Farm System Reform Act of 2021
Bill: H.R.4421 | Sponsor: Rep. Khanna, Ro (D-CA)
Policy area: Agriculture and Food

Summary:
Farm System Reform Act of 2021
This bill places a moratorium on large concentrated animal feeding operations; requires country-of-origin labeling for beef, pork, and dairy products; and otherwise revises provisions related to the marketing of livestock, poultry, and meat.

To place a moratorium on large concentrated animal feeding operations, 
to strengthen the Packers and Stockyards Act, 1921, to require country 
  of origin labeling on beef, pork, and dairy products, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Farm System Reform 
Act of 2021''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
                   TITLE I--ANIMAL FEEDING OPERATIONS

Sec. 101. Definitions.
Sec. 102. Moratorium on large concentrated animal feeding operations.
Sec. 103. Voluntary debt forgiveness and transition assistance program 
                            for animal feeding operations.
Sec. 104. Integrator responsibilities and liabilities.
        TITLE II--AMENDMENTS TO PACKERS AND STOCKYARDS ACT, 1921

Sec. 201. Definitions.
Sec. 202. Unlawful practices.
Sec. 203. Spot market purchases of livestock by packers.
Sec. 204. Investigation of live poultry dealers.
Sec. 205. Award of attorney fees.
Sec. 206. Technical amendments.
             TITLE III--LABELING OF MEAT AND DAIRY PRODUCTS

Sec. 301. Restoration of mandatory country of origin labeling for beef 
                            and pork; inclusion of dairy products.
Sec. 302. Truth in labeling for meat and meat food products.

SEC. 2. DEFINITION OF SECRETARY.

    In this Act, the term ``Secretary'' means the Secretary of 
Agriculture.

                   TITLE I--ANIMAL FEEDING OPERATIONS

SEC. 101. DEFINITIONS.

    In this title:
            (1) Agronomic requirement.--
                    (A) In general.--The term ``agronomic requirement'' 
                means the quantity of nutrient necessary to achieve a 
                reasonable yield goal for a crop, as determined based 
                on land grant university fertility rates, soil testing 
                for available nutrients, manure analysis, and other 
                planned nutrient applications.
                    (B) Exclusions.--Planned nutrient applications 
                under subparagraph (A) do not include nutrient indices, 
                risk indices, or other methods that allow land 
                application of manure in excess of crop need.
            (2) Animal feeding operation; afo.--
                    (A) In general.--The term ``animal feeding 
                operation'' or ``AFO'' means a lot or facility at 
                which--
                            (i) for not less than a total of 45 days in 
                        any 12-month period, animals (other than 
                        aquatic animals) are--
                                    (I) stabled or confined; and
                                    (II) fed or maintained; and
                            (ii) crops, vegetation, forage growth, or 
                        postharvest residues are not sustained in the 
                        normal growing season over any portion of the 
                        lot or facility.
                    (B) Aggregation.--2 or more lots or facilities 
                described in subparagraph (A) shall constitute a single 
                animal feeding operation if the lots or facilities--
                            (i) are located within 3 miles of each 
                        other; and
                            (ii) are under common ownership or control.
                    (C) Exclusion.--The term ``animal feeding 
                operation'' or ``AFO'' does not include a stockyard (as 
                that term is defined in section 302(a) of the Packers 
                and Stockyards Act, 1921 (7 U.S.C. 202(a))).
            (3) Large concentrated animal feeding operation; large 
        cafo.--The term ``large concentrated animal feeding operation'' 
        or ``large CAFO'' means an AFO at which are present not less 
        than--
                    (A) 700 mature dairy cows, milked or dry;
                    (B) 1,000 veal calves;
                    (C) 1,000 cattle (including heifers, steers, bulls, 
                cows, and calves) other than mature dairy cows or veal 
                calves;
                    (D) 2,500 swine, each weighing not less than 55 
                pounds;
                    (E) 10,000 swine, each weighing not more than 55 
                pounds;
                    (F) 500 horses;
                    (G) 10,000 sheep or lambs;
                    (H) 55,000 turkeys;
                    (I) in the case of an AFO that uses a liquid manure 
                handling system--
                            (i) 30,000 laying hens or broilers; or
                            (ii) 5,000 ducks; or
                    (J) in the case of an AFO that uses a system other 
                than a liquid manure handling system--
                            (i) 125,000 chickens (other than laying 
                        hens);
                            (ii) 82,000 laying hens; or
                            (iii) 30,000 ducks.
            (4) Contract grower.--The term ``contract grower'' means an 
        owner of an AFO that raises livestock or poultry pursuant to a 
        written contract, marketing arrangement, or other arrangement 
        with an integrator.
            (5) Integrator.--The term ``integrator'' means an 
        individual or entity that contracts with a contract grower 
        under a growout contract, marketing arrangement, or other 
        arrangement under which the contract grower raises and cares 
        for livestock or poultry at an AFO in accordance with the 
        instructions of the integrator for the purpose of slaughtering 
        the livestock or poultry or selling the livestock or poultry 
        for slaughter, if the livestock or poultry is sold or shipped 
        in commerce (as described in section 2(b) of the Packers and 
        Stockyards Act, 1921 (7 U.S.C. 183)).
            (6) Manure.--The term ``manure'' means--
                    (A) the fecal and urinary excretions of livestock 
                and poultry; and
                    (B) litter, bedding, compost and raw materials, 
                process wastewater, and other materials commingled with 
                the excretions described in subparagraph (A) or set 
                aside for disposal after such commingling.

