Swine Packer Marketing Contract Summary - Eastern Cornbelt

Other Purchase Arrangement

Page 1 of 15

Determination of Base Price 1518

All Reports Referenced

Decatur SBM, Soybean Meal, Average - 6 months prior to delivery

Fostoria Corn, Corn, Average - 6 months prior to delivery

Fostoria SBM, Soybean Meal, Average - 6 months prior to delivery

Lima Corn, Corn, Average - 6 months prior to delivery

LM_HG203, Weighted Average, Day Prior to Delivery

Sidney SBM, Soybean Meal, Average - 6 months prior to delivery

Other Terms

Floor Price = Weighted Average (* 0.74) + Contract Premium

Base Price = $49.95 +/- [(weekly corn price - corn discount) x 4] + [(weekly SBM price - SBM discount) x 

0.022] 

Final Price = Base Price + 25% * Base Price - Floor Price

Premium/Discount Type: Corn Discount, ($2.35), 

Premium/Discount Type: SBM Discount, $240.00, 

Premium/Discount Type: Contract Premium, $3.50, 

Determination of Base Price 1519

All Reports Referenced

LM_HG203, Weighted Average, Day Prior to Delivery

Other Terms

Floor Price: 45 Ceiling Price: 60

Market Price(MP) = 75.5% (Weighted Average + 3)If MP > Ceiling Price, Final Price = Ceiling Price + Carcass 

Merit Adjustment If MP < Floor Price, Final Price = Floor Price + Carcass Merit Adjustment If MP > Floor 

Price and < Ceiling Price, Final Price = MP + Carcass Merit Adjustment.

Premium/Discount Type: Sort See Schedule: 225 

Premium/Discount Type: Contract Premium, $3.00 
Swine Packer Marketing Contract Summary - Eastern Cornbelt

Other Purchase Arrangement

Page 2 of 15

Determination of Base Price 1520

All Reports Referenced

Decatur SBM, Soybean Meal, Average - 6 months prior to delivery

Fostoria Corn, Corn, Average - 6 months prior to delivery

Fostoria SBM, Soybean Meal, Average - 6 months prior to delivery

Lima Corn, Corn, Average - 6 months prior to delivery

LM_HG203, Weighted Average, Day Prior to Delivery

Sidney SBM, Soybean Meal, Average - 6 months prior to delivery

Other Terms

Floor Price = Weighted Average (* 0.74) + Contract Premium

Base Price = $49.95 +/- [(weekly corn price - corn discount) x 4] + [(weekly SBM price - SBM discount) x 

0.022] Final Price = Base Price + 25% * Base Price - Floor Price

Premium/Discount Type: Corn Discount, ($2.35) 

Premium/Discount Type: SBM Discount, $240.00 

Determination of Base Price 1539

All Reports Referenced

LM_HG201, Negotiated Average Net Price, Day Prior to Delivery

LM_PK602, Pork Carcass Cutout, Day Prior to Delivery

Other Terms

Floor Price (FP) = 87% Cutout Value Ceiling Price (CP) = 92% Cutout Value

Market Price (MP) = Base Percentage * Net Price If MP < FP, Final Price = FP + Carcass Merit Adjustment If

MP > CP, Final Price = CP + Carcass Merit Adjustment If MP > FP and < CP, Final Price = MP Carcass Merit 

Adjustment.

Premium/Discount Type: Carcass Merit See Schedule: 7 

Premium/Discount Type: Lean See Schedule: 34 

Premium/Discount Type: Sort See Schedule: 85 

Premium/Discount Type: Base Percentage 99%

Determination of Base Price 1556

All Reports Referenced

LM_HG203, Negotiated Base Weighted Average, Day Prior to Delivery

LM_PK602, Pork Carcass Cutout, Day Prior to Delivery

Other Terms

Floor Price (FP) = 80% Cutout Value Ceiling Price (CP) = 90% Cutout Value

Market Price (MP) = Weighted Average + Contract Premium. If MP > CP, Final Price = CP + Carcass Merit 

Adjustment If MP < FP, Final Price = FP + Carcass Merit Adjustment If MP > FP and < CP, Final Price = MP 

+ 

Carcass Merit Adjustment.

