[Federal Register: August 8, 2007 (Volume 72, Number 152)]
[Proposed Rules]
[Page 44671-44722]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08au07-29]
[[Page 44671]]
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Part IV
Department of Agriculture
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Agricultural Marketing Service
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7 CFR Part 59
Livestock Mandatory Reporting; Reestablishment and Revision of the
Reporting Regulation for Swine, Cattle, Lamb, and Boxed Beef; Proposed
Rule
[[Page 44672]]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 59
[Docket No. AMS-LS-07-0106; LS-07-01]
RIN 0581-AC67
Livestock Mandatory Reporting; Reestablishment and Revision of
the Reporting Regulation for Swine, Cattle, Lamb, and Boxed Beef
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: On April 2, 2001, the Agricultural Marketing Service (AMS)
implemented the Livestock Mandatory Reporting (LMR) program as required
by the Livestock Mandatory Reporting Act of 1999 (1999 Act). The
statutory authority for the program lapsed on September 30, 2005. In
October 2006, legislation was enacted to reauthorize the 1999 Act until
September 30, 2010, and to amend the swine reporting requirements of
the 1999 Act (Pub. L. 109-296) (Reauthorization Act). This rulemaking
is necessary to re-establish the regulatory authority for the program's
continued operation and incorporate the swine reporting changes
contained within the Reauthorization Act as well as make other changes
to enhance the program's overall effectiveness and efficiency based on
AMS' experience in the administration of the program over the last 6
years.
DATES: Written comments on the regulatory provisions of this proposed
rule must be received on or before September 7, 2007 to be assured of
consideration. Written comments on the information collection and
recordkeeping provisions of this proposed rule must be received on or
before October 9, 2007 to be assured of consideration.
ADDRESSES: Comments can be submitted on the Internet at: http://www.regulations.gov.
Written comments can be sent to Warren P. Preston,
Chief, Livestock and Grain Market News Branch, Docket No. LS-07-01,
1400 Independence Ave., SW., Room 2619-S, Washington, DC 20250-0252, or
by facsimile to (202) 690-3732. All comments received will be posted to
the Web site at: http://www.regulations.gov. Comments that specifically
pertain to the information collection and recordkeeping requirements of
this action should also be sent to the Desk Officer for Agriculture,
Office of Information and Regulatory Affairs, Office of Management and
Budget, New Executive Office Building, 725 17th Street, NW., Room 725,
Washington, DC 20503.
FOR FURTHER INFORMATION CONTACT: Warren P. Preston, Chief, Livestock
and Grain Market News Branch at (202) 720-6231, fax (202) 690-3732, or
e-mail Warren.Preston@usda.gov.
SUPPLEMENTARY INFORMATION:
Background
The 1999 Act was enacted into law on October 22, 1999, (Pub. L.
106-78) as an amendment to the Agriculture Marketing Act of 1946 (7
U.S.C. 1621 et seq.). In the December 1, 2000, Federal Register, AMS
published a final rule implementing the program (65 FR 75464) (2000
final rule) with an effective date of January 30, 2001. This effective
date was subsequently delayed until April 2, 2001.
The statutory authority for the program lapsed on September 30,
2005. In October 2006, legislation was passed to reauthorize the 1999
Act until September 30, 2010, and amend swine reporting requirements.
Because reauthorization was not completed by September 30, 2005,
AMS sent letters to each packer required to report under the 1999 Act
requesting their voluntary cooperation in continuing to submit
information. Based on the response to AMS's request for voluntary
packer participation in LMR, most reports have continued to be
published. The only reports that are not being published are imported
boxed lamb cuts and slaughter cow reports. AMS has continued compliance
audits during the lapse in authority for the mandatory program for
companies that agreed to continue submitting information and will
continue this practice until the effective date of this regulatory
action.
The 1999 Act as originally passed provided for the mandatory
reporting of market information by Federally inspected livestock
processing plants that have slaughtered an average number of livestock
during the immediately preceding 5 calendar years (125,000 for cattle
and 100,000 for swine), including any processing plant that did not
slaughter during the immediately preceding 5 calendar years if the
Secretary determines that the plant should be considered a packer based
on the plant's capacity. For entities that did not slaughter during the
immediately preceding 5 calendar years, such as a new plant or existing
plant that begins operations, AMS projects the plant's annual slaughter
or production based upon the plant's estimate of annual slaughter
capacity to determine which entities meet the definition of a packer as
defined in this regulation.
The 1999 Act also gave the Secretary of Agriculture (Secretary) the
latitude to provide for the reporting of lamb information. Under the
2000 final rule implementing the program, Federally inspected lamb
processing plants that slaughtered an average of 75,000 head of lambs
or processed an average of 75,000 lamb carcasses during the immediately
preceding 5 calendar years were required to submit information to AMS.
Additionally, a lamb processing plant that did not slaughter an average
of 75,000 lambs or process an average of 75,000 lamb carcasses during
the immediately preceding 5 calendar years was required to report
information if the Secretary determined the processing plant should be
considered a packer based on its capacity. In addition, the final rule
also established that for any calendar year, an importer of lamb that
imported an average of 5,000 metric tons of lamb meat products per year
during the immediately preceding 5 calendar years report information on
the domestic sales of imported boxed lamb cuts. Additionally, an
importer that did not import an average of 5,000 metric tons of lamb
meat products during the immediately preceding 5 calendar years was
required to report information if the Secretary determined that the
person should be considered an importer based on their volume of lamb
imports. On September 2, 2004, AMS published a final rule (69 FR 53783)
(2004 final rule) that revised the threshold for importers to 2,500
metric tons and modified the definition of carlot when used in
reference to boxed lamb cuts.
Key Components of the Statute
Cattle
The Reauthorization Act did not modify the cattle reporting
requirements contained in the 1999 Act. The 1999 Act requires that a
cattle packer whose Federally inspected plant slaughtered an average of
at least 125,000 cattle per year for the preceding 5 calendar years or
did not slaughter cattle during the preceding 5 calendar years but is
considered a packer based on plant capacity as determined by the
Secretary, report market information to the Secretary. They are
required to report the prices for each type of cattle purchase,
categorized to clearly delineate imported from domestic market
purchases, negotiated purchase, formula marketing arrangement, and
forward contract; the quantity of cattle, categorized to clearly
delineate imported from domestic market purchases, purchased on a live
weight
[[Page 44673]]
basis and a carcass basis; and the weight, the quality grade, and
premiums and discounts. This information would be reported twice a day
not later than 10 a.m. and 2 p.m. central time. The Secretary would
issue reports to the public of this information at least three times
each day.
The 1999 Act further requires that a packer report marketing
information not later than 9 a.m. central time on the first reporting
day of each week for cattle bought by the type of purchase for the
prior week. In addition, the 1999 Act states that packers must report
weekly information on the first reporting day not later than 9 a.m.
central time for cattle purchased on a formula or contract marketing
arrangement and slaughtered the prior week. However, under this
proposed regulation, the required information for the weekly submission
for cattle purchased on a formula would be obtained by aggregating
packers' daily submissions of this information. Therefore, no
additional weekly submission would be required for this purchase type.
The Secretary would issue a public report not later than 10 a.m.
central time on the first reporting day of the current slaughter week.
The 1999 Act also mandates that a packer report information on
boxed beef cut sales to the Secretary at least twice each reporting day
not less frequently than once before and once after 12 noon central
time. This information includes the price per hundredweight, the
quantity in each lot of boxed beef cuts sold, information regarding the
characteristics of each lot (i.e., domestic vs. export sale, USDA
Quality Grade, etc.), the type of beef cut and the trim specification.
The Secretary would report this information to the public twice each
reporting day.
Swine
The Reauthorization Act revised the requirements for swine
reporting. Under the 1999 Act, the term packer includes a Federally
inspected plant that slaughtered an average of at least 100,000 swine
per year during the immediately preceding 5 calendar years. Under the
Reauthorization Act, the term packer also includes a person that
slaughtered an average of at least 200,000 sows, boars, or combination
thereof per year during the immediately preceding 5 calendar years.
Additionally, in the case of a swine processing plant or person that
did not slaughter swine during the immediately preceding 5 calendar
years, it shall be considered a packer if the Secretary determines the
processing plant or person should be considered a packer under this
subpart after considering its capacity.
The Reauthorization Act separated the reporting requirements for
sows and boars from barrows and gilts. For barrows and gilts, the
packer must report to the Secretary not later than 7 a.m. central time
on each reporting day information regarding all swine purchased or
priced, during the prior business day of the packer. The
Reauthorization Act modified the reporting time for information
regarding all barrows and gilts slaughtered during the prior business
day from not later than 7 a.m. central time to not later than 9 a.m.
central time on each reporting day. The packer must report all purchase
data including the number of barrows and gilts purchased, barrows and
gilts scheduled for delivery and the base price and purchase data for
slaughtered barrows and gilts for which a price has been established.
The information also includes all slaughter data for the total number
of barrows and gilts slaughtered including information concerning the
net price, average net price, lowest net price, highest net price,
average carcass weight, average sort loss, average backfat, average
lean percentage, and total slaughter quantity. However, the information
on the lowest net price and highest net price can be obtained from the
LMR system from packers' submissions. Therefore, under this proposed
rule, there is no requirement for packers to submit this information
separately. Packers reporting the average lean percentage must report
the manner in which the average lean percentage is calculated as well
as whenever a change in such calculation is made. In doing so, the
packer shall make available to the Secretary the underlying data,
applicable methodology and formulae, and supporting materials used to
determine the average lean percentage, which the Secretary will convert
to the carcass measurements or lean percentage of the swine of the
individual packer to correlate to a common percent lean measurement.
Additionally, the information to be reported includes packer purchase
commitments, which shall be equal to the number of barrows and gilts
scheduled for delivery to a packer for slaughter each of the next 14
calendar days.
The Secretary would publish the information in a prior day report
not later than 8 a.m. central time for all swine purchased and 10 a.m.
central time for all barrows and gilts slaughtered on the reporting day
on which the information is received from the packer. In addition, as
required by the Reauthorization Act, the Secretary shall publish a net
price distribution for all barrows and gilts slaughtered on the
previous day not later than 3 p.m. central time.
The Reauthorization Act also requires packers that process barrows
and gilts to report to the Secretary in the morning not later than 10
a.m. central time and in the afternoon not later than 2 p.m. central
time each reporting day. The reporting requirements for the morning and
afternoon reports contained in the Reauthorization Act for barrows and
gilts were not altered from those contained in the 1999 Act. The
information to be reported is the same for the morning and afternoon
reports and includes an estimate of (1) the total number of barrows and
gilts purchased by each method of pricing, (2) the total number of
barrows and gilts purchased, and (3) the base price paid for all
negotiated purchases of market hogs and the base price paid for each
type of purchase of market hogs other than through a negotiated
purchase. This information must be submitted for all covered
transactions made up to within one half hour of each specified
reporting time. Packers completing transactions during the one half
hour prior to the previous reporting time will report those
transactions at the next prescribed reporting time. The Secretary will
make the morning report available to the public not later than 11 a.m.
central time and the afternoon report at 3 p.m. central time on each
reporting day.
The Reauthorization Act requires each packer of sows and boars to
report to the Secretary not later than 9:30 a.m. central time, or such
other time as the Secretary considers appropriate, on each reporting
day, information regarding all sows and boars purchased or priced
during the prior business day of the packer. The information to be
reported includes the total number of sows and boars purchased, each
divided into at least three weight classes specified by the Secretary,
the number of sows and boars that qualify as packer-owned swine, the
average price paid for all sows and boars, the average price paid for
sows and boars in each weight class, the number of sows and boars for
which prices are determined, by each type of purchase, and the average
prices for sows and boars for which prices are determined, by each type
of purchase. The Secretary would publish the information in a prior day
report not later than 11 a.m. central time on the reporting day on
which the information is received from the packer. Under the 1999 Act,
the reporting requirements for sows and boars were the same as the
[[Page 44674]]
reporting requirements for barrows and gilts.
The Secretary will compile and issue a weekly noncarcass merit
premium report on the first reporting day of the week not later than 5
p.m. central time. This report would be prepared from information
furnished to the Secretary by packers who must report not later than 4
p.m. central time on the first reporting day of the week. The
information required includes noncarcass merit premiums used and paid
to producers during the prior slaughter week by category.
The 1999 Act provides that the Secretary review the information
required to be reported by packers at least once every two years. Also,
the 1999 Act directs the Secretary to promulgate regulations that
specify additional information to be reported by packers if the
Secretary determines information currently reported does not accurately
reflect the methods by which swine are valued or priced, or account for
the fact that packers that slaughter a significant majority of the
swine produced in the United States no longer use backfat or lean
percentage factors as indicators of price.
Lamb
The Reauthorization Act did not change the lamb reporting
provisions contained in the 1999 Act. The 1999 Act gives the Secretary
the authority to establish a mandatory lamb price reporting program
that will provide timely, accurate, and reliable market information. It
does not specify the requirements for establishing a mandatory lamb
price reporting program as it does for cattle and swine. Accordingly,
in the 2000 final rule, AMS established a mandatory lamb price
reporting program based upon its extensive knowledge of the lamb
industry and market news reporting of lamb.
Under the established program, a lamb packer whose Federally
inspected plant slaughtered or processed an average of at least the
equivalent of 75,000 lambs each year for the preceding 5 calendar years
reports to the Secretary once daily the price of each type of lamb
purchase, negotiated purchase, formula marketing arrangements, forward
contract, quantity of lamb purchased on live weight or carcass weight,
a range and average estimated live weights, quality grade, premiums and
discounts, class type, pelt type, state of origin, and estimated
dressing percentage. The Secretary issues a report to the public on
this information not less than once each day.
Lamb packers are required to report to the Secretary on a weekly
basis on the second reporting day of the week information from the
prior week. This information includes the quantity and certain carcass
characteristics of lambs purchased through a formula marketing
arrangement or forward contract that were slaughtered, and the quantity
and carcass characteristics of packer owned lamb that were slaughtered.
Reported information includes, by type of purchase, the quantity of
lamb purchased on live weight and carcass weight basis that were
slaughtered, the quality grade, premiums and discounts paid, and
dressing percentage. In addition, a lamb packer is required to report
the quantity and basis level for forward contracts, the range and
average of intended premiums and discounts, and the expected slaughter
date. Under this proposed rule, packers would also be required to
report information on the quantity of lambs purchased on a negotiated
basis.
The Secretary makes available to the public the information on the
second reporting day of the current slaughter week.
Packers report information on daily sales of carcass lamb and sales
of boxed lamb cuts each reporting day. Under this proposed rule,
packers would also be required to report carcass purchases. Due to the
changing structure of the lamb industry, an increasing number of
transactions are not required to be reported under the existing
regulation. Requiring packers to also report their carcass purchases
would greatly increase the volume of covered transactions.
For sales and purchases of carcass lamb, the information includes
prices for each lot, the type of sale, the quantity of each sale quoted
in number of carcasses, the USDA grade, the estimated weight range, and
delivery date. For sales of boxed lamb cuts, the packer reports the
price for each lot, the quantity for each lot quoted by product weight,
the type of sale, branded product characteristics, if applicable, the
USDA quality and yield grade, the cut of lamb, the product state of
refrigeration, the weight range of each cut, and the delivery period.
The Secretary issues to the public a report on carcass lamb sales and
boxed lamb cut sales once each reporting day.
For any calendar year, a lamb importer who imports an average of
2,500 metric tons of lamb meat products per year during the immediately
preceding 5 calendar years reports to the Secretary weekly the prices
received for imported lamb cuts sold on the domestic market.
Additionally, an importer that does not import an average of 2,500
metric tons of lamb meat products during the immediately preceding 5
calendar years is also required to report the above information, if the
Secretary determines that the person should be considered an importer
based on their volume of lamb imports.
Other Provisions of the Act Involving Administration
The administrative provisions of the 1999 Act set forth the
requirements for maintaining confidentiality regarding the packer
reporting of proprietary information and list the conditions under
which Federal employees can release such information. These
administrative provisions also establish that the Secretary can make
necessary adjustments in the information reported by packers and take
action to verify the information reported, and directs the Secretary to
report and publish reports by electronic means to the maximum extent
practical. The 1999 Act provides for what constitutes violations of
that Act, such as failure to report the required information on time or
failure to report accurate information. The Reauthorization Act did not
change any of these provisions.
The section on enforcement establishes a civil penalty--$10,000--
for each violation and provides for the Secretary's issuance of cease
and desist orders. This section also provides for notice and hearing of
violations before the Secretary, judicial review, issuance of an
injunction or restraining order, and establishes a civil penalty for
failure to obey a cease and desist order.
The fees section directs the Secretary to not charge or assess fees
for the submission, reporting, receipt, availability, or access to
published reports or information collected through this program.
The section on recordkeeping requires each packer to make available
to the Secretary on request for 2 years the original contracts,
agreements, receipts, and other records associated with any transaction
relating to the purchase, sale, pricing, transportation, delivery,
weighing, slaughter, or carcass characteristics of all livestock and
livestock products, as well as such records or other information that
is necessary or appropriate to verify the accuracy of information
required to be reported. Also, the 1999 Act provides that reporting
entities will not be required to report new or additional information
that they do not generally have available or maintain, or the
provisions of which would be unduly burdensome.
[[Page 44675]]
Further, the 1999 Act provides that the Secretary may suspend any
requirement if the Secretary determines that the application of the
requirement would be inconsistent with the Act.
Proposed Requirements
Summary of Changes
The requirements of this proposed regulation are discussed in
detail in the sections immediately following. However, for the ease of
the reader, this section contains descriptions and rationale of the
substantive changes that have been made as compared to the December 1,
2000, and September 2, 2004, (that modified reporting requirements for
lamb) final rules that were published in the Federal Register.
Recordkeeping
To reduce the recordkeeping burden on lamb importers, the Agency is
proposing to modify the recordkeeping requirement to allow lamb
importers to maintain a record of sale that evidences only the date the
sale occurred rather than the time and date. Because lamb importers are
required to report only weekly, the date the sale occurred is
sufficient for recordkeeping purposes.
Definitions
The Agency is proposing to modify the definition of the term
``discount'' by adding ``or other characteristic'' to allow for the
inclusion of other types of discounts such as a discount for an
animal's age, which is currently utilized by several reporting packers.
The Agency is also proposing to modify the definitions of the terms
``negotiated purchased'' and ``negotiated sale'' by removing the
language ``and agreement on a delivery day.'' Under the current
program, a transaction is not required to be reported if the specific
delivery day is not known. Deleting this language would provide for
more timely price reporting if the only piece of information not known
is the delivery day.
The Agency is proposing to add a definition for the term
``negotiated grid purchase.'' When the LMR program was first
implemented on April 2, 2001, negotiated grid purchases, purchases in
which the base price is determined by seller-buyer interaction from
which premiums are added and discounts are subtracted, were coded in
packer submissions as formulas, as the system was not initially
configured to allow these two distinct transaction types to be coded
separately. The Agency subsequently made a programming change to
rectify this problem and is proposing this definition for clarity.
The Agency is proposing to add a definition for the term ``percent
lean'' for clarification with respect to cow and bull reporting
requirements. The Agency is also proposing to add a definition for the
term ``person'' for clarity.
Cattle Reporting
The majority of the changes that are being proposed with respect to
cattle reporting relate to the separation of the reporting requirements
for cows and bulls. Separation of the reporting requirements for cows
and bulls is being proposed to minimize the reporting burden on cow and
bull packers where possible and to make the information published for
cows and bulls and the resulting meat products more meaningful to the
industry.
The Agency is proposing to modify the definition of the term
``boxed beef'' to remove references to age limitations on products and
to require packers to report transactions for frozen primals,
subprimals, and cuts in addition to the current requirement for packers
to submit information on frozen beef trimmings and boneless processing
beef. Neither the 1999 Act nor the Reauthorization Act defines the term
``boxed beef.'' Hence the term must be defined by regulation. These
proposed modifications to the definition would provide for more
complete reporting of the boxed beef trade, consistent with the law's
purpose of improving the price and supply reporting conditions of USDA.
Although the revised definition of ``boxed beef'' potentially would
result in the reporting of more transactions by packers to AMS, the
Agency believes that there would be little to practically no increase
in the reporting burden to packers. The cost to packers of reporting
all trades versus sorting out trades beyond certain parameters is
minimal, and in many cases, may even be less burdensome than sorting
out transactions prior to submission to AMS.
In the 2000 final rule, the definition of ``boxed beef'' specified
that the product not exceed one of three different dates from
manufacture, depending on the specific item in question. For example,
primals, subprimals, and cuts fabricated from subprimals were not to be
older than 14 days from the date of manufacture, while fresh ground
beef, beef trimmings, and boneless processing beef were not to be older
than 7 days from the date of manufacture. By removing references to
these different cutoff dates, there would be less confusion in terms of
what information reporting packers are required to submit, and hence,
less uncertainty regarding the information that is subsequently
reported and disseminated by AMS. In addition, new technologies in
packaging and processing continue to extend the shelf life of meat
products, and product that may have been considered aged or distressed
at the time of the 2000 final rule may now be well within its usable
shelf life. Removing references to product age in the definition of
``boxed beef'' would reflect such changes in the state of the industry.
The 2000 final rule defined ``boxed beef'' to include fresh
primals, subprimals, cuts fabricated from subprimals, ground beef, beef
trimmings, and boneless processing beef. The definition also included
frozen beef trimmings and boneless processing beef. By removing the
references to fresh or frozen product, the proposed rule would reduce
confusion on the part of reporting packers regarding whether or not to
submit information on particular trades. AMS believes that this
modification of the definition of ``boxed beef'' would result in
minimal to virtually no increase in burden to reporting packers. In the
case of frozen products, numerous reporting packers already submit
information on all frozen products. Due to the nature of their
electronic systems, it is in many cases often less burdensome for
packers to submit everything rather than having to sort through
eligible transactions. AMS believes that reporting of trade in frozen
products would provide a more accurate and comprehensive picture of the
market for boxed beef, consistent with the purposes of the 1999 Act to
improve the price and supply reporting services of USDA. For instance,
trading of frozen product picked up with the reopening of foreign
markets following the closures that resulted from the discovery of a
cow with bovine spongiform encephalopathy in the United States in
December 2003. Because a majority of packers are reporting frozen boxed
beef trades, AMS has been able to show the number of frozen export
loads in its comprehensive boxed beef cutout report. Requiring all
packers to submit information on frozen product trades would ensure
that such reporting would represent a more complete reflection of
market conditions.
Comments are invited on the proposed modifications to the
definition of ``boxed beef'' with respect to removing references to the
age of the product and whether it is fresh or frozen. In particular,
comments are invited on the potential utility of obtaining information
on trades that would be excluded under the definition
[[Page 44676]]
of ``boxed beef'' in the 2000 final rule and on the change in reporting
burden to packers. In any case, the Agency notes that it will accept
all data submitted if reporting entities find that it is less
burdensome to do so, provided that sufficient information is submitted
to allow AMS to sort the information according to definitions in the
final rule.
The Agency is proposing to modify the definition of the term
``carlot-based'' such that for cow and bull boxed beef items, the term
``carlot-based'' would include any transaction between a buyer and
seller consisting of 5,000 pounds or more of one or more individual
items. This modification reflects current industry practice with
respect to the marketing of cow and bull products.
The Agency is proposing to modify the definition of the term
``terms of trade'' to clarify that the requirement to report the terms
of trade applies only to steers and heifers to coincide with the
proposed separation of reporting requirements for cows and bulls from
steers and heifers. The definition of ``terms of trade'' has also been
modified to require packers to distinguish between negotiated
transactions that are scheduled for delivery not later than 14 days and
those negotiated transactions that are scheduled for delivery more than
14 days, but fewer than 30 days. Under current guidance provided by
AMS, transactions that are for delivery more than 14 days out are to be
coded as forward contracts. This proposed modification would not
require packers to submit additional transactions, but it would allow
AMS to separately identify these types of transactions, which is a
concern of some in the industry.