SEC. 102. MORATORIUM ON LARGE CONCENTRATED ANIMAL FEEDING OPERATIONS.

    (a) In General.--No large CAFO may commence or expand operations on 
or after the date of enactment of this Act.
    (b) Cessation of Operations.--No large CAFO may continue to operate 
as a large CAFO after January 1, 2040.
    (c) Penalties.--Any person that violates subsection (a) or (b) may 
be assessed a civil penalty of up to $10,000 per violation, per day, in 
addition to any other applicable statutory civil penalty or monetary 
damages assessed pursuant to any State common law judgment.

SEC. 103. VOLUNTARY DEBT FORGIVENESS AND TRANSITION ASSISTANCE PROGRAM 
              FOR ANIMAL FEEDING OPERATIONS.

    (a) Definition of Eligible Entity.--
            (1) In general.--In this section, the term ``eligible 
        entity'' means an owner of an AFO.
            (2) Exclusion.--In this section, the term ``eligible 
        entity'' does not include an owner of an AFO that is an 
        integrator.
    (b) Establishment.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall carry out a program to 
provide grants to eligible entities to permanently transition from 
operating an AFO to carrying out other activities on the property on 
which the AFO is located.
    (c) Payments.--Under the program established under subsection (b), 
the Secretary shall provide grants to eligible entities--
            (1) to partially or fully pay off any outstanding debt of 
        the eligible entity that was incurred to construct and operate 
        the AFO; and
            (2) to cover costs relating to the transition of the 
        property on which the AFO is located to be used for alternative 
        agriculture activities, such as raising pasture-based 
        livestock, growing specialty crops, or organic commodity 
        production.
    (d) Requirement.--As a condition of receiving a grant under this 
section, an eligible entity shall provide to the Secretary a working 
lands easement on the property on which the AFO is located that 
prohibits--
            (1) the operation of the AFO and any associated waste 
        management system on the easement area; and
            (2) the use of the easement area for a spray field or land 
        application of manure at rates exceeding crop agronomic 
        requirements for nitrogen and phosphorus.
    (e) Funding.--
            (1) In general.--On the first October 1 after the date of 
        enactment of this Act, and on each October 1 thereafter, out of 
        any funds in the Treasury not otherwise appropriated, the 
        Secretary of the Treasury shall transfer to the Secretary to 
        carry out this section $10,000,000,000, to remain available 
        until expended.
            (2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.

SEC. 104. INTEGRATOR RESPONSIBILITIES AND LIABILITIES.

