This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

26695 

Vol. 87, No. 87 

Thursday, May 5, 2022 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

9 CFR Parts 201 and 203 

[Doc. No. AMS–FTPP–21–0015] 

RIN 0581–AE01 

Preserving Trust Benefits Under the 

Packers and Stockyards Act 

AGENCY: Agricultural Marketing Service, 

Department of Agriculture (USDA). 

ACTION: Proposed rule; request for 

comments. 

SUMMARY: The Agricultural Marketing 

Service (AMS) proposes to revise the 

regulations providing instructions for 

livestock sellers and live poultry sellers 

or growers who desire to preserve their 

interest in statutory trusts under the 

Packers and Stockyards Act (Act). The 

proposed revisions would add 

procedures and timeframes for a 

livestock seller to notify the livestock 

dealer and the Secretary of Agriculture 

that the seller has not received full 

payment for livestock purchased by the 

dealer and that the seller intends to 

preserve its trust interests. Additionally, 

under this proposed rule, livestock 

dealers with average annual purchases 

over $100,000 would be required to 

obtain written acknowledgement from 

livestock sellers that trust benefits do 

not pertain to credit sales and would be 

required to maintain records related to 

credit sales. The proposed revisions to 

the Packers and Stockyards regulations 

reflect recent amendments to the Act 

that provide for a livestock dealer trust. 

DATES: Comments received by June 6, 

2022 will be considered prior to 

issuance of a final rule. Pursuant to the 

Paperwork Reduction Act (PRA), 

comments on the information collection 

burden must be received by July 5, 

2022. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposed rule. All 

comments must be submitted through 

the Federal e-rulemaking portal at 

https://www.regulations.gov and should 

reference the document number and the 

date and page number of this issue of 

the Federal Register. All comments 

submitted in response to this proposed 

rule will be included in the record and 

will be made available to the public. 

Please be advised that the identity of the 

individuals or entities submitting 

comments will be made public on the 

internet at https://www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: S. 

Brett Offutt, Chief Legal Officer/Policy 

Advisor; Packers and Stockyards 

Division, USDA AMS Fair Trade 

Practices Program; phone: 202–690– 

4355; or email: S.Brett.Offutt@

ams.usda.gov. 

SUPPLEMENTARY INFORMATION: Section 

763 of the Consolidated Appropriations 

Act, 2021 (Pub. L. 116–260; December 

27, 2020), amended the Packers and 

Stockyards Act, 1921, as previously 

amended (7 U.S.C. 181 et seq.), by 

adding a new section 318 (7 U.S.C. 

217b) establishing a statutory trust for 

the benefit of unpaid cash sellers of 

livestock. 

Under the new trust provisions, 

livestock dealers whose average annual 

purchases of livestock exceed $100,000 

must hold all inventories of and 

receivables and proceeds from livestock 

purchased in cash sales in trust for the 

benefit of all unpaid cash sellers of that 

livestock until the cash sellers have 

been paid in full. Livestock sellers lose 

their interest in the trust unless they 

notify livestock dealers and the 

Secretary of Agriculture (Secretary) in 

writing that payment has not been 

received. Such notice must be provided 

within 30 days of the final date when 

payment was due or within 15 days of 

notice that a dealer’s payment 

instrument has been dishonored. 

The newly added section 318 of the 

Act further provides that the dealer trust 

provisions apply only to cash sales, 

which are defined in the statute as sales 

in which the seller does not expressly 

extend credit to the buyer. Thus, 

livestock sellers have no claim against 

the trust if they have extended credit to 

the buyer. 

Currently, § 203.15 of the Packers and 

Stockyards regulations outlines the 

process by which livestock sellers and 

live poultry sellers and growers preserve 

their interest in the packer and poultry 

trusts previously established under the 

Act (see 9 CFR 203.15). AMS proposes 

to revise § 203.15, which would 

continue to provide for preservation of 

trust benefits under the packer and 

poultry trusts, by adding the process by 

which livestock sellers can preserve 

their interests under the new livestock 

dealer trust. Sections 206, 207, and 318 

of the Act (7 U.S.C. 196, 197, 217b) 

require livestock sellers and poultry 

sellers or growers to notify packers, live 

poultry dealers, or livestock dealers and 

the Secretary in writing of their intent 

to preserve their trust benefits within 30 

days of the final day on which payment 

was due or within 15 days of receiving 

notice that the packer’s, live poultry 

dealer’s, or livestock dealer’s payment 

instrument was dishonored. 