The Agency is proposing to modify the definition of the term ``type
of purchase'' to include ``negotiated grid purchase'' as a type of
purchase.
The Agency is proposing to add a definition for the term ``white
cow'' to provide clarity to the cow and bull reporting requirements.
The Agency has modified and renumbered the sections that relate to
the daily and weekly reporting requirements for live cattle. Section
59.101 and section 59.103 contain the daily and weekly reporting
requirements for steers and heifers. Section 59.102 contains the daily
reporting requirements for cows and bulls.
With regard to section 59.101, packers would no longer be required
to report the range of weights of cattle purchased. In addition, the
phrase ``or other characteristics'' has been added to the premium and
discount reporting requirement to allow for the reporting of other
kinds of premiums and discounts such as those associated with an
animal's age.
Section 59.102 contains the reporting requirements for cow and bull
purchases. In an effort to reduce the reporting burden on cow and bull
packers, only the information that pertains to the way cows and bulls
are marketed would be required to be reported. For example, cow and
bull packers no longer have to report committed and delivered
information. In addition, there would no longer be a weekly reporting
requirement for cows and bulls.
With regard to section 59.103, packers would be required to report
the quantity of cattle purchased on a negotiated basis and on a
negotiated grid basis that were slaughtered in addition to the current
requirement to report the number of cattle purchased through forward
contracts, formula marketing arrangements and the quantity and carcass
characteristics of packer-owned cattle that were slaughtered. In
addition, packers would be required to provide the basis level month
and delivery year for all cattle purchased through forward contracts in
addition to the current requirement to report the basis level and
delivery month. These changes are necessary to make the information
published in AMS market reports more meaningful and useable by the
industry by providing a complete picture of the prior week's slaughter
with respect to the numbers of cattle harvested under each purchase
type. Prices for negotiated purchases and negotiated grid purchases are
collected currently, but prior week slaughter numbers for these types
of purchases are not now collected. However, the addition of this
reporting requirement is expected to have little impact on the
reporting burden to packers, while contributing to the completeness of
the information disseminated under the program.
Another change under section 59.103 is that packers would be
required to provide the basis level month and delivery year for all
cattle purchased through forward contracts in addition to the current
requirement to report the basis level and delivery month. The basis
level month and delivery year are necessary to provide a more accurate
picture of the forward contract market and would allow AMS to publish
more meaningful information. Also, the added information reflects the
current industry practice of sometimes contracting out very far into
the future, making it necessary to know the delivery year to categorize
transactions properly according to not only the month but also the year
of delivery.
Finally, in another effort to reduce the burden on reporting
packers, the weekly requirement to report information for cattle
purchased through a formula marketing arrangement and slaughtered
during the prior slaughter week has been removed as the Agency can
obtain this information by aggregating packers' daily submissions.
Swine
As required by the Reauthorization Act, the reporting requirements
for sows and boars have been separated from the reporting requirements
for barrows and gilts. Thus under this proposed rule, section 59.202
contains the reporting requirements for barrows and gilts and section
59.303 contains the reporting requirements for sows and boars.
The Reauthorization Act also made a few other modifications to the
swine reporting provisions. Specifically, the definition of a packer
has been modified to also include a person that slaughtered an average
of 200,000 head of sows, boars, or combination thereof per year during
the immediately preceding 5 calendar years. Under the 1999 Act, a
packer was defined as a swine processing plant that slaughtered an
average of at least 100,000 swine per year during the immediately
preceding 5 calendar years. The Reauthorization Act also changes the
reporting timeframe for packers to submit prior day slaughtered swine
information from 7 a.m. central time to 9 a.m. central time and
requires the Secretary to publish a net price distribution on all
barrows and gilts slaughtered the previous day.
In addition to the changes required by the Reauthorization Act, the
Agency has made a few other minor modifications to reduce the reporting
burden on swine packers. A definition of the term ``inferior hog'' has
been added to allow packers to exclude information on inferior hogs,
which are discounted in the marketplace, from their data submissions to
AMS. Also, the requirement to submit information on the lowest net
price and the highest net price has been removed as the Agency can
obtain this information from the LMR system from packer submissions.
Lamb
As previously discussed, the Reauthorization Act did not change the
reporting provisions for lamb. However, the Agency is proposing a few
changes to reduce the reporting burden on lamb packers where possible
and to provide more meaningful information in AMS market reports.
The Agency is proposing to delete the definitions for the terms
``lambs committed'' and ``terms of trade'' as the
[[Page 44677]]
requirements to submit this information have been deleted to reduce the
reporting burden on packers. The Agency is proposing to add a
definition for the term ``yield grade lamb carcass reporting'' to add
further clarification to the requirement to report yield grade
information.
With respect to weekly reporting, the Agency is proposing to
require packers to submit information on the quantity of lambs
purchased through a negotiated purchase that were slaughtered in
addition to the current requirement to submit this type of information
on packer-owned lambs, lambs purchased through forward contracts, and
lambs purchased under a formula arrangement. This change would allow
AMS to publish more meaningful market information in AMS market
reports.
With respect to reporting requirements for lamb carcasses, the
Agency is proposing to require packers to submit information on their
carcass purchases in addition to the current requirement to report
carcass sales. Due to the changing structure of the lamb industry, an
increasing number of transactions are not required to be reported under
the existing regulation. Requiring packers to also report their carcass
purchases will greatly increase the volume of covered transactions and
will allow AMS to publish more meaningful information in AMS market
reports.
General Provisions
Proposed Subpart A of Part 59, General Provisions, covers those
requirements pertinent to all aspects of mandatory reporting. Section
59.10 details how packers and importers would be required to report
information and how reporting will be handled over weekends and
holidays. Electronic reporting would be required for all information
collection. Electronic reporting would involve the transfer of data
from a packer's or importer's existing electronic recordkeeping system
to a centrally located AMS electronic database. The packer or importer
would be required to organize the information in an AMS-approved format
before electronically transmitting the information to AMS.
Once the required information has been entered into the AMS
database, it would be aggregated and processed into various market
reports that would be released according to the daily and weekly time
schedule set forth in these proposed regulations.
Section 59.20 identifies the recordkeeping requirements imposed by
the 1999 Act and these regulations on packers and importers. Reporting
packers and importers would be required to maintain and to make
available the original contracts, agreements, receipts, and other
records associated with any transaction relating to the purchase, sale,
pricing, transportation, delivery, weighing, slaughter, or carcass
characteristics of all livestock. In addition, they would be required
to maintain such records or other information as is necessary or
appropriate to verify the accuracy of the information required to be
reported under these regulations. All of the above mentioned paperwork
must be maintained by packers and importers for at least 2 years.
Further, packers would be required to maintain a record to indicate the
time a lot of cattle or swine was purchased, or a unit of boxed beef
cuts was sold, as occurring either before 10 a.m. central time, between
10 a.m. and 2 p.m. central time, or after 2 p.m. central time. Lamb
packers would be required to maintain a record to indicate the time a
lot of lambs was purchased or a lot of lamb carcasses was purchased or
sold or boxed lamb cuts was sold, as occurring either before 2 p.m.
central time or after 2 p.m. central time. For lamb importers, the
record of sale shall evidence the date the sale occurred. However, to
allow packers and importers time to collect, assemble and submit the
information to AMS by the prescribed deadlines, all covered
transactions up to within one half hour of the specified reporting
times would be reported.
Lastly, under Subpart A, Section 59.30 details the general
definitions of terms used throughout the regulations, which would be
applicable to all subparts. The majority of these definitions remain
unchanged from those that were published in the 2000 final rule.
However, as previously discussed, the following changes have been made:
Minor modifications to the definitions of ``discount'', ``negotiated
purchase'', and ``negotiated sale''; the addition of a definition for
``negotiated grid purchase''; the addition of a definition of ``percent
lean''; and the addition of a definition of ``person''.
Cattle
Proposed Subpart B of Part 59 states what is required to be
reported in the cattle and boxed beef sectors. For the most part, the
reporting requirements are similar to those published in the December
1, 2000, final rule. The specific changes that are being proposed have
been discussed in a previous section in this document. Section 59.100
provides definitions of cattle terms used in Subpart B, including the
definition of packer, which identifies which entities would be required
to report under this proposed rule. In any calendar year, the term
cattle packer includes any Federally inspected cattle plant that
slaughtered an average of 125,000 head of cattle a year for the
immediately preceding 5 calendar years. Additionally, the term includes
any processing plant that did not slaughter cattle during the
immediately preceding 5 calendar years if the Secretary determines that
the plant should be considered a packer based on its capacity.
For entities that did not slaughter cattle during the immediately
preceding 5 calendar years, such as a new plant or existing plant that
begins operations, AMS will project the plant's annual slaughter or
production based upon the plant's estimate of annual slaughter capacity
to determine which entities meet the definition of a packer as defined
in these regulations.
The definition of ``boxed beef'' includes fresh and frozen primals,
subprimals, cuts fabricated from subprimals (with some exclusions), and
fresh and frozen ground beef, beef trimmings, and boneless processing
beef.
The definition of ``terms of trade'' applies to steers and heifers
only and includes the percentage of steers and heifers purchased by a
packer as a negotiated purchase that are scheduled to be delivered to
the plant for slaughter not later than 14 days and the percentage of
slaughter steers and heifers purchased by a packer as a negotiated
purchase that are scheduled to be delivered to the plant for slaughter
more than 14 days but fewer than 30 days.
The term ``type of purchase'' with respect to cattle, means a
negotiated purchase, negotiated grid purchase, a formula market
arrangement, and a forward contract.
The term ``white cow'' means a cow on a ration that tends to
produce white fat.
As previously discussed, the reporting requirements for cows and
bulls have been separated from the reporting requirements for steers
and heifers, which will reduce the reporting burden on cow and bull
packers. Section 59.101 discusses the daily reporting requirements for
steer and heifer transactions, including what information would be
reported, when it would be reported, and when it would be published.
Steer and heifer plants covered under the rule would report the details
of their purchases twice each day to AMS (once by 10 a.m. central time,
and once by 2 p.m. central time) and
[[Page 44678]]
would include all covered transactions made up to within one half hour
of the specified reporting time. Packers completing transactions during
the one half hour prior to the previous reporting time would report
those transactions at the next prescribed reporting time. The Secretary
would publish the information not less than three times each day.
Section 59.102 discusses the daily reporting requirements for cows and
bulls, including what information would be reported, when it would be
reported, and when it would be published. Cow and bull plants covered
under this rule would be required to report the base bid price intended
to be paid for slaughter cow and bull carcasses on that day not later
than 10 a.m. central time and the prices for cattle purchased during
the previous day not later than 2 p.m. central time. The Secretary
would publish the information within one hour of the required reporting
time on the reporting day on which the information is received by the
packer. Section 59.103 discusses the requirements for weekly reporting
for steers and heifers. Packers would be required to report information
regarding the prior slaughter week on the first reporting day of each
week not later than 9 a.m. central time. This information includes the
quantity of cattle purchased through a negotiated basis that were
slaughtered; the quantity of cattle purchased through a negotiated grid
basis that were slaughtered; the quantity of cattle purchased through
forward contracts that were slaughtered; the quantity of cattle
delivered under a formula marketing arrangement that were slaughtered;
the quantity and carcass characteristics of packer-owned cattle that
were slaughtered; the quantity, basis level, basis level month, and
delivery month and year for all cattle purchased through forward
contracts; and the range and average of intended premiums and discounts
that are expected to be in effect for the current slaughter week. This
information would be published by the Secretary on the same day by 10
a.m. central time. Finally, under Subpart B, Section 59.104 details the
information required to be reported concerning sales of boxed beef cuts
including what would be reported, when it would be reported, and when
it would be published. Cattle plants producing boxed beef cuts would be
required to report their domestic and export sales of boxed beef cuts
including branded boxed beef cuts to AMS twice each reporting day, once
by 10 a.m. central time and once by 2 p.m. central time. This should
include all covered transactions made up to within one half hour of the
specified reporting time. Cattle plants completing transactions during
the one half hour prior to the previous reporting time would report
those transactions at the next prescribed reporting time. This
information would be published by the Secretary twice each day. These
plants would be required to reference the Institutional Meat Purchase
Specifications (IMPS) for Fresh Beef Products Series 100, United States
Department of Agriculture, Agricultural Marketing Service, Livestock
and Seed Program, when applicable.
Swine
The Reauthorization Act made several changes to the swine reporting
provisions. The Agency made a few other minor modifications, which are
discussed in detail in a previous section in this document, for clarity
and to reduce the reporting burden on packers.
Proposed Subpart C of Part 59 lists the requirements of swine
reporting beginning with Section 59.200, which establishes definitions
for terms used throughout the subpart including the definition of a
packer. In any calendar year, the term swine packer includes a
Federally inspected plant that slaughtered an average of at least
100,000 swine per year during the immediately preceding 5 calendar
years and a person that slaughtered an average of at least 200,000
sows, boars, or combination thereof per year during the immediately
preceding 5 calendar years. Additionally, in the case of a swine
processing plant or person that did not slaughter swine during the
immediately preceding 5 calendar years, it shall be considered a packer
if the Secretary determines the processing plant or person should be
considered a packer under this subpart after considering its capacity.
For entities that did not slaughter swine during the immediately
preceding 5 calendar years, such as a new plant or existing plant that
begins operations, AMS will project the plant's annual slaughter or
production based upon the plant's estimate of annual slaughter capacity
to determine which entities meet the definition of a packer as defined
in these regulations.
Section 59.202 discusses the daily reporting requirements for
barrows and gilts including what information would be reported, when it
would be reported, and when it would be published.
For barrows and gilts, packers required to report under this rule
would report the details of their barrows and gilts purchases three
times each day including a prior day report not later than 7 a.m.
central time, a morning report not later than 10 a.m. central time, and
an afternoon report not later than 2 p.m. central time, including all
covered transactions made up to within one half hour of each specified
reporting time. Packers completing transactions during the one half
hour prior to the previous reporting time would report those
transactions at the next prescribed reporting time. This information
would be published by the Secretary each reporting day not later than 8
a.m. central time, 11 a.m. central time, and 3 p.m. central time,
respectively. For barrows and gilts, packers required to report under
this rule would also have to report not later than 9 a.m. central time
on each reporting day information regarding all barrow and gilts
slaughtered during the prior business day. This information would be
published by the Secretary each reporting day not later than 10 a.m.
central time. In addition, the Secretary would publish a net price
distribution for all barrow and gilts slaughtered on the previous day
not later than 3 p.m. central time. Section 59.203 details the
reporting requirements for sows and boars. Under this proposed rule,
each sow and boar packer would report to the Secretary not later than 7
a.m. central time on each reporting day information regarding all sows
and boars purchased or priced during the prior business day of the
packer. This information would be published by the Secretary each
reporting day not later than 8 a.m. central time. Section 59.204
details the requirements for reporting weekly swine information to AMS
including what would be reported, when it would be reported, and when
it would be published. On the first reporting day of each week, not
later than 4 p.m. central time, packers would be required to report
information on noncarcass merit premiums used and paid to producers
during the prior slaughter week by category. This information would be
published on the first reporting day of each week not later than 5 p.m.
central time.
Lamb
Proposed Subpart D of Part 59 covers the mandatory reporting of
lambs. The 1999 Act gives the Secretary the authority to establish a
mandatory lamb price reporting program but does not set forth the
requirements. AMS proposes to resume the previously established
mandatory lamb price reporting program with some modifications as
discussed in a previous section in this document.
Section 59.300 provides definitions for terms used throughout
Subpart D including definitions for packer and for
[[Page 44679]]
importer, which identifies the entities that would be required to
report under this proposed rule. For any calendar year, the term lamb
packer includes any Federally inspected lamb processing plant that
slaughtered or processed the equivalent of an average of 75,000 head of
lambs a year for the immediately preceding 5 calendar years.
Additionally, the term includes any processing plant that did not
slaughter or process an average of 75,000 lambs during the immediately
preceding 5 calendar years if the Secretary determines that the plant
should be considered a packer based on the capacity of the processing
plant.
For entities that did not slaughter lambs during the immediately
preceding 5 calendar years, such as a new plant or existing plant that
begins operations, AMS will project the plant's annual slaughter or
production based upon the plant's estimate of annual slaughter capacity
to determine which entities meet the definition of a packer as defined
in these regulations.
For any calendar year, the term lamb importer includes any importer
that imported an average of 2,500 metric tons of lamb meat products per
year during the immediately preceding 5 calendar years. Additionally,
for any calendar year, the term importer includes any lamb importer
that did not import an average of 2,500 metric tons of lamb meat
products during the immediately preceding 5 calendar years if the
Secretary determines that the person should be considered an importer
based on their volume of lamb imports.
For importers of lamb meat products, AMS will annually review
import lamb volume data obtained from the United States Bureau of
Customs and Border Protection to determine which importers are required
to report imported boxed lamb cut sales information under these
regulations.
Under this proposed rule, several changes have been made to the
definitions section that was published in the 2000 final rule. To
facilitate the publication of more meaningful information in AMS market
reports, a definition of ``yield grade lamb carcass reporting'' has
been added, which will help clarify the requirements for reporting USDA
yield grade information. In addition, the definitions of ``lambs
committed'' and ``terms of trade'' have been deleted as the requirement
to submit the information associated with these definitions has been
removed as it is not used by the industry.
Section 59.301 covers the daily reporting requirements for live
lamb transactions including what would be reported, when it would be
reported, and when it would be published. Lamb plants covered under the
rule would report the details of their live lamb purchases once each
day to AMS, to include all covered transactions made up to within one
half hour of the specified reporting time. Lamb plants completing
transactions during the one half hour prior to the previous reporting
time would report those transactions at the next prescribed reporting
time. The Secretary would publish this information not less than once
each day. Section 59.302 covers the same type of information for weekly
reporting of live lamb transactions. Packers would be required to
report information regarding the prior slaughter week, including among
other things the number of lambs purchased through a negotiated
purchase that were slaughtered, on the first reporting day of each week
to be published by the Secretary on the same day. Finally, Section
59.303 covers the reporting requirements for transactions of lamb
carcasses and boxed lamb cuts including what would be reported, when it
would be reported, and when it would be published. Packers would be
required to report details of their sales and purchases of carcass
lambs once each day and the Secretary would publish the information
once each day. Packers would be required to report details of their
sales of boxed lamb cuts, including applicable branded product. This
information would be published once each day. These plants would be
required to reference the Institutional Meat Purchase Specifications
(IMPS) for Fresh Lamb and Mutton Series 200, United States Department
of Agriculture, Agricultural Marketing Service, Livestock and Seed
Program, where applicable.
Importers of boxed lamb cuts would be required to report the
required information of their prior week sales of imported boxed lamb
cuts on the domestic market, including applicable branded product on
the first reporting day of each week and this information would be
published by the Secretary on the same day.
OMB Control Numbers
Subpart E of Part 59 covers the OMB control number 0581-0186
assigned pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35) for the information collection requirements listed in
Subparts B through D of Part 59. All required information must be
reported to AMS in a standardized format. The standardized format is
embodied in 16 data collection forms that are included in Appendix E at
the end of this document. Cattle packers will utilize up to seven of
these forms (not all cattle packers must submit all cattle forms)
(Appendix A) when reporting information to AMS including four for daily
cattle reporting, two for weekly cattle reporting, and one for daily
boxed beef cuts reporting. Swine packers will utilize up to three forms
(not all swine packers must submit all swine forms) (Appendix B), two
for daily reporting of swine purchases and one for weekly reporting of
non-carcass merit premium information. Lamb packers will utilize up to
six of these forms (not all lamb packers must submit all lamb forms)
(Appendix C) when reporting information to AMS, including one for daily
lamb reporting, three for weekly lamb reporting, one for daily and
weekly boxed lamb cuts reporting, and one for daily lamb carcass
reporting. Lamb importers will utilize one of these forms when
reporting information to AMS for reporting weekly imported boxed lamb
cut sales.
Appendices
The final section of this document contains a series of five
appendices. These appendices will not appear in the Code of Federal
Regulations. The first three appendices, Appendices A to C, have
already been discussed above. They describe the forms that will be used
by those required to report information under this program. Appendix D
contains guidelines for those entities required to report information
on how to use the forms. The actual forms are contained in Appendix E.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This rule is not intended to have retroactive
effect. Section 259 of the 1999 Act prohibits States or political
subdivisions of a State to impose any requirement that is in addition
to, or inconsistent with, any requirement of the 1999 Act with respect
to the submission or reporting of information, or the publication of
such information, on the prices and quantities of livestock or
livestock products. In addition, the 1999 Act does not restrict or
modify the authority of the Secretary to administer or enforce the
Packers and Stockyards Act of 1921 (7 U.S.C. 181 et seq.); administer,
enforce, or collect voluntary reports under the 1999 Act or any other
law; or access documentary evidence as provided under Sections 9 and 10
of the Federal Trade Commission Act (15 U.S.C. 49, 50). There are no
administrative procedures that must be
[[Page 44680]]
exhausted prior to any judicial challenge to the provisions of this
rule.
Civil Rights Review
AMS has considered the potential civil rights implications of this
rule on minorities, women, or persons with disabilities to ensure that
no person or group shall be discriminated against on the basis of race,
color, national origin, gender, religion, age, disability, sexual
orientation, marital or family status, political beliefs, parental
status, or protected genetic information. This review included persons
that are employees of the entities that are subject to this regulation.
This proposed rule does not require affected entities to relocate or
alter their operations in ways that could adversely affect such persons
or groups. Further, this proposed rule would not deny any persons or
groups the benefits of the program or subject any persons or groups to
discrimination.
Executive Order 13132
This proposed rule has been reviewed under Executive Order 13132,
Federalism. This Order directs agencies to construe, in regulations and
otherwise, a Federal Statute to preempt State law only when the statute
contains an express preemption provision. This rule is required by the
1999 Act. Section 259 of the 1999 Act, Federal Preemption, states, ``In
order to achieve the goals, purposes, and objectives of this title on a
nationwide basis and to avoid potentially conflicting State laws that
could impede the goals, purposes, or objectives of this title, no State
or political subdivision of a State may impose a requirement that is in
addition to, or inconsistent with, any requirement of this subtitle
with respect to the submission or reporting of information, or the
publication of such information, on the prices and quantities of
livestock or livestock products.''
Prior to the passage of the 1999 Act, several States enacted
legislation mandating, to various degrees, the reporting of market
information on transactions of cattle, swine, and lambs conducted
within that particular State. However, since the National program was
implemented on April 2, 2001, these State programs are no longer in
effect. Therefore, there are no Federalism implications associated with
this rulemaking.
Executive Order 12866
This proposed rule has been determined to be significant for
purposes of Executive Order 12866 and therefore has been reviewed by
the Office of Management and Budget (OMB). In accordance with Executive
Order 12866, this preliminary regulatory analysis contains a statement
of the need for the proposed rule, an examination of alternative
approaches, and an analysis of benefits and costs.
Executive Summary
This proposed rule implements the Reauthorization Act, which
reauthorized the 1999 Act and amended the swine reporting provisions of
that Act. As stated in the 1999 Act, the purpose of the Act is to
establish a program of information regarding the marketing of cattle,
swine, lambs, and the products of such livestock that provides
information that can be readily understood by producers; improves the
price and supply reporting services of the Department of Agriculture;
and encourages competition in the marketplace for livestock and
livestock products. (7 U.S.C. 1635)
This proposed rule facilitates open, transparent price discovery
and provides all market participants, both large and small, with
comparable levels of market information. The proposed rule is expected
to reduce the time and resources that market participants would
otherwise expend to assess current market conditions, reduce risk and
uncertainty, and contribute to considerations of fairness and equity to
all participants in the marketplace. However, these anticipated
benefits are difficult to measure and quantify.