Premium/Discount Type: Carcass Merit See Schedule: 7 

Premium/Discount Type: Sort See Schedule: 80 

Premium/Discount Type: Lean See Schedule: 34 

Premium/Discount Type: Contract Premium, $3.25 
Swine Packer Marketing Contract Summary - Eastern Cornbelt

Other Purchase Arrangement

Page 3 of 15

Determination of Base Price 1642

All Reports Referenced

LM_HG203, National Base Weighted Average, Day Prior to Delivery

LM_PK602, Pork Carcass Cutout, Day Prior to Delivery

Other Terms

Final Price = CME Value + Contract Premium + Carcass Merit Adjustment. 

Premium/Discount Type: Carcass Merit $2.50

Determination of Base Price 1643

All Reports Referenced

LM_hg203, Weighted Average, 

LM_PK602, Carcass Average, 

Other Terms

Final Price = CME Value + Contract Premium + Carcass Merit Adjustment. 

Premium/Discount Type: Carcass Merit $3.00 

Determination of Base Price 566

All Reports Referenced

Nearby Lean Hog, Lean Hog, Last trading day prior to delivery

Other Terms

Final Price = CME Price + Basis + Carcass Merit Adjustment

Premium/Discount Type: Carcass Merit See Schedule: 64 

Premium/Discount Type: Sort See Schedule: 85 

Premium/Discount Type: Basis, See Schedule: 58 

Determination of Base Price 779

All Reports Referenced

Nearby Lean Hog, Lean Hog, Last trading day prior to harvest

Other Terms

Final Live Price = (Futures Price * 75.5%) + Sort - Program Participation Fee
Swine Packer Marketing Contract Summary - Eastern Cornbelt

Other Purchase Arrangement

Page 4 of 15

Determination of Base Price 1016

All Reports Referenced

LM_HG203, Weighted Average, Day prior to Slaughter

Nearby Lean Hog, Lean Hog, Last trading day prior to delivery

Other Terms

For first volume delivered, Final Price = CME Price + Basis + Freight Adjustment to specified location + 

Carcass Merit Adjustment For remaining volume delivered, final price = National Weighted Average + 

Contract Premium + Carcass Merit Adjustment

Premium/Discount Type: Carcass Merit See Schedule: 7 

Premium/Discount Type: Basis, ($0.50) 

Premium/Discount Type: Contract Premium, $3.25 

Premium/Discount Type: Freight, $0.50 

Determination of Base Price 1083

All Reports Referenced

LM_PK602, Pork Carcass Cutout, Day Prior to Delivery

Nearby Lean Hog, Lean Hog, Day Contracted

Other Terms

Producer has two Options. Option 1: Final Price = [Cutout Price + Contract Premium] + Carcass Merit 

Adjustment or [Cutout Price + Contract Premium 2] + Carcass Merit Adjustment, dependent on delivery plant

Option 2: CME Price + Basis + Carcass Merit Adjustment. Carcass Merit Program used is specific to delivery 

plant.

Premium/Discount Type: Carcass Merit See Schedule: 7 

Premium/Discount Type: Lean See Schedule: 34 

Premium/Discount Type: Sort See Schedule: 80 

Premium/Discount Type: Contract Premium, ($4.50) 

Premium/Discount Type: Contract Premium 2, ($3.75) 

Premium/Discount Type: Basis, See Schedule: 219 

Determination of Base Price 1194

All Reports Referenced

Lean Hog Index, Lean Hog, Day of Delivery

LM_PK602, Pork Carcass Cutout, Day of Delivery

Nearby Lean Hog, Lean Hog, Last trading day prior to delivery

Other Terms

Final Price = [(Cutout Percent * Cutout Price) + Lean Hog Index + CME Settlement]/3 + Carcass Merit 

Adjustment

Premium/Discount Type: Carcass Merit See Schedule: 7 

Premium/Discount Type: Cutout Percentage 94%
Swine Packer Marketing Contract Summary - Eastern Cornbelt

Other Purchase Arrangement

Page 5 of 15

Determination of Base Price 1367

All Reports Referenced

LM_HG201, Prod Sold Negotiated Average Net, Day Prior to Delivery

LM_PK602, Pork Carcass Cutout, Day Prior to Delivery

Nearby Lean Hog, Lean Hog, Last trading day prior to delivery

Other Terms

Final Price = 25% (CME Percent * Lean Index) + 37.5% (Cutout Percentage * Cutout Value) + 37.5% (Net 

Percentage * Net Price) + Carcass Merit Adjustment.