Accordingly, the revised § 203.15 would 

outline how sellers and growers can 

comply with the statutory requirement. 

The written notification should state 

that notification is to preserve trust 

benefits; identify both parties in the 

transaction; and include the date of the 

transaction, the date notice was received 

that the payment instrument was 

dishonored (if applicable), and the 

amount of money due. Written 

notification may be by letter, fax, email, 

or other electronic transmission, 

preferably filed with the Packers and 

Stockyards Division of AMS. Section 

203.15 of the regulations still provides 

that while the written notification 

described above is preferred, any 

written notice to the buyer and the 

Secretary that the seller has not received 

full payment is sufficient to meet the 

statutory requirement if it is given 

within the prescribed timeframes. 

Finally, § 203.15 would be revised to 

include the statutory definition of a cash 

sale, meaning a sale in which the seller 

does not expressly extend credit to the 

buyer. 

Section 201.200 of the regulations 

currently prohibits packers whose 

average annual livestock purchases 

exceed $500,000 from entering into 

credit agreements with livestock sellers 

unless the packer obtains written 

acknowledgement from the seller that 

the seller has no trust rights with 

respect to each particular sale under a 

credit agreement. Under the proposed 

revisions for this rule, § 201.200 would 

also prohibit livestock dealers whose 

average annual livestock purchases 

exceed $100,000 from entering into 

credit agreements with livestock sellers 


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26696 Federal Register / Vol. 87, No. 87 / Thursday, May 5, 2022 / Proposed Rules 

1Office of the President, OMB. ‘‘North American 

Industry Classification System United States, 

2017,’’ pp. 336–337. https://www.census.gov/naics/ 

reference_files_tools/2017_NAICS_Manual.pdf. 

2 ‘‘Table of Small Business Size Standards 

Matched to North American Industry Classification 

System Codes,’’ Small Business Administration, 

effective August 19, 2019, p. 24. https://

www.sba.gov/sites/default/files/2019-08/ 

SBA%20Table%20of%20Size%20Standards_

Effective%20Aug%2019%2C%202019_Rev.pdf. 

3USDA, AMS. ‘‘Report Pursuant to Section 12103 

of the Agriculture Improvement Act of 2018: Study 

to Determine the Feasibility of Establishing a 

Livestock Dealer Statutory Trust.’’ December 20, 

2019, p. 39. https://www.ams.usda.gov/sites/ 

default/files/media/LivestockDealerStatutory

TrustSenttoCongress.pdf. 

4 ‘‘Table of Small Business Size Standards 

Matched to North American Industry Classification 

System Codes,’’ Small Business Administration, 

effective August 19, 2019, pp. 2–3. 

unless the purchasing dealer obtains 

written acknowledgement from the 

seller that the seller has no trust rights 

with respect to each particular sale 

under a credit agreement. The seller’s 

written acknowledgment statement 

would further provide that the credit 

agreement covers a single sale, remains 

in effect until a specified date, or 

remains in effect until it is canceled in 

writing by either party. The seller’s 

acknowledgement would be dated and 

signed by the seller. The purchasing 

livestock dealer would be required to 

maintain records of the 

acknowledgement, as well as all other 

documents related to the credit 

agreement, for as long as required by 

any law or by the AMS Administrator, 

but for no less than two years following 

the expiration of the credit agreement 

referred to in the acknowledgment. 

Finally, the purchasing dealer would be 

required to provide a copy of the 

acknowledgment to the seller. 

