which 

helps clarify the requirements for 

reporting USDA yield grade 

information. In addition, the definitions 

of ‘‘lambs committed’’ and ‘‘terms of 

trade’’ are 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 will be 

reported, when it will be reported, and 

when it will be published. Lamb plants 

covered under the rule will 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 will report 

those transactions at the next prescribed 

reporting time. The Secretary will 

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 will 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 will be reported, when 

it will be reported, and when it will be 

published. Packers will be required to 

report details of their sales and 

purchases of carcass lambs once each 

day and the Secretary will publish the 

information once each day. Packers will 

be required to report details of their 

sales of boxed lamb cuts, including 

applicable branded product. This 

information will be published once each 

day. These plants will 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 will 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 

will 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. 

Comments and Responses 

On August 8, 2007, AMS published a 

proposed rule and invitation for 

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28614 Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 

comment in the Federal Register (72 FR 

44672–44722) reestablishing and 

revising a mandatory program of 

reporting information regarding the 

marketing of cattle, swine, lambs, and 

products of such livestock under the 

Act. The initial 30-day comment period 

was set to expire on September 7, 2007. 

However, on September 5, 2007, AMS 

announced that the deadline for 

submitting comments had been 

extended until September 24, 2007. 

AMS received 18 comments relevant to 

the proposed rule. Ten comments were 

received from organizations 

representing livestock producers and 

meat packers and processors in both the 

United States and overseas; four were 

received from packer/processors or 

individuals affiliated with packer/ 

processors; and one each was received 

from an industry market information 

provider, a livestock producer, a foreign 

government, and an individual with no 

affiliation given. Comments and Agency 

responses are discussed below. 

Provisions of the Act 

Summary of Comments: One 

comment stated that the fine for 

violations of the Act should be $500,000 

per occurrence and that the entire 

program should be paid for by taxes on 

the industry. 

Agency Response: Section 253(a) of 

the Act provides that the Secretary may 

assess a civil penalty of not more than 

$10,000 per violation. Section 254 of the 

Act prohibits the Secretary from 

assessing any type of fee for the 

submission or reporting of information, 

for access to published information, or 

for any other activity required under the 

Act. Therefore, the comments cannot be 

addressed through this rulemaking. 

General Accountability Office 

Recommendations 

Summary of Comments: Two 

comments stressed the need for USDA 

to implement the recommendations of 

the General Accountability Office (GAO) 

report ‘‘Livestock Market Reporting: 

USDA Has Taken Some Steps to Ensure 

Quality, but Additional Efforts Are 

Needed’’ (GAO–06–202), which was 

published in December, 2005. One of 

these comments suggested that the GAO 

recommendations should be reflected in 

the proposed rule. 

Agency Response: AMS concurs that 

the recommendations of the GAO report 

should be implemented. AMS has 

implemented most of GAO’s 

recommendations, but has not fully 

implemented all of the 

recommendations while the program 

has been operating under a voluntary 

basis. AMS will complete 

implementation of the GAO 

recommendations after this rule has 

become effective and the mandatory 

reporting program is again in operation. 

AMS disagrees with the 

recommendation to codify the GAO 

recommendations within this 

rulemaking. GAO did not recommend 

any rulemaking or modifications to the 

rule in effect at the time of its audit of 

the LMR program. Rather, GAO 

recommended changes to AMS 

procedures for operation of the program 

and to information disseminated by 

AMS about the program. Thus, AMS is 

not modifying the proposed rule to 

codify the GAO recommendations. 

General and Miscellaneous Comments 

Summary of Comments: Two 

comments supported the proposed rule 

generally and specifically mentioned 

support for proposed revisions and 

modifications in definitions. The 

comments noted the need for timely and 

unbiased market information by market 

participants, and indicated that 

implementation of the mandatory 

program would provide the needed 

information. 

Agency Response: AMS concurs with 

the comments. 

Summary of Comments: One 

comment encouraged AMS to evaluate 

the impact on the marketplace of 

modified or new reports, to consider 

industry input as modified or new 

reports are developed, and to allow 

appropriate time for implementation 

and testing to assure a smooth 

transition. 

Agency Response: Although the 

comment does not address the 

rulemaking directly, it does address the 

primary output of the rule—the public 

reports generated from the data 

submitted under the rule that are 

disseminated by AMS. AMS concurs 

that any modified or new AMS reports 

need to be developed with care, 

adequate industry input, and 

appropriate testing. 

Summary of Comments: One 

comment expressed concern that small 

farms and small farm owners could not 

survive ‘‘when taxed with the financial 

and time consumption that this 

mandatory wave promises.’’

Agency Response: Only meat packers, 

processors, and importers are required 

to report under this rule. Thus, there is 

no financial or reporting burden on 

farms and farm owners. Indeed, the 

LMR program provides market 

information to all segments of the 

industry without any cost for accessing 

the reports. 

Summary of Comments: One 

comment requested that AMS and the 

Economic Research Service (ERS) use 

this rulemaking to reestablish the 

collection and public reporting of retail 

meat prices using high quality price 

scanner data. 

Agency Response: The collection and 

reporting of retail meat prices obtained 

through price scanner data is a 

voluntary program and is thus not 

addressed through this rulemaking. 

Nonetheless, subsequent to the passage 

of the Reauthorization Act, ERS has 

begun reimplementation of the retail 

meat price scanner data program. 

