Proposed Rule: Livestock Mandatory Reporting: Swine, Cattle, Lamb, and Boxed Beef Reporting Regulations Reestablishment and Revision

Wednesday,
August 8, 2007
Part IV
Department of
Agriculture
Agricultural Marketing Service
7 CFR Part 59
Livestock Mandatory Reporting;
Reestablishment and Revision of the
Reporting Regulation for Swine, Cattle,
Lamb, and Boxed Beef; Proposed Rule
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44672 Federal Register / Vol. 72, No. 152 / Wednesday, August 8, 2007 / Proposed Rules
DEPARTMENT OF AGRICULTURE Executive Office Building, 725 17th which entities meet the definition of a
Street, NW., Room 725, Washington, DC packer as defined in this regulation.
Agricultural Marketing Service 20503. The 1999 Act also gave the Secretary
FOR FURTHER INFORMATION CONTACT: of Agriculture (Secretary) the latitude to
7 CFR Part 59 Warren P. Preston, Chief, Livestock and provide for the reporting of lamb
[Docket No. AMS–LS–07–0106; LS–07–01] Grain Market News Branch at (202) 720– information. Under the 2000 final rule
6231, fax (202) 690–3732, or e-mail implementing the program, Federally
RIN 0581–AC67 Warren.Preston@usda.gov. inspected lamb processing plants that
slaughtered an average of 75,000 head of
Livestock Mandatory Reporting; SUPPLEMENTARY INFORMATION:
lambs or processed an average of 75,000
Reestablishment and Revision of the Background lamb carcasses during the immediately
Reporting Regulation for Swine, Cattle, preceding 5 calendar years were
Lamb, and Boxed Beef The 1999 Act was enacted into law on
October 22, 1999, (Pub. L. 106–78) as an required to submit information to AMS.
AGENCY: Agricultural Marketing Service, amendment to the Agriculture Additionally, a lamb processing plant
USDA. Marketing Act of 1946 (7 U.S.C. 1621 et that did not slaughter an average of
ACTION: Proposed rule. seq.). In the December 1, 2000, Federal 75,000 lambs or process an average of
Register, AMS published a final rule 75,000 lamb carcasses during the
SUMMARY: On April 2, 2001, the immediately preceding 5 calendar years
implementing the program (65 FR
Agricultural Marketing Service (AMS) 75464) (2000 final rule) with an was required to report information if the
implemented the Livestock Mandatory effective date of January 30, 2001. This Secretary determined the processing
Reporting (LMR) program as required by effective date was subsequently delayed plant should be considered a packer
the Livestock Mandatory Reporting Act until April 2, 2001. based on its capacity. In addition, the
of 1999 (1999 Act). The statutory The statutory authority for the final rule also established that for any
authority for the program lapsed on program lapsed on September 30, 2005. calendar year, an importer of lamb that
September 30, 2005. In October 2006, In October 2006, legislation was passed imported an average of 5,000 metric
legislation was enacted to reauthorize to reauthorize the 1999 Act until tons of lamb meat products per year
the 1999 Act until September 30, 2010, September 30, 2010, and amend swine during the immediately preceding 5
and to amend the swine reporting reporting requirements. calendar years report information on the
requirements of the 1999 Act (Pub. L. Because reauthorization was not domestic sales of imported boxed lamb
109–296) (Reauthorization Act). This completed by September 30, 2005, AMS cuts. Additionally, an importer that did
rulemaking is necessary to re-establish sent letters to each packer required to not import an average of 5,000 metric
the regulatory authority for the report under the 1999 Act requesting tons of lamb meat products during the
program’s continued operation and their voluntary cooperation in immediately preceding 5 calendar years
incorporate the swine reporting changes continuing to submit information. Based was required to report information if the
contained within the Reauthorization on the response to AMS’s request for Secretary determined that the person
Act as well as make other changes to voluntary packer participation in LMR, should be considered an importer based
enhance the program’s overall most reports have continued to be on their volume of lamb imports. On
effectiveness and efficiency based on published. The only reports that are not September 2, 2004, AMS published a
AMS’ experience in the administration being published are imported boxed final rule (69 FR 53783) (2004 final rule)
of the program over the last 6 years. lamb cuts and slaughter cow reports. that revised the threshold for importers
DATES: Written comments on the AMS has continued compliance audits to 2,500 metric tons and modified the
regulatory provisions of this proposed during the lapse in authority for the definition of carlot when used in
rule must be received on or before mandatory program for companies that reference to boxed lamb cuts.
September 7, 2007 to be assured of agreed to continue submitting Key Components of the Statute
consideration. Written comments on the information and will continue this
information collection and practice until the effective date of this Cattle
recordkeeping provisions of this regulatory action. The Reauthorization Act did not
proposed rule must be received on or The 1999 Act as originally passed modify the cattle reporting requirements
before October 9, 2007 to be assured of provided for the mandatory reporting of contained in the 1999 Act. The 1999 Act
consideration. market information by Federally requires that a cattle packer whose
ADDRESSES: Comments can be submitted inspected livestock processing plants Federally inspected plant slaughtered
on the Internet at: http:// that have slaughtered an average an average of at least 125,000 cattle per
www.regulations.gov. Written comments number of livestock during the year for the preceding 5 calendar years
can be sent to Warren P. Preston, Chief, immediately preceding 5 calendar years or did not slaughter cattle during the
Livestock and Grain Market News (125,000 for cattle and 100,000 for preceding 5 calendar years but is
Branch, Docket No. LS–07–01, 1400 swine), including any processing plant considered a packer based on plant
Independence Ave., SW., Room 2619–S, that did not slaughter during the capacity as determined by the Secretary,
Washington, DC 20250–0252, or by immediately preceding 5 calendar years report market information to the
facsimile to (202) 690–3732. All if the Secretary determines that the Secretary. They are required to report
comments received will be posted to the plant should be considered a packer the prices for each type of cattle
Web site at: http://www.regulations.gov. based on the plant’s capacity. For purchase, categorized to clearly
Comments that specifically pertain to entities that did not slaughter during the delineate imported from domestic
the information collection and immediately preceding 5 calendar years, market purchases, negotiated purchase,
recordkeeping requirements of this such as a new plant or existing plant formula marketing arrangement, and
action should also be sent to the Desk that begins operations, AMS projects the forward contract; the quantity of cattle,
Officer for Agriculture, Office of plant’s annual slaughter or production categorized to clearly delineate
Information and Regulatory Affairs, based upon the plant’s estimate of imported from domestic market
Office of Management and Budget, New annual slaughter capacity to determine purchases, purchased on a live weight
Federal Register / Vol. 72, No. 152 / Wednesday, August 8, 2007 / Proposed Rules 44673
basis and a carcass basis; and the under this subpart after considering its the Reauthorization Act, the Secretary
weight, the quality grade, and premiums capacity. shall publish a net price distribution for
and discounts. This information would The Reauthorization Act separated the all barrows and gilts slaughtered on the
be reported twice a day not later than reporting requirements for sows and previous day not later than 3 p.m.
10 a.m. and 2 p.m. central time. The boars from barrows and gilts. For central time.
Secretary would issue reports to the barrows and gilts, the packer must The Reauthorization Act also requires
public of this information at least three report to the Secretary not later than 7 packers that process barrows and gilts to
times each day. a.m. central time on each reporting day report to the Secretary in the morning
The 1999 Act further requires that a information regarding all swine not later than 10 a.m. central time and
packer report marketing information not purchased or priced, during the prior in the afternoon not later than 2 p.m.
later than 9 a.m. central time on the first business day of the packer. The central time each reporting day. The
reporting day of each week for cattle Reauthorization Act modified the reporting requirements for the morning
bought by the type of purchase for the reporting time for information regarding and afternoon reports contained in the
prior week. In addition, the 1999 Act all barrows and gilts slaughtered during Reauthorization Act for barrows and
states that packers must report weekly the prior business day from not later gilts were not altered from those
information on the first reporting day than 7 a.m. central time to not later than contained in the 1999 Act. The
not later than 9 a.m. central time for 9 a.m. central time on each reporting information to be reported is the same
cattle purchased on a formula or day. The packer must report all for the morning and afternoon reports
contract marketing arrangement and purchase data including the number of and includes an estimate of (1) the total
slaughtered the prior week. However, barrows and gilts purchased, barrows number of barrows and gilts purchased
under this proposed regulation, the and gilts scheduled for delivery and the by each method of pricing, (2) the total
required information for the weekly base price and purchase data for number of barrows and gilts purchased,
submission for cattle purchased on a slaughtered barrows and gilts for which and (3) the base price paid for all
formula would be obtained by a price has been established. The negotiated purchases of market hogs and
aggregating packers’ daily submissions information also includes all slaughter the base price paid for each type of
of this information. Therefore, no data for the total number of barrows and purchase of market hogs other than
additional weekly submission would be gilts slaughtered including information through a negotiated purchase. This
required for this purchase type. The concerning the net price, average net information must be submitted for all
Secretary would issue a public report price, lowest net price, highest net covered transactions made up to within
not later than 10 a.m. central time on price, average carcass weight, average
one half hour of each specified reporting
the first reporting day of the current sort loss, average backfat, average lean
time. Packers completing transactions
slaughter week. percentage, and total slaughter quantity.
