I 
116TH CONGRESS 
2D SESSION 
H. R. 7501 
To amend the Agricultural Marketing Act of 1946 to foster efficient markets 
and increase competition and transparency among packers that purchase 
livestock from producers. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 9, 2020 
Mrs. AXNE (for herself, Ms. FINKENAUER, and Mr. LOEBSACK) introduced 
the following bill; which was referred to the Committee on Agriculture 
A BILL 
To amend the Agricultural Marketing Act of 1946 to foster 
efficient markets and increase competition and trans-
parency among packers that purchase livestock from pro-
ducers. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SPOT MARKET PURCHASES OF LIVESTOCK BY 
PACKERS. 
Chapter 5 of subtitle B of the Agricultural Marketing 
Act of 1946 (7 U.S.C. 1636 et seq.) is amended— 
(1) by redesignating section 260 (7 U.S.C. 
1636i) as section 261; and 
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(2) by inserting after section 259 the following: 
‘‘SEC. 260. SPOT MARKET PURCHASES OF LIVESTOCK BY 
PACKERS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) COVERED PACKER.— 
‘‘(A) IN
GENERAL.—The term ‘covered 
packer’ means a packer that is required under 
this subtitle to report to the Secretary each re-
porting day information on the price and quan-
tity of livestock purchased by the packer. 
‘‘(B) EXCLUSION.—The term ‘covered 
packer’ does not include a packer that owns 
only 1 livestock processing plant. 
‘‘(2) LIVESTOCK.—The term ‘livestock’ does not 
include— 
‘‘(A) pork; 
‘‘(B) poultry; 
‘‘(C) a dairy-bred, dairy-bred cross, or beef 
animal over 30 months of age; or 
‘‘(D) a foreign-born beef animal. 
‘‘(3) NONAFFILIATED
PRODUCER.—The term 
‘nonaffiliated producer’ means a producer of live-
stock— 
‘‘(A) that sells livestock to a packer; 
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‘‘(B) that has less than 1 percent equity 
interest in the packer, which packer has less 
than 1 percent equity interest in the producer; 
‘‘(C) that has no officers, directors, em-
ployees, or owners that are officers, directors, 
employees, or owners of the packer; 
‘‘(D) that has no fiduciary responsibility to 
the packer; and 
‘‘(E) in which the packer has no equity in-
terest. 
‘‘(4) SPOT MARKET SALE.— 
‘‘(A) IN GENERAL.—The term ‘spot mar-
ket sale’ means a purchase and sale of livestock 
by a packer from a producer— 
‘‘(i) under an agreement that specifies 
a firm base price that may be equated with 
a fixed dollar amount on the date the 
agreement is entered into; 
‘‘(ii) under which the livestock are 
slaughtered not more than 14 days after 
the date on which the agreement is entered 
into; and 
‘‘(iii) under circumstances in which a 
reasonable competitive bidding opportunity 
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exists on the date on which the agreement 
is entered into. 
‘‘(B) REASONABLE COMPETITIVE BIDDING 
OPPORTUNITY.—For the purposes of subpara-
graph (A)(iii), circumstances in which a reason-
able competitive bidding opportunity shall be 
considered to exist if— 
‘‘(i) no written or oral agreement pre-
cludes the producer from soliciting or re-
ceiving bids from other packers; and 
‘‘(ii) no circumstance, custom, or 
practice exists that— 
‘‘(I) establishes the existence of 
an implied contract (as determined in 
accordance with the Uniform Com-
mercial Code); and 
‘‘(II) precludes the producer from 
soliciting or receiving bids from other 
packers. 
‘‘(b) GENERAL RULE.—Of the quantity of livestock 
that is slaughtered by a covered packer during each re-
porting week in each plant, the covered packer shall 
slaughter not less than 50 percent of the quantity through 
spot market sales from nonaffiliated producers. 
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