Average annual livestock purchase 

amount may be determined by 

information establishing actual yearly 

dealer purchases, or a dealer’s 

purchases as stated on its most recent 

annual report filed pursuant to the 

requirements of 9 CFR 201.97. Average 

annual livestock purchase amount may 

be determined for new dealers that have 

not operated for a year’s time and for 

dealers that have not filed an annual 

report in the prior two years, according 

to their actual livestock purchases for 

the current year to date, extrapolated to 

a yearly amount, if necessary. In 

general, the proposed new requirements 

for livestock dealers in § 201.200 are 

similar to the current requirements for 

packers who enter into credit 

agreements with livestock sellers. 

Regulatory Analyses 

Executive Orders 12866 and 13563 

AMS is issuing this proposed rule in 

conformance with Executive Orders 

(E.O.) 12866 and 13563, which direct 

agencies to assess all costs and benefits 

of available regulatory alternatives and, 

if regulations are necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety effects, distributive impacts, 

and equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, reducing costs, 

harmonizing rules, and promoting 

flexibility. 

AMS believes that the livestock 

industry is best served by revising the 

existing regulation at 9 CFR 203.15 that 

addresses preserving packer and poultry 

trust benefits under the Act to include 

provisions related to the new livestock 

dealer trust. The industry is already 

familiar with the notification process. 

AMS anticipates that additional costs or 

the adoption of new practices related to 

compliance with the proposed rule 

would be minimal. Livestock sellers can 

use the instructions in this proposed 

rule to most efficiently file notice with 

dealers and AMS of their intent to 

preserve trust benefits. However, this 

proposed rule would also provide 

flexibility because the proposed 

revisions allow that any written 

notification to dealers and the Secretary 

within the prescribed timeframes that 

the seller has not received full payment 

for livestock will meet the statutory 

requirement. Furthermore, AMS 

believes that including the statutory 

definition of ‘‘cash sale’’ in § 203.15 can 

help sellers better understand the 

conditions under which they can 

preserve their trust benefits. 

Regarding proposed revisions to 

§ 201.200, AMS believes that both 

buyers and sellers benefit when 

livestock dealers with more than 

$100,000 average annual purchases are 

required to obtain written 

acknowledgment from sellers that trust 

benefits do not extend to livestock 

purchases under credit terms, and to 

maintain all records related to such 

sales, including the written 

acknowledgement. Obtaining the 

written acknowledgement, as well as 

providing the seller with a copy of the 

written agreement and maintaining 

pertinent records, demonstrates that 

both parties understand the conditions 

of credit sales as they relate to dealer 

trust benefits. AMS does not expect the 

proposed rule to provide any 

environmental, public health, or safety 

benefits. 

This proposed rule does not meet the 

criteria of a significant regulatory action 

under E.O. 12866 as supplemented by 

E.O. 13563. Therefore, the Office of 

Management and Budget (OMB) has not 

reviewed this rule under those orders. 

Regulatory Flexibility Act 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (5 U.S.C. 

601 et seq.), AMS has considered the 

economic impact of this action on small 

business entities. 

The proposed rule would affect 

dealers that purchase more than 

$100,000 in cattle, hogs, sheep, goats, 

horses, or mules annually. It would also 

affect livestock producers, other dealers, 

and livestock auctions from which the 

dealers purchased livestock. 

The Small Business Administration 

(SBA) defines small businesses by their 

North American Industry Classification 

System (NAICS) codes. Livestock 

dealers and livestock auctions would be 

classified as NAICS code 424520— 

Livestock Merchant Wholesalers, which 

includes all livestock dealers except 

dealers in horses and mules, and code 

424590—Other Farm Product Raw 

Material Merchant Wholesalers.1 For 

both classifications, SBA defined a 

small business as one with 100 

employees or fewer.2

Livestock dealers, including livestock 

auctions, are required to register and file 

annual reports with AMS. In 2017 and 

2018, 3,015 livestock dealers purchased 

more than $100,000 in livestock for 

their own account or for the account of 

others.3 Livestock dealers do not 

disclose the number of employees in 

their annual reports, but based on its 

familiarity with the industry, AMS 

estimates at most three or four firms had 

more than 100 employees. At least 99.8 

percent would be small businesses 

under the SBA definition. 