Premium/Discount Type: Carcass Merit See Schedule: 7 

Premium/Discount Type: CME Percentage 98%

Premium/Discount Type: Cutout Percentage 93.22%

Premium/Discount Type: Net Percentage 101.5%

Determination of Base Price 970

All Reports Referenced

Lean Hog Index, Lean Hog, Day of Delivery

LM_PK602, Pork Carcass Cutout, Day of Delivery

Other Terms

Final Price = [50% (102% Lean Hog Index) + 50% (95% Cutout Value)] + Carcass Merit Adjustment

Premium/Discount Type: Carcass Merit See Schedule: 7 

Determination of Base Price 1194

All Reports Referenced

Lean Hog Index, Lean Hog, Day of Delivery

LM_PK602, Pork Carcass Cutout, Day of Delivery

Nearby Lean Hog, Lean Hog, Last trading day prior to delivery

Other Terms

Final Price = [(Cutout Percent * Cutout Price) + Lean Hog Index + CME Settlement]/3 + Carcass Merit 

Adjustment

Premium/Discount Type: Carcass Merit See Schedule: 7 

Premium/Discount Type: Cutout Percentage 94%
Swine Packer Marketing Contract Summary - Eastern Cornbelt

Other Purchase Arrangement

Page 6 of 15

Determination of Base Price 1313

All Reports Referenced

Jeffersonville Corn, Cash Corn, Average - 8 weeks prior to delivery

Kokomo Corn, Cash Corn, Average - 8 weeks prior to delivery

Lean Hog Index, Lean Hog, Day of Delivery

Morristown SBM, Soybean Meal, Average - 8 weeks prior to delivery

Other Terms

Floor Price = [{9.8 [(Jeffersonville Corn + Kokomo Corn)/2] + 0.0825 (Morristown SBM)}/2.15] + 

38.25Ceiling 

Price = Floor Price + 10

Market Price = CME Percentage * Index Value Base Price = Floor Price + 50% (Market Price - Floor Price) If

Market Price < Floor Price, Final Price = Floor Price + Carcass Merit Adjustment If Base Price > Ceiling Price

Final Price = Ceiling Price + Carcass Merit Adjustment If Market Price >= Floor Price and Base Price <= 

Ceiling Price, Final Price = Base Price + Carcass Merit Adjustment

Premium/Discount Type: Carcass Merit See Schedule: 7 

Premium/Discount Type: Lean See Schedule: 34 

Premium/Discount Type: Sort See Schedule: 80 

Premium/Discount Type: CME Percentage 101.5%

Determination of Base Price 302

All Reports Referenced

Delivered Corn, Cash Corn, Average - 6 weeks prior to delivery

Delivered SBM, 48% Soybean Meal, Average - 6 weeks prior to delivery

LM_PK602, Pork Carcass Cutout, Day Prior to Delivery

Other Terms

Matrix Value - $8.00Matrix Value + $8.00

Base Price (BP) = 95% Cutout Value Final Price = BP + 50% (Matrix Value - BP) See Schedule: 42

Determination of Base Price 312

All Reports Referenced

Delivered Corn, Cash Corn, Average - 6 weeks prior to delivery

Delivered SBM, 48% Soybean Meal, Average - 6 weeks prior to delivery

LM_HG207, Negotiated Base Weighted Average, Day of Slaughter

LM_HG207, Swine or Pork Market Weighted Average, Day of Slaughter

LM_HG208, Negotiated Base Weighted Average, Day of Slaughter

LM_HG208, Swine or Pork Market Weighted Average, Day of Slaughter

LM_PK602, Pork Carcass Cutout, Day of Slaughter

Other Terms

Market Price (MP) = average of 5 swine/pork market prices -$2.00 Final Price = Average of Matrix Price and 

Market Price. See Schedule: 105
Swine Packer Marketing Contract Summary - Eastern Cornbelt