General Provisions—Definitions 

Negotiated Purchase and Negotiated 

Sale 

Summary of Comments: Two 

comments objected to the proposed 

modifications to the definitions of the 

terms ‘‘negotiated purchase’’ and 

‘‘negotiated sale’’ by removing the 

language ‘‘and agreement on a delivery 

day.’’ The comments asserted that there 

is no consummated transaction between 

buyer and seller until a price and 

delivery date are known. The comments 

also stated that the change would 

require packers to make several 

assumptions that may turn out to be 

inaccurate, would make the AMS audit 

process more burdensome, and would 

place unnecessary reprogramming costs 

on packers. Conversely, one comment 

agreed with the proposal to drop the 

phrase ‘‘and agreement on a delivery 

day’’ from the definitions. The comment 

asserted that the definition from the 

2000 final rule resulted from a 

misinterpretation of the Act and has 

caused many negotiated sales to be 

omitted from the data for the day on 

which the price quote was actually 

made and errantly placed in the data for 

the day on which a delivery date is 

established. 

Agency Response: AMS does not 

agree that the proposed removal of the 

phrase ‘‘and agreement on a delivery 

day’’ from the definitions of the terms 

‘‘negotiated purchase’’ and ‘‘negotiated 

sale’’ would introduce the level of 

uncertainty suggested by the comments. 

Nonetheless, there is room for ambiguity 

regarding the criteria for considering a 

transaction to be consummated, and that 

agreement on a delivery day may be 

regarded as one of those criteria. AMS 

concurs that the proposed modification 

likely would have increased the burden 

of this rule compared to no change from 

the 2000 rule. Because a commensurate 

benefit in the reporting of market 

information is not sufficiently clear, 

AMS reinserts the phrase ‘‘and 

agreement on a delivery day’’ into the 

definitions of ‘‘negotiated purchase’’

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and ‘‘negotiated sale.’’ For consistency, 

AMS also adds the same language to the 

definition of ‘‘negotiated grid 

purchase.’’

Cattle Reporting—General 

Summary of Comments: One 

comment indicated support for areas of 

expanded reporting for cattle, such as 

separate reporting for negotiated grid 

purchases. However, the comment 

further indicating that there were 

reduced reporting requirements in a 

number of areas and that the impact of 

altering such requirements on users of 

the information did not appear to have 

been adequately analyzed. The 

comment indicated that discounts 

would be reported for weight, quality, 

yield, livestock class and breed, 

dressing percentage, dark cutting, and 

for all other characteristics, but that no 

similar change has been consistently 

incorporated for premiums. In addition, 

the comment expressed concern 

regarding the elimination of the 

requirement for packers to report 

information for cattle purchased 

through a formula marketing 

arrangement and slaughtered the 

previous week. The comment expressed 

doubt that there would be sufficient 

detail for AMS to aggregate the daily 

information submitted by packers to 

obtain the information previously 

required to be reported weekly. 

Agency Response: AMS thoroughly 

considered the impact of all proposed 

rule changes on the information that 

would be collected and subsequently 

summarized and disseminated to the 

public users of the information. AMS 

believes that the modifications in 

reporting requirements for cattle will 

lead to a net increase in the utility of the 

information that will be disseminated, 

thus benefiting all users of the data. In 

terms of information obtained on 

premiums and discounts for steers and 

heifers, the rule requires reporting of 

any premiums or discounts associated 

with weight, quality grade, yield grade, 

or other characteristic. The reporting 

requirements apply to both premiums 

and discounts, and AMS disagrees with 

the comment that changes for reporting 

of discounts differ from those for 

premiums. For both premiums and 

discounts, the phrase ‘‘or other 

characteristic’’ was added the reporting 

requirements for steers and heifers to 

ensure that all potential categories of 

premiums and discounts would be 

reported. Finally, AMS has evaluated 

carefully the reporting requirements for 

cattle purchased through a formula 

marketing arrangement and is confident 

that the elimination of the weekly 

reporting requirement will not impact 

the Agency’s ability to report weekly 

summaries of information aggregated 

from daily information. All of the 

information necessary to produce the 

weekly reports will be contained in the 

information that will be included in the 

daily submissions by packers. Hence, 

AMS retains these cattle reporting 

requirements as proposed. 

Cattle Reporting—Definitions 

Boxed Beef 

Summary of Comments: Four 

comments addressed proposed changes 

in the definition of ‘‘boxed beef.’’ One 

comment supported the proposed 

changes generally, but exhorted AMS to 

maintain consistency with historical 

data. One comment noted that including 

frozen product within the definition of 

‘‘boxed beef’’ would not improve 

reporting unless the frozen category 

would be reported separately. One 

comment noted that removing the age 

limitations on fresh product would put 

downward pressure on reported prices 

of boxed beef. Two comments generally 

supported the elimination of age 

restrictions in the definition of boxed 

beef, but questioned how AMS would 

identify and handle discounted 

products so as not to distort reported 

market prices and information. 

Agency Response: AMS concurs with 

the sense of the comments that the 

proposed changes in the definition of 

boxed beef are generally favorable, but 

need to be implemented with caution. 

In particular, AMS concurs that there 

needs to be a means for distinguishing 

fresh product transactions that may be 

discounted or priced differently due to 

age of the product. Therefore, AMS adds 

a third code to the ‘‘Refrigeration’’

category, which is line 16 on the Boxed 

Beef Daily Report LS–126. The proposed 

rule include two categories, namely, 

‘‘fresh’’ and ‘‘frozen.’’ The form is 

modified to include three categories of 

‘‘Refrigeration’’—(1) Fresh, 14 days or 

less; (2) Frozen; and (3) Fresh, over 14 

days. Splitting the fresh category into 

two product age groups will provide a 

means for identifying product that may 

be discounted due to potential shelf life 

limitations. 

Carlot-Based 

Summary of Comments: Two 

comments expressed concern regarding 

the definition of ‘‘carlot-based’’ for cow 

and bull beef to mean any transaction 

between a buyer and seller consisting of 

5,000 pounds or more of one or more 

individual items. The comments 

indicated that certain cuts may be 

trading in high volume, but in lots of 

less than 5,000 pounds, and thus 

precluding the reporting of these often 

high-value items. 