Producers selling livestock would be 

classified as NAICS codes: 12111—Beef 

Cattle Ranching and Farming, 112210— 

Hog and Pig Farming, 112410—Sheep 

Farming, 112420—Goat Farming, and 

112920—Horses and Other Equine 

Production. For each producer 

classification, SBA defined a small 

business as one with $1 million or less 

in annual receipts.4

The 2017 Census of Agriculture 

categorizes cattle producers, hog 

producers, sheep and lamb producers, 

and horse and mule producers by the 

size of their operation. The Census of 

Agriculture tables categorize producers’ 

sales by number of head not the value 

of their receipts, but data from the tables 

enable AMS to make a rough estimate of 

the number of producers that would 

qualify as small businesses as defined 

by SBA. 

Census of Agriculture tables indicate 

that 711,827 farms reported sales of 

cattle or calves in 2017, of which 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 87, No. 87 / Thursday, May 5, 2022 / Proposed Rules 26697 

5USDA, National Agricultural Statistics Service 

(NASS). ‘‘2017 Census of Agriculture: United States 

Summary and State Data’’ Volume 1. April 2019, p. 

23. https://www.nass.usda.gov/Publications/ 

AgCensus/2017/Full_Report/Volume_1,_Chapter_1_

US/usv1.pdf. 

6 Ibid., p. 24. 

7 Ibid., p. 25. 

8 Ibid., p. 26. 

9 Department of Labor (USDOL), Bureau of Labor 

Statistics (BLS). Occupational Employment 

Statistics. ‘‘Occupational Employment and Wages, 

May 2020. 11–9013 Farmers, Ranchers, and Other 

Agricultural Managers.’’ https://www.bls.gov/oes/ 

current/oes119013.htm#nat. 

10USDA, AMS. ‘‘Report Pursuant to Section 

12103 of the Agriculture Improvement Act of 2018: 

Study to Determine the Feasibility of Establishing 

a Livestock Dealer Statutory Trust.’’ December 20, 

2019, p. 70. 

11USDA, AMS. ‘‘Report Pursuant to Section 

12103 of the Agriculture Improvement Act of 2018: 

Study to Determine the Feasibility of Establishing 

a Livestock Dealer Statutory Trust.’’ December 20, 

2019, p. 33. 

704,776 (99 percent) produced fewer 

than 1,000 head, averaged less than $1 

million in sales, and would be small 

businesses.5 Of the 64,871 hog farms 

reporting sales, the 57,084 farms (88 

percent) that produced fewer than 5,000 

head would qualify as small 

businesses.6 Of the 101,387 farms 

producing sheep and lambs, 101,280 

(99.9 percent) would qualify as small 

businesses.7 The Census of Agriculture 

reported 74,227 farms that sold horses. 

Of those, 74,065 (99.8 percent) sold 

fewer than 50 horses, averaged less than 

$1 million in sales, and would be 

considered small businesses. All the 

10,435 farms that sold donkeys or mules 

were small businesses.8 The Census did 

not have sales information for goat 

producers. 

More than 99 percent of the cattle, 

sheep and lamb, horse, and mule 

producers were small businesses. Hog 

production was more concentrated, with 

only 88 percent qualifying as small 

businesses. As group, these livestock 

producers were about 98.5 percent small 

businesses. 

The proposed rule has two new 

provisions that affect small businesses: 

(1) The rule outlines how sellers can 

comply with the statutory requirement 

of providing written notification to 

dealers and to the Secretary if they wish 

to preserve their rights to the dealer 

trust, and (2) the rule requires dealers to 

obtain written acknowledgement from 

the seller that the seller waives their 

rights to the trust with respect to each 

particular sale under a credit agreement. 

The costs of filing a trust claim would 

only apply to livestock sellers. There are 

few requirements. The cost would be 

the value of the time required to write 

and send the notification. AMS expects 

writing and sending the notification 

would require no more than a half hour 

of a manager’s time. The U.S. Bureau of 

Labor Statistics estimated the average 

hourly wage for farmers, ranchers, and 

other agricultural managers to be 

$36.93.9 If it takes one half hour to file 

the claim, filing the claim would cost 

$18.47. 