This proposed rule is strictly an informational measure and does
not impose any restrictions on the form, timing, or location of
procurement and sales arrangements in which subject packers and
importers may engage. Therefore, costs of the proposed rule are simply
the costs associated with system development and maintenance, data
submission, and recordkeeping activities of the packers and importers
required to report information under this proposed rule, plus the costs
to the Federal government for operation of the program. However, most
of the entities that would be required to report under this proposed
rule already reported information prior to expiration of the 1999 Act
on September 30, 2005, and have since continued to do so voluntarily.
As a result, incremental costs for implementation of this proposed rule
are negligible relative to total costs associated with the program.
Moreover, total costs estimated for this proposed rule are lower than
costs estimated in the 2000 final rule expressed in comparable current
(May 2007) dollar values.
Total costs to reporting packers and importers are estimated at
approximately $724,000 per year, while costs to the Federal government
for operation of the program total $6.3 million per year. By
comparison, the total costs to reporting packers and importers in the
2000 final rule (65 FR 75464) were estimated at $836,000 per year in
current dollars, while costs to the Federal government in FY 2001 were
estimated at $6.9 million in current dollars. In current dollar terms,
the proposed rule represents a reduction of $112,000 in estimated
annual costs to reporting packers and importers, and a reduction of
$600,000 in estimated annual costs to the Federal government.
For both respondents and the Federal government, total costs for
the proposed rule are estimated at approximately $7.0 million annually,
while total costs for the 2000 final rule were estimated at $7.8
million annually in current dollars. Because the Act expires on
September 30, 2010, the proposed rule is assumed to have a life cycle
of 4 years. At a real discount rate of 3 percent, the discounted
present value of the total private and public sector costs for the
proposed rule is estimated at $26.9 million for the duration of the
program, compared to $29.7 million for the 2000 final rule (expressed
in current dollars over a 4-year life cycle). This represents a
reduction of $2.8 million over the life of the proposed rule in
comparison to the 2000 final rule. At a real discount rate of 7
percent, the discounted present value of the total private and public
sector costs for the proposed rule is estimated at $25.5 million for
the duration of the program, compared to $28.1 million for the 2000
final rule (expressed in current dollars over a 4-year life cycle).
This represents a reduction of more than $2.6 million over the life of
the proposed rule in comparison to the 2000 final rule.
Need for Federal Regulatory Action
This proposed rule implements the Reauthorization Act, which
reauthorized the 1999 Act and amended the swine reporting provisions of
that Act. The 1999 Act first became law on October 22, 1999, as an
amendment to the Agricultural Marketing Act of 1946. The first reports
disseminated under LMR were issued in April 2001. In December 2004, the
1999 Act was reauthorized through September 30, 2005. The legislative
authority lapsed until October 5, 2006, when it was reauthorized
through September 30, 2010, with the Reauthorization Act. During the
two periods of lapsed mandatory reporting authority, most firms that
would have been required to report information under the requirements
of LMR continued to
[[Page 44681]]
report the same information voluntarily. As a result, AMS continued to
release most of the reports that would have been released under the
mandatory reporting program.
The 1999 Act as amended by the Reauthorization Act directs the
Department of Agriculture (USDA) ``to establish a program of
information regarding the marketing of cattle, swine, lambs, and
products of such livestock.'' This Act contains specific requirements
that provide limited discretionary authority for regulatory
implementation of many of the law's provisions. As a result, many of
the provisions within this proposed rule represent straightforward
implementation of the requirements of this Act.
As stated in the 1999 Act, the purpose of the statute is to
establish a program that--
(1) provides information that can be readily understood by
producers, packers, and other market participants, including
information with respect to the pricing, contracting for purchase, and
supply and demand conditions for livestock, livestock production, and
livestock products;
(2) improves the price and supply reporting services of the
Department of Agriculture; and
(3) encourages competition in the marketplace for livestock and
livestock products. (7 U.S.C. 1635)
Increasingly, transactions between livestock producers and meat
packers occur by way of private negotiations rather than through public
trades. Compared to prices established in public markets, prices
established in private transactions are difficult to observe, collect,
summarize, and disseminate. Data reported by USDA's Grain Inspection,
Packers and Stockyards Administration (GIPSA) show that of total cattle
purchases by reporting packers, the share purchased in public markets
declined from 30.2 percent in 1977 to 12.0 percent in 2004.1 For hogs,
the decline was larger, dropping from 27.5 percent in 1977 to just 1.7
percent in 2004.\1\ For sheep and lambs, public market purchases
declined from 23.4 percent to 8.3 percent of total purchases by
reporting packers over the same period.
---------------------------------------------------------------------------
\1\ GIPSAQ, USDA. Packers and Stockyards Statistical Report,
2005 Reporting Year. GIPSA SR-07-1, February 2007.
---------------------------------------------------------------------------
Open, transparent price discovery provides all market participants
with comparable levels of market information, providing each economic
agent with similar information. The decline in public market trading of
livestock over the years led to increasingly opaque price discovery in
these markets. As stated in the 1999 Act, mandatory livestock reporting
provides a means of providing information to market participants and
improving the price and supply reporting services of USDA.
Similar to many sectors of the economy, both the livestock
production and meat packing industries have undergone substantial
consolidation during the past few decades. However, the rate and extent
of the consolidation among meat packers has been greater compared to
livestock producers.
The four-firm concentration ratio for steer and heifer slaughter
increased from 35.7 percent in 1980 to 81.1 percent in 2004.\2\ Over
the same period, the four-firm concentration ratio for cow and bull
slaughter increased from 9.7 percent to 48.0 percent. Hog slaughter
concentration by the top four firms increased from 33.6 percent to 61.3
percent over the same period, while sheep and lamb slaughter
concentration increased from 55.9 percent to 66.9 percent. Between 1986
and 2005, the number of bonded packers reporting to GIPSA declined from
691 to 312.
---------------------------------------------------------------------------
\2\ Ibid.
---------------------------------------------------------------------------
According to the National Agricultural Statistics Service (NASS),
the number of cattle operations in the United States declined from 1.6
million in 1980 to 983,000 in 2005. Over the same time period, the
number of hog and pig operations declined from 667,000 to 67,000, while
the number of sheep and lamb operations declined from 120,000 to
68,000. Thus, consolidation occurred among livestock production
operations, but the number of livestock operations still far exceeds
the number of livestock packers.
For slaughter livestock, the predominant marketing relationship is
characterized by comparatively small livestock operations dealing with
large meat packing firms. In addition, markets for slaughter livestock
are local or regional in geographic scope. The distances over which it
is economically rational to transport slaughter livestock is dictated
by differences in relative prices for livestock in different geographic
areas versus shipping costs. Shipping costs include not only costs of
trucking equipment, labor, fuel, insurance and other out-of-pocket
expenses, but also include additional stress and weight shrink of
animals hauled for greater distances and longer periods of time. In
these regionalized trade areas, there typically are relatively large
numbers of livestock operations, but only a handful of packers for any
given type of slaughter animal. As a result, relatively few packers
engage in many, frequent negotiations and completed transactions with a
large number of producers. In contrast, even larger livestock
operations typically engage in negotiations with a few packers within
their economically viable trade area and may only complete transactions
with one or two packers. Smaller livestock operations may only engage
in sales transactions a few times per year, while packers procure
livestock to run their plants every business day of the year. The 1999
Act and the Reauthorization Act were passed by Congress in light of
these structural and organizational conditions present in the livestock
and meat industries.
The proposed rule does not constitute economic regulation of the
permissible business practices in which meat packers and importers may
engage. Affected entities are free to conduct their businesses in any
manner consistent with other relevant Federal, State, and local laws
and regulations. The proposed rule only requires that the subject
entities disclose information about their livestock purchases and meat
sales to AMS, which will then process, summarize, and disseminate the
information. The identity of persons, including parties to a contract,
and proprietary business information will be kept confidential in
accordance with the 1999 Act.
Alternative Regulatory Approaches
AMS believes that the proposed rule represents the most cost
effective means of fulfilling the statutory mandate of 1999 Act as
amended by the Reauthorization Act. While this Act provides some
discretionary authority for operation of the program, many of the
definitions, reporting times, and disclosure requirements are specified
in the law itself. Since the program was first implemented in April
2001, experience has proven that electronic reporting is the least-cost
means for both subject entities and AMS to comply with the requirements
of the Reauthorization Act. During the periods in which mandatory
reporting requirements lapsed (including October 2005 through the
present), entities that continued to report voluntarily did so through
electronic submission of information in the same manner as had been
required under mandatory reporting authority.
The LMR system provides two methods for firms to transmit livestock
mandatory reporting data to the system: A web interface and electronic
data transfer. For most firms, electronic data transfer provides the
most efficient
[[Page 44682]]
mechanism for transferring required data. USDA provides a software
utility for users to transfer comma-delimited ASCII files directly to
the LMR system. The comma-delimited files can be generated
electronically from livestock purchase and meat sales records. For
smaller operations with relatively few transactions, the web interface
may be more efficient than electronic data transfer. The web interface
module is available over the Internet using a web browser, but requires
more manual inputting of data compared to the electronic data transfer
option. Nonetheless, the web interface option provides smaller
operations with a mechanism for submitting the required data without
the need to incur fixed costs of developing a software application to
prepare data for electronic data transfer. Historically, about 90
percent of plants and importers have submitted data electronically,
with the remaining 10 percent of respondents submitting data through
the web interface.
Analysis of Benefits and Costs
The baseline for this analysis is the LMR program as it currently
operates. Specifically, the baseline is the LMR program as directed by
the 1999 Act and implemented by the 2000 final rule. Although the 2000
final rule expired when the 1999 Act expired on September 30, 2005, the
current voluntary participation by most packers allows the LMR program
to function nearly identically to how it operated under the mandatory
authority of the 1999 Act.
Despite the fundamental role played by market information for
private and public decision-making, research, outlook, and analysis,
there is comparatively little empirical research on market reporting in
and of itself. Likewise, there is a paucity of quantitative research
regarding the benefits and costs of LMR specifically.
Perry, et al. note that some local and regional market news reports
were no longer available after the implementation of LMR because of the
program's confidentiality restrictions.\3\ However, the authors also
conclude that far more information on formula transactions became
available, allowing for comparisons with negotiated transactions that
had not been possible before. Formula prices for cattle were found to
closely mirror prices for negotiated purchases. The study found that
volatility in weekly reported cattle prices rose after implementation
of LMR, but was unable to determine whether the change resulted from
the change in the reporting system or from changes in cattle markets.
The authors observed that the trend toward formula pricing arrangements
in cattle markets slowed after LMR was implemented, and cautiously
speculated that the program may have played a role in stabilizing the
volume of negotiated transactions.
---------------------------------------------------------------------------
\3\ Perry, J., J. MacDonald, K. Nelson, W. Hahn, C. Arnade, and
G. Plato. ``Did the Mandatory Requirement Aid the Market? Impact of
the Livestock Mandatory Reporting Act.'' Economic Research Service,
U.S. Department of Agriculture, LDP-M-135-01, September 2005.
---------------------------------------------------------------------------
Ward provides perhaps the most comprehensive review and assessment
of research relating to LMR.\4\ Ward notes that satisfaction or
dissatisfaction with mandatory reporting depends on individuals'
expectations regarding what the Reauthorization Act would achieve or
the problems that it would address. Ward concludes that mandatory
reporting provides more information in some areas than what was
previously available and has increased transparency and price reporting
accuracy. He suggests that satisfaction with the program likely has
increased due to increased familiarity with the data and information
available through mandatory reporting and enhanced confidence in
reported prices.
---------------------------------------------------------------------------
\4\ Ward, C.E. ``An Assessment of the Livestock Mandatory
Reporting Act.'' Paper presented at the NCCC-134 Conference on
Applied Commodity Price Analysis, Forecasting, and Market Risk
Management, St. Louis, Missouri, April 17-18, 2006.
---------------------------------------------------------------------------
Benefits. One of the fundamental conditions underlying the theory
of competitive markets is that market participants possess relevant
information necessary to make the correct economic decisions. This
proposed rule seeks to ensure market transparency by providing current
and potential participants in livestock and meat markets with timely,
accurate, and comprehensive information about prices paid and received
for livestock and meat products. Market transparency facilitates market
efficiency by reducing search costs for market participants and by
reducing risk and uncertainty. Widely available market information
reduces the time and resources that market participants would otherwise
expend to assess current market conditions. With reliable market
information, market participants can make informed marketing decisions
and thus reduce exposure to risks associated with buying or selling at
prices inconsistent with the prevailing market norms. Unrestricted
availability of market information may also contribute to
considerations of equity and fairness in the marketplace. Unrestricted
dissemination of market news reporting provides all market participants
with comparable access to current market information regardless of the
size or financial resources of their respective operations.
Livestock mandatory reporting under this proposed rule will provide
comprehensive information on slaughter livestock, beef, and lamb meat
prices. Using the information submitted by packers under the provisions
of the 1999 Act, AMS publishes over 100 daily, weekly, and monthly
reports covering market transactions for fed cattle, swine, lamb, beef,
and lamb meat. Based on the information available, AMS estimates that
reports issued under LMR cover approximately 95 percent of slaughter
hogs, 77 percent of the slaughter cattle, 60 percent of slaughter
sheep, 41 percent of boxed lamb, 26 percent of the carcass lamb, and 93
percent of boxed beef. AMS market reports are utilized by producers and
others in the marketing chain to formulate contracts and make marketing
decisions, and by other Government agencies to make policy decisions,
settle trade disputes, and in a variety of other functions. Despite the
fundamental role played by price information in underpinning fair,
competitive, and efficient markets, quantifying the impact of mandatory
livestock reporting is difficult. There is a considerable economic
literature addressing the value of information, but little research on
the economics of market reporting in and of itself.\5\ Research mainly
has addressed the accuracy and adequacy of price reporting, but no
published works have been identified that monetize the benefits of
mandatory reporting programs such as that contained in this proposed
rule.
---------------------------------------------------------------------------
\5\ Ward, op. cit.
---------------------------------------------------------------------------
Costs. This proposed rule is strictly an informational measure and
does not impose any restrictions on the form, timing, or location of
procurement and sales arrangements in which subject packers and
importers may engage. The proposed rule places no additional
limitations on current or future business relationships into which
affected firms may enter, although other local, State, and Federal laws
and regulations regarding such relationships continue to apply.
Therefore, costs of the proposed rule are simply the costs associated
with system development and maintenance, data submission, and
recordkeeping activities of the packers and importers that would be
required to report information under this proposed rule, plus the costs
to the Federal government for operation of the program.
[[Page 44683]]
Although this proposed rule is not identical to the 2000 final
rule, most of the regulatory provisions are the same or only slightly
modified from that rule. As such, costs for firms subject to the
proposed rule will be similar to costs required to comply with the 2000
final rule. Hence, the methods for developing the cost estimates
presented in this preliminary impact analysis largely follow from the
methods used in developing the cost estimates contained in the final
impact analysis published in the Federal Register along with the 2000
final rule. As applicable, estimates of employer costs for employee
compensation are updated using recent statistics from the Bureau of
Labor Statistics.
For reporting packers and importers, there are essentially three
phases required to comply with this proposed rule: (1) Development or
modification of a system for electronic reporting of data and periodic
system maintenance, updating, and compliance; (2) ongoing submission of
required data; and (3) maintenance of records for a period of 2 years
following submission of data to AMS. AMS estimates that most costs
associated with this proposed rule will result from costs associated
with ongoing submission of required data. As explained below, AMS
expects that there will be relatively low costs imposed on reporting
packers and importers for program startup, systems maintenance and
updating, and records maintenance.
AMS estimates that approximately 65 packers and importers,
representing approximately 115 plants or establishments, would be
required to submit information under this proposed rule. However, most
of these firms already have established systems for reporting
information to AMS because they were subject to the requirements of the
program when it was in effect from 2001 through 2005. Moreover, most
firms have continued to report data voluntarily to AMS during the
period that the Act expired on September 30, 2005, to the present.
These firms will need to modify their current data reporting systems to
be compatible with the requirements of the proposed rule.
AMS estimates that there will be an average of about three
additional packers and importers annually that will reach the size
thresholds for reporting under this proposed rule, but that had not
previously reported under the requirements of the Act. Some of these
firms will be new entrants to the industry and others will have
increased their slaughter volume to the level at which they are
required to submit data under the requirements of the law and this
proposed rule. These firms will need to develop an electronic interface
to translate the information from their existing computerized
recordkeeping systems into the standardized format required for
automated submission of the data to AMS. Firms with existing reporting
systems will need to modify the electronic interface to accommodate
changes in reporting requirements. AMS estimates that 15 hours of
development and computer programming time per plant will be required to
develop or modify the interface.
Electronic data transmission of information is accomplished using
an interface with an existing electronic recordkeeping system. In most
cases, the information packers and importers are required to report
already exists in internal computerized recordkeeping systems. Packers
and importers will provide for the translation of the information from
their existing electronic recordkeeping system into the required AMS
standardized format. Once accomplished, the information will be
electronically transmitted to AMS where it will be automatically loaded
into an AMS database. AMS estimates that the development and computer
programming to establish and maintain this interface will require an
industry average of 15 hours per respondent per year. AMS estimates the
employer costs for employee total compensation per hour to average
$44.82, which is the average for all civilian management, professional,
and related occupations for the second quarter of 2006 according to
Bureau of Labor Statistics. The management, professional, related
occupations category includes the managers who would oversee
development and maintenance of the electronic interface and the
computer systems and programming personnel who would actually implement
and maintain the interface. With 15 hours of time, AMS estimates the
total cost, on average, for the electronic interface development and
maintenance to be $672.30 per year.
Electronic Submission Development and Annual System Maintenance Cost per
Respondent
------------------------------------------------------------------------
------------------------------------------------------------------------
Hours to develop and maintain interface...................... 15
Employee compensation cost per hour.......................... x $44.82
----------
Total annual cost per respondent............................. $672.30
------------------------------------------------------------------------
\*\ hours required annually to develop and maintain electronic interface
between existing company electronic recordkeeping system and AMS
required electronic submission format.
Additionally, AMS estimates the annual cost per respondent for the
storage of the electronic data files submitted to AMS in compliance
with the reporting provisions of this rule to be $1,923.10 (see
Paperwork Reduction Act section for a full discussion). This estimate
includes the cost of electronic data storage media, backup electronic
data storage media, and backup software required to maintain an
estimated annual electronic recordkeeping and backup burden of 20
megabytes, on average, per respondent. In addition, this estimate
includes the cost per employee to maintain such records which is
estimated to average 70 hours per year at $21.33 per hour for a total
employee compensation component cost of $1,493.10 per year. For this
record maintenance activity, AMS estimates the employer costs for
employee total compensation per hour to average $21.33, which is the
average for all civilian office and administrative support occupations
for the second quarter of 2006 according to data from the Bureau of
Labor Statistics.
Annual Recordkeeping Cost Per Respondent
------------------------------------------------------------------------
------------------------------------------------------------------------
Labor hours per year....................................... 70
Labor cost per hour........................................ x $21.33
------------
Sub-total labor cost per year............................ $1,493.10
Electronic storage cost\*\............................... + $430.00
------------
Total Recordkeeping Cost............................... $1,923.10
------------------------------------------------------------------------
\*\ includes cost of hard electronic storage (estimated to average 20
Megabytes/year), backup media, backup drive, and backup software.
In this rule, information collection requirements include the
submission of the required information on a daily and weekly basis in
the standard format provided in the following forms: (1) Live Cattle
Daily Report (Current Established Prices), (2) Live Cattle Daily Report
(Committed and Delivered Cattle), (3) Live Cattle Weekly Report, (4)
Cattle Premiums and Discounts Weekly Report, (5) Cow/Bull Plant
Delivered Bids (Dressed Basis), (6) Live Cow/Bull Daily Purchase
Report, (7) Boxed Beef Daily Report, (8) Swine Prior Day Report, (9)
Swine Daily Report, (10) Swine Noncarcass Merit Premium Weekly Report,
(11) Live Lamb Daily Report (Current Established Prices), (12) Live
Lamb Weekly Report (13) Live Lamb Weekly Report (Formula Purchases),
(14) Lamb Premiums and Discounts Weekly Report, (15) Boxed Lamb Daily
Report, and (16) Lamb Carcass Report. Copies of these 16 forms are
included in Appendices at the end of this proposed rule.
[[Page 44684]]
Cattle packers will utilize up to seven of these forms (Appendix A)
when reporting information to AMS including two for daily cattle
reporting, three for weekly cattle reporting, and one for daily boxed
beef cuts reporting. AMS estimates the total data submission cost
burden to cattle packers to be $237,734. In comparison, the annual data
submission cost burden to cattle packers was estimated at $266,560 in
the 2000 final rule, which took effect in April 2001. According to the
Bureau of Labor Statistics CPI inflation calculator, $1.00 in 2001 has
the same buying power as $1.17 today. More precisely, the inflation
factor to convert the average Consumer Price Index for 2001 to the
current (May 2007) value is 1.174. In current dollar terms, then, the
estimated data submission cost burden to cattle packers under the 2000
final rule equals $312,941. Thus, the total data submission cost burden
to cattle packers is estimated at $75,207 less in the proposed rule
compared to the 2000 final rule expressed in comparable current dollar
terms.
Swine packers will utilize up to three forms (Appendix B), two for
daily reporting of swine purchases and one for weekly reporting of non-
carcass merit premium information. AMS estimates the total data
submission cost burden to swine packers to be $153,329. In comparison,
the annual data submission cost burden to swine packers was estimated
at $166,400 in the 2000 final rule. In current dollar terms using the
CPI inflation calculator, the estimated data submission cost burden to
swine packers under the 2000 final rule would be $195,354. Thus, the
total data submission cost burden to swine packers is estimated at
$42,025 less in the proposed rule compared to the 2000 final rule
expressed in comparable current dollar terms.
Lamb packers will utilize up to six of these forms (Appendix C)
when reporting information to AMS including two for daily lamb
reporting, three for weekly lamb reporting, one for daily and weekly
boxed lamb cuts reporting and one for daily and weekly lamb carcass
reporting. Lamb importers will utilize one of these forms when
reporting information to AMS for reporting weekly imported boxed lamb
cut sales. AMS estimates the total data submission cost burden to lamb
packers and lamb importers to be $31,846. In comparison, the annual
data submission cost burden to lamb packers and lamb importers was
estimated at $48,390 in the 2000 final rule. In current dollar terms
using the CPI inflation calculator, the estimated data submission cost
burden to lamb packers and lamb importers under the 2000 final rule
would be $56,810. Thus, the total data submission cost burden to lamb
packers and lamb importers is estimated at $24,964 less in the proposed
rule compared to the 2000 final rule expressed in comparable current
dollar terms.
The cost estimates for the proposed rule are discussed in detail in
the Paperwork Reduction Act Section.