The 1999 Act also mandates that a during the one half hour prior to the
However, the information on the lowest
packer report information on boxed beef previous reporting time will report
net price and highest net price can be
cut sales to the Secretary at least twice those transactions at the next prescribed
obtained from the LMR system from
each reporting day not less frequently reporting time. The Secretary will make
packers’ submissions. Therefore, under
than once before and once after 12 noon the morning report available to the
this proposed rule, there is no
central time. This information includes public not later than 11 a.m. central
requirement for packers to submit this
the price per hundredweight, the time and the afternoon report at 3 p.m.
information separately. Packers
quantity in each lot of boxed beef cuts reporting the average lean percentage central time on each reporting day.
sold, information regarding the must report the manner in which the The Reauthorization Act requires each
characteristics of each lot (i.e., domestic average lean percentage is calculated as packer of sows and boars to report to the
vs. export sale, USDA Quality Grade, well as whenever a change in such Secretary not later than 9:30 a.m. central
etc.), the type of beef cut and the trim calculation is made. In doing so, the time, or such other time as the Secretary
specification. The Secretary would packer shall make available to the considers appropriate, on each reporting
report this information to the public Secretary the underlying data, day, information regarding all sows and
twice each reporting day. applicable methodology and formulae, boars purchased or priced during the
and supporting materials used to prior business day of the packer. The
Swine information to be reported includes the
determine the average lean percentage,
The Reauthorization Act revised the which the Secretary will convert to the total number of sows and boars
requirements for swine reporting. Under carcass measurements or lean purchased, each divided into at least
the 1999 Act, the term packer includes percentage of the swine of the three weight classes specified by the
a Federally inspected plant that individual packer to correlate to a Secretary, the number of sows and boars
slaughtered an average of at least common percent lean measurement. that qualify as packer-owned swine, the
100,000 swine per year during the Additionally, the information to be average price paid for all sows and
immediately preceding 5 calendar years. reported includes packer purchase boars, the average price paid for sows
Under the Reauthorization Act, the term commitments, which shall be equal to and boars in each weight class, the
packer also includes a person that the number of barrows and gilts number of sows and boars for which
slaughtered an average of at least scheduled for delivery to a packer for prices are determined, by each type of
200,000 sows, boars, or combination slaughter each of the next 14 calendar purchase, and the average prices for
thereof per year during the immediately days. sows and boars for which prices are
preceding 5 calendar years. The Secretary would publish the determined, by each type of purchase.
Additionally, in the case of a swine information in a prior day report not The Secretary would publish the
processing plant or person that did not later than 8 a.m. central time for all information in a prior day report not
slaughter swine during the immediately swine purchased and 10 a.m. central later than 11 a.m. central time on the
preceding 5 calendar years, it shall be time for all barrows and gilts reporting day on which the information
considered a packer if the Secretary slaughtered on the reporting day on is received from the packer. Under the
determines the processing plant or which the information is received from 1999 Act, the reporting requirements for
person should be considered a packer the packer. In addition, as required by sows and boars were the same as the
reporting requirements for barrows and Lamb packers are required to report to importer that does not import an
gilts. the Secretary on a weekly basis on the average of 2,500 metric tons of lamb
The Secretary will compile and issue second reporting day of the week meat products during the immediately
a weekly noncarcass merit premium information from the prior week. This preceding 5 calendar years is also
report on the first reporting day of the information includes the quantity and required to report the above
week not later than 5 p.m. central time. certain carcass characteristics of lambs information, if the Secretary determines
This report would be prepared from purchased through a formula marketing that the person should be considered an
information furnished to the Secretary arrangement or forward contract that importer based on their volume of lamb
by packers who must report not later were slaughtered, and the quantity and imports.
than 4 p.m. central time on the first carcass characteristics of packer owned
reporting day of the week. The Other Provisions of the Act Involving
lamb that were slaughtered. Reported
information required includes Administration
information includes, by type of
noncarcass merit premiums used and purchase, the quantity of lamb The administrative provisions of the
paid to producers during the prior purchased on live weight and carcass 1999 Act set forth the requirements for
slaughter week by category. weight basis that were slaughtered, the maintaining confidentiality regarding
The 1999 Act provides that the quality grade, premiums and discounts the packer reporting of proprietary
Secretary review the information paid, and dressing percentage. In information and list the conditions
required to be reported by packers at addition, a lamb packer is required to under which Federal employees can
least once every two years. Also, the report the quantity and basis level for release such information. These
1999 Act directs the Secretary to forward contracts, the range and average administrative provisions also establish
promulgate regulations that specify of intended premiums and discounts, that the Secretary can make necessary
additional information to be reported by and the expected slaughter date. Under adjustments in the information reported
packers if the Secretary determines this proposed rule, packers would also by packers and take action to verify the
information currently reported does not be required to report information on the information reported, and directs the
accurately reflect the methods by which quantity of lambs purchased on a Secretary to report and publish reports
swine are valued or priced, or account negotiated basis. by electronic means to the maximum
for the fact that packers that slaughter a The Secretary makes available to the extent practical. The 1999 Act provides
significant majority of the swine public the information on the second for what constitutes violations of that
produced in the United States no longer reporting day of the current slaughter Act, such as failure to report the
use backfat or lean percentage factors as week. required information on time or failure
indicators of price. Packers report information on daily to report accurate information. The
sales of carcass lamb and sales of boxed Reauthorization Act did not change any
Lamb
lamb cuts each reporting day. Under of these provisions.
The Reauthorization Act did not this proposed rule, packers would also The section on enforcement
change the lamb reporting provisions be required to report carcass purchases. establishes a civil penalty—$10,000—
contained in the 1999 Act. The 1999 Act Due to the changing structure of the for each violation and provides for the
gives the Secretary the authority to lamb industry, an increasing number of Secretary’s issuance of cease and desist
establish a mandatory lamb price transactions are not required to be orders. This section also provides for
reporting program that will provide reported under the existing regulation. notice and hearing of violations before
timely, accurate, and reliable market Requiring packers to also report their the Secretary, judicial review, issuance
information. It does not specify the carcass purchases would greatly of an injunction or restraining order,
requirements for establishing a increase the volume of covered and establishes a civil penalty for failure
mandatory lamb price reporting transactions. to obey a cease and desist order.
program as it does for cattle and swine. For sales and purchases of carcass The fees section directs the Secretary
Accordingly, in the 2000 final rule, lamb, the information includes prices to not charge or assess fees for the
AMS established a mandatory lamb for each lot, the type of sale, the submission, reporting, receipt,
price reporting program based upon its quantity of each sale quoted in number availability, or access to published
extensive knowledge of the lamb of carcasses, the USDA grade, the reports or information collected through
industry and market news reporting of estimated weight range, and delivery this program.
lamb. date. For sales of boxed lamb cuts, the The section on recordkeeping requires
Under the established program, a packer reports the price for each lot, the each packer to make available to the
lamb packer whose Federally inspected quantity for each lot quoted by product Secretary on request for 2 years the
plant slaughtered or processed an weight, the type of sale, branded original contracts, agreements, receipts,
average of at least the equivalent of product characteristics, if applicable, and other records associated with any
75,000 lambs each year for the the USDA quality and yield grade, the transaction relating to the purchase,
preceding 5 calendar years reports to the cut of lamb, the product state of sale, pricing, transportation, delivery,
Secretary once daily the price of each refrigeration, the weight range of each weighing, slaughter, or carcass
type of lamb purchase, negotiated cut, and the delivery period. The characteristics of all livestock and
purchase, formula marketing Secretary issues to the public a report livestock products, as well as such
arrangements, forward contract, on carcass lamb sales and boxed lamb records or other information that is
quantity of lamb purchased on live cut sales once each reporting day. necessary or appropriate to verify the
weight or carcass weight, a range and For any calendar year, a lamb accuracy of information required to be
average estimated live weights, quality importer who imports an average of reported. Also, the 1999 Act provides
grade, premiums and discounts, class 2,500 metric tons of lamb meat products that reporting entities will not be
type, pelt type, state of origin, and per year during the immediately required to report new or additional
estimated dressing percentage. The preceding 5 calendar years reports to the information that they do not generally
Secretary issues a report to the public Secretary weekly the prices received for have available or maintain, or the
on this information not less than once imported lamb cuts sold on the provisions of which would be unduly
each day. domestic market. Additionally, an burdensome.
Further, the 1999 Act provides that The Agency is proposing to add a uncertainty regarding the information
the Secretary may suspend any definition for the term ‘‘percent lean’’ that is subsequently reported and
requirement if the Secretary determines for clarification with respect to cow and disseminated by AMS. In addition, new
that the application of the requirement bull reporting requirements. The technologies in packaging and
would be inconsistent with the Act. Agency is also proposing to add a processing continue to extend the shelf
definition for the term ‘‘person’’ for life of meat products, and product that
Proposed Requirements clarity. may have been considered aged or
Summary of Changes distressed at the time of the 2000 final
Cattle Reporting
rule may now be well within its usable
The requirements of this proposed The majority of the changes that are shelf life. Removing references to
regulation are discussed in detail in the being proposed with respect to cattle product age in the definition of ‘‘boxed
sections immediately following. reporting relate to the separation of the beef’’ would reflect such changes in the
However, for the ease of the reader, this reporting requirements for cows and state of the industry.