Agency Response: AMS concurs with 

the comments that a minimum 

threshold of 5,000 pounds for reporting 

of cow and bull boxed beef transactions 

would preclude the reporting of 

important high-value items. To increase 

the range of items for which sufficient 

information will be submitted for 

reporting, AMS lowers the minimum 

threshold for reporting of boxed cow 

and bull beef from 5,000 to 2,000 

pounds. AMS believes that this 

minimum threshold will enable valid, 

accurate market information to be 

reported on high-value boxed cow beef 

items with comparatively little increase 

in the reporting burden on subject 

packers. 

Terms of Trade 

Summary of Comments: One 

comment supported the change in the 

application of ‘‘Terms of trade’’ to steer 

and heifer transactions only to coincide 

with the separation of reporting 

requirements for steers and heifers 

versus cows and bulls. The comment 

also supported the requirement to 

distinguish between negotiated 

transactions that are scheduled to be 

delivered for slaughter within 14 days 

versus those that are to be delivered in 

more than 14 days but fewer than 30 

days. Another comment noted that the 

requirement to report on steers and 

heifers to be delivered between 14 days 

and 30 days would provide additional 

information regarding those 

transactions, while the elimination of 

the reporting requirement for cattle 

scheduled to be delivered within 7 days 

and between 7 and 14 days would result 

in a loss of information. 

Agency Response: AMS recognizes 

that there is a tradeoff involved in 

revising the reporting requirement for 

the delivery schedule for steers and 

heifers. The gain in information on 

negotiated purchases scheduled for 

delivery between 14 and 30 days must 

be weighed against the loss of 

information in terms of detail on 

purchases scheduled for delivery within 

14 days because the data would no 

longer be obtained to distinguish 

between purchases with delivery 

scheduled within 7 days or less versus 

8 to 14 days. Past experience with the 

LMR program has shown that the 

percentage of transactions falling into 

the 8 to 14 day delivery window is 

small and no price difference has been 

found for those purchases versus those 

scheduled for delivery within 7 days. 

However, no information is available on 

purchases with deliveries scheduled 

between 14 and 30 days, as that 

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information was not previously 

required. Therefore, AMS concludes 

that the potential benefit of obtaining 

information on transactions with 

extended delivery terms exceeds the 

potential loss of information on the 

breakdown regarding transactions 

scheduled within 14 days. 

General Provisions—Recordkeeping 

Summary of Comments: One 

comment supported the modification in 

the recordkeeping requirements for 

lamb importers to maintain the time of 

day of a sale. 

Agency Response: AMS concurs with 

the comment. Because lamb importers 

are required to report only weekly, the 

date that the sale occurred is sufficient 

to permit a transaction to be verified. 

Cattle Reporting—Daily Reporting 

Summary of Comments: Two 

comments suggested changing the 

current method of collecting 

information on delivered cattle. The 

comments stated that the current 

method of collecting this information 

provides little value and is redundant 

and burdensome to packers. The 

comments suggested collecting the 

information for delivered cattle in a 

manner similar to prior day reporting 

for swine. 

Agency Response: The Act provides 

for only reporting twice per day 

regarding cattle delivered to the packer 

and does not provide for a prior day 

report as is the case for swine. 

Therefore, AMS does not adopt the 

recommendation to require prior day 

reporting for all cattle. 

Summary of Comments: Two 

comments support the proposed 

reduction in reporting requirements for 

cow and bull packers and noted that the 

adjustment would not reduce the 

quality or quantity of important data. 

Conversely, another comment asserted 

that the only justification for the 

proposed change was to reduce 

reporting requirements for cow and bull 

packers and that the proposed rule did 

not analyze the impact of these changes 

on producers who sell such animals. 

Agency Response: AMS concurs with 

the comments that the changes to cow 

and bull reporting requirements will 

reduce the burden on reporting plants 

without adversely affecting the value of 

the information available to be 

disseminated. AMS disagrees with the 

comment that the impact of the changes 

was not analyzed. In drafting the 

proposed rule, AMS carefully 

considered the organization of the 

industry and past experience with the 

information collected under the LMR 

program. Deliveries of cows and bulls to 

packing plants are overwhelmingly cull 

animals that are neither committed nor 

scheduled in advance of delivery. 

Conversely, steers and heifers are placed 

on feed with the intention of reaching 

finished weights and grades within 

marketing windows of a few weeks. 

Previous experience with the LMR 

program has proven that the committed 

and delivered reporting required for 

cows and bulls created a substantial 

reporting burden while resulting in little 

useful information. For the most part, 

these animals are delivered to the plant 

in small lots of one or a few head 

without prior scheduling and thus are 

both committed and delivered 

simultaneously. However, plants were 

required to report these lots twice 

simultaneously (once as committed and 

once as delivered) under the previous 

rule that did not distinguish between 

reporting requirements for cows and 

bulls versus that for steers and heifers. 

Separating the reporting requirements 

for cows and bulls versus steers and 

heifers enabled AMS to add the 

reporting form LS–131 (Cow/Bull Plant 

Delivered Bids) to collect more detailed 

information from cow and bull packers 

once per day. AMS believes that there 

will be a net gain in the utility of the 

information collected and ultimately 

disseminating regarding cow and bull 

purchases by packers. Thus, AMS 

retains the requirements of the proposed 

rule for cow and bull reporting. 

Summary of Comments: One 

comment addressed the manner in 

which cattle market information 

obtained by AMS is summarized for 

public reporting. Specifically, the 

comment noted that some companies 

report all cattle purchases, including 

live purchases, FOB the feedyard and 

FOB the packing plant, but both are not 

included in reporting by AMS. The 

comment recommended reporting these 

transactions. The comment also 

recommended reporting cattle on a 

‘‘clean up’’ basis, using premiums and 

discounts to ‘‘clean up’’ each lot to 

provide better information regarding the 

real value of each lot. 