In a review of dealer bond claims filed 

with AMS from October 2013 through 

June 2019, AMS found claims against 82 

dealers from 184 claimants.10 If sellers 

file trust claims at a similar rate as they 

have filed bond claims in the past, AMS 

could expect 14.5 incidents in which 

one or more sellers makes a valid claim 

against a dealer’s trust each year, with 

an average of 2.25 claimants for each 

trust incident, or 33 claimants per year. 

At a cost of $18.47 for each claim, AMS 

expects annual costs to the industry to 

be $609.51. Since nearly all livestock 

producers and livestock dealers who 

might sell livestock to other dealers are 

small business entities, AMS expects 

that nearly all of the claimants would be 

small businesses. 

The cost of obtaining a written waiver 

acknowledgement from the seller would 

only apply to livestock dealers. AMS 

provides sample wording for the 

acknowledgment and expects that 

obtaining written acknowledgment from 

the seller would take no more than a 

half hour of a dealer’s time, or $18.47 

for each acknowledgement. 

AMS has no data on the number of 

dealers that purchase livestock with 

credit agreements, or the number of 

trust waiver acknowledgements dealers 

obtain from sellers and maintain. AMS’s 

experience has been that the number of 

sellers acknowledging they waive their 

trust rights is relatively small. Sellers 

are reluctant to extend credit because 

they would be required to give up their 

rights to file trust claims or they have 

not had the financial resources to 

extend credit. With packer trusts, 

packers typically have not created 

separate trust waiver acknowledgements 

for each transaction. Instead, the waiver 

acknowledgments tend to cover a 

number of transactions over a period of 

time, limiting the number of written 

trust waivers required. 

Regarding dealer trusts, AMS expects 

that relatively few sellers would enter 

into credit agreements requiring trust 

waiver acknowledgments. However, if a 

dealer must obtain waiver 

acknowledgments according to 

proposed § 201.200, AMS expects that 

the dealer would limit the number of 

waiver acknowledgments by having a 

single waiver acknowledgment cover a 

number of transactions over a period of 

time. AMS estimates that at most, ten 

percent (302) of the 3,015 dealers that 

average annual purchases of more than 

$100,000 in livestock would have credit 

agreements that require trust waiver 

acknowledgements. Dealers that 

purchase livestock with credit 

agreements may also purchase other 

livestock through cash sales, for which 

they are not required to obtain trust 

waiver acknowledgements from sellers. 

AMS estimates that each dealer that 

purchases livestock with credit and 

obtains trust waivers from sellers will 

only do so with an average of five 

customers in a year. That amounts to a 

total cost of $27,890 for all of the 

expected trust waivers (302 dealers × 5 

waivers/dealer × $18.47/waiver). 

The costs would not be spread 

uniformly across dealers. Dealers that 

do not enter into credit agreements 

would have no costs. Only the estimated 

ten percent of dealers that purchase 

livestock under a credit agreement with 

the seller would need trust waiver 

acknowledgments. The cost would 

average $92 for each dealer that 

purchases livestock with a credit 

agreement, which is about 0.1 percent of 

the minimum amount ($100,000) of 

average annual livestock purchases that 

makes a dealer responsible for obtaining 

waiver acknowledgments from credit 

sellers. Costs would likely be correlated 

with the size of the dealer: Smaller 

dealers that purchase livestock on credit 

from fewer sellers would have fewer 

trust waiver acknowledgements. 

AMS expects total marginal costs for 

the two provisions to be $28,599. Small 

businesses would be responsible for 

nearly all of the costs. In 2017 and 2018, 

livestock dealers that purchased more 

than $100,000 in a year purchased a 

yearly total of $27.065 billion in 

livestock.11 Compared to the amount of 

business that livestock dealers conduct, 

an annual cost of $28,599 is 0.00011 

percent of total dealer livestock 

purchases. Accordingly, AMS has 

determined that this action would not 

have a significant negative economic 

impact on a substantial number of these 

small business entities. 