section contains descriptions and bulls. Separation of the reporting The 2000 final rule defined ‘‘boxed
rationale of the substantive changes that requirements for cows and bulls is being beef’’ to include fresh primals,
have been made as compared to the proposed to minimize the reporting subprimals, cuts fabricated from
December 1, 2000, and September 2, burden on cow and bull packers where subprimals, ground beef, beef
2004, (that modified reporting possible and to make the information trimmings, and boneless processing
requirements for lamb) final rules that published for cows and bulls and the beef. The definition also included
were published in the Federal Register. resulting meat products more frozen beef trimmings and boneless
Recordkeeping meaningful to the industry. processing beef. By removing the
The Agency is proposing to modify references to fresh or frozen product, the
To reduce the recordkeeping burden the definition of the term ‘‘boxed beef’’ proposed rule would reduce confusion
on lamb importers, the Agency is to remove references to age limitations on the part of reporting packers
proposing to modify the recordkeeping on products and to require packers to regarding whether or not to submit
requirement to allow lamb importers to report transactions for frozen primals, information on particular trades. AMS
maintain a record of sale that evidences subprimals, and cuts in addition to the believes that this modification of the
only the date the sale occurred rather current requirement for packers to definition of ‘‘boxed beef’’ would result
than the time and date. Because lamb submit information on frozen beef in minimal to virtually no increase in
importers are required to report only trimmings and boneless processing beef. burden to reporting packers. In the case
weekly, the date the sale occurred is Neither the 1999 Act nor the of frozen products, numerous reporting
sufficient for recordkeeping purposes. Reauthorization Act defines the term packers already submit information on
Definitions ‘‘boxed beef.’’ Hence the term must be all frozen products. Due to the nature of
defined by regulation. These proposed their electronic systems, it is in many
The Agency is proposing to modify modifications to the definition would cases often less burdensome for packers
the definition of the term ‘‘discount’’ by provide for more complete reporting of to submit everything rather than having
adding ‘‘or other characteristic’’ to allow the boxed beef trade, consistent with the to sort through eligible transactions.
for the inclusion of other types of law’s purpose of improving the price AMS believes that reporting of trade in
discounts such as a discount for an and supply reporting conditions of frozen products would provide a more
animal’s age, which is currently utilized USDA. Although the revised definition accurate and comprehensive picture of
by several reporting packers. of ‘‘boxed beef’’ potentially would result the market for boxed beef, consistent
The Agency is also proposing to in the reporting of more transactions by with the purposes of the 1999 Act to
modify the definitions of the terms packers to AMS, the Agency believes improve the price and supply reporting
‘‘negotiated purchased’’ and ‘‘negotiated that there would be little to practically services of USDA. For instance, trading
sale’’ by removing the language ‘‘and no increase in the reporting burden to of frozen product picked up with the
agreement on a delivery day.’’ Under the packers. The cost to packers of reporting reopening of foreign markets following
current program, a transaction is not all trades versus sorting out trades the closures that resulted from the
required to be reported if the specific beyond certain parameters is minimal, discovery of a cow with bovine
delivery day is not known. Deleting this and in many cases, may even be less spongiform encephalopathy in the
language would provide for more timely burdensome than sorting out United States in December 2003.
price reporting if the only piece of transactions prior to submission to Because a majority of packers are
information not known is the delivery AMS. reporting frozen boxed beef trades, AMS
day. In the 2000 final rule, the definition has been able to show the number of
The Agency is proposing to add a of ‘‘boxed beef’’ specified that the frozen export loads in its
definition for the term ‘‘negotiated grid product not exceed one of three comprehensive boxed beef cutout
purchase.’’ When the LMR program was different dates from manufacture, report. Requiring all packers to submit
first implemented on April 2, 2001, depending on the specific item in information on frozen product trades
negotiated grid purchases, purchases in question. For example, primals, would ensure that such reporting would
which the base price is determined by subprimals, and cuts fabricated from represent a more complete reflection of
seller-buyer interaction from which subprimals were not to be older than 14 market conditions.
premiums are added and discounts are days from the date of manufacture, Comments are invited on the
subtracted, were coded in packer while fresh ground beef, beef trimmings, proposed modifications to the definition
submissions as formulas, as the system and boneless processing beef were not of ‘‘boxed beef’’ with respect to
was not initially configured to allow to be older than 7 days from the date of removing references to the age of the
these two distinct transaction types to manufacture. By removing references to product and whether it is fresh or
be coded separately. The Agency these different cutoff dates, there would frozen. In particular, comments are
subsequently made a programming be less confusion in terms of what invited on the potential utility of
change to rectify this problem and is information reporting packers are obtaining information on trades that
proposing this definition for clarity. required to submit, and hence, less would be excluded under the definition
of ‘‘boxed beef’’ in the 2000 final rule such as those associated with an Finally, in another effort to reduce the
and on the change in reporting burden animal’s age. burden on reporting packers, the weekly
to packers. In any case, the Agency Section 59.102 contains the reporting requirement to report information for
notes that it will accept all data requirements for cow and bull cattle purchased through a formula
submitted if reporting entities find that purchases. In an effort to reduce the marketing arrangement and slaughtered
it is less burdensome to do so, provided reporting burden on cow and bull during the prior slaughter week has
that sufficient information is submitted packers, only the information that been removed as the Agency can obtain
to allow AMS to sort the information pertains to the way cows and bulls are this information by aggregating packers’
according to definitions in the final rule. marketed would be required to be daily submissions.
The Agency is proposing to modify reported. For example, cow and bull
the definition of the term ‘‘carlot-based’’ Swine
packers no longer have to report
such that for cow and bull boxed beef committed and delivered information. As required by the Reauthorization
items, the term ‘‘carlot-based’’ would In addition, there would no longer be a Act, the reporting requirements for sows
include any transaction between a buyer weekly reporting requirement for cows and boars have been separated from the
and seller consisting of 5,000 pounds or and bulls. reporting requirements for barrows and
more of one or more individual items. gilts. Thus under this proposed rule,
With regard to section 59.103, packers
This modification reflects current section 59.202 contains the reporting
would be required to report the quantity
industry practice with respect to the requirements for barrows and gilts and
of cattle purchased on a negotiated basis
marketing of cow and bull products. section 59.303 contains the reporting
and on a negotiated grid basis that were
The Agency is proposing to modify requirements for sows and boars.
slaughtered in addition to the current The Reauthorization Act also made a
the definition of the term ‘‘terms of
requirement to report the number of few other modifications to the swine
trade’’ to clarify that the requirement to
cattle purchased through forward reporting provisions. Specifically, the
report the terms of trade applies only to
contracts, formula marketing definition of a packer has been modified
steers and heifers to coincide with the
arrangements and the quantity and to also include a person that slaughtered
proposed separation of reporting
carcass characteristics of packer-owned an average of 200,000 head of sows,
requirements for cows and bulls from
cattle that were slaughtered. In addition, boars, or combination thereof per year
steers and heifers. The definition of
packers would be required to provide during the immediately preceding 5
‘‘terms of trade’’ has also been modified
to require packers to distinguish the basis level month and delivery year calendar years. Under the 1999 Act, a
between negotiated transactions that are for all cattle purchased through forward packer was defined as a swine
scheduled for delivery not later than 14 contracts in addition to the current processing plant that slaughtered an
days and those negotiated transactions requirement to report the basis level and average of at least 100,000 swine per
that are scheduled for delivery more delivery month. These changes are year during the immediately preceding
than 14 days, but fewer than 30 days. necessary to make the information 5 calendar years. The Reauthorization
Under current guidance provided by published in AMS market reports more Act also changes the reporting
AMS, transactions that are for delivery meaningful and useable by the industry timeframe for packers to submit prior
more than 14 days out are to be coded by providing a complete picture of the day slaughtered swine information from
as forward contracts. This proposed prior week’s slaughter with respect to 7 a.m. central time to 9 a.m. central time
modification would not require packers the numbers of cattle harvested under and requires the Secretary to publish a
to submit additional transactions, but it each purchase type. Prices for net price distribution on all barrows and
would allow AMS to separately identify negotiated purchases and negotiated gilts slaughtered the previous day.
these types of transactions, which is a grid purchases are collected currently, In addition to the changes required by
concern of some in the industry. but prior week slaughter numbers for the Reauthorization Act, the Agency has
The Agency is proposing to modify these types of purchases are not now made a few other minor modifications
the definition of the term ‘‘type of collected. However, the addition of this to reduce the reporting burden on swine
purchase’’ to include ‘‘negotiated grid reporting requirement is expected to packers. A definition of the term
purchase’’ as a type of purchase. have little impact on the reporting ‘‘inferior hog’’ has been added to allow
The Agency is proposing to add a burden to packers, while contributing to packers to exclude information on
definition for the term ‘‘white cow’’ to the completeness of the information inferior hogs, which are discounted in
provide clarity to the cow and bull disseminated under the program. the marketplace, from their data
reporting requirements. Another change under section 59.103 submissions to AMS. Also, the
The Agency has modified and is that packers would be required to requirement to submit information on
renumbered the sections that relate to provide the basis level month and the lowest net price and the highest net
the daily and weekly reporting delivery year for all cattle purchased price has been removed as the Agency
requirements for live cattle. Section through forward contracts in addition to can obtain this information from the
59.101 and section 59.103 contain the the current requirement to report the LMR system from packer submissions.
daily and weekly reporting basis level and delivery month. The
requirements for steers and heifers. basis level month and delivery year are Lamb
Section 59.102 contains the daily necessary to provide a more accurate As previously discussed, the
reporting requirements for cows and picture of the forward contract market Reauthorization Act did not change the
bulls. and would allow AMS to publish more reporting provisions for lamb. However,
With regard to section 59.101, packers meaningful information. Also, the the Agency is proposing a few changes
would no longer be required to report added information reflects the current to reduce the reporting burden on lamb
the range of weights of cattle purchased. industry practice of sometimes packers where possible and to provide
In addition, the phrase ‘‘or other contracting out very far into the future, more meaningful information in AMS
characteristics’’ has been added to the making it necessary to know the market reports.
premium and discount reporting delivery year to categorize transactions The Agency is proposing to delete the
requirement to allow for the reporting of properly according to not only the definitions for the terms ‘‘lambs
other kinds of premiums and discounts month but also the year of delivery. committed’’ and ‘‘terms of trade’’ as the
requirements to submit this information packers and importers. Reporting definition of packer, which identifies
have been deleted to reduce the packers and importers would be which entities would be required to
reporting burden on packers. The required to maintain and to make report under this proposed rule. In any
Agency is proposing to add a definition available the original contracts, calendar year, the term cattle packer
for the term ‘‘yield grade lamb carcass agreements, receipts, and other records includes any Federally inspected cattle
reporting’’ to add further clarification to associated with any transaction relating plant that slaughtered an average of
the requirement to report yield grade to the purchase, sale, pricing, 125,000 head of cattle a year for the
information. transportation, delivery, weighing, immediately preceding 5 calendar years.