Agency Response: AMS appreciates 

the recommendations on AMS reporting 

of information required under this rule. 

However, the recommendations do not 

address the regulatory requirements and 

thus entail no changes to the proposed 

rule. 

Cattle Reporting—Weekly Reporting 

Summary of Comments: One 

comment supported the addition of the 

negotiated grid purchase category to the 

purchase types. The comment also 

deemed as necessary the requirement to 

report the delivery year in addition to 

the basis-level month for cattle 

purchased through forward contracts. 

Conversely, another comment asserted 

that the addition of the field ‘‘delivery 

year’’ would impose additional and 

unnecessary programming costs with 

little or no attendant benefit because 

few such transactions take place 

annually and those that occur are not 

material to the market. 

Agency Response: AMS agrees that 

there are relatively few transactions that 

occur beyond the immediate forward 

contracting year, but such transactions 

nonetheless do occur. AMS disagrees 

that such transactions are not material 

to the market. The concern is that 

without data on the delivery year, there 

is no way to distinguish between a 

forward contract for delivery in, say, 3 

months versus 15 months. Aggregating 

information on forward contracts 

scheduled for delivery 12 months apart 

would distort market information and 

could result in misleading signals with 

material consequences for the market. 

Thus, AMS retains the requirement to 

report the delivery year for forward 

contract purchases. 

Swine Reporting—General 

Summary of Comments: One 

comment supported all of the changes to 

swine reporting, noting that the changes 

should enable the Agency to publish 

more meaningful reports while reducing 

the burden on packers. 

Agency Response: AMS concurs with 

the comment. 

Summary of Comments: One 

comment noted a reference to section 

59.303 in the discussion of the key 

components of the proposed rule (72 FR 

44676), and questioned whether the 

reference should be to section 59.203. 

Agency Response: The comment 

indeed identified a typographical error, 

which has been corrected in this notice. 

Swine Reporting—Definitions 

Packer 

Summary of Comments: One 

comment suggested setting the 

threshold number for reporting on sows 

at 100,000 head per year because the 

sausage industry is comprised of many 

small packers. 

Agency Response: The size thresholds 

for a ‘‘packer’’ are defined by the Act. 

Thus, AMS retains the statutory 

requirements in the definition of a 

swine ‘‘packer.’’

Inferior Hogs 

Summary of Comments: One 

comment supported the proposal to 

define ‘‘inferior hogs’’ and to allow 

packers to exclude these animals from 

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data submitted to AMS. The comment 

asserted that packers submitting data 

would be in the best position to know 

which animals are ‘‘inferior,’’ and that 

the modification would not be 

detrimental to producers and would add 

transparency to the system. The 

comment also noted inconsistency in 

references to ‘‘inferior swine’’ as 

opposed to the term ‘‘inferior hogs.’’

Agency Response: AMS concurs with 

the comment. For consistency, the term 

‘‘inferior hogs’’ is replaced by the term 

‘‘inferior swine’’ throughout. 

Swine Reporting—Daily Reporting 

Summary of Comments: One 

comment strongly supported the 

publication of a net price distribution 

report and encouraged AMS to work 

closely with the industry to determine 

the most effective reporting format. The 

comment noted that the Act grants the 

Secretary authority to make ‘‘reasonable 

adjustments’’ to submitted data to 

prevent harm to producers, packers, and 

other market participants. The comment 

noted that the Act requires AMS to 

publish a net price distribution report 

for all barrows and gilts slaughtered on 

the previous day not later than 3 p.m. 

Central time. Nonetheless, the comment 

encouraged AMS to publish the 

distribution at 10 a.m. Central time with 

the prior day slaughter report. 

Agency Response: AMS concurs with 

the suggestion to work with industry to 

develop the most effective reporting 

format for net price distributions for 

slaughtered barrows and gilts and 

explore the feasibility of publishing the 

report earlier in the day. However, no 

changes are made as a result of this 

comment to the proposed rule. 

Summary of Comments: One 

comment regarding swine reporting 

suggested that multiple daily reports are 

not warranted and that a daily report 

from each packer would accomplish the 

desired results. 

Agency Response: Reporting 

requirements for swine are specified in 

the Act. Therefore, AMS retains the 

reporting requirements of the proposed 

rule. 

Summary of Comments: One 

comment noted that current morning 

and afternoon reports for swine are 

based on State of origin, while prior day 

reports are based on delivered location. 

The comment suggested that the prior 

day report should be based on State of 

origin for consistency. 

Agency Response: AMS will obtain 

State of origin information in the prior 

day report from packers, and thus will 

have the information necessary to report 

prior day information by State of origin. 

Summary of Comments: One 

comment observed that the daily 

reporting requirements for sows and 

boars appear to be reasonable, but 

questioned the 7 a.m. Central time 

reporting deadline. The comment noted 

that the Reauthorization Act requires 

that sow and boar information be 

reported by packers not later than 9:30 

a.m. Central time, and urged that the 

deadline in the rule be set to no later 

than 9 a.m. and preferably 9:30 a.m. as 

the statute reads. The comment noted 

that the 8 a.m. Central publication time 

for AMS would need to be changed if 

the submission deadline were to be 

changed. 

Agency Response: AMS acknowledges 

that a later reporting deadline is 

permissible under the Reauthorization 

Act. However, AMS believes that the 

proposed 7 a.m. reporting deadline will 

not be unduly burdensome to sow and 

boar packers. Previously, many sow and 

boar packers submitted prior day 

information at the close of business on 

the ‘‘prior’’ day, rather than submitting 

the data the following morning. As 

such, a 7 a.m. reporting time imposes no 

additional reporting burden on these 

packers. 

Summary of Comments: One 

comment urged USDA to comply fully 

with the Reauthorizations Act’s 

requirements for electronic submission 

of sow and boar information through an 

Internet Web site or equivalent 

electronic means. The comment noted 

that sow and boar packers are relatively 

small firms that cannot absorb 

significant compliance costs. 