    (a) Responsibilities and Liabilities.--
            (1) In general.--An integrator that exercises substantial 
        operational control of an AFO, as described in subsection (b), 
        shall be responsible and liable for, with respect to the 
        operation of the AFO--
                    (A) the disposal of dead animals;
                    (B) the disposal of manure, excrement, and other 
                waste;
                    (C) the discharge or release of any air pollutant, 
                including greenhouse gases, from any source located on 
                or activity occurring at the AFO, including enteric 
                processes, manure, and animal feed;
                    (D) the discharge of any pollutant to groundwater 
                or any surface water body, including the production 
                area, manure storage, manure land application area 
                (crop field), tile drain, and agricultural stormwater 
                runoff of the AFO;
                    (E) any harm suffered by the contract grower of the 
                AFO or a third party from any activity described in 
                subparagraphs (A) through (D), or from any other on-
                property or off-property contamination, including 
                following an extreme weather event; and
                    (F) any adverse health impacts, property value 
                diminution, and loss of use and enjoyment of property 
                suffered by neighboring residents of the AFO due to the 
                operation of the AFO.
            (2) Duties not transferable.--The responsibilities and 
        liabilities of an integrator under this subsection shall be 
        nondelegable and nontransferrable to any third party, including 
        any contract grower.
    (b) Substantial Operational Control.--An integrator exercises 
substantial operational control of an AFO if the integrator--
            (1) holds an ownership interest in the livestock or 
        poultry, land, or other capital of the AFO;
            (2) through a growout contract, marketing arrangement, or 
        other arrangement, or through direct supervision of, or on-site 
        participation in, activities at the AFO, controls--
                    (A) the activity of persons working at the AFO;
                    (B) the operation, management, or waste management 
                practices of the AFO; or
                    (C) the manner in which livestock or poultry at the 
                AFO are grown, fed, watered, ventilated, heated, 
                cooled, or medicated;
            (3) supplies feed, pharmaceuticals, or other inputs to the 
        AFO; or
            (4) requires a capital investment from the contract grower 
        of the AFO for erecting or expanding facilities at the AFO.
    (c) Civil Actions.--
            (1) In general.--Any person may--
                    (A) bring a civil action against an integrator in 
                an appropriate court to redress any violation of this 
                section or any other law relating to the activities 
                described in this section; and
                    (B) obtain appropriate relief in a civil action 
                under subparagraph (A).
            (2) Attorney's fees for plaintiff.--The court shall award a 
        reasonable attorney's fee as part of the costs to a prevailing 
        plaintiff in a civil action under this subsection.
            (3) No preemption.--Nothing in this subsection preempts, 
        alters, displaces, abridges, or supplants any claim or remedy 
        available under any State or Federal law, including common law, 
        that provides a remedy for civil relief.
    (d) AFO Discharges.--Section 402 of the Federal Water Pollution 
Control Act (33 U.S.C. 1342) is amended by adding at the end the 
following:
    ``(t) AFO Discharges.--The Administrator shall require that all 
persons exercising substantial operational control (as described in 
section 104(b) of the Farm System Reform Act of 2021) over an animal 
feeding operation (as defined in section 101 of that Act) jointly 
obtain a permit under this section for a discharge from the animal 
feeding operation.''.

        TITLE II--AMENDMENTS TO PACKERS AND STOCKYARDS ACT, 1921

SEC. 201. DEFINITIONS.