Other Purchase Arrangement

Page 7 of 15

Determination of Base Price 360

All Reports Referenced

LM_PK602, Pork Carcass Cutout, Day of Slaughter

Other Terms

Floor Price = RCOP -$8.00Ceiling Price = RCOP +$8.00

Market Price (MP) = Cutout Value - $6.30If MP < RCOP, then Base Price = MP + 50% (RCOP - MP) If MP > 

RCOP, then Base Price = RCOP + 50% (MP - RCOP) Base Primal % = 56.5, higher % receive premiums, 

lower receive discounts Max Primal Premium = 4.5%, unlimited discounts Premium based on 56 day Average 

of quoted market prices for primal cuts Outside 164-205 pound weight range, sort discount is reimbursed for 

primal of acceptable size Regional COP (RCOP) is regional grain basis and transportation differential

Premium/Discount Type: Sort See Schedule: 16 

Determination of Base Price 363

All Reports Referenced

LM_PK602, Pork Carcass Cutout, Day of Slaughter

Other Terms

Floor Price = COP - $6.00Ceiling Price = COP + $6.00

Market Price (MP) = Cutout Value - $6.30If MP< RCOP, then Base Price = MP + 50% (RCOP - MP)If MP > 

RCOP, then Base Price = RCOP + 50% (MP - RCOP) Base Primal % = 56.5, higher % receive premiums, 

lower receive discounts Max Primal Premium = 4.5%, unlimited discounts Premium based on 56 day Average 

of quoted market prices for primal cuts Outside 164-205 pound weight range, sort discount is reimbursed for 

primal of acceptable size Regional COP (RCOP) is regional grain basis and transportation differential

Premium/Discount Type: Sort See Schedule: 16 

Determination of Base Price 594

All Reports Referenced

LM_PK602, Pork Carcass Cutout, Day of Delivery

Other Terms

Floor Price = COP - $5.00Ceiling Price = COP + $5.00

If Market Price (MP) < COP, then Base Price = COP - 50% (COP-MP) IF MP > COP, the Base Price = COP + 

50% (MP - COP) Cost of Production (COP) based on regional standard hog production assumptions

Premium/Discount Type: Sort See Schedule: 86 

Premium/Discount Type: Trim See Schedule: 87 

Premium/Discount Type: Supplier Program - Compliance Bonus, $4.25 

Premium/Discount Type: Contract Premium, ($5.50) 
Swine Packer Marketing Contract Summary - Eastern Cornbelt

Other Purchase Arrangement

Page 8 of 15

Determination of Base Price 597

All Reports Referenced

LM_PK602, Carcass Average, Day of Delivery

Other Terms

Final Price = Market Price + Contract Premium + Carcass Merit Adjustment

Premium/Discount Type: Sort See Schedule: 86 

Premium/Discount Type: Trim See Schedule: 87 

Premium/Discount Type: Contract Premium, ($4.00) 

Determination of Base Price 600

All Reports Referenced

LM_PK602, Pork Carcass Cutout, Day of Delivery

Other Terms

Floor Price and Ceiling Price set based on COP according to schedule.

If Market Price (MP) < COP, then Base Price = COP - 50% (COP-MP) IF MP > COP, the Base Price = COP + 

50% (MP - COP) See Schedule: 88 Cost of Production (COP) based on regional standard hog production 

assumptions

Premium/Discount Type: Sort See Schedule: 86 

Premium/Discount Type: Trim See Schedule: 87 

Premium/Discount Type: Contract Premium, ($6.00) 

Premium/Discount Type: Supplier Program - Compliance Bonus, $2.00 

Determination of Base Price 602

All Reports Referenced

LM_PK602, Pork Carcass Cutout, Day of Delivery

Other Terms

Floor and Ceiling set based on COP according to schedule.