Agency Response: Under this 

program, firms will be able to submit 

data either through electronic data 

transfer or through a web interface. 

Lamb Reporting 

Summary of Comments: One 

comment noted that lamb carcass price 

information is used by all segments of 

the domestic lamb business. The 

comment recommended that audits be 

conducted not only by reviewing seller 

invoices but also by calling buyers, that 

the minimum for carlot trades be set at 

200 carcasses, and that USDA call both 

sellers and buyers on a weekly basis to 

ensure that reporting does not include 

special programs. The comment also 

questioned whether inter-company 

trades should be used. 

Agency Response: With regard to 

verification of sales of lamb carcasses, 

AMS will obtain information only from 

those entities required to report. AMS 

conducts thorough audits of all the 

entities required to report, and thus 

there is no need to confirm selling 

information with buyers. The rule does 

not set a minimum threshold for carlot 

trades of carcasses, just as there is no 

minimum threshold set for live animal 

transactions. A threshold of 200 

carcasses likely would exclude smaller 

lots that represent a meaningful segment 

of the carcass trade. The comment 

questioning whether to use intercompany trades is unclear. The only 

information that will be collected and 

subsequently reported by AMS will be 

inter-company (that is, company-tocompany) trades. Perhaps the comment 

intended to refer to intra-company 

trades, but such transactions internal to 

a single firm will not be submitted 

under the LMR program. 

Summary of Comments: Three 

comments objected to the reporting 

requirements for imported lamb out of 

principle and on the basis that the 

information would have no correlation 

with U.S. domestic slaughter lamb 

prices and would increase costs of 

international trade. Conversely, three 

comments indicated support for the 

lamb reporting requirements. Of these, 

one comment specifically singled out 

support for the mandatory reporting 

requirements for lamb. Another 

comment supported the proposed rule 

generally and specifically cited the need 

for weekly data generated from lamb 

reporting for operation of a new 

livestock risk protection insurance 

product. Finally, one of the comments 

supported the modifications in the 

proposed rule for lamb packers, 

indicating that requiring lamb packers 

to report on carcass purchases in 

addition to the previous requirement to 

report on carcass sales would enable 

AMS to make more complete and 

meaningful information available in its 

reports. 

Agency Response: AMS disagrees that 

there is no relationship between values 

for imported boxed lamb cuts and U.S. 

domestic slaughter lamb prices. First, 

U.S. lamb producers are not the only 

intended beneficiaries of this market 

information program. All market 

participants from producers through 

buyers and final customers benefit from 

more transparent market information, 

including information not only on 

prices but also on quantities and 

characteristics of products being traded. 

Because imported lamb now accounts 

for more than half of the U.S. domestic 

supply of lamb meat, information on 

that segment of the market is critical 

regardless of whether domestic and 

imported product prices are highly 

correlated or not. 

AMS acknowledges that there will be 

costs for lamb importers that are 

required to report, but there likewise 

will be costs for domestic lamb 

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28618 Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 

suppliers. Indeed, costs for domestic 

lamb processors are estimated to be 

higher than that for lamb importers, as 

domestic lamb carcass and boxed lamb 

information is required to be reported 

daily while imported boxed lamb 

information is required to be reported 

weekly. Therefore, the rule does not 

impose a disproportionate burden on 

lamb importers versus domestic lamb 

suppliers. 

AMS concurs with the comment that 

the rule needs to be implemented as 

quickly as possible to provide vital 

market information to the lamb 

industry. AMS also concurs with the 

comment that the modified lamb 

reporting requirements will enable more 

complete and meaningful market reports 

to be published. Accordingly, AMS 

retains the lamb reporting requirements 

as set forth in the proposed rule. 

Summary of Comments: Four 

comments raised concerns about the 

confidentiality of information submitted 

by lamb importers. The comments noted 

the relatively small number and wide 

size distribution of lamb importers that 

would be required to report. The 

comments argued that a competitor 

knowing its own market share would be 

well-positioned to determine the price 

of the major market shareholder. 

Agency Response: AMS agrees that 

confidentiality of proprietary business 

information is of utmost concern in the 

operation of the mandatory reporting 

program. Section 251(a) of the Act 

directs the Secretary to ‘‘make available 

to the public information * * * in a 

manner that ensures that confidentiality 

is preserved regarding—(1) the identity 

of persons * * * and (2) proprietary 

business information.’’ Thus, AMS 

implemented the ‘‘3/70/20’’

confidentiality guideline to enable the 

Agency to issue more frequent and more 

complete reports on livestock and meat, 

providing all segments of the livestock 

and meat industries with information on 

which to base market decisions, while 

preserving the confidentiality of 

proprietary business transactions. The 

guideline consists of three requirements: 

(1) At least three reporting entities need 

to provide data at least 50 percent of the 

time over the most recent 60-day time 

period, (2) no single reporting entity 

may provide more than 70 percent of 

the data for a report over the most recent 

60-day time period, and (3) no single 

reporting entity may be the sole 

reporting entity for an individual report 

more than 20 percent of the time over 

the most recent 60-day time period. 

AMS is confident that application of 

these guidelines protects the 

confidentiality of information 

disseminated under the LMR program, 

and thus maintains the reporting 

requirements for lamb importers as 

proposed. 

Summary of Comments: Two 

comments expressed concern about 

possible requirements for reporting 

country of origin for imported lamb. The 

comments stated that reporting of 

country of origin could increase the risk 

of disclosure of individual companies’

pricing information. One of the 

comments noted that domestic boxed 

lamb data is not subject to any 

comparable regional classification, 

while the other comment supported the 

reporting requirement that identifies 

product as domestic or imported only. 