Paperwork Reduction Act 

In accordance with the PRA (44 

U.S.C. Chapter 35), the information 

requirements under the regulations have 

been approved previously by OMB and 

assigned OMB No. 0581–0308. Changes 

are necessary in those requirements as 

a result of this proposed rule. 

Title: Preserving Trust Benefits Under 

the Packers and Stockyards Act. 

OMB Number: 0581–NEW. 

Expiration Date of Approval: 3 years 

from approval. 


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26698 Federal Register / Vol. 87, No. 87 / Thursday, May 5, 2022 / Proposed Rules 

Type of Request: Intent to seek 

approval to conduct a new information 

collection. 

Abstract: The Packers and Stockyards 

Act, 1921 (Act) (7 U.S.C. 181 et seq.), 

was recently amended by the addition 

of section 318 (7 U.S.C. 217b), 

establishing a statutory trust for the 

benefit of unpaid cash sellers of 

livestock. Under the amended Act, 

livestock dealers whose average annual 

purchases of livestock exceed $100,000 

must hold all inventories of and 

receivables and proceeds from livestock 

purchased in cash sales in trust for the 

benefit of all unpaid cash sellers of that 

livestock until the cash sellers have 

been paid in full. 

Under the new statutory trust 

provisions, livestock sellers lose their 

interest in the trust unless they notify 

livestock dealers and the Secretary of 

Agriculture (Secretary) in writing that 

payment has not been received. Such 

notice must be provided within 30 days 

of the final date when payment was due 

or within 15 days of notice that a 

dealer’s payment instrument has been 

dishonored. The statute further provides 

that trust provisions apply only to cash 

sales, which are defined in the statute 

as sales in which the seller does not 

expressly extend credit to the buyer. 

Thus, livestock sellers have no claim 

against the trust if they have extended 

credit to the buyer. 

AMS seeks approval for a new 

information collection related to the 

livestock dealer trust to implement new 

regulatory requirements. Livestock 

dealers who purchase livestock under 

credit terms and whose average annual 

purchases of livestock exceed $100,000 

must obtain written acknowledgements 

from sellers that trust benefits do not 

pertain to credit sales. Dealers must 

provide copies of the 

acknowledgements to sellers and must 

retain the acknowledgements for two 

years after the expiration of the subject 

credit agreements. Additionally, a 

livestock seller who has not received 

payment in full for cash livestock sales 

must notify both the dealer and the 

Secretary of Agriculture in writing and 

within specified timeframes that the 

seller has not received full payment and 

intends to preserve their interest in the 

dealer trust. Providing such notice to 

the Secretary will enable USDA to 

initiate enforcement investigations and 

further actions as necessary. 

Authority: 

• In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35) and 

• The Packers and Stockyards Act, 

1921 (7 U.S.C. 181 et seq.), as amended. 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 15 to 30 minutes. 

Respondents: Livestock dealers and 

sellers. 

Estimated Number of Potential 

Respondents: 335. 

Estimated Total Potential Annual 

Responses: 1,845. 

Maximum Estimated Total Annual 

Burden on All Respondents: 847 hours. 

Comments are invited on: (1) Whether 

the proposed collection of information 

is necessary for the proper performance 

of the functions of the agency, including 

whether the information will have 

practical utility; (2) the accuracy of the 

agency’s estimate of the burden of the 

proposed collection of information, 

including the validity of the 

methodology and assumptions used; (3) 

ways to enhance the quality, utility, and 

clarity of the information to be 

collected; and (4) ways to minimize the 

burden of the collection of information 

on those who are to respond, including 

the use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology. 

Comments may be sent to the following 

address: 

• Internet: www.regulations.gov. 

All written comments should be 

identified with the docket number 

AMS–FTPP–21–0015 and should 

reference the date and this issue of the 

Federal Register. All comments will be 

posted on the internet and available for 

viewing at www.regulations.gov. 

All responses to this notice will be 

summarized and included in the request 

for OMB approval. All comments will 

become a matter of public record. 

Upon approval by OMB, this 

information collection would be merged 

with the information collection 

currently approved for the Packers and 

Stockyards Division—OMB No. 0581– 

0308. 