With respect to weekly reporting, the slaughter, or carcass characteristics of Additionally, the term includes any
Agency is proposing to require packers all livestock. In addition, they would be processing plant that did not slaughter
to submit information on the quantity of required to maintain such records or cattle during the immediately preceding
lambs purchased through a negotiated other information as is necessary or 5 calendar years if the Secretary
purchase that were slaughtered in appropriate to verify the accuracy of the determines that the plant should be
addition to the current requirement to information required to be reported considered a packer based on its
submit this type of information on under these regulations. All of the above capacity.
packer-owned lambs, lambs purchased mentioned paperwork must be For entities that did not slaughter
through forward contracts, and lambs maintained by packers and importers for cattle during the immediately preceding
purchased under a formula at least 2 years. Further, packers would 5 calendar years, such as a new plant or
arrangement. This change would allow be required to maintain a record to existing plant that begins operations,
AMS to publish more meaningful indicate the time a lot of cattle or swine AMS will project the plant’s annual
market information in AMS market was purchased, or a unit of boxed beef slaughter or production based upon the
reports. cuts was sold, as occurring either before plant’s estimate of annual slaughter
With respect to reporting 10 a.m. central time, between 10 a.m. capacity to determine which entities
requirements for lamb carcasses, the and 2 p.m. central time, or after 2 p.m. meet the definition of a packer as
Agency is proposing to require packers central time. Lamb packers would be defined in these regulations.
to submit information on their carcass required to maintain a record to indicate The definition of ‘‘boxed beef’’
purchases in addition to the current the time a lot of lambs was purchased includes fresh and frozen primals,
requirement to report carcass sales. Due or a lot of lamb carcasses was purchased subprimals, cuts fabricated from
to the changing structure of the lamb or sold or boxed lamb cuts was sold, as subprimals (with some exclusions), and
industry, an increasing number of occurring either before 2 p.m. central fresh and frozen ground beef, beef
transactions are not required to be time or after 2 p.m. central time. For trimmings, and boneless processing
reported under the existing regulation. lamb importers, the record of sale shall beef.
Requiring packers to also report their evidence the date the sale occurred. The definition of ‘‘terms of trade’’
carcass purchases will greatly increase However, to allow packers and applies to steers and heifers only and
the volume of covered transactions and importers time to collect, assemble and includes the percentage of steers and
will allow AMS to publish more submit the information to AMS by the heifers purchased by a packer as a
meaningful information in AMS market prescribed deadlines, all covered negotiated purchase that are scheduled
reports. transactions up to within one half hour to be delivered to the plant for slaughter
of the specified reporting times would not later than 14 days and the
General Provisions percentage of slaughter steers and
be reported.
Proposed Subpart A of Part 59, Lastly, under Subpart A, Section heifers purchased by a packer as a
General Provisions, covers those 59.30 details the general definitions of negotiated purchase that are scheduled
requirements pertinent to all aspects of terms used throughout the regulations, to be delivered to the plant for slaughter
mandatory reporting. Section 59.10 which would be applicable to all more than 14 days but fewer than 30
details how packers and importers subparts. The majority of these days.
would be required to report information definitions remain unchanged from The term ‘‘type of purchase’’ with
and how reporting will be handled over those that were published in the 2000 respect to cattle, means a negotiated
weekends and holidays. Electronic final rule. However, as previously purchase, negotiated grid purchase, a
reporting would be required for all discussed, the following changes have formula market arrangement, and a
information collection. Electronic been made: Minor modifications to the forward contract.
reporting would involve the transfer of definitions of ‘‘discount’’, ‘‘negotiated The term ‘‘white cow’’ means a cow
data from a packer’s or importer’s purchase’’, and ‘‘negotiated sale’’; the on a ration that tends to produce white
existing electronic recordkeeping addition of a definition for ‘‘negotiated fat.
system to a centrally located AMS grid purchase’’; the addition of a As previously discussed, the reporting
electronic database. The packer or definition of ‘‘percent lean’’; and the requirements for cows and bulls have
importer would be required to organize addition of a definition of ‘‘person’’. been separated from the reporting
the information in an AMS-approved requirements for steers and heifers,
Cattle which will reduce the reporting burden
format before electronically transmitting
the information to AMS. Proposed Subpart B of Part 59 states on cow and bull packers. Section 59.101
Once the required information has what is required to be reported in the discusses the daily reporting
been entered into the AMS database, it cattle and boxed beef sectors. For the requirements for steer and heifer
would be aggregated and processed into most part, the reporting requirements transactions, including what
various market reports that would be are similar to those published in the information would be reported, when it
released according to the daily and December 1, 2000, final rule. The would be reported, and when it would
weekly time schedule set forth in these specific changes that are being proposed be published. Steer and heifer plants
proposed regulations. have been discussed in a previous covered under the rule would report the
Section 59.20 identifies the section in this document. Section details of their purchases twice each day
recordkeeping requirements imposed by 59.100 provides definitions of cattle to AMS (once by 10 a.m. central time,
the 1999 Act and these regulations on terms used in Subpart B, including the and once by 2 p.m. central time) and
would include all covered transactions transactions made up to within one half report not later than 10 a.m. central
made up to within one half hour of the hour of the specified reporting time. time, and an afternoon report not later
specified reporting time. Packers Cattle plants completing transactions than 2 p.m. central time, including all
completing transactions during the one during the one half hour prior to the covered transactions made up to within
half hour prior to the previous reporting previous reporting time would report one half hour of each specified reporting
time would report those transactions at those transactions at the next prescribed time. Packers completing transactions
the next prescribed reporting time. The reporting time. This information would during the one half hour prior to the
Secretary would publish the be published by the Secretary twice previous reporting time would report
information not less than three times each day. These plants would be those transactions at the next prescribed
each day. Section 59.102 discusses the required to reference the Institutional reporting time. This information would
daily reporting requirements for cows Meat Purchase Specifications (IMPS) for be published by the Secretary each
and bulls, including what information Fresh Beef Products Series 100, United reporting day not later than 8 a.m.
would be reported, when it would be States Department of Agriculture, central time, 11 a.m. central time, and
reported, and when it would be Agricultural Marketing Service, 3 p.m. central time, respectively. For
published. Cow and bull plants covered Livestock and Seed Program, when barrows and gilts, packers required to
under this rule would be required to applicable. report under this rule would also have
report the base bid price intended to be to report not later than 9 a.m. central
Swine
paid for slaughter cow and bull time on each reporting day information
The Reauthorization Act made several regarding all barrow and gilts
carcasses on that day not later than 10
changes to the swine reporting slaughtered during the prior business
a.m. central time and the prices for provisions. The Agency made a few
cattle purchased during the previous day. This information would be
other minor modifications, which are published by the Secretary each
day not later than 2 p.m. central time. discussed in detail in a previous section
The Secretary would publish the reporting day not later than 10 a.m.
in this document, for clarity and to central time. In addition, the Secretary
information within one hour of the reduce the reporting burden on packers.
required reporting time on the reporting would publish a net price distribution
Proposed Subpart C of Part 59 lists the for all barrow and gilts slaughtered on
day on which the information is requirements of swine reporting the previous day not later than 3 p.m.
received by the packer. Section 59.103 beginning with Section 59.200, which central time. Section 59.203 details the
discusses the requirements for weekly establishes definitions for terms used reporting requirements for sows and
reporting for steers and heifers. Packers throughout the subpart including the boars. Under this proposed rule, each
would be required to report information definition of a packer. In any calendar sow and boar packer would report to the
regarding the prior slaughter week on year, the term swine packer includes a Secretary not later than 7 a.m. central
the first reporting day of each week not Federally inspected plant that time on each reporting day information
later than 9 a.m. central time. This slaughtered an average of at least regarding all sows and boars purchased
information includes the quantity of 100,000 swine per year during the or priced during the prior business day
cattle purchased through a negotiated immediately preceding 5 calendar years of the packer. This information would
basis that were slaughtered; the quantity and a person that slaughtered an average be published by the Secretary each
of cattle purchased through a negotiated of at least 200,000 sows, boars, or reporting day not later than 8 a.m.
grid basis that were slaughtered; the combination thereof per year during the central time. Section 59.204 details the
quantity of cattle purchased through immediately preceding 5 calendar years. requirements for reporting weekly swine
forward contracts that were slaughtered; Additionally, in the case of a swine information to AMS including what
the quantity of cattle delivered under a processing plant or person that did not would be reported, when it would be
formula marketing arrangement that slaughter swine during the immediately reported, and when it would be
were slaughtered; the quantity and preceding 5 calendar years, it shall be published. On the first reporting day of
carcass characteristics of packer-owned considered a packer if the Secretary each week, not later than 4 p.m. central
cattle that were slaughtered; the determines the processing plant or time, packers would be required to
quantity, basis level, basis level month, person should be considered a packer report information on noncarcass merit
and delivery month and year for all under this subpart after considering its premiums used and paid to producers
cattle purchased through forward capacity. For entities that did not during the prior slaughter week by
contracts; and the range and average of slaughter swine during the immediately category. This information would be
intended premiums and discounts that preceding 5 calendar years, such as a published on the first reporting day of
are expected to be in effect for the new plant or existing plant that begins each week not later than 5 p.m. central
current slaughter week. This operations, AMS will project the plant’s time.