    Section 2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 
182(a)), is amended--
            (1) in paragraph (8), by striking ``for slaughter'' and all 
        that follows through ``of such poultry'' and inserting ``under 
        a poultry growing arrangement, regardless of whether the 
        poultry is owned by that person or another person'';
            (2) in paragraph (9), by striking ``and cares for live 
        poultry for delivery, in accord with another's instructions, 
        for slaughter'' and inserting ``or cares for live poultry in 
        accordance with the instructions of another person'';
            (3) in each of paragraphs (1) through (9), by striking the 
        semicolon at the end and inserting a period;
            (4) in paragraph (10)--
                    (A) by striking ``for the purpose of either 
                slaughtering it or selling it for slaughter by 
                another''; and
                    (B) by striking ``; and'' at the end and inserting 
                a period; and
            (5) by adding at the end the following:
            ``(15) Formula price.--
                    ``(A) In general.--The term `formula price' means 
                any price term that establishes a base from which a 
                purchase price is calculated on the basis of a price 
                that will not be determined or reported until a date 
                that is after the date on which the forward price is 
                established.
                    ``(B) Exclusion.--The term `formula price' does not 
                include--
                            ``(i) any price term that establishes a 
                        base from which a purchase price is calculated 
                        on the basis of a futures market price; or
                            ``(ii) any adjustment to the base for 
                        quality, grade, or other factors relating to 
                        the value of livestock or livestock products 
                        that are readily verifiable market factors and 
                        are outside the control of the packer.
            ``(16) Forward contract.--The term `forward contract' means 
        an oral or written contract for the purchase of livestock that 
        provides for the delivery of the livestock to a packer at a 
        date that is more than 7 days after the date on which the 
        contract is entered into, without regard to whether the 
        contract is for--
                    ``(A) a specified lot of livestock; or
                    ``(B) a specified number of livestock over a 
                certain period of time.''.

SEC. 202. UNLAWFUL PRACTICES.

    (a) In General.--Section 202 of the Packers and Stockyards Act, 
1921 (7 U.S.C. 192), is amended--
            (1) by redesignating subsections (a) through (f) and (g) as 
        paragraphs (1) through (6) and (10), respectively, and 
        indenting appropriately;
            (2) by striking the section designation and all that 
        follows through ``It shall be'' in the matter preceding 
        paragraph (1) (as so redesignated) and inserting the following:

``SEC. 202. UNLAWFUL ACTS.