Reports and forms are periodically 

reviewed to reduce information 

requirements and duplication by 

industry and public sector agencies. 

Should additional changes become 

necessary, they would be submitted to 

OMB for approval. 

Congressional Review Act 

Pursuant to the Congressional Review 

Act (5 U.S.C. 801 et seq.), the Office of 

Information and Regulatory Affairs 

designated this proposed rule as not a 

major rule as defined by 5 U.S.C. 804(2). 

E-Government Act 

USDA is committed to complying 

with the E-Government Act (44 U.S.C. 

3601 et seq.) by promoting the use of the 

internet and other information 

technologies to provide increased 

opportunities for citizen access to 

Government information and services, 

and for other purposes. 

Executive Order 13175 

This proposed rule has been reviewed 

under E.O. 13175—Consultation and 

Coordination with Indian Tribal 

Governments, which requires agencies 

to consider whether their rulemaking 

actions would have tribal implications. 

AMS has determined that this proposed 

rule is unlikely to have substantial 

direct effects on one or more Indian 

tribes, on the relationship between the 

Federal Government and Indian tribes, 

or on the distribution of power and 

responsibilities between the Federal 

Government and Indian tribes. 

Executive Order 12988 

This proposed rule has been reviewed 

under E.O. 12988, Civil Justice Reform. 

It is not intended to have retroactive 

effect. There are no administrative 

procedures that must be exhausted prior 

to judicial challenge to the provisions of 

this proposed rule. 

A 30-day comment period is provided 

to allow interested persons to respond 

to this proposal. Comments are due June 

6, 2022. All comments submitted by the 

deadline will be considered before 

finalizing this proposed rule. 

Additional regulations pertaining to 

the new livestock dealer trust will be 

considered in a separate rulemaking 

action. 

List of Subjects 

9 CFR Part 201 

Confidential business information, 

Reporting and recordkeeping 

requirements, Stockyards, Surety bonds, 

Trade practices. 

9 CFR Part 203 

Reporting and recordkeeping 

requirements, Stockyards. 

For the reasons set forth in the 

preamble, AMS proposes to amend 9 

CFR chapter II as follows: 

PART 201—ADMINISTERING THE 

PACKERS AND STOCKYARDS ACT 

■ 1. The authority citation for 9 CFR 

part 201 continues to read as follows: 

Authority: 7 U.S.C. 181–229c. 

■ 2. Amend § 201.200 by: 

■ a. Revising the section heading; 

■ b. Redesignating paragraphs (b) and 

(c) as paragraphs (c) and (d), 

respectively; 

■ c. Adding new paragraph (b); 

■ d. Revising newly redesignated 

paragraph (c); and 


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Federal Register / Vol. 87, No. 87 / Thursday, May 5, 2022 / Proposed Rules 26699 

■ e. Removing the parenthetical 

authority at the end of the section. 

The revisions and addition read as 

follows: 

§ 201.200 Sale of livestock on credit. 

* * * * * 

(b) No dealer whose average annual 

purchases of livestock exceed $100,000 

shall purchase livestock on credit 

unless: 

(1) Before purchasing livestock on 

credit, the dealer obtains from the seller 

a written acknowledgement that 

includes the information described in 

this paragraph (b)(1). 

(i) The following statement: 

On this date I am entering into a 

written agreement for the sale of 

livestock on credit toll, a dealer, and 

I understand that in doing so I will have 

no rights under the trust provisions of 

section 318 of the Packers and 

Stockyards Act, 1921, as amended (7 

U.S.C. 217b), with respect to any such 

credit sale. 

(ii) A statement about whether the 

credit sales agreement covers a single 

sale; covers multiple sales and remains 

in effect through a certain date and 

states the date; or remains in effect until 

canceled in writing by either party. 

(iii) The date the seller signed the 

agreement. 

(iv) The seller’s signature. 

(2) The dealer retains the written 

acknowledgment, together with all other 

documents, if any, setting forth the 

terms of credit sales on which the 

purchaser and seller have agreed, and 

the dealer retains a copy thereof, in their 

records for such time as is required by 

any law, or by written notice served on 

the dealer by the Administrator, but not 

less than two calendar years from the 

date of expiration of the written 

agreement referred to in the 

acknowledgment. 