If Market Price (MP) < COP, then Base Price = COP - 75% (COP-MP) IF MP > COP, the Base Price = COP + 

75% (MP - COP) See Schedule: 89 Cost of Production (COP) based on regional standard hog production 

assumptions

Premium/Discount Type: Sort See Schedule: 86 

Premium/Discount Type: Trim See Schedule: 87 

Premium/Discount Type: Contract Premium, ($5.00) 

Premium/Discount Type: Supplier Program - Compliance Bonus, $2.00 
Swine Packer Marketing Contract Summary - Eastern Cornbelt

Other Purchase Arrangement

Page 9 of 15

Determination of Base Price 641

All Reports Referenced

LM_HG207, Negotiated Base Weighted Average, Day of Delivery

LM_HG207, Swine or Pork Market Weighted Average, Day of Delivery

LM_HG208, Negotiated Base Weighted Average, Day of Delivery

LM_HG208, Swine or Pork Market Weighted Average, Day of Delivery

LM_PK602, Pork Carcass Cutout, Day of Delivery

Local Survey, Cash Corn, Average - 6 weeks prior to delivery

Local Survey, Soybean Meal, Average - 6 weeks prior to delivery

Other Terms

Floor Price = Matrix Price - $4.00Ceiling Price = Matrix Price + $4.00

Base Live Price = 74.5% [(ECB Negotiated + ECB SPMF + WCB Negotiated + WCB SPMF + Cutout 

Value)/5]if Base Live Price < Floor Price (FP), then Final Price = FP If Base Live Price > Ceiling Price (CP), 

then Final Price = CP If Base Live Price > FP and < CP, then Final Price = Base Live Price. See Schedule: 104

Premium/Discount Type: Lean See Schedule: 82 

Premium/Discount Type: Sort See Schedule: 103 

Premium/Discount Type: Trim See Schedule: 100 

Determination of Base Price 950

All Reports Referenced

LM_PK602, Pork Carcass Cutout, Day of Delivery

Other Terms

First year antibiotic free premiums are set by quarterly incentives Final Price = Cutout Percentage (Cutout 

Price) + Antibiotic Free Premium + Carcass Merit Adjustment

Premium/Discount Type: Sort See Schedule: 130 

Premium/Discount Type: Trim See Schedule: 100 

Premium/Discount Type: Antibiotic Free$12.00 per hog

Premium/Discount Type: Antibiotic Free See Schedule: 212 per hog
Swine Packer Marketing Contract Summary - Eastern Cornbelt

Other Purchase Arrangement

Page 10 of 15

Determination of Base Price 1022

All Reports Referenced

Griggsville Corn, Cash Corn, Average - 8 weeks prior to delivery

GX_GR117, 48% SBM Rail, Average - 8 weeks prior to delivery

JC_GR110, Cash Corn, Average - 8 weeks prior to delivery

LM_HG201, Prod Sold Negotiated Average Net, Day of Slaughter

LM_PK602, Pork Carcass Cutout, Day prior to Slaughter

Other Terms

Floor Price = 36.44346 + [4.40236 (60% St. Louis Corn + 40% Griggsville Corn)] + (0.044845 Central IL 

SBM);National Price = Base Percent * National Net Price Cutout Price = Cutout Percent * Pork Carcass Cutout 

Average Base Price = (Cutout Price + National Price)/2Adjusted Corn/Soy Matrix Price = Max of (Floor Price 

or Average Base Price + Contract Premium)Final Price = 33.3% National Price + 33.3% Cutout Price + 33.4% 

Adjusted Corn/Soy Matrix Price + Carcass Merit Adjustment

Premium/Discount Type: Carcass Merit See Schedule: 7 

Premium/Discount Type: Cutout Percentage 97%

Premium/Discount Type: Base Percentage 102%

Premium/Discount Type: Contract Premium, ($1.50) 

Determination of Base Price 1031

All Reports Referenced

LM_HG207, Swine or Pork Market Average Carcass Weight, Day of Delivery

LM_HG208, Swine or Pork Market Average Carcass Weight, Day of Delivery

LM_PK602, Pork Carcass Cutout, Day of Delivery

Other Terms

Final Price = [ECB Weighted Average + WCB Weighted Average + (Cutout Percent * Cutout Price)]/3

Premium/Discount Type: Antibiotic Free$12.00 per hog

Premium/Discount Type: Cutout Percentage 95%

Determination of Base Price 1342

All Reports Referenced

LM_PK602, Pork Carcass Cutout, Day Prior to Delivery

Other Terms

Floor Price = Matrix Price - $5.00Ceiling Price = Matrix Price + $5.00

Base Price = Cutout Percentage * Cutout Value If Base Price >= Floor Price and <= Ceiling Price, Final Price = 

Base Price + Carcass Merit Adjustment If Base Price > Ceiling Price, Final Price = Base Price + 50% (Base 

Price - Ceiling Price) +Carcass Merit Adjustment If Base Price < Floor Price, Final Price = Base Price + 50% 

(Floor Price - Base Price) + Carcass Merit Adjustment See Schedule: 105 Matrix Price from schedule based on 

Corn and Soybean markets.