information would be published by the annual slaughter or production based
Secretary on the same day by 10 a.m. upon the plant’s estimate of annual Lamb
central time. Finally, under Subpart B, slaughter capacity to determine which Proposed Subpart D of Part 59 covers
Section 59.104 details the information entities meet the definition of a packer the mandatory reporting of lambs. The
required to be reported concerning sales as defined in these regulations. 1999 Act gives the Secretary the
of boxed beef cuts including what Section 59.202 discusses the daily authority to establish a mandatory lamb
would be reported, when it would be reporting requirements for barrows and price reporting program but does not set
reported, and when it would be gilts including what information would forth the requirements. AMS proposes
published. Cattle plants producing be reported, when it would be reported, to resume the previously established
boxed beef cuts would be required to and when it would be published. mandatory lamb price reporting
report their domestic and export sales of For barrows and gilts, packers program with some modifications as
boxed beef cuts including branded required to report under this rule would discussed in a previous section in this
boxed beef cuts to AMS twice each report the details of their barrows and document.
reporting day, once by 10 a.m. central gilts purchases three times each day Section 59.300 provides definitions
time and once by 2 p.m. central time. including a prior day report not later for terms used throughout Subpart D
This should include all covered than 7 a.m. central time, a morning including definitions for packer and for
importer, which identifies the entities transactions including what would be end of this document. Cattle packers
that would be required to report under reported, when it would be reported, will utilize up to seven of these forms
this proposed rule. For any calendar and when it would be published. Lamb (not all cattle packers must submit all
year, the term lamb packer includes any plants covered under the rule would cattle forms) (Appendix A) when
Federally inspected lamb processing report the details of their live lamb reporting information to AMS including
plant that slaughtered or processed the purchases once each day to AMS, to four for daily cattle reporting, two for
equivalent of an average of 75,000 head include all covered transactions made weekly cattle reporting, and one for
of lambs a year for the immediately up to within one half hour of the daily boxed beef cuts reporting. Swine
preceding 5 calendar years. specified reporting time. Lamb plants packers will utilize up to three forms
Additionally, the term includes any completing transactions during the one (not all swine packers must submit all
processing plant that did not slaughter half hour prior to the previous reporting swine forms) (Appendix B), two for
or process an average of 75,000 lambs time would report those transactions at daily reporting of swine purchases and
during the immediately preceding 5 the next prescribed reporting time. The one for weekly reporting of non-carcass
calendar years if the Secretary Secretary would publish this merit premium information. Lamb
determines that the plant should be information not less than once each day. packers will utilize up to six of these
considered a packer based on the Section 59.302 covers the same type of forms (not all lamb packers must submit
capacity of the processing plant. information for weekly reporting of live all lamb forms) (Appendix C) when
For entities that did not slaughter lamb transactions. Packers would be reporting information to AMS,
lambs during the immediately preceding required to report information regarding including one for daily lamb reporting,
5 calendar years, such as a new plant or the prior slaughter week, including three for weekly lamb reporting, one for
existing plant that begins operations, among other things the number of lambs daily and weekly boxed lamb cuts
AMS will project the plant’s annual purchased through a negotiated reporting, and one for daily lamb
slaughter or production based upon the purchase that were slaughtered, on the carcass reporting. Lamb importers will
plant’s estimate of annual slaughter first reporting day of each week to be utilize one of these forms when
capacity to determine which entities published by the Secretary on the same reporting information to AMS for
meet the definition of a packer as day. Finally, Section 59.303 covers the reporting weekly imported boxed lamb
defined in these regulations. reporting requirements for transactions cut sales.
For any calendar year, the term lamb of lamb carcasses and boxed lamb cuts
importer includes any importer that Appendices
including what would be reported,
imported an average of 2,500 metric when it would be reported, and when it The final section of this document
tons of lamb meat products per year would be published. Packers would be contains a series of five appendices.
during the immediately preceding 5 required to report details of their sales These appendices will not appear in the
calendar years. Additionally, for any and purchases of carcass lambs once Code of Federal Regulations. The first
calendar year, the term importer each day and the Secretary would three appendices, Appendices A to C,
includes any lamb importer that did not publish the information once each day. have already been discussed above.
import an average of 2,500 metric tons Packers would be required to report They describe the forms that will be
of lamb meat products during the details of their sales of boxed lamb cuts, used by those required to report
immediately preceding 5 calendar years including applicable branded product. information under this program.
if the Secretary determines that the This information would be published Appendix D contains guidelines for
person should be considered an once each day. These plants would be those entities required to report
importer based on their volume of lamb required to reference the Institutional information on how to use the forms.
imports. Meat Purchase Specifications (IMPS) for The actual forms are contained in
For importers of lamb meat products, Fresh Lamb and Mutton Series 200, Appendix E.
AMS will annually review import lamb United States Department of Executive Order 12988
volume data obtained from the United Agriculture, Agricultural Marketing
States Bureau of Customs and Border Service, Livestock and Seed Program, This proposed rule has been reviewed
Protection to determine which where applicable. under Executive Order 12988, Civil
importers are required to report Importers of boxed lamb cuts would Justice Reform. This rule is not intended
imported boxed lamb cut sales be required to report the required to have retroactive effect. Section 259 of
information under these regulations. information of their prior week sales of the 1999 Act prohibits States or political
Under this proposed rule, several imported boxed lamb cuts on the subdivisions of a State to impose any
changes have been made to the domestic market, including applicable requirement that is in addition to, or
definitions section that was published branded product on the first reporting inconsistent with, any requirement of
in the 2000 final rule. To facilitate the day of each week and this information the 1999 Act with respect to the
publication of more meaningful would be published by the Secretary on submission or reporting of information,
information in AMS market reports, a the same day. or the publication of such information,
definition of ‘‘yield grade lamb carcass on the prices and quantities of livestock
reporting’’ has been added, which will OMB Control Numbers or livestock products. In addition, the
help clarify the requirements for Subpart E of Part 59 covers the OMB 1999 Act does not restrict or modify the
reporting USDA yield grade control number 0581–0186 assigned authority of the Secretary to administer
information. In addition, the definitions pursuant to the Paperwork Reduction or enforce the Packers and Stockyards
of ‘‘lambs committed’’ and ‘‘terms of Act of 1995 (44 U.S.C. Chapter 35) for Act of 1921 (7 U.S.C. 181 et seq.);
trade’’ have been deleted as the the information collection requirements administer, enforce, or collect voluntary
requirement to submit the information listed in Subparts B through D of Part reports under the 1999 Act or any other
associated with these definitions has 59. All required information must be law; or access documentary evidence as
been removed as it is not used by the reported to AMS in a standardized provided under Sections 9 and 10 of the
industry. format. The standardized format is Federal Trade Commission Act (15
Section 59.301 covers the daily embodied in 16 data collection forms U.S.C. 49, 50). There are no
reporting requirements for live lamb that are included in Appendix E at the administrative procedures that must be
exhausted prior to any judicial (OMB). In accordance with Executive approximately $724,000 per year, while
challenge to the provisions of this rule. Order 12866, this preliminary regulatory costs to the Federal government for
analysis contains a statement of the operation of the program total $6.3
Civil Rights Review
need for the proposed rule, an million per year. By comparison, the
AMS has considered the potential examination of alternative approaches, total costs to reporting packers and
civil rights implications of this rule on and an analysis of benefits and costs. importers in the 2000 final rule (65 FR
minorities, women, or persons with 75464) were estimated at $836,000 per
disabilities to ensure that no person or Executive Summary
year in current dollars, while costs to
group shall be discriminated against on This proposed rule implements the the Federal government in FY 2001
the basis of race, color, national origin, Reauthorization Act, which were estimated at $6.9 million in
gender, religion, age, disability, sexual reauthorized the 1999 Act and amended current dollars. In current dollar terms,
orientation, marital or family status, the swine reporting provisions of that the proposed rule represents a reduction
political beliefs, parental status, or Act. As stated in the 1999 Act, the of $112,000 in estimated annual costs to
protected genetic information. This purpose of the Act is to establish a reporting packers and importers, and a
review included persons that are program of information regarding the reduction of $600,000 in estimated
employees of the entities that are subject marketing of cattle, swine, lambs, and annual costs to the Federal government.
to this regulation. This proposed rule the products of such livestock that For both respondents and the Federal
does not require affected entities to provides information that can be readily government, total costs for the proposed
relocate or alter their operations in ways understood by producers; improves the rule are estimated at approximately $7.0
that could adversely affect such persons price and supply reporting services of million annually, while total costs for
or groups. Further, this proposed rule the Department of Agriculture; and the 2000 final rule were estimated at
would not deny any persons or groups encourages competition in the $7.8 million annually in current dollars.
the benefits of the program or subject marketplace for livestock and livestock Because the Act expires on September
any persons or groups to discrimination. products. (7 U.S.C. 1635) 30, 2010, the proposed rule is assumed
This proposed rule facilitates open, to have a life cycle of 4 years. At a real
Executive Order 13132 transparent price discovery and discount rate of 3 percent, the
This proposed rule has been reviewed provides all market participants, both discounted present value of the total
under Executive Order 13132, large and small, with comparable levels private and public sector costs for the
Federalism. This Order directs agencies of market information. The proposed proposed rule is estimated at $26.9
to construe, in regulations and rule is expected to reduce the time and million for the duration of the program,
otherwise, a Federal Statute to preempt resources that market participants compared to $29.7 million for the 2000
State law only when the statute contains would otherwise expend to assess final rule (expressed in current dollars
an express preemption provision. This current market conditions, reduce risk over a 4-year life cycle). This represents
rule is required by the 1999 Act. Section and uncertainty, and contribute to a reduction of $2.8 million over the life
259 of the 1999 Act, Federal considerations of fairness and equity to of the proposed rule in comparison to
Preemption, states, ‘‘In order to achieve all participants in the marketplace. the 2000 final rule. At a real discount
the goals, purposes, and objectives of However, these anticipated benefits are rate of 7 percent, the discounted present
this title on a nationwide basis and to difficult to measure and quantify. value of the total private and public
avoid potentially conflicting State laws This proposed rule is strictly an sector costs for the proposed rule is
that could impede the goals, purposes, informational measure and does not estimated at $25.5 million for the
or objectives of this title, no State or impose any restrictions on the form, duration of the program, compared to
political subdivision of a State may timing, or location of procurement and $28.1 million for the 2000 final rule
impose a requirement that is in addition sales arrangements in which subject (expressed in current dollars over a 4-
to, or inconsistent with, any packers and importers may engage. year life cycle). This represents a
requirement of this subtitle with respect Therefore, costs of the proposed rule are reduction of more than $2.6 million
to the submission or reporting of simply the costs associated with system over the life of the proposed rule in
information, or the publication of such development and maintenance, data comparison to the 2000 final rule.