Agency Response: Given the small 

number of lamb importers, AMS 

acknowledges the concern regarding 

potential disclosure of proprietary 

business information in relation to the 

country of origin of imported lamb. 

However, AMS has guidelines and 

procedures in place to ensure that 

confidential information is not 

disclosed. As noted by one of the 

comments, the rule does not require 

importers to submit the country of 

origin of imported lamb, but only to 

designate whether lamb is sourced 

domestically or is imported. On the 

other hand, AMS recognizes the product 

description for lamb cuts often reveals 

the country of origin of the product. 

Accurate product information is 

necessary for the data to be aggregated 

and subsequently reported by AMS in 

sensible and meaningful ways. AMS is 

cognizant of the confidentiality 

concerns particular to imported lamb 

and will be especially vigilant in 

applying its confidentiality guidelines 

before publicly reporting lamb market 

information. If submitted data do not 

meet the confidentiality guidelines, then 

the data will not be disclosed until 

sufficient information is obtained to 

meet the guidelines. Thus, AMS retains 

the requirements for reporting of 

imported lamb as proposed. 

Summary of Comments: Two 

comments stated the economic and time 

burden on lamb importers is 

significantly higher than estimated in 

the proposed rule. One of the comments 

indicated that the startup/maintenance 

cost estimate of $672 per respondent 

was understated by an order of 

magnitude. The other comment stated 

that lamb importers are relatively small, 

and that costs of compliance are higher 

for small companies due to lower staff 

numbers and higher overhead costs 

compared to larger businesses. The 

comment requested that USDA 

minimize the time and resources 

required to collect data from lamb 

importers wherever possible. 

Agency Response: The comments 

asserted that costs of compliance for 

lamb importers are higher than 

estimated by AMS, but did not provide 

sufficient detail to permit the validity of 

the assertions to be evaluated. AMS 

concurs with the comment that the 

Agency needs to minimize the time and 

resources necessary to collect data 

wherever possible. In developing the 

proposed rule, AMS has sought to 

minimize the compliance burden 

consistent with the Agency’s ability to 

collect and disseminate useful 

information of value to industry 

participants, including those required to 

submit data. 

Executive Order 12988 

This 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 

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 who are 

employees of the entities that are subject 

to this regulation. This rule does not 

require affected entities to relocate or 

alter their operations in ways that could 

adversely affect such persons or groups. 

Further, this rule will not deny any 

persons or groups the benefits of the 

program or subject any persons or 

groups to discrimination. 

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Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 28619 

Executive Order 13132 

This 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 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 regulatory 

analysis contains a statement of the 

need for the rule, an examination of 

alternative approaches, and an analysis 

of benefits and costs. 

Executive Summary 

This 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 rule facilitates open, transparent 

price discovery and provides all market 

participants, both large and small, with 

comparable levels of market 

information. The 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 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 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 rule, plus the 

costs to the Federal government for 

operation of the program. However, 

most of the entities that will be required 

to report under this 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 rule are 

negligible relative to total costs 

associated with the program. Moreover, 

total costs estimated for this 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 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 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 

rule is assumed to have a life cycle of 

3 years. At a real discount rate of 3 

percent, the discounted present value of 

the total private and public sector costs 

for the rule is estimated at almost $20.5 

million for the duration of the program, 

compared to over $22.6 million for the 

2000 final rule (expressed in current 

dollars over a 3-year life cycle). This 

represents a reduction of more than $2.1 

million over the life of the 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 

rule is estimated at $19.7 million for the 

duration of the program, compared to 

$21.8 million for the 2000 final rule 

(expressed in current dollars over a 3- 

year life cycle). This represents a 

reduction of $2.1 million over the life of 

the rule in comparison to the 2000 final 

rule. 

Need for Federal Regulatory Action 

This 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 

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 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 

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28620 Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 

1 GIPSA, USDA. Packers and Stockyards 

Statistical Report, 2005 Reporting Year. GIPSA SR–

01–1, February 2007. 

2 Ibid. 

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. 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. 

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. 

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 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 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 rule represents 

the most cost effective means of 

fulfilling the statutory mandate of the 

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 

be 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 

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. 

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Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 28621 

3Perry, 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. 

4Ward, 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. 5Ward, op. cit. 

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. 

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 1999 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. 

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 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 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 

Government agencies to make policy 

decisions, address trade disputes, and in 

a variety of other functions. For 

example, AMS Market News data 

played a key role in the analysis 

conducted by the U.S. International 

Trade Commission as part of its 

investigation of live swine imports from 

Canada, which was released in April 

2005. 

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 

rule. 

Costs. This 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 

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 rule are simply 

the costs associated with system 

development and maintenance, data 

submission, and recordkeeping 

activities of the packers and importers 

that will be required to report 

information under this rule, plus the 

costs to the Federal government for 

operation of the program. 

Although this 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 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 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 rule: 

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28622 Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 

(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 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, will be required to 

submit information under this 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 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 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 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 the Bureau 

of Labor Statistics. The management, 

professional, related occupations 

category includes the managers who 

will oversee development and 

maintenance of the electronic interface 

and the computer systems and 

programming personnel who will 

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 ................................................................................................................................................... × $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 ................................................................................................................................................................................. × $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. 

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Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 28623 

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 (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 2008) 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 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 will be $195,354. Thus, the 

total data submission cost burden to 

swine packers is estimated at $42,025 

less in the 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 will 

be $56,810. Thus, the total data 

submission cost burden to lamb packers 

and lamb importers is estimated at 

$24,964 less in the rule compared to the 

2000 final rule expressed in comparable 

current dollar terms. 

The cost estimates for the rule are 

discussed in detail in the Paperwork 

Reduction Act Section. 