Premium/Discount Type: Sort See Schedule: 272 

Premium/Discount Type: Antibiotic Free$6.00 

Premium/Discount Type: Cutout Percentage 90%
Swine Packer Marketing Contract Summary - Eastern Cornbelt

Other Purchase Arrangement

Page 11 of 15

Determination of Base Price 1429

All Reports Referenced

LM_HG207, Weighted Average, Day of Delivery

LM_HG208, Weighted Average, Day of Delivery

LM_PK602, Pork Carcass Cutout, Day of Delivery

Local Survey, Cash Corn, Average - 6 weeks prior to delivery

Local Survey, Soybean Meal, Average - 6 weeks prior to delivery

Other Terms

Final Price = 50% Cash Price + 50% (Matrix Contract Price/75.5%) + Carcass Merit Adjustment. Cash Price = 

[ECB Weighted Average + WCB Weighted Average + (Cutout Percentage * Cutout Value) ]/ 3Live Cash Price 

= 75.5% Cash Price If Live Cash Price < Matrix Price - $10, then Matrix Contract Price = Matrix Price - $10If 

Live Cash Price > Matrix Price + $10, then Matrix Contract Price = Matrix Price + $10 If Live Cash Price > 

(Matrix Price - $10) and < (Matrix Price + $10), then Matrix Contract Price = Live Cash Price. See Schedule: 

104 Matrix Price = price derived from cost of production matrix using corn price rounded to neares 

$0.10/bushel and soybean meal prices rounded to nearest $10.00/ton.

Premium/Discount Type: Sort See Schedule: 227 

Premium/Discount Type: Trim See Schedule: 41 

Premium/Discount Type: Cutout Percentage 95%

Determination of Base Price 1183

All Reports Referenced

Decatur SBM, Soybean Meal, Average - 6 months prior to delivery

Fostoria Corn, Cash Corn, Average - 6 months prior to delivery

Fostoria SBM, Soybean Meal, Average - 6 months prior to delivery

Lima Corn, Carcass Average, Average - 6 months prior to delivery

LM_HG201, Weighted Average, Day Prior to Delivery

Sidney SBM, Soybean Meal, Average - 6 months prior to delivery

Other Terms

Floor Price = 49.95 + {[(Lima Corn + Fostoria Corn)/2 +0.15 - 2.50] x 4} + {[(Decatur SBM + Sidney SBM + 

Fostoria SBM)/3 + 10.00 - 250] x 0.022

Calculated Live Price (CLP) = 50% (National Price + Contract Premium) * 74.5% + 50% Floor Price + Carcass 

Merit Adjustment Final Price = CLP + 25% (CLP - Floor Price)

Premium/Discount Type: Sort loads between 240 and 290 pounds

Premium/Discount Type: Contract Premium, $3.00 
Swine Packer Marketing Contract Summary - Eastern Cornbelt

Other Purchase Arrangement

Page 12 of 15

Determination of Base Price 1182

All Reports Referenced

LM_HG203, Weighted Average, Day Prior to Delivery

Other Terms

Floor Price: 45Ceiling Price: 60

Calculated Live Price (CLP) = (National Price + Contract Premium) * 75.5% + Carcass Merit Adjustment; If

CLP < Floor Price, then Final Price = Floor Price. If CLP > Ceiling Price, then Final Price = Ceiling Price. IF 

CLP > Floor Price and < Ceiling Price, then Final Price = Calculated Live Price

Premium/Discount Type: Sort See Schedule: 225 

Premium/Discount Type: Contract Premium, $3.00 

Determination of Base Price 1235

All Reports Referenced

LM_HG203, Negotiated Base Weighted Average, Average - 3 days prior to delivery

Other Terms

Final Price = Negotiated Base + Carcass Merit Adjustment + Never Ever Incentive

Premium/Discount Type: Carcass Merit See Schedule: 64 

Premium/Discount Type: Never Ever Incentive$10.00 

Premium/Discount Type: Sort See Schedule: 85 

Premium/Discount Type: Sort See Schedule: 129 

Determination of Base Price 1270

All Reports Referenced

LM_HG203, Weighted Average, Day Prior to Delivery

Other Terms

Floor Price: 47Ceiling Price: 57

Live Price = (Weighted Average + Contract Premium) * 75.5%If Live Price < Floor Price, Final Price = Floor 