information, on the prices and submission, and recordkeeping
activities of the packers and importers Need for Federal Regulatory Action
quantities of livestock or livestock
products.’’ required to report information under This proposed rule implements the
Prior to the passage of the 1999 Act, this proposed rule, plus the costs to the Reauthorization Act, which
several States enacted legislation Federal government for operation of the reauthorized the 1999 Act and amended
mandating, to various degrees, the program. However, most of the entities the swine reporting provisions of that
reporting of market information on that would be required to report under Act. The 1999 Act first became law on
transactions of cattle, swine, and lambs this proposed rule already reported October 22, 1999, as an amendment to
conducted within that particular State. information prior to expiration of the the Agricultural Marketing Act of 1946.
However, since the National program 1999 Act on September 30, 2005, and The first reports disseminated under
was implemented on April 2, 2001, have since continued to do so LMR were issued in April 2001. In
these State programs are no longer in voluntarily. As a result, incremental December 2004, the 1999 Act was
effect. Therefore, there are no costs for implementation of this reauthorized through September 30,
Federalism implications associated with proposed rule are negligible relative to 2005. The legislative authority lapsed
this rulemaking. total costs associated with the program. until October 5, 2006, when it was
Moreover, total costs estimated for this reauthorized through September 30,
Executive Order 12866 proposed rule are lower than costs 2010, with the Reauthorization Act.
This proposed rule has been estimated in the 2000 final rule During the two periods of lapsed
determined to be significant for expressed in comparable current (May mandatory reporting authority, most
purposes of Executive Order 12866 and 2007) dollar values. firms that would have been required to
therefore has been reviewed by the Total costs to reporting packers and report information under the
Office of Management and Budget importers are estimated at requirements of LMR continued to
report the same information voluntarily. increasingly opaque price discovery in result, relatively few packers engage in
As a result, AMS continued to release these markets. As stated in the 1999 Act, many, frequent negotiations and
most of the reports that would have mandatory livestock reporting provides completed transactions with a large
been released under the mandatory a means of providing information to number of producers. In contrast, even
reporting program. market participants and improving the larger livestock operations typically
The 1999 Act as amended by the price and supply reporting services of engage in negotiations with a few
Reauthorization Act directs the USDA. packers within their economically
Department of Agriculture (USDA) ‘‘to Similar to many sectors of the viable trade area and may only complete
establish a program of information economy, both the livestock production transactions with one or two packers.
regarding the marketing of cattle, swine, and meat packing industries have Smaller livestock operations may only
lambs, and products of such livestock.’’ undergone substantial consolidation engage in sales transactions a few times
This Act contains specific requirements during the past few decades. However, per year, while packers procure
that provide limited discretionary the rate and extent of the consolidation livestock to run their plants every
authority for regulatory implementation among meat packers has been greater business day of the year. The 1999 Act
of many of the law’s provisions. As a compared to livestock producers. and the Reauthorization Act were
result, many of the provisions within The four-firm concentration ratio for passed by Congress in light of these
this proposed rule represent steer and heifer slaughter increased structural and organizational conditions
straightforward implementation of the from 35.7 percent in 1980 to 81.1 present in the livestock and meat
requirements of this Act. percent in 2004.2 Over the same period, industries.
As stated in the 1999 Act, the purpose the four-firm concentration ratio for cow The proposed rule does not constitute
of the statute is to establish a program and bull slaughter increased from 9.7 economic regulation of the permissible
that— percent to 48.0 percent. Hog slaughter business practices in which meat
(1) provides information that can be concentration by the top four firms packers and importers may engage.
readily understood by producers, increased from 33.6 percent to 61.3 Affected entities are free to conduct
packers, and other market participants, percent over the same period, while their businesses in any manner
including information with respect to sheep and lamb slaughter concentration consistent with other relevant Federal,
the pricing, contracting for purchase, increased from 55.9 percent to 66.9 State, and local laws and regulations.
and supply and demand conditions for percent. Between 1986 and 2005, the The proposed rule only requires that the
livestock, livestock production, and number of bonded packers reporting to subject entities disclose information
livestock products; GIPSA declined from 691 to 312. about their livestock purchases and
(2) improves the price and supply According to the National meat sales to AMS, which will then
reporting services of the Department of Agricultural Statistics Service (NASS), process, summarize, and disseminate
Agriculture; and the number of cattle operations in the the information. The identity of persons,
(3) encourages competition in the United States declined from 1.6 million including parties to a contract, and
marketplace for livestock and livestock in 1980 to 983,000 in 2005. Over the proprietary business information will be
products. (7 U.S.C. 1635) same time period, the number of hog kept confidential in accordance with the
Increasingly, transactions between and pig operations declined from 1999 Act.
livestock producers and meat packers 667,000 to 67,000, while the number of
sheep and lamb operations declined Alternative Regulatory Approaches
occur by way of private negotiations
rather than through public trades. from 120,000 to 68,000. Thus, AMS believes that the proposed rule
Compared to prices established in consolidation occurred among livestock represents the most cost effective means
public markets, prices established in production operations, but the number of fulfilling the statutory mandate of
private transactions are difficult to of livestock operations still far exceeds 1999 Act as amended by the
observe, collect, summarize, and the number of livestock packers. Reauthorization Act. While this Act
disseminate. Data reported by USDA’s For slaughter livestock, the provides some discretionary authority
Grain Inspection, Packers and predominant marketing relationship is for operation of the program, many of
Stockyards Administration (GIPSA) characterized by comparatively small the definitions, reporting times, and
show that of total cattle purchases by livestock operations dealing with large disclosure requirements are specified in
reporting packers, the share purchased meat packing firms. In addition, markets the law itself. Since the program was
in public markets declined from 30.2 for slaughter livestock are local or first implemented in April 2001,
percent in 1977 to 12.0 percent in regional in geographic scope. The experience has proven that electronic
2004.1 For hogs, the decline was larger, distances over which it is economically reporting is the least-cost means for both
dropping from 27.5 percent in 1977 to rational to transport slaughter livestock subject entities and AMS to comply
just 1.7 percent in 2004.1 For sheep and is dictated by differences in relative with the requirements of the
prices for livestock in different Reauthorization Act. During the periods
lambs, public market purchases
geographic areas versus shipping costs. in which mandatory reporting
declined from 23.4 percent to 8.3
Shipping costs include not only costs of requirements lapsed (including October
percent of total purchases by reporting
trucking equipment, labor, fuel, 2005 through the present), entities that
packers over the same period.
Open, transparent price discovery insurance and other out-of-pocket continued to report voluntarily did so
provides all market participants with expenses, but also include additional through electronic submission of
comparable levels of market stress and weight shrink of animals information in the same manner as had
information, providing each economic hauled for greater distances and longer been required under mandatory
agent with similar information. The periods of time. In these regionalized reporting authority.
trade areas, there typically are relatively The LMR system provides two
decline in public market trading of
large numbers of livestock operations, methods for firms to transmit livestock
livestock over the years led to
but only a handful of packers for any mandatory reporting data to the system:
1 GIPSAQ, USDA. Packers and Stockyards given type of slaughter animal. As a A web interface and electronic data
Statistical Report, 2005 Reporting Year. GIPSA SR– transfer. For most firms, electronic data
07–1, February 2007. 2 Ibid. transfer provides the most efficient
mechanism for transferring required negotiated purchases. The study found dissemination of market news reporting
data. USDA provides a software utility that volatility in weekly reported cattle provides all market participants with
for users to transfer comma-delimited prices rose after implementation of comparable access to current market
ASCII files directly to the LMR system. LMR, but was unable to determine information regardless of the size or
The comma-delimited files can be whether the change resulted from the financial resources of their respective
generated electronically from livestock change in the reporting system or from operations.
purchase and meat sales records. For changes in cattle markets. The authors Livestock mandatory reporting under
smaller operations with relatively few observed that the trend toward formula this proposed rule will provide
transactions, the web interface may be pricing arrangements in cattle markets comprehensive information on slaughter
more efficient than electronic data slowed after LMR was implemented, livestock, beef, and lamb meat prices.
transfer. The web interface module is and cautiously speculated that the Using the information submitted by
available over the Internet using a web program may have played a role in packers under the provisions of the
browser, but requires more manual stabilizing the volume of negotiated 1999 Act, AMS publishes over 100
inputting of data compared to the transactions. daily, weekly, and monthly reports
electronic data transfer option. Ward provides perhaps the most covering market transactions for fed
Nonetheless, the web interface option comprehensive review and assessment cattle, swine, lamb, beef, and lamb meat.