(3) The dealer provides a copy of the 

acknowledgment to the seller. 

(c) Purchasing livestock for which 

payment is to be made by a draft which 

is not a check shall constitute 

purchasing such livestock on credit 

within the meaning of paragraphs (a) 

and (b) of this section. (See also 

§ 201.43(b)(1).) 

* * * * * 

PART 203—STATEMENTS OF 

GENERAL POLICY UNDER THE 

PACKERS AND STOCKYARDS ACT 

■ 3. The authority for 9 CFR part 203 

continues to read as follows: 

Authority: 7 CFR 2.22 and 2.81. 

■ 4. Revise § 203.15 to read as follows: 

§ 203.15 Trust benefits under sections 206, 

207, and 318 of the Packers and Stockyards 

Act. 

(a) Within the times specified under 

sections 206(b), 207(d), and 318(b) of 

the Act, any livestock seller, live poultry 

seller or grower, to preserve their 

interest in the statutory trust, must give 

written notice to the appropriate packer, 

live poultry dealer, or livestock dealer 

and file such notice with the Secretary 

within the prescribed time by letter, fax, 

email, or other electronic transmission. 

The written notice should provide: 

(1) Notification to preserve trust 

benefits: 

(2) Identification of packer, live 

poultry dealer, or livestock dealer; 

(3) Identification of seller or poultry 

grower; 

(4) Date of the transaction; 

(5) Date of seller’s or poultry grower’s 

receipt of notice that payment 

instrument has been dishonored (if 

applicable); and 

(6) Amount of money due; and to 

make certain that a copy of such letter, 

fax, email, or other electronic 

transmission is filed with a PSD 

regional office or with the PSD 

headquarters office within the 

prescribed time. 

(b) While the information in 

paragraphs (a)(1) through (6) of this 

section is desirable, any written notice 

which informs the packer, live poultry 

dealer, or livestock dealer, and the 

Secretary that the packer, live poultry 

dealer, or livestock dealer has failed to 

pay is sufficient to meet the statutory 

requirement in paragraph (a) of this 

section if it is given within the 

prescribed time. 

(c) For purposes of administering 

statutory trusts under the Act, a cash 

sale means a sale in which the seller 

does not expressly extend credit to the 

buyer. 

(Approved by the Office of Management 

and Budget under control number 0581– 

0308) 

Erin Morris, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2022–09485 Filed 5–4–22; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2022–0469; Project 

Identifier MCAI–2021–00124–Q] 

RIN 2120–AA64 

Airworthiness Directives; Cameron 

Balloons Ltd. Burner Assemblies 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: The FAA proposes to adopt a 

new airworthiness directive (AD) for 

certain Cameron Balloons Ltd. 

(Cameron) Stratus double burner 

assemblies installed on hot air balloons. 

This proposed AD was prompted by 

reports from mandatory continuing 

airworthiness information (MCAI) 

originated by an aviation authority of 

another country to identify and correct 

an unsafe condition on an aviation 

product. The MCAI identifies the unsafe 

condition as fatigue cracking of the weld 

on Stratus double burner hangers. This 

proposed AD would require repetitively 

inspecting certain Stratus double burner 

hangers and replacing certain Stratus 

double burners, and would prohibit 

installing certain parts. The FAA is 

proposing this AD to address the unsafe 

condition on these products. 

DATES: The FAA must receive comments 

on this proposed AD by June 21, 2022. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

https://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: (202) 493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

• Hand Delivery: Deliver to Mail 

address above between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

For service information identified in 

this proposed AD, contact Cameron 

Balloons Ltd., St Johns Street, 

Bedminster, Bristol, BS3 4NH, United 

Kingdom; phone: +44 0 117 9637216; 

email: technical@

cameronballoons.co.uk; website: 

https://www.cameronballoons.co.uk. 

You may view this service information 

at the FAA, Airworthiness Products 

Section, Operational Safety Branch, 901 


lotter on DSK11XQN23PROD with PROPOSALS1