Price + Carcass Merit Adjustment If Live Price > Ceiling Price, Final Price = Ceiling Price + Carcass Merit 

Adjustment If Live Price > Floor Price and < Ceiling Price, Final Price = Live Price + Carcass Merit 

Adjustment.

Premium/Discount Type: Sort See Schedule: 225 

Premium/Discount Type: Contract Premium, $3.00 
Swine Packer Marketing Contract Summary - Eastern Cornbelt

Other Purchase Arrangement

Page 13 of 15

Determination of Base Price 357

All Reports Referenced

LM_HG207, Weighted Average, Day of Delivery

LM_HG208, Weighted Average, Day of Delivery

Other Terms

Floor Price = COP - $6.00Ceiling Price = COP + $6.00

Market Price (MP) = average of two markets + $2.00If MP < COP, then Base Price = MP + 50% (MP - COP) If

MP > COP, then Base Price = COP + 50% (COP - MP) Base Primal % = 56.5, higher % receive premiums, 

lower receive discounts Max Primal Premium = 4.5%, unlimited discounts Premium based on 56-day Average 

of quoted market prices for primal cuts Outside 164-205 pound weight range, sort discount is reimbursed for 

primals of acceptable size Cost of Production (COP) is set by 3 month average at Buyers Production Facilities

Premium/Discount Type: Sort See Schedule: 13 

Premium/Discount Type: Freight, $0.02 per live pound

Determination of Base Price 364

All Reports Referenced

LM_HG207, Weighted Average, Day of Slaughter

LM_HG208, Weighted Average, Day of Slaughter

Other Terms

Floor Price = RCOP -$6.00Ceiling Price = RCOP +$6.00

Market Price (MP) = Average of reported prices + $2.00If MP< RCOP, then Base Price = MP + 50% (RCOP -

MP) If MP > RCOP, then Base Price = RCOP + 50% (MP - RCOP) Base Primal % = 56.5, higher % receive 

premiums, lower receive discounts Max Primal Premium = 4.5%, unlimited discounts Premium based on 56 

day Average of quoted market prices for primal cuts Outside 164-205-pound weight range, sort discount is 

reimbursed for primals of acceptable size Regional COP (RCOP) is regional grain basis and transportation 

differential

Premium/Discount Type: Sort See Schedule: 13 

Premium/Discount Type: Trim See Schedule: 11 

Determination of Base Price 596

All Reports Referenced

LM_HG207, 49-51% Weighted Average, Day of Delivery

LM_HG208, 49-51% Weighted Average, Day of Delivery

Other Terms

Floor Price = COP - $10.00Ceiling Price = COP + $10.00

Market Price (MP) = average of two reported markets If MP < COP, then Base Price = COP - 50% (COP-MP)

IF MP > COP, then Base Price = COP + 50% (MP - COP) Cost of Production (COP) based on regional standard 

hog production assumptions

Premium/Discount Type: Sort See Schedule: 86 

Premium/Discount Type: Trim See Schedule: 87 

Premium/Discount Type: Contract Premium, $2.00 

Premium/Discount Type: Supplier Program - Compliance Bonus, $2.00 
Swine Packer Marketing Contract Summary - Eastern Cornbelt

Other Purchase Arrangement

Page 14 of 15

Determination of Base Price 598

All Reports Referenced

LM_HG207, 49-51% Weighted Average, Day of Delivery

LM_HG208, 49-51% Weighted Average, Day of Delivery

Other Terms

Floor Price = COP - $12.00Ceiling Price = COP + $12.00

Market Price (MP) = average of two reported markets If MP < COP, then Base Price = COP - 50% (COP-MP)