    ``(a) In General.--It shall be'';
            (3) in subsection (a)--
                    (A) in the matter preceding paragraph (1) (as so 
                redesignated), by striking ``to:'' and inserting ``to 
                do any of the following:'';
                    (B) in each of paragraphs (1) through (6) (as so 
                redesignated), by striking ``; or'' each place it 
                appears and inserting a period;
                    (C) in paragraph (6) (as so redesignated)--
                            (i) by striking ``(1)'' and inserting 
                        ``(A)'';
                            (ii) by striking ``(2)'' and inserting 
                        ``(B)''; and
                            (iii) by striking ``(3)'' and inserting 
                        ``(C)'';
                    (D) by inserting after paragraph (6) the following:
            ``(7) Use, in effectuating any sale of livestock, a forward 
        contract that--
                    ``(A) does not contain a firm base price that may 
                be equated to a fixed dollar amount on the date on 
                which the forward contract is entered into;
                    ``(B) is not offered for bid in an open, public 
                manner under which--
                            ``(i) buyers and sellers have the 
                        opportunity to participate in the bid;
                            ``(ii) more than 1 blind bid is solicited; 
                        and
                            ``(iii) buyers and sellers may witness bids 
                        that are made and accepted;
                    ``(C) is based on a formula price; or
                    ``(D) provides for the sale of livestock in a 
                quantity in excess of--
                            ``(i) in the case of cattle, 40 cattle;
                            ``(ii) in the case of swine, 30 swine; and
                            ``(iii) in the case of another type of 
                        livestock, a comparable quantity of that type 
                        of livestock, as determined by the Secretary.
            ``(8) Own or feed livestock directly, through a subsidiary, 
        or through an arrangement that gives a packer operational, 
        managerial, or supervisory control over the livestock, or over 
        the farming operation that produces the livestock, to such an 
        extent that the producer of the livestock is not materially 
        participating in the management of the operation with respect 
        to the production of the livestock, except that this paragraph 
        shall not apply to--
                    ``(A) an arrangement entered into not more than 7 
                business days before slaughter of the livestock by a 
                packer, a person acting through the packer, or a person 
                that directly or indirectly controls, or is controlled 
                by or under common control with, the packer;
                    ``(B) a cooperative or entity owned by a 
                cooperative, if a majority of the ownership interest in 
                the cooperative is held by active cooperative members 
                that--
                            ``(i) own, feed, or control the livestock; 
                        and
                            ``(ii) provide the livestock to the 
                        cooperative for slaughter;
                    ``(C) a packer that is not required to report to 
                the Secretary on each reporting day (as defined in 
                section 212 of the Agricultural Marketing Act of 1946 
                (7 U.S.C. 1635a)) information on the price and quantity 
                of livestock purchased by the packer; or
                    ``(D) a packer that owns only 1 livestock 
                processing plant.
            ``(9) Take any action that adversely affects or is likely 
        to adversely affect competition, regardless of whether there is 
        a business justification for the action.''; and
                    (E) in paragraph (10) (as so redesignated), by 
                striking ``subdivision (a), (b), (c), (d), or (e)'' and 
                inserting ``paragraphs (1) through (9)''; and
            (4) by adding at the end the following:
    ``(b) Unfair, Discriminatory, and Deceptive Practices and 
Devices.--Acts by a packer, swine contractor, or live poultry dealer 
that violate subsection (a)(1) include the following:
            ``(1) Refusal to provide, on the request of a livestock 
        producer, swine production contract grower, or poultry grower 
        with which the packer, swine contractor, or live poultry dealer 
        has a marketing or delivery contract, the relevant statistical 
        information and data used to determine the compensation paid to 
        the livestock producer, swine production contract grower, or 
        poultry grower, as applicable, under the contract, including--
                    ``(A) feed conversion rates by house, lot, or pen;
                    ``(B) feed analysis;
                    ``(C) breeder history;
                    ``(D) quality grade;
                    ``(E) yield grade; and
                    ``(F) delivery volume for any certified branding 
                program (such as programs for angus beef or certified 
                grassfed or Berkshire pork).
            ``(2) Conduct or action that limits or attempts to limit by 
        contract the legal rights and remedies of a livestock producer, 
        swine production contract grower, or poultry grower, including 
        the right--
                    ``(A) to a trial by jury, unless the livestock 
                producer, swine production contract grower, or poultry 
                grower, as applicable, is voluntarily bound by an 
                arbitration provision in a contract;
                    ``(B) to pursue all damages available under 
                applicable law; and
                    ``(C) to seek an award of attorneys' fees, if 
                available under applicable law.
            ``(3) Termination of a poultry growing arrangement or swine 
        production contract with no basis other than an allegation that 
        the poultry grower or swine production contract grower failed 
        to comply with an applicable law, rule, or regulation.
            ``(4) A representation, omission, or practice that is 
        likely to mislead a livestock producer, swine production 
        contract grower, or poultry grower regarding a material 
        condition or term in a contract or business transaction.
    ``(c) Undue or Unreasonable Preferences, Advantages, Prejudices, 
and Disadvantages.--
            ``(1) In general.--Acts by a packer, swine contractor, or 