provides smaller operations with a of research relating to LMR.4 Ward notes Based on the information available,
mechanism for submitting the required that satisfaction or dissatisfaction with AMS estimates that reports issued under
data without the need to incur fixed mandatory reporting depends on LMR cover approximately 95 percent of
costs of developing a software individuals’ expectations regarding slaughter hogs, 77 percent of the
application to prepare data for what the Reauthorization Act would slaughter cattle, 60 percent of slaughter
electronic data transfer. Historically, achieve or the problems that it would sheep, 41 percent of boxed lamb, 26
about 90 percent of plants and importers address. Ward concludes that percent of the carcass lamb, and 93
have submitted data electronically, with mandatory reporting provides more percent of boxed beef. AMS market
the remaining 10 percent of respondents information in some areas than what reports are utilized by producers and
submitting data through the web was previously available and has others in the marketing chain to
interface. increased transparency and price formulate contracts and make marketing
reporting accuracy. He suggests that decisions, and by other Government
Analysis of Benefits and Costs satisfaction with the program likely has agencies to make policy decisions, settle
The baseline for this analysis is the increased due to increased familiarity trade disputes, and in a variety of other
LMR program as it currently operates. with the data and information available functions. Despite the fundamental role
Specifically, the baseline is the LMR through mandatory reporting and played by price information in
program as directed by the 1999 Act and enhanced confidence in reported prices. underpinning fair, competitive, and
implemented by the 2000 final rule. Benefits. One of the fundamental efficient markets, quantifying the impact
Although the 2000 final rule expired conditions underlying the theory of of mandatory livestock reporting is
when the 1999 Act expired on competitive markets is that market difficult. There is a considerable
September 30, 2005, the current participants possess relevant economic literature addressing the value
voluntary participation by most packers information necessary to make the of information, but little research on the
allows the LMR program to function correct economic decisions. This economics of market reporting in and of
nearly identically to how it operated proposed rule seeks to ensure market itself.5 Research mainly has addressed
under the mandatory authority of the transparency by providing current and the accuracy and adequacy of price
1999 Act. potential participants in livestock and reporting, but no published works have
Despite the fundamental role played meat markets with timely, accurate, and been identified that monetize the
by market information for private and comprehensive information about prices benefits of mandatory reporting
public decision-making, research, paid and received for livestock and meat programs such as that contained in this
outlook, and analysis, there is products. Market transparency proposed rule.
comparatively little empirical research facilitates market efficiency by reducing Costs. This proposed rule is strictly an
on market reporting in and of itself. search costs for market participants and informational measure and does not
Likewise, there is a paucity of by reducing risk and uncertainty. impose any restrictions on the form,
quantitative research regarding the Widely available market information timing, or location of procurement and
benefits and costs of LMR specifically. reduces the time and resources that sales arrangements in which subject
Perry, et al. note that some local and market participants would otherwise packers and importers may engage. The
regional market news reports were no expend to assess current market proposed rule places no additional
longer available after the conditions. With reliable market limitations on current or future business
implementation of LMR because of the information, market participants can relationships into which affected firms
program’s confidentiality restrictions.3 make informed marketing decisions and may enter, although other local, State,
However, the authors also conclude that thus reduce exposure to risks associated and Federal laws and regulations
far more information on formula with buying or selling at prices regarding such relationships continue to
transactions became available, allowing inconsistent with the prevailing market apply. Therefore, costs of the proposed
for comparisons with negotiated norms. Unrestricted availability of rule are simply the costs associated with
transactions that had not been possible market information may also contribute system development and maintenance,
before. Formula prices for cattle were to considerations of equity and fairness data submission, and recordkeeping
found to closely mirror prices for in the marketplace. Unrestricted activities of the packers and importers
that would be required to report
3 Perry, J., J. MacDonald, K. Nelson, W. Hahn, C. 4 Ward, C.E. ‘‘An Assessment of the Livestock
information under this proposed rule,
Arnade, and G. Plato. ‘‘Did the Mandatory Mandatory Reporting Act.’’ Paper presented at the plus the costs to the Federal government
Requirement Aid the Market? Impact of the NCCC–134 Conference on Applied Commodity
Livestock Mandatory Reporting Act.’’ Economic Price Analysis, Forecasting, and Market Risk for operation of the program.
Research Service, U.S. Department of Agriculture, Management, St. Louis, Missouri, April 17–18,
LDP–M–135–01, September 2005. 2006. 5 Ward, op. cit.
Although this proposed rule is not this proposed rule. These firms will Additionally, AMS estimates the
identical to the 2000 final rule, most of need to develop an electronic interface annual cost per respondent for the
the regulatory provisions are the same to translate the information from their storage of the electronic data files
or only slightly modified from that rule. existing computerized recordkeeping submitted to AMS in compliance with
As such, costs for firms subject to the systems into the standardized format the reporting provisions of this rule to
proposed rule will be similar to costs required for automated submission of be $1,923.10 (see Paperwork Reduction
required to comply with the 2000 final the data to AMS. Firms with existing Act section for a full discussion). This
rule. Hence, the methods for developing reporting systems will need to modify estimate includes the cost of electronic
the cost estimates presented in this the electronic interface to accommodate data storage media, backup electronic
preliminary impact analysis largely changes in reporting requirements. AMS data storage media, and backup software
follow from the methods used in estimates that 15 hours of development required to maintain an estimated
developing the cost estimates contained and computer programming time per annual electronic recordkeeping and
in the final impact analysis published in plant will be required to develop or backup burden of 20 megabytes, on
the Federal Register along with the modify the interface. average, per respondent. In addition,
2000 final rule. As applicable, estimates this estimate includes the cost per
Electronic data transmission of
of employer costs for employee employee to maintain such records
information is accomplished using an
compensation are updated using recent which is estimated to average 70 hours
interface with an existing electronic
statistics from the Bureau of Labor per year at $21.33 per hour for a total
recordkeeping system. In most cases, the
Statistics. employee compensation component
For reporting packers and importers, information packers and importers are
cost of $1,493.10 per year. For this
there are essentially three phases required to report already exists in
record maintenance activity, AMS
required to comply with this proposed internal computerized recordkeeping
estimates the employer costs for
rule: (1) Development or modification of systems. Packers and importers will
employee total compensation per hour
a system for electronic reporting of data provide for the translation of the
to average $21.33, which is the average
and periodic system maintenance, information from their existing for all civilian office and administrative
updating, and compliance; (2) ongoing electronic recordkeeping system into the support occupations for the second
submission of required data; and (3) required AMS standardized format. quarter of 2006 according to data from
maintenance of records for a period of Once accomplished, the information the Bureau of Labor Statistics.
2 years following submission of data to will be electronically transmitted to
AMS. AMS estimates that most costs AMS where it will be automatically ANNUAL RECORDKEEPING COST PER
associated with this proposed rule will loaded into an AMS database. AMS
estimates that the development and
RESPONDENT
result from costs associated with
ongoing submission of required data. As computer programming to establish and
Labor hours per year ................ 70
explained below, AMS expects that maintain this interface will require an Labor cost per hour .................. × $21.33
there will be relatively low costs industry average of 15 hours per
imposed on reporting packers and respondent per year. AMS estimates the Sub-total labor cost per year $1,493.10
importers for program startup, systems employer costs for employee total Electronic storage cost* ........ + $430.00
maintenance and updating, and records compensation per hour to average
$44.82, which is the average for all Total Recordkeeping Cost $1,923.10
maintenance.
AMS estimates that approximately 65 civilian management, professional, and * includescost of hard electronic storage
packers and importers, representing related occupations for the second (estimated to average 20 Megabytes/year),
quarter of 2006 according to Bureau of backup media, backup drive, and backup
approximately 115 plants or software.
establishments, would be required to Labor Statistics. The management,
submit information under this proposed professional, related occupations In this rule, information collection
rule. However, most of these firms category includes the managers who requirements include the submission of
already have established systems for would oversee development and the required information on a daily and
reporting information to AMS because maintenance of the electronic interface weekly basis in the standard format
they were subject to the requirements of and the computer systems and provided in the following forms: (1)
the program when it was in effect from programming personnel who would Live Cattle Daily Report (Current
2001 through 2005. Moreover, most actually implement and maintain the Established Prices), (2) Live Cattle Daily
firms have continued to report data interface. With 15 hours of time, AMS Report (Committed and Delivered
voluntarily to AMS during the period estimates the total cost, on average, for Cattle), (3) Live Cattle Weekly Report,
that the Act expired on September 30, the electronic interface development (4) Cattle Premiums and Discounts
2005, to the present. These firms will and maintenance to be $672.30 per year. Weekly Report, (5) Cow/Bull Plant
need to modify their current data Delivered Bids (Dressed Basis), (6) Live
reporting systems to be compatible with ELECTRONIC SUBMISSION DEVELOP- Cow/Bull Daily Purchase Report, (7)
the requirements of the proposed rule. MENT AND ANNUAL SYSTEM MAINTE- Boxed Beef Daily Report, (8) Swine
AMS estimates that there will be an Prior Day Report, (9) Swine Daily
NANCE COST PER RESPONDENT
average of about three additional Report, (10) Swine Noncarcass Merit
packers and importers annually that Premium Weekly Report, (11) Live
Hours to develop and maintain
will reach the size thresholds for interface .................................... 15
Lamb Daily Report (Current Established
reporting under this proposed rule, but Employee compensation cost per Prices), (12) Live Lamb Weekly Report
that had not previously reported under hour ........................................... × $44.82 (13) Live Lamb Weekly Report (Formula
the requirements of the Act. Some of Purchases), (14) Lamb Premiums and
these firms will be new entrants to the Total annual cost per respondent $672.30 Discounts Weekly Report, (15) Boxed
industry and others will have increased * hours required annually to develop and
Lamb Daily Report, and (16) Lamb
their slaughter volume to the level at maintain electronic interface between existing
Carcass Report. Copies of these 16 forms
which they are required to submit data company electronic recordkeeping system and are included in Appendices at the end
under the requirements of the law and AMS required electronic submission format. of this proposed rule.