IF MP > COP, then Base Price = COP + 50% (MP - COP) Cost of Production (COP) based on regional standard 

hog production assumptions

Premium/Discount Type: Sort See Schedule: 86 

Premium/Discount Type: Trim See Schedule: 87 

Premium/Discount Type: Supplier Program - Compliance Bonus, $3.00 

Determination of Base Price 1389

All Reports Referenced

LM_HG207, Swine or Pork Market Weighted Average, Day of Delivery

LM_HG208, Swine or Pork Market Price, Day of Delivery

Other Terms

Floor Price = Matrix Price - $12.50Ceiling Price = Matrix Price + $5.50

Base Live Price = (ECB SPMF + WCB SPMF)/2 + Contract Premium if Base Live Price < Floor Price, then 

Final Price = Floor Price + 50% (Floor Price - Base Price) + Antibiotic Premium + Carcass Merit Adjustment if

Base Price > Ceiling Price, then Final Price = Ceiling Price + 50% (Base Price - Ceiling Price) + Antibiotic 

Premium + Carcass Merit Adjustment if Base Price > Floor Price and < Ceiling Price, then Final Price = Base 

Price + Antibiotic Premium + Carcass Merit Adjustment

Premium/Discount Type: Sort See Schedule: 227 

Premium/Discount Type: Antibiotic Free$7.50 

Premium/Discount Type: Contract Premium, $2.00 

Determination of Base Price 601

All Reports Referenced

LM_HG208, 49-51% Weighted Average, Day of Delivery

Other Terms

Floor Price = COP - $10Ceiling Price = COP + $10

 If Market Price (MP) < COP, then Base Price = COP - 50% (COP-MP) IF MP > COP, the Base Price = COP + 

50% (MP - COP) Cost of Production (COP) based on regional standard hog production assumptions

Premium/Discount Type: Sort See Schedule: 86 

Premium/Discount Type: Trim See Schedule: 87 

Premium/Discount Type: Contract Premium, $1.00 

Premium/Discount Type: Supplier Program - Compliance Bonus, $2.00 
Swine Packer Marketing Contract Summary - Eastern Cornbelt

Other Purchase Arrangement

Page 15 of 15

Determination of Base Price 592

All Reports Referenced

LM_HG212, 49-51% lean, Day of Delivery

Other Terms

Floor Price = COP - $8.00Ceiling Price = COP + $8.00

First specified volume delivered per delivery period, priced as risk share If Market Price (MP) < COP, then 

Base Price = COP - 50% (COP-MP) IF MP > COP, the Base Price = COP + 50% (MP - COP). Next specified 

volume and any excess deliveries priced on market. Base Price = MP. Deliver period is one week. Final Price = 

Base Price + Carcass Merit Adjustment Cost of Production (COP) based on regional standard hog production 

assumptions.

Premium/Discount Type: Compliance Program - Meet Target Weight$2.00 

Premium/Discount Type: Sort See Schedule: 86 

Premium/Discount Type: Trim See Schedule: 87 

Premium/Discount Type: Supplier Program - Compliance Bonus, $3.00 

Premium/Discount Type: Contract Premium, $1.50 

Determination of Base Price 1179

All Reports Referenced

Decatur SBM, Soybean Meal, Average - 6 months prior to delivery

Fostoria Corn, Cash Corn, Average - 6 months prior to delivery

Fostoria SBM, Soybean Meal, Average - 6 months prior to delivery

Lima Corn, Cash Corn, Average - 6 months prior to delivery

Sidney SBM, Soybean Meal, Average - 6 months prior to delivery

Other Terms

Final Live Price = 49.95 + {[(Lima Corn + Fostoria Corn)/2 +0.15 - 2.50] x 4} + {[(Decatur SBM + Sidney 

SBM + Fostoria SBM)/3 + 10.00 - 250] x 0.022 

Determination of Base Price 341

All Reports Referenced

Plant Base, Day of Delivery

Other Terms

Floor Price: 47Ceiling Price: 53If Plant Price < Floor Price (FP), then Base Price = $50.00 + 50% ($47 - Plant 

Price) If Plant Price> Ceiling Price (CP), then Base Price = $50.00 + 50% (Plant Price - $53)

If Plant Price > Floor Price and < Ceiling Price, then Base Price = $50.00

Premium/Discount Type: Sort See Schedule: 6