        live poultry dealer that violate subsection (a)(2) include the 
        following:
                    ``(A) A retaliatory action (including coercion or 
                intimidation) or the threat of retaliatory action--
                            ``(i) in connection with the execution, 
                        termination, extension, or renewal of a 
                        contract or agreement with a livestock 
                        producer, swine production contract grower, or 
                        poultry grower aimed to discourage the exercise 
                        of the rights of the livestock producer, swine 
                        production contract grower, or poultry grower 
                        under this Act or any other law; and
                            ``(ii) in response to lawful communication 
                        (including as described in paragraph (2)), 
                        association, or assertion of rights by a 
                        livestock producer, swine production contract 
                        grower, or poultry grower.
                    ``(B) Use of the tournament system for poultry as 
                described in paragraph (3).
            ``(2) Lawful communication described.--A lawful 
        communication referred to in paragraph (1)(A)(ii) includes--
                    ``(A) a communication with officials of a Federal 
                agency or Members of Congress;
                    ``(B) any lawful disclosure that demonstrates a 
                reasonable belief of a violation of this Act or any 
                other law; and
                    ``(C) any other communication that assists in 
                carrying out the purposes of this Act.
            ``(3) Use of tournament system for poultry.--
                    ``(A) In general.--Subject to subparagraph (B), a 
                live poultry dealer shall be in violation of subsection 
                (a)(2) if the live poultry dealer determines the 
                formula for calculating the pay of a poultry grower in 
                a tournament group by comparing the performance of the 
                birds of other poultry growers in the group using 
                factors outside the control of the poultry grower and 
                within the control of the live poultry dealer.
                    ``(B) Exception.--Under subparagraph (A), a live 
                poultry dealer shall not be found in violation of 
                subsection (a)(2) if the live poultry dealer 
                demonstrates through clear and convincing evidence that 
                the inputs and services described in subparagraph (C) 
                that were used in the comparative evaluation were 
                substantially the same in quality, quantity, and 
                timing, as applicable, for all poultry growers in the 
                tournament group.
                    ``(C) Inputs and services described.--The inputs 
                and services referred to in subparagraph (B) include, 
                with respect to poultry growers in the same tournament 
                group--
                            ``(i) the quantity, breed, sex, and age of 
                        chicks delivered to each poultry grower;
                            ``(ii) the breed and age of the breeder 
                        flock from which chicks are drawn for each 
                        poultry grower;
                            ``(iii) the quality, type (such as starter 
                        feed), and quantity of feed delivered to each 
                        poultry grower;
                            ``(iv) the quality of and access to 
                        medications for the birds of each poultry 
                        grower;
                            ``(v) the number of birds in a flock 
                        delivered to each poultry grower;
                            ``(vi) the timing of the pick-up of birds 
                        for processing (including the age of the birds 
                        and the number of days that the birds are in 
                        the care of the poultry grower) for each 
                        poultry grower;
                            ``(vii) the death loss of birds during 
                        pick-up, transport, and time spent at the 
                        processing plant for each poultry grower;
                            ``(viii) condemnations of parts of birds 
                        due to actions in processing for each poultry 
                        grower;
                            ``(ix) condemnations of whole birds due to 
                        the fault of the poultry grower;
                            ``(x) the death loss of birds due to the 
                        fault of the poultry grower;
                            ``(xi) the stated reasons for the cause of 
                        the death losses and condemnations described in 
                        clauses (vii) through (x);
                            ``(xii) the type and classification of each 
                        poultry grower; and
                            ``(xiii) any other input or service that 
                        may have an impact on feed conversion to weight 
                        gain efficiency or the life span of the birds 
                        of each poultry grower.
    ``(d) Harm to Competition Not Required.--In determining whether an 
act, device, or conduct is a violation under paragraph (1) or (2) of 
subsection (a), a finding that the act, device, or conduct adversely 
affected or is likely to adversely affect competition is not 
required.''.
    (b) Effective Date.--
            (1) In general.--Subject to paragraph (2), paragraph (8) of 
        section 202(a) of the Packers and Stockyards Act, 1921 (7 
        U.S.C. 192) (as designated by subsection (a)(2)), shall take 
        effect on the date of enactment of this Act.
            (2) Transition rules.--In the case of a packer that, on the 
        date of enactment of this Act, owns, feeds, or controls 
        livestock intended for slaughter in violation of paragraph (8) 
        of section 202(a) of the Packers and Stockyards Act, 1921 (7 
        U.S.C. 192) (as designated by subsection (a)(2)), that 
        paragraph shall take effect--
                    (A) in the case of a packer of swine, beginning on 
                the date that is 18 months after the date of enactment 
                of this Act; and
                    (B) in the case of a packer of any other type of 
                livestock, beginning not later than 180 days after the 
                date of enactment of this Act, as determined by the 
                Secretary.