Breakdown of Estimated Data Submission Cost Burden
----------------------------------------------------------------------------------------------------------------
Total
Form Reporting days x Responses = responses
----------------------------------------------------------------------------------------------------------------
I. Number of Responses per Respondent per Year
----------------------------------------------------------------------------------------------------------------
Cattle:
LS-113............................... 260 .. 2 daily...................... .. 520
LS-114............................... 260 .. 2 daily...................... .. 520
LS-115............................... 52 .. 1 weekly..................... .. 52
LS-117............................... 52 .. 1 weekly..................... .. 52
LS-126............................... 260 .. 2 daily...................... .. 520
LS-131............................... 260 .. 1 daily...................... .. 260
LS-132............................... 260 .. 1 daily...................... .. 260
Swine:
LS-118............................... 260 .. 1 daily...................... .. 260
LS-119............................... 260 .. 2 daily...................... .. 520
LS-120............................... 52 .. 1 weekly..................... .. 52
Lamb:
Domestic:
LS-121............................... 260 .. 1 daily...................... .. 260
LS-123............................... 52 .. 1 weekly..................... .. 52
LS-124............................... 52 .. 1 weekly..................... .. 52
LS-125............................... 52 .. 1 weekly..................... .. 52
LS-128............................... 260 .. 1 daily...................... .. 260
LS-129............................... 260 .. 1 daily...................... .. 260
Importer:
LS-128............................... 52 .. 1 weekly..................... .. 52
----------------------------------------------------------------------------------------------------------------
Submissions/ Hours/ Total hours/
Form year x submission = year
----------------------------------------------------------------------------------------------------------------
II. Number of Submission Hours per Respondent per Year
----------------------------------------------------------------------------------------------------------------
Cattle:
LS-113.............................................. 520 .. .17 .. 88.40
LS-114.............................................. 520 .. .17 .. 88.40
LS-115.............................................. 52 .. .25 .. 13.00
LS-117.............................................. 52 .. .08 .. 4.16
LS-126.............................................. 520 .. .125 .. 65.00
LS-131.............................................. 260 .. .08 .. 20.80
LS-132.............................................. 260 .. .17 .. 44.20
Swine:
LS-118.............................................. 260 .. .25 .. 65.00
LS-119.............................................. 520 .. .17 .. 88.40
[[Page 44685]]
LS-120.............................................. 52 .. .25 .. 13.00
Lamb:
Domestic:
LS-121.............................................. 260 .. .34 .. 88.40
LS-123.............................................. 52 .. .25 .. 13.00
LS-124.............................................. 52 .. .25 .. 13.00
LS-125.............................................. 52 .. .08 .. 4.16
LS-128.............................................. 260 .. .167 .. 43.42
LS-129.............................................. 260 .. .167 .. 43.42
Importer:
LS-128.............................................. 52 .. .084 .. 4.37
----------------------------------------------------------------------------------------------------------------
Total hours/ Total dollars/
Form year x Cost/hour = year
----------------------------------------------------------------------------------------------------------------
III. Total Submission Cost per Respondent per Year
----------------------------------------------------------------------------------------------------------------
Cattle:
LS-113.............................................. 88.40 .. $21.33 .. $1,886
LS-114.............................................. 88.40 .. 21.33 .. 1,886
LS-115.............................................. 13.00 .. 21.33 .. 277
LS-117.............................................. 4.16 .. 21.33 .. 89
LS-126.............................................. 65.00 .. 21.33 .. 1,386
LS-131.............................................. 20.80 .. 21.33 .. 444
LS-132.............................................. 44.20 .. 21.33 .. 943
-------------------------------------------------------
Totals.......................................... 323.96 .. 21.33 .. 6,911
Swine:
LS-118.............................................. 65.00 .. 21.33 .. 1,386
LS-119.............................................. 88.40 .. 21.33 .. 1,886
LS-120.............................................. 13.00 .. 21.33 .. 277
-------------------------------------------------------
Totals.......................................... 166.40 .. 21.33 .. 3,549
Lamb:
Domestic:
LS-121.............................................. 88.40 .. 21.33 .. 1,886
LS-123.............................................. 13.00 .. 21.33 .. 277
LS-124.............................................. 13.00 .. 21.33 .. 277
LS-125.............................................. 4.16 .. 21.33 .. 89
LS-128.............................................. 43.42 .. 21.33 .. 926
LS-129.............................................. 43.42 .. 21.33 .. 926
Importer:
LS-128.............................................. 4.37 .. 21.33 .. 93
-------------------------------------------------------
Totals.......................................... 209.77 .. 21.33 .. 4,474
-------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Total dollars/
Form year x Respondents = Total cost
----------------------------------------------------------------------------------------------------------------
IV. Total Yearly Submission Cost for All Respondents
----------------------------------------------------------------------------------------------------------------
Cattle:
LS-113.............................................. $1,886 .. 34 .. $64,124
LS-114.............................................. 1,886 .. 34 .. 64,124
LS-115.............................................. 277 .. 34 .. 9,418
LS-117.............................................. 89 .. 34 .. 3,026
LS-126.............................................. 1,386 .. 48 .. 66,528
LS-131.............................................. 444 .. 22 .. 9,768
LS-132.............................................. 943 .. 22 .. 20,746
-------------------------------------------------------
Subtotal........................................ .............. .. .............. .. 237,734
Swine:
LS-118.............................................. 1,386 .. 52 .. 72,072
LS-119.............................................. 1,886 .. 40 .. 75,440
LS-120.............................................. 277 .. 21 .. 5,817
-------------------------------------------------------
Subtotal........................................ .............. .. .............. .. 153,329
Lamb:
Domestic:
LS-121.............................................. 1,886 .. 6 .. 11,316
LS-123.............................................. 277 .. 5 .. 1,385
[[Page 44686]]
LS-124.............................................. 277 .. 5 .. 1,385
LS-125.............................................. 89 .. 6 .. 534
LS-128.............................................. 926 .. 10 .. 9,260
LS-129.............................................. 926 .. 8 .. 7,408
Importer:
LS-128.............................................. 93 .. 6 .. 558
-------------------------------------------------------
Subtotal........................................ .............. .. .............. .. 31,846
=======================================================
Grand total..................................... .............. .. .............. .. 422,909
----------------------------------------------------------------------------------------------------------------
The total cost burden to packers and importers required to submit
information under this proposed rule includes initial startup and
annual maintenance costs for electronic submission of data, annual
recordkeeping costs, and annual data submission costs. Total reporting
costs to cattle packers are estimated to be $7,548 per plant, $5,544
for swine packers, $5,724 for lamb slaughtering plants, and $2,688 for
lamb importers. In comparison, total reporting costs in the 2000 final
rule were estimated to be $7,420 per plant for cattle packers, $5,308
for swine packers, $7,860 for lamb slaughtering plants, and $2,070 for
lamb importers. In current dollar values, however, estimated costs in
the 2000 final rule equal $8,711 per plant for cattle packers, $6,232
for swine packers, $9,228 for lamb slaughtering plants, and $2,430 for
lamb importers. With the exception of lamb importers, which have an
increase of $258, estimated total reporting costs per plant for all
respondents are lower in the proposed rule than in the 2000 final rule
expressed in comparable current dollar values.
Total Annual Cost Burden to Respondents
----------------------------------------------------------------------------------------------------------------
Cost per Number of Total cost
respondent x respondents = \*\
----------------------------------------------------------------------------------------------------------------
Cattle:
Startup/Maintenance.................................... $ 672 .. 48 .. $32,256
Recordkeeping.......................................... 1,923 .. 48 .. 92,304
Data Submission........................................ 4,953 .. 48 .. 237,734
----------------------------------------------------
362,294
Average Cost per Respondent: $362,294 / 48 = $7,548.
Swine:
Startup/Maintenance.................................... $ 672 .. 52 .. $ 34,944
Recordkeeping.......................................... 1,923 .. 52 .. 99,996
Data Submission........................................ 2,949 .. 52 .. 153,329
----------------------------------------------------
288,269
Average Cost per Respondent: $288,269 / 52 = $5,544.
Lamb:
Domestic:
Startup/Maintenance.................................... $ 672 .. 10 .. $6,720
Recordkeeping.......................................... 1,923 .. 10 .. 19,230
Data Submission........................................ 3,129 .. 10 .. 31,288
----------------------------------------------------
57,238
Average Cost per Respondent: $57,238 / 10 = $5,724.
Importer:
Startup/Maintenance.................................... $ 672 .. 6 .. $ 4,032
Recordkeeping.......................................... 1,923 .. 6 .. 11,538
Data Submission........................................ 93 .. 6 .. 558
----------------------------------------------------
16,128
====================================================
Average Cost per Respondent: $16,128 / 6 = $2,688.
Grand total, all species........................... $723,929
----------------------------------------------------------------------------------------------------------------
\*\ Totals may reflect differences in numerical rounding.
In addition to these costs to packers for submitting information,
the mandatory price reporting program will cost approximately $6.3
million per fiscal year to the Federal government. The 50 staff years
required to administer and produce high quality mandatory price reports
include reporters, auditors, clerical personnel, and computer
specialists. These employees will be located in three AMS offices
located across the country. Salary-related costs
[[Page 44687]]
are estimated at $4.9 million per year. Other costs include
approximately $0.3 million for travel and transportation; and $1.1
million for miscellaneous costs such as office space, utilities,
communications costs, printing, training, office supplies, equipment
(including computers, software, and licenses), and contractual services
necessary to maintain the system. In the 2000 final rule, costs to the
Federal government for the program were estimated at $5.9 million for
fiscal year 2001, which equals $6.9 million in current dollar value.
Thus, estimated costs to the Federal government are $600,000 less in
the proposed rule compared to the 2000 final rule expressed in current
dollar values.
The authority for the Act expires on September 30, 2010. Therefore,
this proposed rule would be effective for approximately 4 years (2007-
2010). Annual costs for this proposed rulemaking are estimated at
approximately $7.0 million per year: $723,929 for respondents to submit
and maintain data plus $6.3 million to USDA for operation of the LMR
program. At a real discount rate of 3 percent, the discounted present
value of the total cost to the private sector and the Federal
government for the life of the program would be $26.9 million. Using
estimated costs from the 2000 final rule and assuming the same 4-year
duration, the comparable discounted present value for the life of the
program would be $29.7 million expressed in current dollars. Thus,
estimated total program costs are reduced by $2.8 million over the life
cycle of the proposed rule in comparison to the 2000 final rule at the
3 percent discount rate. At a real discount rate of 7 percent, the
discounted present value of the total cost to the private sector and
the Federal government for the life of the program would be $25.5
million. Using estimated costs from the 2000 final rule and assuming
the same 4-year duration, the comparable discounted present value for
the life of the program would be $28.1 million expressed in current
dollars. Estimated total program costs are reduced by more than $2.6
million over the life cycle of the proposed rule in comparison to the
2000 final rule at the 7 percent discount rate. The present values for
the 4-year life of the program assume that all costs are incurred at
the beginning of each year of the program.
Regulatory Flexibility Act
In General. This proposed rule has been reviewed under the
requirements of the Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et
seq.). The purpose of the RFA is to consider the economic impact of a
rule on small business entities. Alternatives, which would accomplish
the objectives of the rule without unduly burdening small entities or
erecting barriers that would restrict their ability to compete in the
marketplace, have been evaluated. Regulatory action should be
appropriate to the scale of the businesses subject to the action. The
collection of information is necessary for the proper performance of
the functions of AMS concerning the mandatory reporting of livestock
information. The Act requires AMS to collect and publish livestock
market information. The required information is only available directly
from those entities required to report under these proposed regulations
and exists nowhere else. Therefore, this proposed rule does not
duplicate market information reasonably accessible to the Agency.
Objectives and Legal Basis. The objective of this proposed rule is
to improve the price and supply reporting services of USDA in order to
increase the amount of information available to participants. This is
accomplished through the establishment of a program of information
regarding the marketing of cattle, swine, lambs, and products of such
livestock as specifically directed by the Reauthorization Act and these
regulations, as described in detail in the background section.
Estimated Number of Small Businesses. AMS estimates that
approximately 65 firms operating approximately 115 plants will be
required to report market information under this proposed rule. AMS
estimates that 60 of these firms represent cattle, swine, and sheep
slaughtering companies, with approximately 5 additional firms that
import lamb carcasses and lamb meat.
According to Small Business Administration (SBA) definitions, a
meat packing firm having fewer than 500 employees is a small business.
This criterion applies to most of the firms required to report under
the proposed rule, including all of the cattle and swine packers. Some
of the lamb importers required to report under this proposed rule are
brokerage operations that do not slaughter lambs. For meat and meat
product merchant wholesalers, the SBA defines a firm having fewer than
100 employees as a small business.
In formulating this proposed rule, particular consideration was
given to reducing the burden on entities while still achieving the
objectives of the rule. Under the proposed rule, thresholds are set
that define those entities that are required to report information on
purchases of live cattle, swine and lambs, as well as information on
domestic and export sales of boxed beef cuts including applicable
branded product, and sales of lamb carcasses, boxed lamb cuts including
applicable branded product, and imported boxed lamb cuts including
applicable branded product.
These packers and importers are required to report to AMS the
details of all transactions involving purchases of livestock, domestic
and export sales of boxed beef cuts including applicable branded
product, sales of domestic boxed lamb cuts including applicable branded
product, imported boxed lamb cuts including applicable branded product,
and lamb carcasses. Cattle and swine information will be reported to
AMS according to the schedule directed by this proposed rule with
purchases of swine reported three times each day, purchases of cattle
twice each day, and sales of domestic and exported boxed beef cuts,
including applicable branded product, reported twice each day. Lamb
information will be reported to AMS according to the schedule mandated
by this rule with purchases of lambs reported once each day and sales
of lamb carcasses reported once each day. Previous week sales of
imported boxed lamb cuts including applicable branded boxed lamb cuts
will be reported once weekly on the first reporting day of the week.
In any calendar year, only Federally inspected cattle plants that
slaughtered an average of 125,000 head of cattle a year for the
immediately preceding 5 calendar years are required to report.
Additionally, any Federally inspected cattle plant that did not
slaughter cattle during the immediately preceding 5 calendar years is
required to report if the Secretary determines that the plant should be
considered a packer required to report based on its capacity. For
entities that did not slaughter cattle during the immediately preceding
5 calendar years, such as a new plant or existing plant that resumes
operations, the AMS will project the plant's annual slaughter or
production based upon the plant's estimate of annual slaughter capacity
to determine which entities meet the definition of a packer as defined
in the law and these proposed regulations. This accounts for an
expected 49 out of 636 Federally inspected cattle plants or 7.7 percent
of all Federally inspected cattle plants.
For any calendar year, any Federally inspected swine plant that
slaughtered an average of 100,000 head of swine a year for the
immediately preceding 5 calendar years is required to report
information, as is any person that
[[Page 44688]]
slaughtered and average of at least 200,000 sows, boars, or any
combination thereof, per year during the immediately preceding 5
calendar years. Additionally, any Federally inspected swine plant or
person that did not slaughter swine during the immediately preceding 5
calendar years if the Secretary determines that the plant should be
considered a packer based on the capacity of the processing plant is
required to report. This accounts for an expected 52 out of 614
Federally inspected swine plants or 8.5 percent of all Federally
inspected swine plants.
In any calendar year, a Federally inspected lamb plant that
slaughtered the equivalent of an average of 75,000 head of lambs a year
for the immediately preceding 5 calendar years is considered a packer
and required to report. A packer includes a Federally inspected
processing plant that purchases and processes an average of 75,000 lamb
carcasses annually rather than slaughter live lambs. Additionally, any
Federally inspected processing plant that did not slaughter an average
of 75,000 lambs during the immediately preceding 5 calendar years if
the Secretary determines that the plant should be considered a packer
based on the capacity of the processing plant is required to report.
This accounts for an expected 10 lamb plants and 6 importers. The
expected total of 10 out of 484 lamb plants amounts to 2.1 percent of
all Federally inspected lamb plants.
For any calendar year, lamb importers that imported an average of
2,500 metric tons of lamb meat products per year during the immediately
preceding 5 calendar years are required to report. Additionally, any
lamb importer that did not import an average of 2,500 metric tons of
lamb meat products during the immediately preceding 5 calendar years if
the Secretary determines that the person should be considered an
importer based on the volume of lamb imports is required to report.
Some lamb plants may also be importers.
An estimated 92.3 percent of all Federally inspected cattle plants,
91.5 percent of all Federally inspected swine plants, and 97.9 percent
of all Federally inspected lamb plants in the U.S. are exempted by this
proposed rule from reporting information. For all livestock species,
there were 793 slaughter plants under Federal inspection and 2,060
slaughter plants under other forms of inspection (such as State
inspection) on January 1, 2007. Plants that are not under Federal
inspection are smaller operations that would be considered small
businesses. An estimated 110 livestock slaughter plants will be
required to report under this proposed rule. Conversely, 2,743 or 96.1
percent of all livestock plants in the United States would be exempt
from mandatory reporting under this proposed rule.
According to U.S. Census Bureau Statistics of U.S. Businesses,
there were 1,718 animal (except poultry) slaughtering \6\ firms with
payroll in the United States in 2004. These firms operated 1,816
establishments. Of these concerns, there were 46 firms with 500
employees or more, accounting for 136 establishments. Conversely, there
were 1,672 firms with fewer than 500 employees, accounting for 1,680
establishments.
---------------------------------------------------------------------------
\6\ North American Industry Classification System (NAICS) code
311611. U.S. Census Bureau 2004 Nonemployer Statistics show that
there were 1,921 nonemployer establishments in the animal
slaughtering and processing industry (NAICS code 31161), but
nonemployer statistics at the more disaggregated NAICS six-digit
level are not reported. A nonemployer is a business without paid
employees that is subject to federal income tax. Most nonemployers
are self-employed individuals operating very small unincorporated
businesses. The NASS data on the number of livestock slaughter
plants includes businesses with payroll as well as nonemployer
firms, but does not report the size of firms nor the number of
employees. Therefore, the NASS data provides the most accurate
measure of the number of businesses potentially subject to the
proposed rule, while the Census Bureau data provide a means for
estimating the number of small businesses potentially subject to the
proposed rule.
---------------------------------------------------------------------------
The companies required to report under the Act and this proposed
rule represent the largest slaughtering operations in each respective
species. This proposed rule will require mandatory reporting by an
estimated 60 livestock slaughtering firms representing the largest
cattle, swine, and sheep slaughtering companies. This fact, coupled
with the Statistics of U.S. Businesses data leads to the conclusion
that 46 of the livestock slaughtering firms required to report under
this proposed rule have 500 employees or more. Therefore, AMS estimates
that 14 of the 60 livestock slaughtering firms required to report under
this proposed rule are small businesses as defined by SBA. In
percentage terms, about 23 percent of the animal slaughtering companies
required to report under this proposed rule are small businesses. In
terms of the industry, this rule requires reporting by only 0.8 percent
of all small businesses in the animal (except poultry) slaughtering
industry. Moreover, the firms required to report are the largest of the
firms in the industry classified as small businesses.
U.S. Census Bureau statistics are not sufficiently disaggregated to
enable inferences to be drawn about the small business classification
of the lamb carcass and lamb meat importers required to report under
the proposed rule. However, based on its knowledge of the industry and
previous experience with livestock mandatory reporting, AMS estimates
that all of the lamb importers would be classified as small businesses
under the SBA size standard of fewer than 100 employees for meat and
meat product merchant wholesalers.\7\ In combination with the animal
slaughtering firms, AMS estimates that a total of 19 firms out of 65
firms required to report under this proposed rule meet the SBA
definition for small businesses. In percentage terms, about 29 percent
of the firms required to report under this proposed rule would be
classified as small businesses. Although classified as small
businesses, these firms are the largest firms in their respective
specialties.
---------------------------------------------------------------------------
\7\ North American Industry Classification System code 424470.
---------------------------------------------------------------------------
Projected Reporting. This proposed rule requires the reporting of
specific market information regarding the buying and selling of
livestock and livestock products. The information will be reported to
AMS by electronic means. Electronic reporting involves the transfer of
data from a packer's or importer's electronic recordkeeping system to a
centrally located AMS electronic database. The packer or importer is
required to organize the information in an AMS-approved format before
electronically transmitting the information to AMS (Appendices A-C).
Once the required information has been entered into the AMS
database, it will be aggregated and processed into various market
reports which will be released according to the daily and weekly time
schedule set forth in these regulations.
As an alternative, based on prior experience, AMS found that some
of the smaller entities covered under mandatory reporting would benefit
from a web-based system for data submission. Accordingly, AMS developed
a system that will be available to firms that find it to be more cost
effective than developing an electronic interface to submit data to
AMS.
AMS estimates the total annual burden on each cattle packer and
boxed beef processing firm to average $7,548, including $4,953 for
annual costs associated with electronically submitting data, $672 for
startup/annual maintenance costs, and $1,923 for the storage and
maintenance of electronic files that were submitted to AMS. This figure
was calculated by estimating the time required to complete the
necessary data submission and factoring by the
[[Page 44689]]
number of times reporting is required per day for an estimated total of
260 reporting days in a year (see Paperwork Reduction Act section for a
complete, detailed discussion). Because data submission costs are
directly associated with the volume of data submissions, total annual
costs for smaller operations likely will be less than the average,
while costs for larger operations likely will exceed the average.
AMS estimates the total annual burden on each swine packing firm to
be $5,544, including $2,949 for annual costs associated with
electronically submitting data, $672 for startup/annual maintenance
costs, and $1,923 for the storage and maintenance of electronic files
that were submitted to AMS. This estimate does not include costs
associated with reporting sales of pork products, which are not
required to be reported. As with cattle packers, annual costs for
smaller swine packing operations likely will be less than the average,
while costs for larger operations likely will exceed the average.
AMS estimates the total annual burden on each lamb packer to be
$5,724 including $3,129 for annual costs associated with electronically
submitting data, $672 for startup/annual maintenance costs, and $1,923
for the storage and maintenance of electronic files that were submitted
to AMS. AMS estimates the total annual burden on each importer of lamb
to be $2,688, including $93 for annual costs associated with
electronically submitting data, $672 for startup/annual maintenance
costs, and $1,923 for the storage and maintenance of electronic files
that were submitted to AMS.
Projected Recordkeeping. Each packer and importer required to
report information to the Secretary must maintain such records as are
necessary to verify the accuracy of the information provided to AMS.
This includes information regarding price, class, head count, weight,
quality grade, yield grade, and other factors necessary to adequately
describe each transaction. These records are already kept by the
industry. Reporting packers and importers are required by these
regulations to maintain and to make available the original contracts,
agreements, receipts, and other records associated with any transaction
relating to the purchase, sale, pricing, transportation, delivery,
weighing, slaughter, or carcass characteristics of all livestock.
Reporting packers and importers are also required to maintain copies of
the information provided to AMS. All of the above-mentioned paperwork
must be kept for at least 2 years. Packers and importers are not
required to report any other new or additional information that they do
not generally have available or maintain. Further, they are not
required to keep any information that would prove unduly burdensome to
maintain. The paperwork burden that is imposed on the packers and
importers is further discussed in the section entitled Paperwork
Reduction Act that follows.
In addition, AMS has not identified any relevant Federal rules that
are currently in effect that duplicate, overlap, or conflict with this
proposed rule. AMS will continue to report market information collected
through its voluntary market reporting program provided the collection
of such information does not duplicate the information collection
requirements of this proposed rule.
Professional skills required for recordkeeping under this proposed
rule are not different than those already employed by the reporting
entities. Reporting will be accomplished using computers or similar
electronic means. AMS believes the skills needed to maintain such
systems are already in place in those small businesses affected by this
proposed rule.
Alternatives. This proposed rule, as directed by the
Reauthorization Act, requires cattle and swine packing plants of a
certain size to report information to the Secretary at prescribed times
throughout the day and week. Further, lamb slaughter and processing
plants and lamb importers of a certain size are required by these
proposed regulations to report information to the Secretary at
prescribed times throughout the day and week. The Act and these
proposed regulations exempt the vast majority of small businesses by
the establishment of slaughter, processing, and import capacity
thresholds.
AMS recognizes that most economic impact of this proposed rule on
those small entities required to report involves the manner in which
information must be reported to the Secretary. However, in developing
this proposed rule, AMS considered other means by which the objectives
of this rule could be accomplished, including reporting the required
information by telephone, facsimile and regular mail. AMS believes
these alternatives are not capable of meeting the program objectives,
especially timely reporting. The Reauthorization Act prescribes
specific times that reporting entities must report to AMS and similarly
prescribes specific times for publication of reports by AMS. AMS
believes electronic submission to be the only method capable of
allowing AMS to collect, review, process, aggregate and publish reports
while complying with the specific time-frames set forth in the Act.
To respond to concerns of smaller operations, AMS developed a web-
based input forms for submitting data online. Based on prior
experience, AMS found that some of the smaller entities covered under
mandatory price reporting would benefit from such a web-based
submission system. Accordingly, AMS developed such a system for program
implementation.