Breakdown of Estimated Data 

Submission Cost Burden 

I. NUMBER OF RESPONSES PER RESPONDENT PER YEAR

Form Reporting 

days Responses Total responses 

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 

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28624 Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 

II. NUMBER OF SUBMISSION HOURS PER RESPONDENT PER YEAR

Form Submissions/ 

year 

Hours/ 

submission 

Total 

hours/ 

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 

III. TOTAL SUBMISSION COST PER RESPONDENT PER YEAR

Form 

Total 

hours/ 

year 

Cost/ 

hour 

Total 

dollars/ 

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 

IV. TOTAL YEARLY SUBMISSION COST FOR ALL RESPONDENTS

Form 

Total 

dollars/ 

year 

Respondents Total 

cost 

Cattle: 

LS–113 .................................................................................................................................. $1,886 × 34 = $64,124 

LS–114 .................................................................................................................................. 1,886 × 34 = 64,124 

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Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 28625 

IV. TOTAL YEARLY SUBMISSION COST FOR ALL RESPONDENTS—Continued 

Form 

Total 

dollars/ 

year 

Respondents Total 

cost 

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 

The total cost burden to packers and 

importers required to submit 

information under this 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 rule than 

in the 2000 final rule expressed in 

comparable current dollar values. 

TOTAL ANNUAL COST BURDEN TO RESPONDENTS

Cost per 

respondent 

Number of 

respondents Total cost * 

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 

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28626 Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 

TOTAL ANNUAL COST BURDEN TO RESPONDENTS—Continued 

Cost per 

respondent 

Number of 

respondents Total cost * 

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 

are estimated at $4.9 million per year. 

Other costs include approximately $.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 rule compared to 

the 2000 final rule expressed in current 

dollar values. 

The authority for the Act expires on 

September 30, 2010. Therefore, this rule 

will be effective for approximately 3 

years (2008–2010). Annual costs for this 

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 will be nearly $20.5 

million. Using estimated costs from the 

2000 final rule and assuming the same 

3-year duration, the comparable 

discounted present value for the life of 

the program would be over $22.6 

million expressed in current dollars. 

Thus, estimated total program costs are 

reduced by nearly $2.1 million over the 

life cycle of the 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 will be $19.7 million. Using 

estimated costs from the 2000 final rule 

and assuming the same 3-year duration, 

the comparable discounted present 

value for the life of the program would 

be $21.8 million expressed in current 

dollars. Estimated total program costs 

are reduced by $2.1 million over the life 

cycle of the rule in comparison to the 

2000 final rule at the 7 percent discount 

rate. The present values for the 3-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 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 

regulations and exists nowhere else. 

Therefore, this rule does not duplicate 

market information reasonably 

accessible to the Agency. 

Objectives and Legal Basis. The 

objective of this 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 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 rule, 

including all of the cattle and swine 

packers. Some of the lamb importers 

required to report under this 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 rule, particular 

consideration was given to reducing the 

burden on entities while still achieving 

the objectives of the rule. Under the 

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, 

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Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 28627 

6North 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 rule, while the Census 

Bureau data provide a means for estimating the 

number of small businesses potentially subject to 

the rule. 

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 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 

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 

slaughtered an 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 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 rule. Conversely, 2,743 or 96.1 

percent of all livestock plants in the 

United States will be exempt from 

mandatory reporting under this 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. 

The companies required to report 

under the Act and this rule represent 

the largest slaughtering operations in 

each respective species. This 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 rule have 500 employees or 

more. Therefore, AMS estimates that 14 

of the 60 livestock slaughtering firms 

required to report under this rule are 

small businesses as defined by SBA. In 

percentage terms, about 23 percent of 

the animal slaughtering companies 

required to report under this 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 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 

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28628 Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 

7North American Industry Classification System 

code 424470. 

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 rule meet 

the SBA definition for small businesses. 

In percentage terms, about 29 percent of 

the firms required to report under this 

rule would be classified as small 

businesses. Although classified as small 

businesses, these firms are the largest 

firms in their respective specialties. 

Projected Reporting. This 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 

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 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 rule. 

Professional skills required for 

recordkeeping under this 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 rule. 

Alternatives. This 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 regulations to report 

information to the Secretary at 

prescribed times throughout the day and 

week. The Act and these 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 rule on those small 

entities required to report involves the 

manner in which information must be 

reported to the Secretary. However, in 

developing this 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 form for submitting data online. 

Based on prior experience, AMS found 

that some of the smaller entities covered 

under mandatory price reporting would 

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Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 28629 

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 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 approved by 

OMB and assigned OMB control number 

0581–0186. 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 will be required to report 

information under this 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 

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 rule. The PRA 

also requires AMS to measure the 

recordkeeping burden. Under this 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 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 ................................................................................................................................................................................. × $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 

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28630 Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 

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 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: $64,124. 

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: $64,124. 

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. 

Estimated Number of Responses per 

Respondent: 52 (1 per week for 52 

weeks). 

Estimated Total Annual Burden on 

Respondents: 442 hours. 

Total Cost: $9,418. 

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: $3,026. 

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: $9,768. 

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: $20,746. 

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: $66,528. 

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: $72,072. 

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: $75,440. 

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: $5,817. 

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. 

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Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 28631 

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: $11,316. 

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: $1,385. 

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: $1,385. 

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: $534. 

Boxed Lamb Report: Form LS–128. 

Estimate of Burden: Public reporting 

burden for collection of information is 

estimated to be .167 hours per 

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: $9,260 for domestic 

packing plants and $558 for importers 

for a total of $9,818. 

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: $7,408. 

Breakdown of Estimated Data 

Submission Cost Burden 

I. NUMBER OF RESPONSES PER RESPONDENT PER YEAR

Form Reporting 

days Responses Total responses 

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 

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II. NUMBER OF SUBMISSION HOURS PER RESPONDENT PER YEAR

Form Submissions/ 

year 

Hours/ 

submission 

Total 

hours/ 

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 

III. TOTAL SUBMISSION COST PER RESPONDENT PER YEAR

Form 

Total 

hours/ 

year 

Cost/hour 

Total 

dollars/ 

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 

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Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 28633 

IV. TOTAL YEARLY SUBMISSION COST FOR ALL RESPONDENTS

Form 

Total 

dollars/ 

year 

Respondents Total cost 

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 $237,734 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 $32,256 

($672 per 48 respondents), and $92,304 

($1,923 per 48 respondents) for the 

storage and maintenance of electronic 

files that were submitted to AMS. 