SEC. 203. SPOT MARKET PURCHASES OF LIVESTOCK BY PACKERS.

    The Packers and Stockyards Act, 1921, is amended by inserting after 
section 202 (7 U.S.C. 192) the following:

``SEC. 202A. 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 subtitle B of the 
                Agricultural Marketing Act of 1946 (7 U.S.C. 1635 et 
                seq.) to report to the Secretary each reporting day 
                information on the price and quantity 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) Nonaffiliated producer.--The term `nonaffiliated 
        producer' means a producer of livestock--
                    ``(A) that sells livestock to a packer;
                    ``(B) that has less than 1 percent equity interest 
                in the packer;
                    ``(C) that has no officers, directors, employees, 
                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 interest.
            ``(3) Spot market sale.--
                    ``(A) In general.--The term `spot market 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 7 days after the date 
                        on which the agreement is entered into; and
                            ``(iii) under circumstances in which a 
                        reasonable competitive bidding opportunity 
                        exists on the date on which the agreement is 
                        entered into.
                    ``(B) Reasonable competitive bidding opportunity.--
                For the purposes of subparagraph (A)(iii), a reasonable 
                competitive bidding opportunity shall be considered to 
                exist if--
                            ``(i) no written or oral agreement 
                        precludes the producer from soliciting or 
                        receiving 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 Commercial 
                                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 reporting day in each 
plant, the covered packer shall slaughter not less than the applicable 
percentage specified in subsection (c) of the quantity through spot 
market sales from nonaffiliated producers.
    ``(c) Applicable Percentages.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        applicable percentage shall be 50 percent.
            ``(2) Exceptions.--In the case of a covered packer that 
        reported to the Secretary in the 2020 annual report that more 
        than 60 percent of the livestock of the covered packer were 
        committed procurement livestock, the applicable percentage 
        shall be the greater of--
                    ``(A) the difference between the percentage of 
                committed procurement so reported and 100 percent; and
                    ``(B)(i) during each of calendar years 2022 and 
                2023, 20 percent;
                    ``(ii) during each of calendar years 2024 and 2025, 
                30 percent; and
                    ``(iii) during calendar year 2026 and each calendar 
                year thereafter, 50 percent.
    ``(d) Nonpreemption.--This section does not preempt any requirement 
of a State or political subdivision of a State that requires a covered 
packer to purchase on the spot market a greater percentage of the 
livestock purchased by the covered packer than is required under this 
section.''.

SEC. 204. INVESTIGATION OF LIVE POULTRY DEALERS.

    (a) Administrative Enforcement Authority Over Live Poultry 
Dealers.--Sections 203, 204, and 205 of the Packers and Stockyards Act, 
1921 (7 U.S.C. 193, 194, 195), are amended by inserting ``, live 
poultry dealer,'' after ``packer'' each place it appears.
    (b) Authority To Request Temporary Injunction or Restraining 
Order.--Section 408(a) of the Packers and Stockyards Act, 1921 (7 
U.S.C. 228a(a)), is amended by inserting ``or poultry care'' after ``on 
account of poultry''.
    (c) Violations by Live Poultry Dealers.--Section 411 of the Packers 
and Stockyards Act, 1921 (7 U.S.C. 228b-2), is amended--
            (1) in subsection (a), in the first sentence, by striking 
        ``any provision of section 207 or section 410 of''; and
            (2) in subsection (b), in the first sentence, by striking 
        ``any provisions of section 207 or section 410'' and inserting 
        ``any provision''.

SEC. 205. AWARD OF ATTORNEY FEES.

    Section 204 of the Packers and Stockyards Act, 1921 (7 U.S.C. 194), 
is amended by adding at the end the following:
    ``(i) Attorney's Fee.--The court shall award a reasonable 
attorney's fee as part of the costs to a prevailing plaintiff in a 
civil action under this section.''.

SEC. 206. TECHNICAL AMENDMENTS.

    (a) Section 203 of the Packers and Stockyards Act, 1921 (7 U.S.C. 
193), is amended--
            (1) in subsection (a), in the first sentence--
                    (A) by striking ``he shall cause'' and inserting 
                ``the Secretary shall cause''; and
                    (B) by striking ``his charges'' and inserting ``the 
                charges'';
            (2) in subsection (b), in the first sentence, by striking 
        ``he shall make a report in writing in which he shall state his 
        findings'' and inserting ``the Secretary shall make a report in 
        writing in which the Secretary shall state the findings of the 
        Secretary''; and
            (3) in subsection (c), by striking ``he'' and inserting 
        ``the Secretary''.
    (b) Section 204 of the Packers and Stockyards Act, 1921 (7 U.S.C. 
194), is amended--
            (1) in subsection (a), by striking ``he has his'' and 
        inserting ``the packer, live poultry dealer, or swine 
        contractor has the'';
            (2) in subsection (c), by striking ``his officers, 
        directors, agents, and employees'' and inserting ``the 
        officers, directors, agents, and employees of the packer, live 
        poultry dealer, or swine packer'';
            (3) in subsection (f), in the second sentence--
                    (A) by striking ``his findings'' and inserting 
                ``the findings of the Secretary''; and
                    (B) by striking ``he'' and inserting ``the 
                Secretary''; and
            (4) in subsection (g), by striking ``his officers, 
        directors, agents, and employees'' and inserting ``the 
        officers, directors, agents, and employees of the packer, live 
        poultry dealer, or swine packer''.