Additionally, to further assist small businesses, AMS may provide
for an exception to electronic reporting in emergencies, such as power
failures or loss of Internet accessibility, or in cases when an
alternative is agreeable to AMS and the reporting entity.
Other than these alternatives, there are no other practical and
feasible alternatives to the methods of data transmission that are less
burdensome to small businesses. AMS will work actively with those small
businesses required to report to minimize the burden on them to the
maximum extent practicable.
To assist the industry in achieving compliance with this rule,
during the period between publication of this proposed rule and its
effective date, AMS will provide assistance and training to covered
entities as needed to ensure that they have been given the technical
information necessary to comply with the electronic data transmission
requirements.
Paperwork Reduction Act.
In accordance with OMB regulation (5 CFR Part 1320) that implements
the Paperwork Reduction Act (44 U.S.C. 3501-3520) (PRA), the
information collection requirements associated with this program have
been previously approved by OMB and assigned OMB control number 0581-
0186. A revised information collection package has been submitted to
OMB for approval of a 2,862 hour decrease in total burden hours. In
accordance with 5 CFR Part 1320, we have included below a description
of the reporting and recordkeeping requirements and an estimate of the
annual burden on packers that would be required to report information
under this proposed rule.
Title: Livestock Mandatory Reporting Act of 1999.
OMB Number: 0581-0186.
Expiration Date: December 31, 2007.
Type of Request: Revision of currently approved information
collection.
Abstract: The information collection and recordkeeping requirements
in this regulation are essential to operating a
[[Page 44690]]
mandatory program of livestock and livestock products reporting. Based
on the information available, AMS estimates that there are 48 beef
packer plants, 52 pork packer plants, 12 lamb packer plants and 6 lamb
importers that are required to report market information under this
rule (1 lamb entity is both a packer and an importer). These companies
have similar recordkeeping systems and business operation practices and
conduct their operations in a similar manner. AMS believes that all of
the information required under this rule can be collected from existing
materials and systems. In addition, most of these firms already have
established systems for reporting information to AMS because they were
subject to the requirements of the program when it was in effect from
April 2, 2001, through September 30, 2005. Moreover, most firms have
continued to report data voluntarily to AMS. These firms will have
minimal startup costs, requiring only minor modifications of their
current data reporting systems to be compatible with the requirements
of the proposed rule. The PRA also requires AMS to measure the
recordkeeping burden. Under this proposed rule, each packer and
importer required to report must maintain and make available upon
request for 2 years such records as are necessary to verify the
accuracy of the information required to be reported. These records
include original contracts, agreements, receipts, and other records
associated with any transaction relating to the purchase, sale,
pricing, transportation, delivery, weighing, slaughter, or carcass
characteristics of all livestock. Under this proposed rule, the
electronic data files which the packers are required to utilize when
submitting information to AMS will have to be maintained as these files
provide the best record of compliance. The recordkeeping burden
includes the amount of time needed to store and maintain records. AMS
estimates that, since records of original contracts, agreements,
receipts, and other records associated with any transaction relating to
the purchase, sale, pricing, transportation, delivery, weighing,
slaughter, or carcass characteristics of all livestock are stored and
maintained as a matter of normal business practice by these companies
for a period in excess of 2 years, additional annual costs will be
nominal. AMS estimates the annual cost per respondent for the storage
of the electronic data files which were submitted to AMS in compliance
with the reporting provisions of this rule to be $1,923.10. This
estimate includes the cost of electronic data storage media, backup
electronic data storage media, and backup software required to maintain
an estimated annual electronic recordkeeping and backup burden of 20
megabytes, on average, per respondent. In addition, this estimate
includes the cost per employee to maintain such records, which is
estimated to average 70 hours per year at $21.33 per hour for a total
salary component cost of $1,493.10 per year.
Annual Recordkeeping Cost per Respondent
------------------------------------------------------------------------
------------------------------------------------------------------------
Labor hours per year....................................... 70
Labor cost per hour........................................ x $21.33
------------
Sub-total labor cost per year.............................. $1,493.10
Electronic storage cost *.................................. + $430.00
============================================================------------
Total Recordkeeping Cost............................... $1,923.10
------------------------------------------------------------------------
* Includes cost of hard electronic storage (estimated to average 20 Mb/
year), backup tape media, backup tape drive, and backup software.
In this rule, information collection requirements include the
submission of the required information on a daily and weekly basis in
the standard format provided in the following forms: (1) Live Cattle
Daily Report (Current Established Prices), (2) Live Cattle Daily Report
(Committed and Delivered Cattle), (3) Live Cattle Weekly Report, (4)
Cattle Premiums and Discounts Weekly Report, (5) Cow/Bull Plant
Delivered Bids (Dressed Basis), (6) Live Cow/Bull Daily Purchase
Report, (7) Boxed Beef Daily Report, (8) Swine Prior Day Report, (9)
Swine Daily Report, (10) Swine Noncarcass Merit Premium Weekly Report,
(11) Live Lamb Daily Report (Current Established Prices), (12) Live
Lamb Weekly Report, (13) Live Lamb Weekly Report (Formula Purchases),
(14) Lamb Premiums and Discounts Weekly Report, (15) Boxed Lamb Daily
Report, and (16) Lamb Carcass Report. Copies of these 16 forms are
included in Appendices at the end of this rule. Cattle packers will
utilize up to seven of these forms (not all cattle packers must submit
all cattle forms) (Appendix A) when reporting information to AMS,
including four for daily cattle reporting, two for weekly cattle
reporting, and one for daily boxed beef cuts reporting. Swine packers
will utilize up to three forms (not all swine packers must submit all
swine forms) (Appendix B), two for daily reporting of swine purchases
and one for weekly reporting of non-carcass merit premium information.
Lamb packers will utilize up to six of these forms (not all lamb
packers must submit all lamb forms) (Appendix C) when reporting
information to AMS, including one for daily lamb reporting, three for
weekly lamb reporting, one for daily and weekly boxed lamb cuts
reporting, and one for daily lamb carcass reporting. Lamb importers
will utilize one of these forms when reporting information to AMS for
reporting weekly imported boxed lamb cut sales.
These information collection requirements have been designed to
minimize disruption to the normal business practices of the affected
entities. Each of these forms requires the minimal amount of
information necessary to properly describe each reportable transaction,
as required under this proposed rule. The number of forms is a result
of an attempt to reduce the complexity of each form.
Live Cattle Daily Report (Current Established Prices): Form LS-113
Estimate of Burden: Public reporting burden for collection of
information is estimated to be .17 hours per electronically submitted
response.
Respondents: Packer processing plants required to report
information on live cattle purchases to the Secretary.
Estimated Number of Respondents: 34 plants.
Estimated Number of Responses per Respondent: 520 (2 per day for
260 days).
Estimated Total Annual Burden on Respondents: 3,006 hours.
Total Cost: $64,118.
Live Cattle Daily Report (Committed and Delivered Cattle): Form LS-114
Estimate of Burden: Public reporting burden for collection of
information is estimated to be .17 hours per electronically submitted
response.
Respondents: Packer processing plants required to report
information on live cattle purchases to the Secretary.
Estimated Number of Respondents: 34 plants.
Estimated Number of Responses per Respondent: 520 (2 per day for
260 days).
Estimated Total Annual Burden on Respondents: 3,006 hours.
Total Cost: $64,118.
Live Cattle Weekly Report: Form LS-115
Estimate of Burden: Public reporting burden for collection of
information is estimated to be .25 hours per electronically submitted
response.
Respondents: Packer processing plants required to report
information on live cattle purchases to the Secretary.
Estimated Number of Respondents: 34 plants.
[[Page 44691]]
Estimated Number of Responses per Respondent: 52 (1 per week for 52
weeks).
Estimated Total Annual Burden on Respondents: 442 hours.
Total Cost: $9,428.
Cattle Premiums and Discounts Weekly Report: Form LS-117
Estimate of Burden: Public reporting burden for collection of
information is estimated to be .08 hours per electronically submitted
response.
Respondents: Packer processing plants required to report
information on live cattle purchases to the Secretary.
Estimated Number of Respondents: 34 plants.
Estimated Number of Responses per Respondent: 52 (1 per week for 52
weeks).
Estimated Total Annual Burden on Respondents: 141 hours.
Total Cost: $3,008.
Cow/Bull Plant Delivered Bids (Dressed Basis): Form LS-131
Estimate of Burden: Public reporting burden for collection of
information is estimated to be .08 hours per electronically submitted
response.
Respondents: Packer processing plants required to report
information on bid prices for cows and bulls to the Secretary.
Estimated Number of Respondents: 22 plants.
Estimated Number of Responses per Respondent: 260 (1 per day for
260 days).
Estimated Total Annual Burden on Respondents: 458 hours.
Total Cost: $9,769.
Live Cow/Bull Daily Purchase Report: Form LS-132
Estimate of Burden: Public reporting burden for collection of
information is estimated to be .17 hours per electronically submitted
response.
Respondents: Packer processing plants required to report
information on cow and bull purchases to the Secretary.
Estimated Number of Respondents: 22 plants.
Estimated Number of Responses per Respondent: 260 (1 per day for
260 days).
Estimated Total Annual Burden on Respondents: 972 hours.
Total Cost: $20,733.
Boxed Beef Daily Report: Form LS-126
Estimate of Burden: Public reporting burden for collection of
information is estimated to be .125 hours per electronically submitted
response.
Respondents: Packer processing plants required to report
information on domestic and export boxed beef cut sales to the
Secretary.
Estimated Number of Respondents: 48 plants.
Estimated Number of Responses per Respondent: 520 (2 per day for
260 days).
Estimated Total Annual Burden on Respondents: 3,120 hours.
Total Cost: $66,550.
Swine Prior Day Report: Form LS-118
Estimate of Burden: Public reporting burden for collection of
information is estimated to be .25 hours per electronically submitted
response.
Respondents: Packer processing plants required to report
information on live swine purchases to the Secretary.
Estimated Number of Respondents: 52 plants.
Estimated Number of Responses per Respondent: 260 (1 per day for
260 days).
Estimated Total Annual Burden on Respondents: 3,380 hours.
Total Cost: $72,095.
Swine Daily Report: Form LS-119
Estimate of Burden: Public reporting burden for collection of
information is estimated to be .17 hours per electronically submitted
response.
Respondents: Packer processing plants required to report
information on live swine purchases to the Secretary.
Estimated Number of Respondents: 40 plants.
Estimated Number of Responses per Respondent: 520 (2 per day for
260 days).
Estimated Total Annual Burden on Respondents: 3,536 hours.
Total Cost: $75,423.
Swine Noncarcass Merit Premium Weekly Report: Form LS-120
Estimate of Burden: Public reporting burden for collection of
information is estimated to be .25 hours per electronically submitted
response.
Respondents: Packer processing plants required to report
information on live swine purchases to the Secretary.
Estimated Number of Respondents: 21 plants.
Estimated Number of Responses per Respondent: 52 (1 per week for 52
weeks).
Estimated Total Annual Burden on Respondents: 273 hours.
Total Cost: $5,823.
Live Lamb Daily Report (Current Established Prices): Form LS-121
Estimate of Burden: Public reporting burden for collection of
information is estimated to be .34 hours per electronically submitted
response.
Respondents: Packer processing plants required to report
information on live lamb purchases to the Secretary.
Estimated Number of Respondents: 6 plants.
Estimated Number of Responses per Respondent: 260 (1 per day for
260 days).
Estimated Total Annual Burden on Respondents: 530 hours.
Total Cost: $11,305.
Live Lamb Weekly Report: Form LS-123
Estimate of Burden: Public reporting burden for collection of
information is estimated to be .25 hours per electronically submitted
response.
Respondents: Packer processing plants required to report
information on live lamb purchases to the Secretary.
Estimated Number of Respondents: 5 plants.
Estimated Number of Responses per Respondent: 52 (1 per week for 52
weeks).
Estimated Total Annual Burden on Respondents: 65 hours.
Total Cost: $1,386.
Live Lamb Weekly Report (Formula Purchases): Form LS-124
Estimate of Burden: Public reporting burden for collection of
information is estimated to be .25 hours per electronically submitted
response.
Respondents: Packer processing plants required to report
information on live lamb purchases to the Secretary.
Estimated Number of Respondents: 5 plants.
Estimated Number of Responses per Respondent: 52 (1 per week for 52
weeks).
Estimated Total Annual Burden on Respondents: 65 hours.
Total Cost: $1,386.
Lamb Premiums and Discounts Weekly Report: Form LS-125
Estimate of Burden: Public reporting burden for collection of
information is estimated to be .08 hours per electronically submitted
response.
Respondents: Packer processing plants required to report
information on live lamb purchases to the Secretary.
Estimated Number of Respondents: 6 plants.
Estimated Number of Responses per Respondent: 52 (1 per week for 52
weeks).
Estimated Total Annual Burden on Respondents: 25 hours.
Total Cost: $533.
Boxed Lamb Report: Form LS-128
Estimate of Burden: Public reporting burden for collection of
information is estimated to be .167 hours per
[[Page 44692]]
electronically submitted response for domestic packing plants and .084
hours per electronically submitted response for importers.
Respondents: Packer processing plants and importers required to
report information on boxed lamb cut sales to the Secretary.
Estimated Number of Respondents: 16 entities (including 1 entity
that both processes and imports).
Estimated Number of Responses per Respondent: 260 (1 per day for
260 days) for domestic packing plants; 52 (1 per week for 52 weeks) for
importers.
Estimated Total Annual Burden on Respondents: 434 hours for
domestic packing plants and 26 hours for importers.
Total Cost: $9,257 for domestic packing plants and $555 for
importers for a total of $9,812.
Lamb Carcass Report: Form LS-129
Estimate of Burden: Public reporting burden for collection of
information is estimated to be .167 hours per electronically submitted
response.
Respondents: Packer processing plants required to report
information on lamb carcass sales to the Secretary.
Estimated Number of Respondents: 8 entities.
Estimated Number of Responses per Respondent: 260 (1 per day for
260 days).
Estimated Total Annual Burden on Respondents: 347 hours.
Total Cost: $7,402.
Breakdown of Estimated Data Submission Cost Burden
----------------------------------------------------------------------------------------------------------------
Total
Form Reporting days x Responses = responses
----------------------------------------------------------------------------------------------------------------
I. Number of Responses per Respondent per Year
----------------------------------------------------------------------------------------------------------------
Cattle:
LS-113............................... 260 .. 2 daily...................... .. 520
LS-114............................... 260 .. 2 daily...................... .. 520
LS-115............................... 52 .. 1 weekly..................... .. 52
LS-117............................... 52 .. 1 weekly..................... .. 52
LS-126............................... 260 .. 2 daily...................... .. 520
LS-131............................... 260 .. 1 daily...................... .. 260
LS-132............................... 260 .. 1 daily...................... .. 260
Swine:
LS-118............................... 260 .. 1 daily...................... .. 260
LS-119............................... 260 .. 2 daily...................... .. 520
LS-120............................... 52 .. 1 weekly..................... .. 52
Lamb:
Domestic:
LS-121............................... 260 .. 1 daily...................... .. 260
LS-123............................... 52 .. 1 weekly..................... .. 52
LS-124............................... 52 .. 1 weekly..................... .. 52
LS-125............................... 52 .. 1 weekly..................... .. 52
LS-128............................... 260 .. 1 daily...................... .. 260
LS-129............................... 260 .. 1 daily...................... .. 260
Importer:
LS-128............................... 52 .. 1 weekly..................... .. 52
----------------------------------------------------------------------------------------------------------------
Submissions/ Hours/ Total hours/
Form year x submission = year
----------------------------------------------------------------------------------------------------------------
II. Number of Submission Hours per Respondent per Year
----------------------------------------------------------------------------------------------------------------
Cattle:
LS-113.............................................. 520 .. .17 .. 88.40
LS-114.............................................. 520 .. .17 .. 88.40
LS-115.............................................. 52 .. .25 .. 13.00
LS-117.............................................. 52 .. .08 .. 4.16
LS-126.............................................. 520 .. .125 .. 65.00
LS-131.............................................. 260 .. .08 .. 20.80
LS-132.............................................. 260 .. .17 .. 44.20
Swine:
LS-118.............................................. 260 .. .25 .. 65.00
LS-119.............................................. 520 .. .17 .. 88.40
LS-120.............................................. 52 .. .25 .. 13.00
Lamb:
Domestic:
LS-121.............................................. 260 .. .34 .. 88.40
LS-123.............................................. 52 .. .25 .. 13.00
LS-124.............................................. 52 .. .25 .. 13.00
LS-125.............................................. 52 .. .08 .. 4.16
LS-128.............................................. 260 .. .167 .. 43.42
LS-129.............................................. 260 .. .167 .. 43.42
Importer:
LS-128.............................................. 52 .. .084 .. 4.37
[[Page 44693]]
----------------------------------------------------------------------------------------------------------------
Total hours/ Total dollars/
Form year x Cost/hour = year
----------------------------------------------------------------------------------------------------------------
III. Total Submission Cost per Respondent per Year
----------------------------------------------------------------------------------------------------------------
Cattle:
LS-113.............................................. 88.40 .. $21.33 .. $1,886
LS-114.............................................. 88.40 .. 21.33 .. 1,886
LS-115.............................................. 13.00 .. 21.33 .. 277
LS-117.............................................. 4.16 .. 21.33 .. 89
LS-126.............................................. 65.00 .. 21.33 .. 1,386
LS-131.............................................. 20.80 .. 21.33 .. 444
LS-132.............................................. 44.20 .. 21.33 .. 943
-------------------------------------------------------
Totals.......................................... 323.96 .. 21.33 .. 6,911
Swine:
LS-118.............................................. 65.00 .. 21.33 .. 1,386
LS-119.............................................. 88.40 .. 21.33 .. 1,886
LS-120.............................................. 13.00 .. 21.33 .. 277
-------------------------------------------------------
Totals.......................................... 166.40 .. 21.33 .. 3,549
Lamb:
Domestic:
LS-121.............................................. 88.40 .. 21.33 .. 1,886
LS-123.............................................. 13.00 .. 21.33 .. 277
LS-124.............................................. 13.00 .. 21.33 .. 277
LS-125.............................................. 4.16 .. 21.33 .. 89
LS-128.............................................. 43.42 .. 21.33 .. 926
LS-129.............................................. 43.42 .. 21.33 .. 926
Importer:
LS-128.............................................. 4.37 .. 21.33 .. 93
-------------------------------------------------------
Totals.......................................... 209.77 .. 21.33 .. 4,474
----------------------------------------------------------------------------------------------------------------
Total dollars/
Form year x Respondents = Total Cost
----------------------------------------------------------------------------------------------------------------
IV. Total Yearly Submission Cost for All Respondents
----------------------------------------------------------------------------------------------------------------
Cattle:
LS-113.............................................. $1,886 .. 34 .. $ 64,124
LS-114.............................................. 1,886 .. 34 .. 64,124
LS-115.............................................. 277 .. 34 .. 9,418
LS-117.............................................. 89 .. 34 .. 3,026
LS-126.............................................. 1,386 .. 48 .. 66,528
LS-131.............................................. 444 .. 22 .. 9,768
LS-132.............................................. 943 .. 22 .. 20,746
-------------------------------------------------------
Subtotal........................................ .............. .. .............. .. 237,734
Swine:
LS-118.............................................. 1,386 .. 52 .. 72,072
LS-119.............................................. 1,886 .. 40 .. 75,440
LS-120.............................................. 277 .. 21 .. 5,817
-------------------------------------------------------
Subtotal........................................ .............. .. .............. .. 153,329
Lamb:
Domestic:
LS-121.............................................. 1,886 .. 6 .. 11,316
LS-123.............................................. 277 .. 5 .. 1,385
LS-124.............................................. 277 .. 5 .. 1,385
LS-125.............................................. 89 .. 6 .. 534
LS-128.............................................. 926 .. 10 .. 9,260
LS-129.............................................. 926 .. 8 .. 7,408
Importer:
LS-128.............................................. 93 .. 6 .. 558
-------------------------------------------------------
Subtotal........................................ .............. .. .............. .. 31,846
=======================================================
Grand total..................................... .............. .. .............. .. 422,909
----------------------------------------------------------------------------------------------------------------
Estimated Total Annual Burden on Respondents by Species:
Live Cattle and Boxed Beef: $362,302 including $237,723 for annual
costs associated with electronically submitted responses (11,145 annual
system maintenance costs of $32,270 ($672.30 per 48 respondents), and
$92,309 ($1,923.10 per 48 respondents) for the
[[Page 44694]]
storage and maintenance of electronic files that were submitted to AMS.
Live Swine: $288,302 including $153,341 for annual costs associated
per hour), electronic submission development and annual system
maintenance costs of $34,960 ($672.30 per 52 respondents), and $100,001
($1,923.10 per 52 respondents) for the storage and maintenance of
electronic files that were submitted to AMS.
Live Lambs, Boxed Lamb, and Lamb Carcasses: $83,620 including
$57,224 for packers ($31,270 for annual costs associated with
hour), electronic submission development and annual system maintenance
costs of $6,723 ($672.30 per 10 respondents), and $19,231 ($1,923.10
per 10 respondents) for the storage and maintenance of electronic files
that were submitted to AMS) and $16,128 for importers ($555 for annual
costs associated with electronically submitted responses (26 annual
system maintenance costs of $4,034 ($672.30 per 6 respondents), and
$11,539 ($1,923.10 per 6 respondents) for the storage and maintenance
of electronic files that were submitted to AMS).
AMS is committed to complying with the E-Government Act to promote
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.
AMS is inviting comments from all interested parties concerning the
information collection and recordkeeping requirements contained in this
proposed rule. Comments are specifically invited on: (1) The accuracy
of the Agency's burden estimate of the proposed collection of
information including the validity of the methodology and the
assumptions used; (2) ways to minimize the burden of the collection of
information on those who would be required to respond, including
through the use of appropriate electronic collection methods; (3)
whether the proposed collection of information was sufficient or
necessary for the proper performance of the functions of the agency as
mandated by the Act; and (4) ways to enhance the quality, utility, and
clarity of the information to be collected. Comments can be submitted
on the Internet at: http://www.regulations.gov. Written comments can be
sent to Warren P. Preston, Chief, Livestock and Grain Market News
Branch, Docket No. LS-07-01, 1400 Independence Ave. SW., Room 2619-S,
Washington, DC 20250-0252, or by facsimile to (202)-690-3732. All
comments received will be posted to Web site at: http://www.regulations.gov.
Comments that specifically pertain to the
information collection and recordkeeping requirements of this action
should also be sent to the Desk Officer for Agriculture, Office of
Information and Regulatory Affairs, Office of Management and Budget,
New Executive Office Building, 725 17th Street, NW., Room 725,
Washington, DC 20503, and should reference the date and page number of
this issue of the Federal Register. All responses to this action will
be summarized and included in the request for OMB approval. All
comments will become a matter of public record.
A 30-day comment period is provided for interested persons to
comment on the regulatory provisions of this proposed rule. The 30-day
period is deemed appropriate in order to provide a sufficient amount of
time to comment while resuming the program's operation under the Act as
soon as possible. The comment period for the information collection and
recordkeeping requirements contained in this proposed rule is 60 days.
List of Subjects in 7 CFR Part 59
Cattle, Hogs, Sheep, Livestock, Lamb.
For the reasons set forth in the preamble, it is proposed that
Title 7, Chapter I of the Code of Federal Regulations be amended as
follows:
1. Part 59 is revised to read as follows:
PART 59--LIVESTOCK MANDATORY REPORTING
Subpart A--General Provisions
Sec.