Live Swine: $288,302 including 

$153,329 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 

$34,944 ($672 per 52 respondents), and 

$99,996 ($1,923 per 52 respondents) for 

the storage and maintenance of 

electronic files that were submitted to 

AMS. 

Live Lambs, Boxed Lamb, and Lamb 

Carcasses: $73,366 including $57,238 

for packers ($31,288 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 $6,720 ($672 per 

10 respondents), and $19,230 ($1,923 

per 10 respondents) for the storage and 

maintenance of electronic files that were 

submitted to AMS) and $16,128 for 

importers ($558 for annual costs 

associated with electronically submitted 

responses) (26 annual hours @ $21.33 

per hour), electronic submission 

development and annual system 

maintenance costs of $4,032 ($672 per 6 

respondents), and $11,538 ($1,923 per 6 

respondents) for the storage and 

maintenance of electronic files that were 

submitted to AMS). 

List of Subjects in 7 CFR Part 59 

Cattle, Hogs, Sheep, Livestock, Lamb. 

■ For the reasons set forth in the 

preamble, Title 7, Chapter I of the Code 

of Federal Regulations is amended by 

revising part 59 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. 1635–1636i. 

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28634 Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 

Subpart A—General Provisions 

§ 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 

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. 

§ 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. 

(2) 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. 

§ 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 

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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 

and agreement on a delivery day. 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, from which premiums are added 

and discounts are subtracted, 

determined by seller-buyer interaction 

and agreement on a delivery day. 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 and agreement on a delivery 

day. 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 and agreement on a day. 

Origin. The term ‘‘origin’’ means the 

State where the livestock were fed to 

slaughter weight. 

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 

§ 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 portioncontrol 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 2,000 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, 

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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 

(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. 

§ 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. 

§ 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 

§ 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. 

§ 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; 

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(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. 

§ 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 

§ 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 

(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 

§ 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 

§ 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 swine. The term ‘‘inferior 

swine’’ 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 

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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 

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 ‘‘packersold 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. 

§ 59.201 General reporting provisions. 

(a) Packer-Owned Swine. Information 

required under this section for packerowned 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. 

§ 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 § 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 in paragraph (a) of 

this section 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. 

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Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 28639 

(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 § 59.10(b): 

(1) The packer’s best estimate of the 

total number of barrows and gilts, and 

barrows and gilts that qualify as packerowned 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 in paragraph (b) of 

this section 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 § 59.10(b): 

(1) The packer’s best estimate of the 

total number of barrows and gilts, and 

barrows and gilts that qualify as packerowned 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 

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 in paragraph (c) of 

this section in the afternoon report as 

soon as practicable, but not later than 3 

p.m. central time, on each reporting day. 

§ 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. 

(b) Publication. The Secretary shall 

publish the information obtained in 

paragraph (a) of this section 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. 

§ 59.204 Mandatory weekly reporting for 

swine. 

(a) Weekly Noncarcass Merit Premium 

Report. Not later than 4 p.m. central 

time in accordance with § 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 

§ 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. 

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(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 

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. 

§ 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 prices for lambs (per 

hundredweight) established on that day 

as F.O.B. feedlot or delivered at the 

plant, categorized to clearly delineate 

domestic from imported market 

purchases as described in § 59.10(b) and 

categorized by: 

(1) The type of purchase; 

(2) The class of lamb; 

(3) The quantity of lambs purchased 

on a live weight basis; 

(4) The quantity of lambs purchased 

on a dressed weight basis; 

(5) A range and average of estimated 

live weights of lambs purchased; 

(6) An estimate of the percentage of 

the lambs purchased that were of a 

quality grade of Choice or better; 

(7) Any premiums or discounts 

associated with weight, quality grade, 

yield grade, or any type of purchase; 

(8) Lamb state of origin; 

(9) The pelt type; and 

(10) The estimated lamb dressing 

percentage. 

(b) Publication. The Secretary shall 

make the information available to the 

public not less than once each reporting 

day. 

§ 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 in 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. 

§ 59.303 Mandatory reporting of lamb 

carcasses and boxed lamb. 

(a) Daily Reporting of Lamb Carcass 

Transactions. The corporate officers or 

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Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 28641 

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 

§ 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 § 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 

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 

§ 59.400 OMB control number assigned 

pursuant to the Paperwork Reduction Act. 

The information collection and 

recordkeeping requirements of this part 

have been 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: March 2, 2008. 

Lloyd C. Day, 

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 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 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 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 

Guideline 

The following reporting guidelines may be 

used by persons required to report 

electronically transmitted mandatory market 

information to the Agricultural Marketing 

Service. 

The first 10 fields of each 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. 

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28642 Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations 

(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. 

(V) 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 to be delivered for 

slaughter from 15 to 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 

from 8 to 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 packerowned 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 

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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 with an 

age of 14 days or less from the date of 

manufacture, ‘‘2’’ if the product is sold in a 

frozen condition, or ‘‘3’’ if the product is sold 

in a fresh condition with an age of more than 

14 days from the date of manufacture. 

(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 

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. 

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(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 packerowned 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. 

(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. 

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Appendix E—Mandatory Reporting 

Forms 

The cattle, swine, and lamb mandatory 

reporting forms follow the docket. 

BILLING CODE 3410–02–P 

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[FR Doc. E8–10185 Filed 5–15–08; 8:45 am] 

BILLING CODE 3410–02–C 


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