             TITLE III--LABELING OF MEAT AND DAIRY PRODUCTS

SEC. 301. RESTORATION OF MANDATORY COUNTRY OF ORIGIN LABELING FOR BEEF 
              AND PORK; INCLUSION OF DAIRY PRODUCTS.

    (a) Definitions.--Section 281 of the Agricultural Marketing Act of 
1946 (7 U.S.C. 1638) is amended--
            (1) by redesignating paragraphs (1), (2) through (5), (6), 
        and (7) as paragraphs (2), (4) through (7), (9), and (10), 
        respectively;
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following:
            ``(1) Beef.--The term `beef' means meat produced from 
        cattle (including veal).'';
            (3) in paragraph (2) (as so redesignated)--
                    (A) in subparagraph (A)--
                            (i) in clause (i), by striking ``lamb'' and 
                        inserting ``beef, lamb, pork,'';
                            (ii) in clause (ii), by striking ``ground 
                        lamb'' and inserting ``ground beef, ground 
                        lamb, ground pork,'';
                            (iii) in clause (x), by striking ``and'' at 
                        the end;
                            (iv) in clause (xi), by striking the period 
                        at the end and inserting ``; and''; and
                            (v) by adding at the end the following:
                            ``(xii) dairy products.''; and
                    (B) in subparagraph (B), by inserting ``(other than 
                clause (xii) of that subparagraph)'' after 
                ``subparagraph (A)'';
            (4) by inserting after paragraph (2) (as so redesignated) 
        the following:
            ``(3) Dairy product.--The term `dairy product' means--
                    ``(A) fluid milk;
                    ``(B) cheese, including cottage cheese and cream 
                cheese;
                    ``(C) yogurt;
                    ``(D) ice cream;
                    ``(E) butter; and
                    ``(F) any other dairy product.''; and
            (5) by inserting after paragraph (7) (as so redesignated) 
        the following:
            ``(8) Pork.--The term `pork' means meat produced from 
        hogs.''.
    (b) Notice of Country of Origin.--Section 282(a) of the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1638a(a)) is amended by 
adding at the end the following:
            ``(5) Designation of country of origin for dairy 
        products.--
                    ``(A) In general.--A retailer of a covered 
                commodity that is a dairy product shall designate the 
                origin of the covered commodity as--
                            ``(i) each country in which or from which 
                        the 1 or more dairy ingredients or dairy 
                        components of the covered commodity were 
                        produced, originated, or sourced; and
                            ``(ii) each country in which the covered 
                        commodity was processed.
                    ``(B) State, region, locality of the united 
                states.--With respect to a covered commodity that is a 
                dairy product produced exclusively in the United 
                States, designation by a retailer of the State, region, 
                or locality of the United States where the covered 
                commodity was produced shall be sufficient to identify 
                the United States as the country of origin.''.

SEC. 302. TRUTH IN LABELING FOR MEAT AND MEAT FOOD PRODUCTS.

    Section 7 of the Federal Meat Inspection Act (21 U.S.C. 607) is 
amended by adding at the end the following:
    ``(g) Product of the United States.--The label of a meat or meat 
food product may bear the phrase `Product of U.S.A.', or any 
substantially similar word or phrase, only if the meat or meat food 
product is exclusively derived from 1 or more animals exclusively born, 
raised, and slaughtered in the United States.''.
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