59.10 General administrative provisions.
59.20 Recordkeeping.
59.30 Definitions.
Subpart B--Cattle Reporting
59.100 Definitions.
59.101 Mandatory daily reporting for steers and heifers.
59.102 Mandatory daily reporting for cows and bulls.
59.103 Mandatory weekly reporting for steers and heifers.
59.104 Mandatory reporting of boxed beef sales.
Subpart C--Swine Reporting
59.200 Definitions.
59.201 General reporting provisions.
59.202 Mandatory daily reporting for barrows and gilts.
59.203 Mandatory daily reporting for sows and boars.
59.204 Mandatory weekly reporting for swine.
Subpart D--Lamb Reporting
59.300 Definitions.
59.301 Mandatory daily reporting for lambs.
59.302 Mandatory weekly reporting for lambs.
59.303 Mandatory reporting of lamb carcasses and boxed lamb.
Subpart E--OMB Control Number
59.400 OMB control number assigned pursuant to the Paperwork
Reduction Act.
Authority: 7 U.S.C. 1635-1636h
Subpart A--General Provisions
Sec. 59.10 General administrative provisions.
(a) Reporting by Packers and Importers. A packer or importer shall
report all information required under this Part on an individual lot
basis.
(b) Reporting Schedule. Whenever a packer or importer is required
to report information on transactions of livestock and livestock
products under this Part by a set time, all covered transactions up to
within one half hour of the reporting deadline shall be reported.
Transactions completed during the one half hour prior to the previous
reporting time, but not reported in the previous report, shall be
reported at the next scheduled reporting time.
(c) Regional Reporting and Aggregation. The Secretary shall make
information obtained under this Part available to the public only in a
manner that:
(1) Ensures that the information is published on a national and a
regional or statewide basis as the Secretary determines to be
appropriate;
(2) Ensures that the identity of a reporting person or the entity
which they represent is not disclosed; and
(3) Market information reported to the Secretary by packers and
importers shall be aggregated in such a manner that the market reports
issued will not disclose the identity of persons, packers and
importers, including parties to a contract and packer's and importer's
proprietary information.
(d) Adjustments. Prior to the publication of any information
required under this Part, the Secretary may make reasonable adjustments
in information reported by packers and importers to reflect price
aberrations or other unusual or unique occurrences that the Secretary
determines would distort the published information to the detriment of
producers, packers, or other market participants.
(e) Reporting of Activities on Weekends and Holidays. Livestock and
livestock products committed to a packer, or importer, or purchased,
sold, or slaughtered by a packer or importer on a weekend day or
holiday shall be
[[Page 44695]]
reported to the Secretary in accordance with the provisions of this
Part and reported by the Secretary on the immediately following
reporting day. A packer shall not be required to report such actions
more than once on the immediately following reporting day.
(f) Reporting Methods. Whenever information is required to be
reported under this Part, it shall be reported by electronic means and
shall adhere to a standardized format established by the Secretary to
achieve the objectives of this Part, except in emergencies or in cases
when an alternative method is agreeable to the entity required to
report and AMS.
Sec. 59.20 Recordkeeping.
(a) In General. Each packer or importer required to report
information to the Secretary under the Act and this Part shall maintain
for 2 years and make available to the Secretary the following
information on request:
(1) The original contracts, agreements, receipts, and other records
associated with any transaction relating to the purchase, sale,
pricing, transportation, delivery, weighing, slaughter, or carcass
characteristics of all livestock or livestock products; and
(2) Such records or other information as is necessary or
appropriate to verify the accuracy of the information required to be
reported under the Act and this Part.
(b) Purchases of Cattle and Swine and Sales of Boxed Beef Cuts. A
record of a purchase of a lot of cattle or swine, or a sale of a unit
of boxed beef cuts, by a packer shall evidence whether the purchase or
sale occurred:
(1) Before 10 a.m. central time;
(2) Between 10 a.m. and 2 p.m. central time; or
(3) After 2 p.m. central time.
(c) Purchases of Lambs. A record of a purchase of a lot of lambs by
a packer shall evidence whether the purchase occurred:
(1) Before 2 p.m. central time; or
(2) After 2 p.m. central time.
(d) Sales of Lamb Carcasses and Sales of Boxed Lamb Cuts. A record
of a sale by a packer of lamb carcasses and cuts, shall evidence time
and date the sale occurred:
(1) Before 2 p.m. central time; or
(2) After 2 p.m. central time.
A record of sale by an importer of lamb cuts shall evidence the
date the sale occurred.
(e) Reporting Sales of Boxed Beef Cuts and Sales of Boxed Lamb
Cuts. (1) Beef packers must report all sales of boxed beef items by the
applicable Institutional Meat Purchase Specifications (IMPS) item
number or the boxed beef items' cutting and trimming specifications.
(3) Lamb packers and importers must report all sales of boxed lamb
items by the applicable Institutional Meat Purchase Specifications
(IMPS) item number or the boxed lamb items' cutting and trimming
specifications.
Sec. 59.30 Definitions.
The following definitions apply to this part.
Act. The term ``Act'' means Subtitle B of the Agricultural
Marketing Act of 1946, as amended; 7 U.S.C. 1635-1636h.
Base price. The term `base price' means the price paid for
livestock, delivered at the packing plant, before application of any
premiums or discounts, expressed in dollars per hundred pounds of hot
carcass weight.
Basis level. The term `basis level' means the agreed on adjustment
to a future price to establish the final price paid for livestock.
Current slaughter week. The term `current slaughter week' means the
period beginning Monday, and ending Sunday, of the week in which a
reporting day occurs.
Discount. The term `discount' means the adjustment, expressed in
dollars per one hundred pounds, subtracted from the base price due to
weight, quality characteristics, yield characteristics, livestock
class, dark cutting, breed, dressing percentage, or other
characteristic.
Exported. The term `exported' means livestock or livestock products
that are physically shipped to locations outside of the 50 States.
F.O.B. The term `F.O.B.' means free on board, regardless of the
mode of transportation, at the point of direct shipment by the seller
to the buyer (e.g., F.O.B. Plant, F.O.B. Feedlot).
Imported. The term `imported' means livestock that are raised to
slaughter weight outside of the 50 States or livestock products
produced outside of the 50 States.
Institutional Meat Purchase Specifications. Specifications
describing various meat cuts, meat products, and meat food products
derived from all livestock species, commonly abbreviated ``IMPS'', and
intended for use by any meat procuring activity. Copies of the IMPS may
be obtained from the U.S. Department of Agriculture, Agricultural
Marketing Service, Livestock and Seed Program located at Room 2603
South Building, 1400 Independence Ave, SW., Washington, DC 20250. Phone
(202) 720-4486 or Fax (202) 720-1112. Copies may also be obtained over
the Internet at: http://www.ams.usda.gov/lsg/stand/st-pubs.htm.
Livestock. The term `livestock' means cattle, swine, and lambs.
Lot. (1) When used in reference to livestock, the term `lot' means
a group of one or more livestock that is identified for the purpose of
a single transaction between a buyer and a seller;
(2) When used in reference to lamb carcasses, the term `lot' means
a group of one or more lamb carcasses sharing a similar weight range
category and comprising a single transaction between a buyer and
seller; or
(3) When used in reference to boxed beef and lamb, the term `lot'
means a group of one or more boxes of beef or lamb items sharing
cutting and trimming specifications and comprising a single transaction
between a buyer and seller.
Marketing. The term `marketing' means the sale or other disposition
of livestock, livestock products, or meat or meat food products in
commerce.
Negotiated purchase. The term `negotiated purchase' means a cash or
spot market purchase by a packer of livestock from a producer under
which the base price for the livestock is determined by seller-buyer
interaction. The livestock are scheduled for delivery to the packer not
more than 14 days after the date on which the livestock are committed
to the packer.
Negotiated grid purchase. The term `negotiated grid purchase' in
reference to cattle means the negotiation of a base price determined by
seller-buyer interaction from which premiums are added and discounts
are subtracted. The livestock are scheduled for delivery to the packer
not more than 14 days after the date on which the livestock are
committed to the packer.
Negotiated sale. The term `negotiated sale' means a cash or spot
market sale by a producer of livestock to a packer under which the base
price for the livestock is determined by seller-buyer interaction. The
livestock are scheduled for delivery to the packer not later than 14
days after the date on which the livestock are committed to the packer.
When used in reference to sales of boxed beef or lamb cuts or lamb
carcasses the term `negotiated sale' means a sale by a packer selling
boxed beef or lamb cuts or lamb carcasses to a buyer of boxed beef or
lamb cuts or lamb carcasses under which the price for the boxed beef or
lamb cuts or lamb carcasses is determined by seller-buyer interaction.
Origin. The term `origin' means the State where the livestock were
fed to slaughter weight.
[[Page 44696]]
Percent lean. The term `percent lean' means the value equal to the
average percentage of the carcass weight comprised of lean meat.
Person. The term `person' means any individual, group of
individuals, partnership, corporation, association, or other entity.
Premium. The term `premium' means the adjustment, expressed in
dollars per one hundred pounds, added to the base price due to weight,
quality characteristics, yield characteristics, livestock class, and
breed.
Priced. The term `priced' means the time when the final price is
determined either through buyer-seller interaction and agreement or as
a result of some other price determining method.
Prior slaughter week. The term `prior slaughter week' means the
Monday through Sunday prior to a reporting day.
Producer. The term `producer' means any person engaged in the
business of selling livestock to a packer for slaughter (including the
sale of livestock from a packer to another packer).
Purchased. The term `purchased' means the agreement on a price, or
the method for calculating a price, determined through buyer-seller
interaction and agreement.
Reporting day. The term `reporting day' means a day on which a
packer conducts business regarding livestock committed to the packer,
or livestock purchased, sold, or slaughtered by the packer; the
Secretary is required to make such information available to the public;
and the Department of Agriculture is open to conduct business.
Secretary. The term `Secretary' means the Secretary of Agriculture
of the United States or any other officer or employee of the Department
of Agriculture to whom authority has been delegated or may hereafter be
delegated to act in the Secretary's stead.
State. The term `State' means each of the 50 States.
Subpart B--Cattle Reporting
Sec. 59.100 Definitions.
The following definitions apply to this subpart.
Boxed Beef. The term `boxed beef' means those carlot-based portions
of a beef carcass including fresh and frozen primals, subprimals, cuts
fabricated from subprimals (excluding portion-control cuts such as
chops and steaks similar to those portion cut items described in the
Institutional Meat Purchase Specifications (IMPS) for Fresh Beef
Products Series 100), thin meats (e.g. inside and outside skirts,
pectoral meat, cap and wedge meat, and blade meat), and fresh and
frozen ground beef, beef trimmings, and boneless processing beef.
Branded. The term `branded' means boxed beef cuts produced and
marketed under a corporate trademark (for example, products that are
marketed on their quality, yield, or breed characteristics), or boxed
beef cuts produced and marketed under one of USDA's Meat Grading and
Certification Branch, Certified Beef programs.
Carcass characteristics. The term `carcass characteristics' means
the range and average carcass weight in pounds, the quality grade and
yield grade (if applicable), and the average cattle dressing
percentage.
Carlot-based. The term `carlot-based' means any transaction between
a buyer and a seller destined for two or less delivery stops consisting
of one or more individual boxed beef items. When used in reference to
cow and bull boxed beef items, the term `carlot-based' means any
transaction between a buyer and seller consisting of 5,000 pounds or
more of one or more individual items.
Cattle committed. The term `cattle committed' means cattle that are
scheduled to be delivered to a packer within the 7-day period beginning
on the date of an agreement to sell the cattle.
Cattle type. The term `cattle type' means the following types of
cattle purchased for slaughter:
(1) Fed steers;
(2) Fed heifers;
(3) Fed Holsteins and other fed dairy steers and heifers;
(4) Cows; and
(5) Bulls.
Established. The term `established', when used in connection with
prices, means that point in time when the buyer and seller agree upon a
net price.
Formula marketing arrangement. (1) When used in reference to live
cattle, the term `formula marketing arrangement' means the advance
commitment of cattle for slaughter by any means other than through a
negotiated purchase or a forward contract, using a method for
calculating price in which the price is determined at a future date.
(2) When used in reference to boxed beef, the term `formula
marketing arrangement' means the advance commitment of boxed beef by
any means other than through a negotiated purchase or a forward
contract, using a method for calculating price in which the price is
determined at a future date.
Forward contract. (1) When used in reference to live cattle, the
term `forward contract' means an agreement for the purchase of cattle,
executed in advance of slaughter, under which the base price is
established by reference to prices quoted on the Chicago Mercantile
Exchange, or other comparable publicly available prices.
(2) When used in reference to boxed beef, the term `forward
contract' means an agreement for the sale of boxed beef, executed in
advance of manufacture, under which the base price is established by
reference to publicly available quoted prices.
Packer. The term `packer' means any person engaged in the business
of buying cattle in commerce for purposes of slaughter, of
manufacturing or preparing meats or meat food products from cattle for
sale or shipment in commerce, or of marketing meats or meat food
products from cattle in an unmanufactured form acting as a wholesale
broker, dealer, or distributor in commerce. For any calendar year, the
term `packer' includes only a federally inspected cattle processing
plant that slaughtered an average of 125,000 head of cattle per year
during the immediately preceding 5 calendar years. Additionally, in the
case of a cattle processing plant that did not slaughter cattle during
the immediately preceding 5 calendar years, it shall be considered a
packer if the Secretary determines the processing plant should be
considered a packer under this subpart after considering its capacity.
Packer-owned cattle. The term `packer-owned cattle' means cattle
that a packer owns for at least 14 days immediately before slaughter.
Prices for cattle. The term `prices for cattle' includes the price
per hundredweight; the purchase type; the quantity on a live and a
dressed weight basis; the estimated live weight range; the average live
weight; the estimated percentage of cattle of a USDA quality grade
Choice or better; beef carcass classification; any premiums or
discounts associated with weight, quality grade, yield grade, or type
of purchase; cattle State of origin; estimated cattle dressing
percentage; and price basis as F.O.B. feedlot or delivered at the
plant.
Terms of trade. The term `terms of trade' means, with respect to
the purchase of steers and heifers for slaughter:
(1) Whether a packer provided any financing agreement or
arrangement with regard to the steers and heifers;
(2) Whether the delivery terms specified the location of the
producer or the location of the packer's plant;
(3) Whether the producer is able to unilaterally specify the date
and time during the business day of the packer that the cattle are to
be delivered for slaughter; and
[[Page 44697]]
(4) The percentage of steers and heifers purchased by a packer as a
negotiated purchase that are scheduled to be delivered to the plant for
slaughter not later than 14 days and the percentage of slaughter steers
and heifers purchased by a packer as a negotiated purchase that are
scheduled to be delivered to the plant for slaughter more than 14 days,
but fewer than 30 days.
Type of purchase. The term `type of purchase' with respect to
cattle, means a negotiated purchase, negotiated grid purchase, a
formula market arrangement, and a forward contract.
Type of sale. The term `type of sale' with respect to boxed beef,
means a negotiated sale, a formula market arrangement, and a forward
contract.
White cow. Cow on a ration that tends to produce white fat.
Sec. 59.101 Mandatory daily reporting for steers and heifers.
(a) In General. The corporate officers or officially designated
representatives of each steer and heifer packer processing plant shall
report to the Secretary at least two times each reporting day not later
than 10 a.m. central time and not later than 2 p.m. central time the
following information, inclusive since the last reporting, categorized
to clearly delineate domestic from imported market purchases as
described in 59.10(b).
(1) The prices for cattle (per hundredweight) established on that
day, categorized by:
(i) The type of purchase;
(ii) The quantity of cattle purchased on a live weight basis;
(iii) The quantity of cattle purchased on a dressed weight basis;
(iv) The estimated weights of cattle purchased;
(v) An estimate of the percentage of the cattle purchased that were
of a quality grade of Choice or better; and
(vi) Any premiums or discounts associated with weight, quality
grade, yield grade, or other characteristic expressed in dollars per
hundredweight on a dressed basis.
(2) The quantity of cattle delivered to the packer (quoted in
numbers of head) on that day, categorized by:
(i) The type of purchase;
(ii) The quantity of cattle delivered on a live weight basis; and
(iii) The quantity of cattle delivered on a dressed weight basis.
(3) The quantity of cattle committed to the packer (quoted in
numbers of head) as of that day, categorized by:
(i) The type of purchase;
(ii) The quantity of cattle committed on a live weight basis; and
(iii) The quantity of cattle committed on a dressed weight basis.
(4) The terms of trade regarding the cattle, as applicable.
(b) Publication. The Secretary shall make the information available
to the public not less frequently than three times each reporting day.
Sec. 59.102 Mandatory daily reporting for cows and bulls.
(a) In General. The corporate officers or officially designated
representatives of each cow and bull packer processing plant shall
report to the Secretary each reporting day the following information
for each cattle type, inclusive since the last reporting, categorized
to clearly delineate domestic from imported market purchases as
described in Sec. 59.10(b).
(1) The base bid price (per hundredweight) intended to be paid for
slaughter cow and bull carcasses on that day not later than 10 a.m.
central time categorized by:
(i) Weight; and
(ii) For slaughter cows, percent lean (e.g., breaker, boner, cutter
(lean)).
(2) The prices for cattle (per hundredweight) purchased during the
previous day not later than 2 p.m. central time categorized by:
(i) The type of purchase;
(ii) The quantity of cattle purchased on a live weight basis;
(iii) The quantity of cattle purchased on a dressed weight basis;
(iv) The estimated weight of the cattle purchased;
(v) The quality classification; and
(vi) Any premiums or discounts associated with weight or quality
expressed in dollars per hundredweight on a dressed basis.
(3) The volume of cows and bulls slaughtered the previous day.
(b) Publication. The Secretary shall make the information available
to the public within one hour of the required reporting time on the
reporting day on which the information is received from the packer.
Sec. 59.103 Mandatory weekly reporting for steers and heifers.
(a) In General. The corporate officers or officially designated
representatives of each steer and heifer packer processing plant shall
report to the Secretary on the first reporting day of each week, not
later than 9 a.m. central time, the following information applicable to
the prior slaughter week, categorized to clearly delineate domestic
from imported market purchases:
(1) The quantity of cattle purchased through a negotiated basis
that were slaughtered;
(2) The quantity of cattle purchased through a negotiated grid
basis that were slaughtered;
(3) The quantity of cattle purchased through forward contracts that
were slaughtered;
(4) The quantity of cattle delivered under a formula marketing
arrangement that were slaughtered;
(5) The quantity and carcass characteristics of packer-owned cattle
that were slaughtered;
(6) The quantity, basis level, basis level month, and delivery
month and year for all cattle purchased through forward contracts;
(7) The range and average of intended premiums and discounts
(including those associated with weight, quality grade, yield grade, or
type of cattle) that are expected to be in effect for the current
slaughter week.
(b) Publication. The Secretary shall make available to the public
the information obtained under paragraph (a) of this section on the
first reporting day of the current slaughter week by 10 a.m. central
time.
Sec. 59.104 Mandatory reporting of boxed beef sales.
(a) Daily Reporting. The corporate officers or officially
designated representatives of each packer processing plant shall report
to the Secretary at least twice each reporting day (once by 10 a.m.
central time, and once by 2 p.m. central time) the following
information on total boxed beef domestic and export sales established
on that day inclusive since the last reporting as described in Sec.
59.10(b):
(1) The price for each lot of each boxed beef sale, quoted in
dollars per hundredweight on a F.O.B. plant basis;
(2) The quantity for each lot of each sale, quoted by number of
pounds sold; and
(3) The information regarding the characteristics of each sale is
as follows:
(i) The type of sale;
(ii) The branded product characteristics, if applicable;
(iii) The grade for steer and heifer beef (e.g., USDA Prime, USDA
Choice or better, USDA Choice, USDA Select, ungraded no-roll product);
(iv) The grade for cow beef or packer yield and/or quality sort for
cow beef (e.g., Breakers, Boners, White Cow, Cutters (lean));
(v) The cut of beef, referencing the most recent version of the
Institutional Meat Purchase Specifications (IMPS), when applicable;
(vi) The trim specification;
(vii) The weight range of the cut;
(viii) The product delivery period; and
[[Page 44698]]
(ix) The beef type (steer/heifer, dairy steer/heifer, or cow).
(b) Publication. The Secretary shall make available to the public
the information obtained under paragraph (a) of this section not less
frequently than twice each reporting day.
Subpart C--Swine Reporting
Sec. 59.200 Definitions.
The following definitions apply to this subpart.
Affiliate. The term `affiliate', with respect to a packer, means:
(1) A person that directly or indirectly owns, controls, or holds
with power to vote, 5 percent or more of the outstanding voting
securities of the packer;
(2) A person 5 percent or more of whose outstanding voting
securities are directly or indirectly owned, controlled, or held with
power to vote, by the packer; and
(3) A person that directly or indirectly controls, or is controlled
by or under common control with, the packer.
Applicable reporting period. The term `applicable reporting period'
means the period of time prescribed by the prior day report, the
morning report, and the afternoon report, as provided in Sec. 59.202.
Average carcass weight. The term `average carcass weight' means the
weight obtained by dividing the total carcass weight of the swine
slaughtered at the packing plant during the applicable reporting period
by the number of these same swine.
Average lean percentage. The term `average lean percentage' means
the value equal to the average percentage of the carcass weight
comprised of lean meat for the swine slaughtered during the applicable
reporting period. Whenever the packer changes the manner in which the
average lean percentage is calculated, the packer shall make available
to the Secretary the underlying data, applicable methodology and
formulae, and supporting materials used to determine the average lean
percentage, which the Secretary may convert either to the carcass
measurements or lean percentage of the swine of the individual packer
to correlate to a common percent lean measurement.
Average net price. The term `average net price' means the quotient
(stated per hundred pounds of carcass weight of swine) obtained by
dividing the total amount paid for the swine slaughtered at a packing
plant during the applicable reporting period (including all premiums
and less all discounts) by the total carcass weight of the swine (in
hundred pound increments).
Average sort loss. The term `average sort loss' means the average
discount (in dollars per hundred pounds carcass weight) for swine
slaughtered during the applicable reporting period, resulting from the
fact that the swine did not fall within the individual packer's
established carcass weight range or lot variation range.
Backfat. The term `backfat' means the fat thickness (in inches)
measured between the third and fourth rib from the last rib, 7
centimeters from the carcass split (or adjusted from the individual
packer's measurement to that reference point using an adjustment made
by the Secretary) of the swine slaughtered during the applicable
reporting period.
Barrow. The term `barrow' means a neutered male swine, with the
neutering performed before the swine reached sexual maturity.
Base market hog. The term `base market hog' means a barrow or gilt
for which no discounts are subtracted from and no premiums are added to
the base price.
Base price. The term `base price' means the price from which no
discounts are subtracted and no premiums are added.
Boars. The term `boar' means a sexually-intact male swine.
Bred female swine. The term `bred female swine' means any female
swine, whether a sow or gilt, that has been mated or inseminated, or
has been confirmed, to be pregnant.
Formula price. The term `formula price' means a price determined by
a mathematical formula under which the price established for a
specified market serves as the basis for the formula.
Gilt. The term `gilt' means a young female swine that has not
produced a litter.
Hog Class. The term `hog class' means, as applicable, barrows or
gilts; sows; or boars or stags.
Inferior hogs. The term `inferior hogs' means swine that are
discounted in the market place due to light-weight, health, or physical
conditions that affects their value.
Loin depth. The term `loin depth' means the muscle depth (in
inches) measured between the third and fourth ribs from the last rib, 7
centimeters from the carcass split (or adjusted from the individual
packer's measurement to that reference point using an adjustment made
by the Secretary) of the swine slaughtered during the applicable
reporting period.
Net price. The term `net price' means the total amount paid by a
packer to a producer (including all premiums, less all discounts) per
hundred pounds of carcass weight of swine delivered at the plant. The
total amount paid shall include any sum deducted from the price (per
hundredweight) paid to a producer that reflects the repayment of a
balance owed by the producer to the packer or the accumulation of a
balance to later be repaid by the packer to the producer. The total
amount paid shall exclude any sum earlier paid to a producer that must
be repaid to the packer.
Noncarcass merit premium. The term `noncarcass merit premium' means
an increase in the base price of the swine offered by an individual
packer or packing plant, based on any factor other than the
characteristics of the carcass, if the actual amount of the premium is
known before the sale and delivery of the swine.
Other market formula purchase. The term `other market formula
purchase' means a purchase of swine by a packer in which the pricing
mechanism is a formula price based on any market other than the market
for swine, pork, or a pork product. The term `other market formula
purchase' includes a formula purchase in a case which the price formula
is based on 1 or more futures or options contracts.
Other purchase arrangement. The term `other purchase arrangement'
means a purchase of swine by a packer that is not a negotiated
purchase, swine or pork market formula purchase, or other market
formula purchase; and does not involve packer-owned swine.
Packer. The term `packer' means any person engaged in the business
of buying swine in commerce for purposes of slaughter, of manufacturing
or preparing meats or meat food products from swine for sale or
shipment in commerce, or of marketing meats or meat food products from
swine in an unmanufactured form acting as a wholesale broker, dealer,
or distributor in commerce. For any calendar year, the term `packer'
includes only a federally inspected swine processing plant that
slaughtered an average of 100,000 head of swine per year during the
immediately preceding 5 calendar years and a person that slaughtered an
average of 200,000 head of sows, boars, or combination thereof per year
during the immediately preceding 5 calendar years. Additionally, in the
case of a swine processing plant or person that did not slaughter swine
during the immediately preceding 5 calendar years, it shall be
considered a packer if the Secretary determines the processing plant or
person should be considered a packer
[[Page 44699]]
under this subpart after considering its capacity.
Packer-owned swine. The term `packer-owned swine' means swine that
a packer (including a subsidiary or affiliate of the packer) owns for
at least 14 days immediately before slaughter.
Packer-sold swine. The term `packer-sold swine' means the swine
that are owned by a packer (including a subsidiary or affiliate of the
packer) for more than 14 days immediately before sale for slaughter;
and sold for slaughter to another packer.
Pork. The term `pork' means the meat of a porcine animal.
Pork product. The term `pork product' means a product or byproduct
produced or processed in whole or in part from pork.
Purchase data. The term `purchase data' means all of the applicable
data, including base price and weight (if purchased live), for all
swine purchased during the applicable reporting period, regardless of
the expected delivery date of the swine, reported by:
(1) Hog class;
(2) Type of purchase; and
(3) Packer-owned swine.
Slaughter data. The term `slaughter data' means all of the
applicable data for all swine slaughtered by a packer during the
applicable reporting period, regardless of whether the price of the
swine was negotiated or otherwise determined, reported by:
(1) Hog class;
(2) Type of purchase; and
(3) Packer-owned swine.
Sow. The term `sow' means an adult female swine that has produced 1
or more litters.
Stag. The term `stag' means a male swine that was neutered after
reaching sexual maturity.
Swine. The term `swine' means a porcine animal raised to be a
feeder pig, raised for seedstock, or raised for slaughter.
Swine committed. The term `swine committed' means swine scheduled
and delivered to a packer within the 14-day period beginning on the
date of an agreement to sell the swine.
Swine or pork market formula purchase. The term `swine or pork
market formula purchase' means a purchase of swine by a packer in which
the pricing mechanism is a formula price based on a market for swine,
pork, or a pork product, other than a future or option for swine, pork,
or a pork product.
Type of purchase. The term `type of purchase,' with respect to
swine, means:
(1) A negotiated purchase;
(2) Other market formula purchase;
(3) A swine or pork market formula purchase; and
(4) Other purchase arrangement.
Sec. 59.201 General reporting provisions.
(a) Packer-Owned Swine. Information required under this section for
packer-owned swine shall include quantity and carcass characteristics,
but not price.
(b) Type of Purchase. If information regarding the type of purchase
is required under this section, the information shall be reported
according to the numbers and percentages of each type of purchase
comprising:
(1) Packer-sold swine; and
(2) All other swine.
Sec. 59.202 Mandatory daily reporting for barrows and gilts.
(a) Prior Day Report. The corporate officers or officially
designated representatives of each packer that processes barrows and
gilts shall report to the Secretary for each business day of the packer
not later than 7 a.m. central time on each reporting day information
regarding all barrows and gilts purchased or priced, during the prior
business day of the packer, and not later than 9 a.m. central time on
each reporting day information regarding all barrows and gilts
slaughtered, excluding inferior swine, as specified in Sec. 59.10(b):
(1) All purchase data, reported by lot, including:
(i) The total number of barrows and gilts purchased;
(ii) The total number of barrows and gilts scheduled for delivery
to a packer for slaughter;
(iii) The base price and weight for all barrows and gilts purchased
on a live weight basis; and
(iv) The base price and premiums and discounts paid for carcass
characteristics for all barrows and gilts purchased on a carcass basis
for which a price has been established. For barrows and gilts that were
not priced, this information shall be reported on the next prior day
report after the price is established.
(2) The following slaughter data for the total number of barrows
and gilts slaughtered:
(i) The average net price;
(ii) The average carcass weight;
(iii) The average sort loss;
(iv) The average backfat;
(v) The average loin depth;
(vi) The average lean percentage; and
(vii) Total quantity slaughtered.
(3) Packer purchase commitments, which shall be equal to the number
of barrows and gilts scheduled for delivery to a packer for slaughter
for each of the next 14 calendar days.
(4) The Secretary shall publish the information obtained under this
paragraph (a) in a prior day report not later than 8 a.m. central time
for all barrows and gilts purchased and 10 a.m. central time for all
barrows and gilts slaughtered on the reporting day on which the
information is received from the packer. In addition, the Secretary
shall publish a net price distribution for all barrows and gilts
slaughtered on the previous day not later than 3 p.m. central time.
(b) Morning Report. The corporate officers or officially designated
representatives of each packer processing plant that processes barrows
and gilts shall report to the Secretary not later than 10 a.m. central
time each reporting day as described in Sec. 59.10(b):
(1) The packer's best estimate of the total number of barrows and
gilts, and barrows and gilts that qualify as packer-owned swine,
expected to be purchased throughout the reporting day through each type
of purchase;
(2) The total number of barrows and gilts, and barrows and gilts
that qualify as packer-owned swine, purchased up to that time of the
reporting day through each type of purchase;
(3) All purchase data for base market hogs purchased up to that
time of the reporting day through negotiated purchases; and
(4) All purchase data for base market hogs purchased through each
type of purchase other than negotiated purchase up to that time of the
reporting day, unless such information is unavailable due to pricing
that is determined on a delayed basis. The packer shall report
information on such purchases on the first reporting day or scheduled
reporting time on a reporting day after the price has been determined.
(5) The Secretary shall publish the information obtained under this
paragraph (b) in the morning report as soon as practicable, but not
later than 11 a.m. central time, on each reporting day.
(c) Afternoon Report. The corporate officers or officially
designated representatives of each packer processing plant that
processes barrows and gilts shall report to the Secretary not later
than 2 p.m. central time each reporting day as described in Sec.
59.10(b):
(1) The packer's best estimate of the total number of barrows and
gilts, and barrows and gilts that qualify as packer-owned swine
expected to be purchased throughout the reporting day through each type
of purchase;
(2) The total number of barrows and gilts, and barrows and gilts
that qualify as packer-owned swine, purchased up to that time of the
reporting day through each type of purchase;
(3) The base price paid for all base market hogs purchased up to
that time
[[Page 44700]]
of the reporting day through negotiated purchases; and
(4) The base price paid for all base market hogs purchased through
each type of purchase other than negotiated purchase up to that time of
the reporting day, unless such information is unavailable due to
pricing that is determined on a delayed basis. The packer shall report
information on such purchases on the first reporting day or scheduled
reporting time on a reporting day after the price has been determined.
(5) The Secretary shall publish the information obtained under this
paragraph (c) in the afternoon report as soon as practicable, but not
later than 3 p.m. central time, on each reporting day.
Sec. 59.203 Mandatory daily reporting for sows and boars.
(a) Prior Day Report. The corporate officers or officially
designated representatives of each packer of sows and boars shall
report to the Secretary for each business day of the packer not later
than 7 a.m. central time on each reporting day information regarding
all sows and boars purchased or priced, excluding inferior swine,
during the prior business day of the packer. All purchase data,
reported by lot, including:
(1) The total number of sows and boars purchased divided into at
least three weight groups as specified by the Secretary;
(2) The average price paid by each purchase type for all sows in
each weight class specified by the Secretary; and
(3) The average price paid by each purchase type for all boars in
each weight class specified by the Secretary.
(4) The packer is required to report only the volume of sows and
boars that qualify as packer owned swine and shall omit packer owned
sows and boars from all average price calculations.
(5) The Secretary shall publish the information obtained under this
paragraph (a) as soon as practicable, but not later than 8 a.m. central
time, on the reporting day on which the information is received from
the packer.
(b) [Reserved]
Sec. 59.204 Mandatory weekly reporting for swine.
(a) Weekly Noncarcass Merit Premium Report. Not later than 4 p.m.
central time in accordance with Sec. 59.10(b) on the first reporting
day of each week, the corporate officers or officially designated
representatives of each packer processing plant shall report to the
Secretary a noncarcass merit premium report that lists:
(1) Each category of standard noncarcass merit premiums used by the
packer in the prior slaughter week; and
(2) The dollar value (in dollars per hundred pounds of carcass
weight) paid to producers by the packer, by category.
(b) Premium List. A packer shall maintain and make available to a
producer, on request, a current listing of the dollar values (per
hundred pounds of carcass weight) of each noncarcass merit premium used
by the packer during the current or the prior slaughter week.
(c) Publication. The Secretary shall publish the information
obtained under this subsection as soon as practicable, but not later
than 5 p.m. central time, on the first reporting day of each week.
Subpart D--Lamb Reporting
Sec. 59.300 Definitions.
The following definitions apply to this subpart.
Boxed Lamb. The term `boxed lamb' means those carlot-based portions
of a lamb carcass including fresh primals, subprimals, cuts fabricated
from subprimals (excluding portion-control cuts such as chops and
steaks similar to those portion cut items described in the
Institutional Meat Purchase Specifications (IMPS) for Fresh Lamb and
Mutton Series 200, and thin meats (e.g. inside and outside skirts,
pectoral meat, cap and wedge meat, and blade meat) not older than 14
days from date of manufacture; fresh ground lamb, lamb trimmings, and
boneless processing lamb not older than 7 days from date of
manufacture; frozen primals, subprimals, cuts fabricated from
subprimals, and thin meats not older than 180 days from date of
manufacture; and frozen ground lamb, lamb trimmings, and boneless
processing lamb not older than 90 days from date of manufacture.
Branded. The term `branded' means boxed lamb cuts produced and
marketed under a corporate trademark (for example, products that are
marketed on their quality, yield, or breed characteristics), or boxed
lamb cuts produced and marketed under one of USDA's Meat Grading and
Certification Branch, Certified programs.
Carcass characteristics. The term `carcass characteristics' means
the range and average carcass weight in pounds, the quality grade and
yield grade (if applicable), and the lamb average dressing percentage.
Carlot-based. The term `carlot-based' means any transaction between
a buyer and a seller destined for three or less delivery stops
consisting of any combination of carcass weights. When used in
reference to boxed lamb cuts the term `carlot-based' means any
transaction between a buyer and seller consisting of 1,000 pounds or
more of one or more individual boxed lamb items.
Established. The term `established', when used in connection with
prices, means that point in time when the buyer and seller agree upon a
net price.
Formula marketing arrangement. (1) When used in reference to live
lambs, the term `formula marketing arrangement' means the advance
commitment of lambs for slaughter by any means other than through a
negotiated purchase or a forward contract, using a method for
calculating price in which the price is determined at a future date.
(2) When used in reference to boxed lamb, the term `formula
marketing arrangement' means the advance commitment of boxed lamb by
any means other than through a negotiated purchase or a forward
contract, using a method for calculating price in which the price is
determined at a future date.
Forward contract. (1) When used in reference to live lambs, the
term `forward contact' means an agreement for the purchase of lambs,
executed in advance of slaughter, under which the base price is
established by reference to publicly available prices.
(2) When used in reference to boxed lamb, the term `forward
contract' means an agreement for the sale of boxed lamb, executed in
advance of manufacture, under which the base price is established by
reference to publicly available quoted prices.
Importer. The term `importer' means any person engaged in the
business of importing lamb meat products who takes ownership of such
lamb meat products with the intent to sell or ship in U.S. commerce.
For any calendar year, the term includes only those that imported an
average of 2,500 metric tons of lamb meat products per year during the
immediately preceding 5 calendar years. Additionally, the term includes
those that did not import an average of 2,500 metric tons of lamb meat
products during the immediately preceding 5 calendar years, if the
Secretary determines that the person should be considered an importer
based on their volume of lamb imports.
Packer. The term `packer' means any person engaged in the business
of buying lambs in commerce for purposes of slaughter, of manufacturing
or preparing meat products from lambs for sale or shipment in commerce,
or of marketing meats or meat products from lambs in an unmanufactured
form acting as a wholesale broker, dealer, or
[[Page 44701]]
distributor in commerce. For any calendar year, the term includes only
a federally inspected lamb processing plant which slaughtered or
processed the equivalent of an average of 75,000 head of lambs per year
during the immediately preceding 5 calendar years. Additionally, the
term includes a lamb processing plant that did not slaughter or process
an average of 75,000 lambs during the immediately preceding 5 calendar
years if the Secretary determines that the processing plant should be
considered a packer after considering its capacity.
Packer-owned lambs. The term `packer-owned lambs' means lambs that
a packer owns for at least 14 days immediately before slaughter.
Type of purchase. The term `type of purchase' means a negotiated
purchase, a formula market arrangement, and a forward contract.
Type of sale. The term `type of sale' with respect to boxed lamb,
means a negotiated sale, a formula market arrangement, and a forward
contract.
Yield grade lamb carcass reporting. The term `yield grade lamb
carcass reporting' means if the lot includes 80 percent or more of one
yield grade, the lot will be considered a single yield grade lot. If
the lot contains less than 80 percent of one yield grade, the lot will
be considered a mixed grade lot and all yield grades comprising 10
percent or more will be used to describe the lot.
Sec. 59.301 Mandatory daily reporting for lambs.
(a) In General. The corporate officers or officially designated
representatives of each packer processing plant shall report to the
Secretary at least once each reporting day not later than 2 p.m.
central time the following information for lamb, categorized to clearly
delineate domestic from imported market purchases as described in Sec.
59.10(b):
(1) The prices for lambs (per hundredweight) established on that
day as F.O.B. feedlot or delivered at the plant, categorized by:
(i) The type of purchase;
(ii) The class of lamb;
(iii) The quantity of lambs purchased on a live weight basis;
(iv) The quantity of lambs purchased on a dressed weight basis;
(v) A range and average of estimated live weights of lambs
purchased;
(vi) An estimate of the percentage of the lambs purchased that were
of a quality grade of Choice or better;
(vii) Any premiums or discounts associated with weight, quality
grade, yield grade, or any type of purchase;
(viii) Lamb State of origin;
(ix) The pelt type; and
(x) The estimated lamb dressing percentage.
(2) The Secretary shall make the information available to the
public not less than once each reporting day.
(b) [Reserved]
Sec. 59.302 Mandatory weekly reporting for lambs.
(a) In General. The corporate officers or officially designated
representatives of each packer processing plant shall report to the
Secretary the following information applicable to the prior slaughter
week contained in paragraphs (a)(1) through (a)(5) and (a)(7) of this
section not later than 9 a.m. central time on the second reporting day
of the current slaughter week, and the following information applicable
to the prior slaughter week contained in paragraph (a)(6) of this
section not later than 9 a.m. central time on the first reporting day
of the current slaughter week categorized to clearly delineate domestic
from imported market purchases:
(1) The quantity of lambs purchased through a negotiated purchase
that were slaughtered;
(2) The quantity of lambs purchased through forward contracts that
were slaughtered;
(3) The quantity of lambs delivered under a formula marketing
arrangement that were slaughtered;
(4) The quantity and carcass characteristics of packer-owned lambs
that were slaughtered;
(5) The quantity, basis level, and delivery month for all lambs
purchased through forward contracts;
(6) The following information applicable to the current slaughter
week. The range and average of intended premiums and discounts
(including those associated with weight, quality grade, yield grade, or
type of lamb) that are expected to be in effect for the current
slaughter week; and
(7) The following information for lambs purchased through a formula
marketing arrangement and slaughtered during the prior slaughter week,
categorized to clearly delineate domestic from imported market
purchases:
(i) The quantity (quoted in both numbers of head and pounds) of
lambs;
(ii) The weighted average price paid for a carcass, including
applicable premiums and discounts;
(iii) The range of premiums and discounts paid;
(iv) The weighted average of premiums and discounts paid; and
(v) The range of prices paid.
(b) Publication. The Secretary shall make available to the public
the information obtained under paragraphs (a)(1) through (a)(5) and
(a)(7) of this section on the second reporting day of the current
slaughter week and information obtained in paragraph (a)(6) of this
section on the first reporting day of the current slaughter week.
Sec. 59.303 Mandatory reporting of lamb carcasses and boxed lamb.
(a) Daily Reporting of Lamb Carcass Transactions. The corporate
officers or officially designated representatives of each packer shall
report to the Secretary each reporting day the following information on
total carlot-based lamb carcass transactions not later than 3 p.m.
central time in accordance with Sec. 59.10(b):
(1) The price for each lot of each lamb carcass transaction, quoted
in dollars per hundredweight on an F.O.B. plant basis;
(2) The quantity for each lot of each transaction, quoted by number
of carcasses sold and purchased; and
(3) The following information regarding the characteristics of each
transaction:
(i) The type of transaction;
(ii) The USDA quality grade of lamb;
(iii) The USDA yield grade;
(iv) The estimated weight range of the carcasses; and
(v) The product delivery period.
(b) Daily Reporting of Domestic Boxed Lamb Sales. The corporate
officers or officially designated representatives of each packer shall
report to the Secretary each reporting day the following information on
total domestic boxed lamb cut sales not later than 2:30 p.m. central
time as described in Sec. 59.10(b):
(1) The price for each lot of each boxed lamb cut sale, quoted in
dollars per hundredweight on a F.O.B. plant basis;
(2) The quantity for each lot of each sale, quoted by product
weight sold; and
(3) The following information regarding the characteristics of each
transaction:
(i) The type of sale;
(ii) The branded product characteristics, if applicable;
(iii) The USDA quality grade of lamb;
(iv) The cut of lamb, referencing the most recent version of the
Institutional Meat Purchase Specifications (IMPS), when applicable;
(v) USDA yield grade, if applicable;
(vi) The product state of refrigeration;
(vii) The weight range of the cut; and
(viii) The product delivery period.
(c) Weekly Reporting of Imported Boxed Lamb Sales. The corporate
officers or officially designated representatives of each lamb importer
shall report to the Secretary on the first
[[Page 44702]]
reporting day of each week the following information applicable to the
prior week for imported boxed lamb cut sales not later than 10 a.m.
central time:
(1) The price for each lot of a boxed lamb cut sale, quoted in
dollars per hundredweight on a F.O.B. plant basis;
(2) The quantity for each lot of a transaction, quoted by product
weight sold; and
(3) The following information regarding the characteristics of each
transaction:
(i) The type of sale;
(ii) The branded product characteristics, if applicable;
(iii) The cut of lamb, referencing the most recent version of the
Institutional Meat Purchase Specifications (IMPS), when applicable;
(iv) The product state of refrigeration;
(v) The weight range of the cut; and
(vi) The product delivery period.
(d) Publication. The Secretary shall make available to the public
the information required to be reported in paragraphs (a) and (b) of
this section not less frequently than once each reporting day and the
information required to be reported in paragraph (c) of this section on
the first reporting day of the current slaughter week.
Subpart E--OMB Control Number
Sec. 59.400 OMB control number assigned pursuant to the Paperwork
Reduction Act.
The information collection and recordkeeping requirements of this
part have been previously approved by the Office of Management and
Budget (OMB) under the provisions of 44 U.S.C. Chapter 35 and have been
assigned OMB Control Number 0581-0186.
Dated: July 27, 2007.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
Note: The following Appendices will not appear in the Code of
Federal Regulations.
Appendix A--Cattle Mandatory Reporting Forms
The following 7 forms referenced in Subpart B Part 59 visually
represent the mandatory cattle and boxed beef market information
that is required to be reported to the Agricultural Marketing
Service.
Cattle
LS-113 Live Cattle Daily Report (Current Established Prices).
LS-114 Live Cattle Daily Report (Committed and Delivered
Cattle).
LS-115 Live Cattle Weekly Report.
LS-117 Cattle Premiums and Discounts Weekly Report.
LS-131 Cow/Bull Plant Delivered Bids (Dressed Basis).
LS-132 Live Cow/Bull Daily Purchase Report.
LS-126 Boxed Beef Daily Report.
Appendix B--Swine Mandatory Reporting Forms
The following 3 forms referenced in Subpart C of Part 59
visually represent the mandatory swine market information that is
required to be reported electronically to the Agricultural Marketing
Service.
Swine
LS-118 Swine Prior Day Report.
LS-119 Swine Daily Report.
LS-120 Swine Noncarcass Merit Premium Weekly Report.
Appendix C--Lamb Mandatory Reporting Forms
The following 6 forms referenced in Subpart D of Part 59
visually represent the mandatory lamb market information that is
required to be reported electronically to the Agricultural Marketing
Service.
Lamb
LS-121 Live Lamb Daily Report (Current Established Prices).
LS-123 Live Lamb Weekly Report.
LS-124 Live Lamb Weekly Report (Formula Purchases).
LS-125 Lamb Premiums and Discounts Report.
LS-128 Boxed Lamb Report.
LS-129 Lamb Carcass Report.
Appendix D--Mandatory Reporting Forms Guideline
The following mandatory reporting form guidelines will be used
by persons required to report electronically transmitted mandatory
market information to the Agricultural Marketing Service.
The first 10 fields of each mandatory reporting form provide the
following information: identification number (plant establishment
number or importer ID number), company name (name of parent
company), plant street address (street address for plant), plant
city (city where plant is located), plant state (state where plant
is located), plant zip code (zip code where plant is located),
contact name (the name of the corporate representative contact at
the plant), phone number (full phone number for the plant including
area code), reporting date (date the information was submitted (mm/
dd/yyyy), and reporting time, if applicable (the submission time
corresponding to the 10 a.m. and the 2 p.m. reporting requirements).
The reporting time requirement is only applicable to forms LS-113
Live Cattle Daily Report (current established prices), LS-114 Live
Cattle Daily Report (Committed and Delivered Cattle), LS-126 Boxed
Beef Daily Report, LS-131 Cow/Bull Plant Delivered Bids (Dressed
Basis) (10 a.m. submission only), LS-132 Live Cow/Bull Daily
Purchase Report, and LS-119 Swine Daily Report.
(a) Cattle Mandatory Reporting Forms. (See Appendix E for
samples).
(1) LS-113-- Live Cattle Daily Report (current established
prices).
(i) Lot identification (11). Enter code used to identify the lot
to the packer.
(ii) Source (12). Enter `1', domestic, if cattle were purchased
inside of the 50 States, or `2', imported, if cattle were purchased
outside of the 50 States.
(iii) Purchase type code (13). Enter the code that describes the
type of purchase.
(iv) Class code (14). Enter the code that best describes the
type of cattle.
(v) Selling basis (15a-b). For 15a, enter `1' if cattle were
purchased on a live basis or `2' if cattle were purchased on a
dressed basis. For 15b, enter `1' if cattle are shipped on an FOB
feedlot basis or `2' if cattle are delivered at the plant.
(vi) Head count (16). Enter the quantity of cattle in the lot in
number of head.
(vii) Estimated average weight (17). Enter the estimated average
weight of the lot in pounds.
(viii) Average price (18). Enter the price established on that
day for the lot in dollars per hundredweight.
(I) For negotiated purchases, enter the price that was agreed
upon.
(II) For formula purchases, enter the base price when
established (with estimated grading information if not yet known).
Then enter the final net price with all actual grading information
when it is known.
(III) For forward contract purchases, enter the base price when
established (with estimated grading information if not yet known).
Then enter the final net price paid on the contract with actual
grading information.
(IV) For negotiated grid purchases, enter the base price when
established (with estimated grading information if not yet known).
Then enter the final net price with all actual grading information.
(ix) Percent Choice or better (19). Enter the percentage of the
number of cattle in the lot of a quality grade of Choice or better.
(x) Classification code (20). Enter the code which best
describes the quality of the majority of the cattle in the lot.
(xi) Dressing percentage (21). Enter an average dressing
percentage for the cattle in the lot. For negotiated purchases,
enter an estimate. For all other purchase types, enter the actual
average dressing percentage.
(xii) Origin (22). Enter the 2-letter postal abbreviation for
the State in which the cattle were fed to slaughter weight. For
imported cattle enter ``CN'' for Canada.
(xiii) Premiums and discounts paid (23a-h). Enter the total net
value of the adjustment for the lot (in dollars per hundredweight)
for any premiums associated with weight, quality, yield or other
expressed as a positive value and for any discounts associated with
weight, quality, yield or other expressed as a negative value in
parenthesis.
(xiv) Terms of Trade (24a-d).
(I) Packer financing (24a). Enter `1' (yes) or `2' (no) in
response to: ``Did packer provide financing agreement or arrangement
with regards to the cattle?''
(II) Delivery location (24b). Enter `1' if delivery terms
specify producer location, `2' if they specify packer's plant
location.
(III) Delivery Date (24c). Enter `1' if producer sets date of
delivery for slaughter unilaterally; otherwise enter `2' for packer.
(IV) Delivered (24d). Enter `1' if negotiated purchased cattle
are to be delivered for slaughter 14 or less days from the
committed, purchased, or priced date. Enter `2' if they are
[[Page 44703]]
to be delivered for slaughter between 15 and 30 days from the date
the cattle were committed, purchased, or priced.
(2) LS-114--Live Cattle Daily Report (committed and delivered
cattle).
(i) Lot identification (11). Enter code used to identify the lot
to the packer.
(ii) Purchasing basis (12). Enter `1' if cattle are delivered or
`2' if cattle are committed.
(iii) Source (13). Enter `1', domestic, if cattle are purchased
within the 50 States or `2', imported, if cattle are purchased
outside of the 50 States.
(iv) Purchase type code (14). Enter the code that best describes
the type of purchase.
(v) Class Code (15). Enter the code that best describes the type
of cattle in the lot.
(vi) Selling basis (16). Enter `1' if cattle were purchased on a
live basis or a `2' if cattle were purchased on a dressed basis.
(vii) Head count (17). Enter the quantity of cattle in the lot
in number of head.
(viii) Origin (18). Enter the 2-letter postal abbreviation for
the State in which the cattle were fed to slaughter weight. For
imported cattle, enter ``CN'' for Canada.
(ix) Terms of Trade (19a-d). Enter when applicable, otherwise
leave blank.
(I) Packer financing (19a). Enter `1' (yes) or `2' (no) in
response to: ``Did packer provide financing agreement or arrangement
with regards to the cattle?''
(II) Delivery location (19b). Enter `1' if delivery terms
specify producer location, `2' if they specify packer's plant
location.
(III) Delivery Date (19c). Enter `1' if producer sets date of
delivery for slaughter unilaterally; otherwise enter `2' for packer.
(IV) Delivered (19d). Enter `1' if negotiated purchased cattle
are to be delivered for slaughter 7 or less days from the committed,
purchased, or priced date. Enter `2' if they are to be delivered for
slaughter between 8 and 14 days from the date the cattle were
committed, purchased, or priced.
(3) LS-115--Live Cattle Weekly Report
(i) Packer-Owned lot identification (11). Enter code used to
identify the lot of packer-owned cattle to the packer.
(ii) Packer-Owned source (12). Enter `1', domestic, if packer-
owned cattle are from within the 50 States or `2', imported, if
cattle are from outside of the 50 States.
(iii) Packer-Owned head count (13). Enter the quantity of
packer-owned cattle in the lot in number of head.
(iv) Packer-Owned actual carcass weight range (14). Enter the
actual average carcass weight of the lot in pounds.
(v) Packer-Owned average dressing percentage (15). Enter the
average dressing percentage of the lot of packer-owned cattle.
(vi) Percentage yield grade 3 or better (16). Enter the
percentage of packer-owned cattle in the lot of a yield grade of 3
or better.
(vii) Quality grade percentage (17). Enter the percentage of
packer-owned cattle in the lot of a quality grade of Choice or
better.
(viii) Prior week slaughtered cattle head counts ( ) (18-25).
Enter the total number of head of cattle slaughtered for the prior
week that were purchased through forward contracts, the total number
of head for cattle purchased through formula arrangements, the total
number of head of cattle purchased through negotiated cash, and the
total number of head purchased through negotiated grids, categorized
by domestic or imported sources. Enter this information once per
each week's submission.
(ix) Forward contract purchases lot identification ( ) (26).
Enter code used to identify forward contracted cattle to the packer.
(x) Forward contract purchases head count (27). Enter quantity
of forward contracted cattle in the lot in number of head.
(xi) Forward contract purchases basis level (28). Enter the
agreed upon adjustment to a future price to establish the final
price of the forward contracted cattle in dollars per one hundred
pounds.
(xii) Forward contract purchases delivery month (29). Enter the
delivery month of the cattle purchased through forward contracts as
a 3-letter abbreviation.
(xiii) Forward contract purchases delivery year (30).
(xiv) Forward contract purchases basis level month (31). Enter
the basis month which the contract was based off of. Use 3-letter
abbreviation.
(4) LS-117--Cattle Premiums and Discounts Weekly Report.
(i) Enter the premiums and discounts (in dollars per
hundredweight) expected to be in effect for the current slaughter
week for each applicable category of premium and discount (11-34).
For `other' categories (35-39), provide a brief description of the
basis for the premium/ discount along with the value of the premium/
discount. Enter negative values in parenthesis.
(5) LS-131--Cow/Bull Plant Delivered Bids.
Enter the plant delivered bids the plant expects to have in
effect for that day in dollars per cwt. for each category.
(6) LS-132--Live Cow/Bull Daily Purchase report.
(i) Lot identification (11). Enter code used to identify the lot
to the packer.
(ii) Source (12). Enter `1', domestic, if cattle were purchased
inside of the 50 States, or `2', imported, if cattle were purchased
outside of the 50 States.
(iii) Purchase type code (13). Enter the code that describes the
type of purchase.
(iv) Class code (14). Enter the code that best describes the
type of cattle.
(v) Selling basis (15a-b). For 15a, enter `1' if cattle were
purchased on a live basis or `2' if cattle were purchased on a
dressed basis. For 15b, enter `1' if cattle are shipped on an FOB
feedlot basis or `2' if cattle are delivered at the plant.
(vi) Head count (16). Enter the quantity of cattle in the lot in
number of head.
(vii) Estimated average weight (17). Enter the estimated average
weight of the lot in pounds.
(viii) Average price (18). Enter the price established on that
day for the lot in dollars per hundredweight.
(I) For negotiated purchases, enter the final net price that was
paid.
(II) For formula purchases, enter the base price when
established (with estimated grading info if not yet known). Then
enter the final net price with all actual grading information when
it is known.
(III) For forward contract purchases, enter the base price when
established (estimated grading info if not yet known). Then enter
the final net price paid on the contract with actual grading
information.
(V) For negotiated grid purchases, enter the base price when
established (estimated grading info if not yet known). Then enter
the final net price with all actual grading information.
(ix) Classification code (19). Enter the code which best
describes the quality of the majority of the cattle in the lot.
(x) Origin (20). Enter the 2-letter postal abbreviation for the
State in which the cattle were fed to slaughter weight. For imported
cattle enter ``CN'' for Canada.
(xi) Premiums and discounts paid (21a-f). Enter the total net
value of the adjustment for the lot (in dollars per hundredweight)
for any premiums associated with weight, quality, yield or other
expressed as a positive value and for any discounts associated with
weight, quality, yield or other expressed as a negative value in
parenthesis.
(7) LS-126--Boxed Beef Daily Report. For lots comprising
multiple items, provide information for each item in a separate
record identified with the same lot identification or purchase order
number.
(i) Lot identification or purchase order number (11). Enter code
used to identify the lot to the packer.
(ii) Destination (12). Enter `1', domestic, for product shipped
within the 50 States; or `2', exported, for product shipped
overseas; or `3', exported, for product shipped NAFTA (Canada or
Mexico).
(iii) Purchase type code (13). Enter the code corresponding to
the sale type of the lot of boxed beef.
(iv) Delivery period code (14). Enter the code corresponding to
the delivery time period of the lot of boxed beef.
(v) Refrigeration (15). Enter `1' if the product is sold in a
fresh condition or `2' if the product is sold in a frozen condition.
(vi) Class code (16). Enter the code that best describes the
class of cattle from which the boxed beef was produced.
(vii) Classification code (17). Enter the code corresponding to
the grade of the boxed beef.
(viii) Beef cut (18a-b). Enter the numerical code corresponding
to the Institutional Meat Purchase Specifications (IMPS) (3 to 4
characters) (18a) or the internal corporate descriptor used to
identify the product (18b). Descriptors must be entered consistently
for all submissions.
(ix) Trim spec code (19). Enter the code corresponding to the
trim level of the boxed beef.
(x) Weight (20). Enter the code corresponding to the relative
weight of the product. Where weight is a factor, enter `1' to
signify the lighter weight range, `2' to signify the middle weight
range, or `3' to signify the heavier weight range. Where weight is
not a factor, enter `4' to signify all weights or mixed.
(xi) Total product weight (21). Enter the total weight of the
boxed beef cut in the lot in pounds.
(xii) Price (22). Enter the price received for each boxed beef
cut in the lot in dollars per one hundred pounds, FOB Plant basis.
(xiii) USDA Certified schedule code (23). Enter the code for the
USDA Certified
[[Page 44704]]
Program schedule, if applicable (e.g.; G1, G2, etc.); otherwise
leave blank.
(xiv) Branded product code (24a-b). Enter the quality grade code
(24a) and the yield grade code (24b) that best describes the brand.
Leave blank if not applicable.
(b) Swine Mandatory Reporting Forms (see Appendix E for
samples).
(1) LS-118--Swine Prior Day Report.
(i) Slaughtered swine lot identification (11). Enter code used
to identify the lot of slaughtered swine to the packer.
(ii) Slaughtered swine class code (12). Enter the code that best
describes the type of slaughtered swine in the lot.
(iii) Slaughtered swine purchase type code (13). Enter the code
that describes the type of purchase for the slaughtered swine in the
lot.
(iv) Slaughtered swine head count (14). Enter the quantity of
slaughtered swine in the lot in number of head.
(v) Slaughtered swine base price (15). Enter the base price
established on that day for the lot of slaughtered swine in dollars
per one hundred pounds.
(vi) Slaughtered swine average net price (16). Enter the average
net price established on that day for the lot of slaughtered swine
in dollars per one hundred pounds.
(vii) Slaughtered swine average live weight (17). Enter the
average live weight of the lot of swine in pounds if slaughtered
swine were purchased on a live basis, otherwise leave blank.
(viii) Slaughtered swine average carcass weight (18). Enter the
average carcass weight of the lot of slaughtered swine in pounds.
(ix) Slaughtered swine average sort loss (19). Enter the average
sort loss for the lot of slaughtered swine in dollars per one
hundred pounds.
(x) Slaughtered swine average backfat (20). Enter the average
backfat measurement for the lot of slaughtered swine in inches
rounded to the nearest tenth of an inch.
(xi) Slaughtered swine average loin depth (21). Enter the
average loin depth measurement for the lot of slaughtered swine in
inches rounded to the nearest tenth of an inch.
(xii) Slaughtered swine average lean percentage (22). Enter the
average lean percentage for the lot of slaughtered swine.
(xiii) Purchased swine lot identification (23). Enter code used
to identify the lot of purchased swine to the packer.
(xiv) Purchased swine ownership code (24). Enter code which best
describes the source of the purchased swine whether packer-owned,
purchased from another packer, or all other swine.
(xv) Purchased swine class code (25). Enter the code that best
describes the type of purchased swine.
(xvi) Purchased swine purchase type code (26). Enter the code
that describes the type of purchase for the purchased swine.
(xvii) Purchased swine head count (27). Enter the quantity of
purchased swine in the lot.
(xviii) Purchased swine average live weight (28). Enter the
average live weight of the lot of swine in pounds if swine were
purchased on a live basis, otherwise leave blank.
(xix) Purchased swine base price (29). Enter the base price
established on that day for the lot of purchased swine in dollars
per one hundred pounds.
(xx) Purchased swine origin (30). Enter the 2-letter postal
abbreviation for the State in which the swine were fed to slaughter
weight.
(xxi) Scheduled swine (31-44). Enter the number of head of
purchase commitment swine that were scheduled for delivery for each
of the next 14 days. Enter the total quantity currently scheduled
for each day at the time of reporting for each submission.
(2) LS-119--Swine Daily Report.
(i) Purchased swine lot identification (11). Enter code used to
identify the lot of purchased swine to the packer.
(ii) Purchased swine purchase type code (12). Enter the code
that describes the type of purchase for the swine in the lot.
(iii) Purchased swine average live weight (13). Enter the
average live weight of the lot of swine in pounds if swine were
purchased on a live basis, otherwise leave blank.
(iv) Purchased swine class code (14). Enter the code that best
describes the type of swine in the lot.
(v) Purchased swine head count (15). Enter the quantity of swine
in the lot in number of head.
(vi) Purchased swine base price (16). Enter the base price
established on that day for the lot of swine in dollars per one
hundred pounds.
(vii) Purchased swine origin (17). Enter the 2-letter postal
abbreviation for the State in which the swine were fed to slaughter
weight.
(viii) Packer-sold swine purchases (18-25). Enter the best
estimate of the total number of packer-sold swine expected to be
purchased throughout the reporting day for each purchase type and
the total number of packer-sold swine purchased up to that time of
the reporting day for each purchase type.
(ix) All other swine purchases (26-33). Enter the best estimate
of the total number of all other swine expected to be purchased
throughout the reporting day for each purchase type and the total
number of all other swine purchased up to that time of the reporting
day for each purchase type.
(3) LS-120--Swine Noncarcass Merit Premium Weekly Report.
Enter the standard noncarcass merit premiums used during the
prior slaughter week (11-15) in dollars per hundredweight. If a
range of standard noncarcass merit premiums was used, enter the low
side of the range (a) and the high side of the range (b). If only
one value was used, enter the same number in (a) and (b). If no
value for the specified merit was used, leave blank. For `other'
categories (16-20), provide a brief description of the basis for the
premium along with the value of the premium.
(c) Lamb Mandatory Reporting Forms. (See Appendix E for
samples).
(1) LS-121--Live Lamb Daily Report (current established prices).
(i) Lot identification (11). Enter code used to identify the lot
to the packer.
(ii) Source (12). Enter `1', domestic, if lambs were purchased
inside of the 50 States, or `2', imported, if lambs were purchased
outside of the 50 States.
(iii) Purchase type code (13). Enter the code that describes the
type of purchase.
(iv) Class code (14). Enter the code that best describes the
type of lambs.
(v) Selling basis (15a-b). For 15a, enter `1' if lambs were
purchased on a live basis or `2' if lambs were purchased on a
dressed basis. For 15b, enter `1' if lambs are shipped on an FOB
feedlot basis or `2' if lambs are delivered at the plant.
(vi) Head count (16). Enter the quantity of lambs in the lot in
number of head.
(vii) Weight range (17a & 17b). Enter the lowest (17a) and
highest (17b) weights for lambs in the lot in pounds.
(viii) Estimated average weight (18). Enter the estimated
average weight of the lot in pounds.
(ix) Average price (19). Enter the price established on that day
for the lot in dollars per hundredweight.
(I) For negotiated purchases, enter the final (net) price paid.
(II) For formula purchases, enter the net price.
(III) For forward contract purchases, enter the final (net)
price paid.
(x) Percent Choice or better (20). Enter the percentage of the
number of lambs in the lot of a quality grade of Choice or better.
(xi) Classification code (21). Enter the code which best
describes the quality of the majority of the lambs in the lot.
(xii) Dressing percentage (22). Enter an average dressing
percentage for the lambs in the lot. For negotiated purchases, enter
an estimate. For all other purchase types, enter the actual average
dressing percentage.
(xiii) Origin (23). Enter the 2-letter postal abbreviation for
the State in which the lambs were fed to slaughter weight. Enter
`CN' if lambs originate from Canada.
(xiv) Pelt Code (24). Enter the code that best describes the
type of pelt for the majority of lambs in the lot.
(xv)Premiums and discounts paid (25a-f). Enter the total net
value of the adjustment for the lot (in dollars per hundredweight)
for any premiums associated with weight, quality, or yield expressed
as a positive value and for any discounts associated with weight,
quality, or yield expressed as a negative value in parenthesis.
(2) LS-123--Live Lamb Weekly Report.
(i) Packer-Owned lot identification (11). Enter code used to
identify the lot of packer-owned lambs to the packer.
(ii) Packer-Owned source (12). Enter `1', domestic, if packer-
owned lambs are from within the 50 States or `2', imported, if lambs
are from outside of the 50 States.
(iii) Packer-Owned head count (13). Enter the quantity of
packer-owned lambs in the lot in number of head.
(iv) Packer-Owned actual carcass weight range (14a & 14b). Enter
the lowest (14a) and highest (14b) actual carcass weights for lambs
in the lot in pounds.
(v) Packer-Owned actual average carcass weight (15). Enter the
actual average carcass weight of the lot of packer-owned lambs in
pounds.
(vi) Packer-Owned average dressing percentage (16). Enter the
average dressing percentage of the lot of packer-owned lambs.
(vii) Percentage yield grade 3 or better (17). Enter the
percentage of packer-owned lambs in the lot of a yield grade of 3 or
better.
[[Page 44705]]
(viii) Quality grade percentage (18-). Enter the percentage of
packer-owned lambs in the lot of a quality grade of Choice or
better.
(ix) Prior week slaughtered lambs head counts ( ) (19-24). Enter
the total number of head of lambs slaughtered for the prior week
that were purchased through forward contracts, the total number of
head for lambs purchased through formula arrangements, and the total
number of head of lambs purchased through negotiated cash,
categorized by domestic or imported sources. Enter this information
once per each week's submission.
(x) Forward contract purchases lot identification (25). Enter
code used to identify forward contracted lambs to the packer.
(xi) Forward contract purchases head count (26). Enter quantity
of forward contracted lambs in the lot in number of head.
(xii) Forward contract purchases basis level (27). Enter the
agreed upon adjustment to a future price to establish the final
price of the forward contracted lambs in dollars per one hundred
pounds.
(xiii) Forward contract purchases delivery month (28). Enter the
delivery month of the lambs purchased through forward contracts as a
3-letter abbreviation.
(3) LS-124--Live Lamb Weekly Report (formula purchases).
(i) Lot identification (11). Enter code used to identify the lot
to the packer.
(ii) Source (12). Enter `1', domestic, if lambs are purchased
within the 50 States or `2', imported, if lambs are purchased
outside of the 50 States.
(iii) Head count (13). Enter the quantity of lambs in the lot in
number of head.
(iv) Total pounds (14). Enter the total quantity of lambs in the
lot in pounds.
(v) Weighted average carcass price (15). Enter the average
weighted average carcass price for the lambs in the lot in dollars
per hundredweight.
(vi) Range of prices paid (16a-b). Enter the lowest (16a) and
the highest (16b) prices paid for the lambs in the lot in dollars
per hundredweight.
(vii) Range of premiums and discounts paid (17a-b). Enter the
lowest (17a) and the highest (17b) premium and discount paid for the
lot of lambs in dollars per hundredweight. Enter negative values in
parenthesis.
(viii) Weighted average of premiums and discounts paid (18).
Enter the weighted average of the premiums and discounts paid for
the lot of lambs in dollars per hundredweight. Enter negative values
in parenthesis.
(4) LS-125--Lamb Premiums and Discounts Weekly Report.
Enter the premiums and discounts (in dollars per hundredweight)
expected to be in effect for the current slaughter week for each
applicable category of premium and discount (11-32). For `other'
categories (33-37), provide a brief description of the basis for the
premium/discount along with the value of the premium/discount. Enter
negative values in parenthesis.
(5) LS-128--Boxed Lamb Daily Report. For lots comprising
multiple items, provide information for each item in a separate
record identified with the same lot identification or purchase order
number.
(i) Lot identification or purchase order number (11). Enter code
used to identify the lot to the packer.
(ii) Destination/Source (12). Enter `1', domestic, for product
originating within the 50 States or `2', imported, for product
originating from outside of the 50 States.
(iii) Sale type code (13). Enter the code corresponding to the
sale type of the lot of boxed lamb.
(iv) Delivery period code (14). Enter the code corresponding to
the delivery time period of the lot of boxed lamb.
(v) Refrigeration (15). Enter `1' if the product is sold in a
fresh condition or `2' if the product is sold in a frozen condition.
(vi) Classification code (16). Enter the code corresponding to
the grade of the boxed lamb, if applicable.
(vii) Lamb cut (17a-b). Enter the numerical code corresponding
to the Institutional Meat Purchase Specifications (IMPS) (3 to 4
characters)(17a) or the internal corporate descriptor used to
identify the product (17b). Descriptors must be entered consistently
for all submissions.
(viii) Weight (18). Enter the code corresponding to the relative
weight of the product. Where weight is a factor, enter `1' to
signify the lighter weight range, `2' to signify the middle weight
range, or `3' to signify the heavier weight range. Where weight is
not a factor, enter `4' to signify all weights or mixed.
(ix) Total product weight (19). Enter the total weight of the
boxed lamb cut in the lot in pounds.
(x) Price (20). Enter the price received for each boxed lamb cut
in the lot in dollars per one hundred pounds, FOB Plant basis.
(xi) USDA Certified schedule code (21). Enter the code for the
USDA Certified Program schedule, if applicable (e.g. CL, etc.);
otherwise leave blank.
(xii) Branded product code (22a-b). Enter the quality grade code
(22a) and the yield grade code (22b) that best describes the brand.
Leave blank if not applicable.
(6) LS-129--Lamb Carcass Report. For lots comprised of distinct
carcass weight range categories with different prices, provide
information for each weight range in a separate record identified
with the same lot identification or purchase order number.
(i) Lot identification or purchase order number (11). Enter code
used to identify the lot to the packer.
(ii) Transaction type code (12). Enter the code corresponding to
the transaction type of the lot of carcass lamb.
(iii) FOB Plant Price (13). Enter the price received for the
lamb carcasses in dollars per one hundred pounds, FOB Plant basis.
(iv) Number of carcasses (14). Enter the total number of lamb
carcasses in the lot.
(v) Classification code (15) Enter the corresponding USDA
quality grade code.
(vi) Yield grade code (16). Enter the corresponding USDA yield
grade code.
(vii) Estimated carcass weight range (17a-b). Enter the lowest
(17a) and highest (17b) weights (in pounds) that best describes the
majority of the lamb carcasses in the lot.
(viii) Delivery period code (18). Enter the code corresponding
to the time period the lamb carcasses will deliver.
(ix) Transaction basis (19). Enter `1' for purchased carcasses
or `2' for sold carcasses.
Appendix E--Mandatory Reporting Forms
The cattle, swine, and lamb mandatory reporting forms follow:
BILLING CODE 3410-02-P
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[FR Doc. 07-3857 Filed 8-6-07; 8:45 am]
BILLING CODE 3410-02-C