Cattle packers will utilize up to seven final rule expressed in comparable and weekly boxed lamb cuts reporting
of these forms (Appendix A) when current dollar terms. and one for daily and weekly lamb
reporting information to AMS including Swine packers will utilize up to three carcass reporting. Lamb importers will
two for daily cattle reporting, three for forms (Appendix B), two for daily utilize one of these forms when
weekly cattle reporting, and one for reporting of swine purchases and one reporting information to AMS for
daily boxed beef cuts reporting. AMS for weekly reporting of non-carcass reporting weekly imported boxed lamb
estimates the total data submission cost merit premium information. AMS cut sales. AMS estimates the total data
burden to cattle packers to be $237,734. estimates the total data submission cost submission cost burden to lamb packers
In comparison, the annual data burden to swine packers to be $153,329. and lamb importers to be $31,846. In
submission cost burden to cattle packers In comparison, the annual data comparison, the annual data submission
was estimated at $266,560 in the 2000 submission cost burden to swine cost burden to lamb packers and lamb
final rule, which took effect in April packers was estimated at $166,400 in importers was estimated at $48,390 in
the 2000 final rule. In current dollar the 2000 final rule. In current dollar
2001. According to the Bureau of Labor
terms using the CPI inflation calculator, terms using the CPI inflation calculator,
Statistics CPI inflation calculator, $1.00
the estimated data submission cost the estimated data submission cost
in 2001 has the same buying power as burden to swine packers under the 2000 burden to lamb packers and lamb
$1.17 today. More precisely, the final rule would be $195,354. Thus, the importers under the 2000 final rule
inflation factor to convert the average total data submission cost burden to would be $56,810. Thus, the total data
Consumer Price Index for 2001 to the swine packers is estimated at $42,025 submission cost burden to lamb packers
current (May 2007) value is 1.174. In less in the proposed rule compared to and lamb importers is estimated at
current dollar terms, then, the estimated the 2000 final rule expressed in $24,964 less in the proposed rule
data submission cost burden to cattle comparable current dollar terms. compared to the 2000 final rule
packers under the 2000 final rule equals Lamb packers will utilize up to six of expressed in comparable current dollar
$312,941. Thus, the total data these forms (Appendix C) when terms.
submission cost burden to cattle packers reporting information to AMS including The cost estimates for the proposed
is estimated at $75,207 less in the two for daily lamb reporting, three for rule are discussed in detail in the
proposed rule compared to the 2000 weekly lamb reporting, one for daily Paperwork Reduction Act Section.
BREAKDOWN OF ESTIMATED DATA SUBMISSION COST BURDEN
Reporting Total
Form × Responses =
days 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 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
Submissions/ Hours/ Total hours/

Form × =
year submission year
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 × Cost/hour =
year 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 × Respondents = Total cost
year
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
Total dollars/
Form × Respondents = Total cost
year
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 packers, $5,724 for lamb slaughtering cattle packers, $6,232 for swine packers,
importers required to submit plants, and $2,688 for lamb importers. $9,228 for lamb slaughtering plants, and
information under this proposed rule In comparison, total reporting costs in $2,430 for lamb importers. With the
includes initial startup and annual the 2000 final rule were estimated to be exception of lamb importers, which
maintenance costs for electronic $7,420 per plant for cattle packers, have an increase of $258, estimated total
submission of data, annual $5,308 for swine packers, $7,860 for reporting costs per plant for all
recordkeeping costs, and annual data lamb slaughtering plants, and $2,070 for respondents are lower in the proposed
submission costs. Total reporting costs lamb importers. In current dollar values, rule than in the 2000 final rule
to cattle packers are estimated to be however, estimated costs in the 2000 expressed in comparable current dollar
$7,548 per plant, $5,544 for swine final rule equal $8,711 per plant for values.
TOTAL ANNUAL COST BURDEN TO RESPONDENTS

Cost per Number of
× = Total cost *
respondent 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
Lamb:
Domestic:
Startup/Maintenance ................................................................................................. $ 672 10 $6,720
Recordkeeping .......................................................................................................... 1,923 10 19,230
Data Submission ....................................................................................................... 3,129 10 31,288
57,238
Importer:
Startup/Maintenance ................................................................................................. $ 672 6 $ 4,032
Recordkeeping .......................................................................................................... 1,923 6 11,538
Data Submission ....................................................................................................... 93 6 558
16,128

Grand total, all species ...................................................................................... $723,929
* Totals may reflect differences in numerical rounding.
In addition to these costs to packers fiscal year to the Federal government. clerical personnel, and computer
for submitting information, the The 50 staff years required to administer specialists. These employees will be
mandatory price reporting program will and produce high quality mandatory located in three AMS offices located
cost approximately $6.3 million per price reports include reporters, auditors, across the country. Salary-related costs
are estimated at $4.9 million per year. impact of a rule on small business purchases of live cattle, swine and
Other costs include approximately $0.3 entities. Alternatives, which would lambs, as well as information on
million for travel and transportation; accomplish the objectives of the rule domestic and export sales of boxed beef
and $1.1 million for miscellaneous costs without unduly burdening small entities cuts including applicable branded
such as office space, utilities, or erecting barriers that would restrict product, and sales of lamb carcasses,
communications costs, printing, their ability to compete in the boxed lamb cuts including applicable
training, office supplies, equipment marketplace, have been evaluated. branded product, and imported boxed
(including computers, software, and Regulatory action should be appropriate lamb cuts including applicable branded
licenses), and contractual services to the scale of the businesses subject to product.
necessary to maintain the system. In the the action. The collection of information These packers and importers are
2000 final rule, costs to the Federal is necessary for the proper performance required to report to AMS the details of
government for the program were of the functions of AMS concerning the all transactions involving purchases of
estimated at $5.9 million for fiscal year mandatory reporting of livestock livestock, domestic and export sales of
2001, which equals $6.9 million in information. The Act requires AMS to boxed beef cuts including applicable
current dollar value. Thus, estimated collect and publish livestock market branded product, sales of domestic
costs to the Federal government are information. The required information boxed lamb cuts including applicable
$600,000 less in the proposed rule is only available directly from those branded product, imported boxed lamb
compared to the 2000 final rule entities required to report under these cuts including applicable branded
expressed in current dollar values. proposed regulations and exists product, and lamb carcasses. Cattle and
The authority for the Act expires on nowhere else. Therefore, this proposed swine information will be reported to
September 30, 2010. Therefore, this rule does not duplicate market AMS according to the schedule directed
proposed rule would be effective for information reasonably accessible to the by this proposed rule with purchases of
approximately 4 years (2007–2010). Agency. swine reported three times each day,
Annual costs for this proposed Objectives and Legal Basis. The purchases of cattle twice each day, and
rulemaking are estimated at objective of this proposed rule is to sales of domestic and exported boxed
approximately $7.0 million per year: improve the price and supply reporting beef cuts, including applicable branded
$723,929 for respondents to submit and services of USDA in order to increase product, reported twice each day. Lamb
maintain data plus $6.3 million to the amount of information available to information will be reported to AMS
USDA for operation of the LMR participants. This is accomplished according to the schedule mandated by
program. At a real discount rate of 3 through the establishment of a program this rule with purchases of lambs
percent, the discounted present value of of information regarding the marketing reported once each day and sales of
the total cost to the private sector and of cattle, swine, lambs, and products of lamb carcasses reported once each day.
the Federal government for the life of such livestock as specifically directed Previous week sales of imported boxed
the program would be $26.9 million. by the Reauthorization Act and these lamb cuts including applicable branded
Using estimated costs from the 2000 regulations, as described in detail in the boxed lamb cuts will be reported once
final rule and assuming the same 4-year background section. weekly on the first reporting day of the
duration, the comparable discounted Estimated Number of Small week.
present value for the life of the program Businesses. AMS estimates that In any calendar year, only Federally
would be $29.7 million expressed in approximately 65 firms operating inspected cattle plants that slaughtered
current dollars. Thus, estimated total approximately 115 plants will be an average of 125,000 head of cattle a
program costs are reduced by $2.8 required to report market information year for the immediately preceding 5
million over the life cycle of the under this proposed rule. AMS calendar years are required to report.
proposed rule in comparison to the 2000 estimates that 60 of these firms Additionally, any Federally inspected
final rule at the 3 percent discount rate. represent cattle, swine, and sheep cattle plant that did not slaughter cattle
At a real discount rate of 7 percent, the slaughtering companies, with during the immediately preceding 5
discounted present value of the total approximately 5 additional firms that calendar years is required to report if
cost to the private sector and the Federal import lamb carcasses and lamb meat. the Secretary determines that the plant
government for the life of the program According to Small Business should be considered a packer required
would be $25.5 million. Using estimated Administration (SBA) definitions, a to report based on its capacity. For
costs from the 2000 final rule and meat packing firm having fewer than entities that did not slaughter cattle
assuming the same 4-year duration, the 500 employees is a small business. This during the immediately preceding 5
comparable discounted present value criterion applies to most of the firms calendar years, such as a new plant or
for the life of the program would be required to report under the proposed existing plant that resumes operations,
$28.1 million expressed in current rule, including all of the cattle and the AMS will project the plant’s annual
dollars. Estimated total program costs swine packers. Some of the lamb slaughter or production based upon the
are reduced by more than $2.6 million importers required to report under this plant’s estimate of annual slaughter
over the life cycle of the proposed rule proposed rule are brokerage operations capacity to determine which entities
in comparison to the 2000 final rule at that do not slaughter lambs. For meat meet the definition of a packer as
the 7 percent discount rate. The present and meat product merchant defined in the law and these proposed
values for the 4-year life of the program wholesalers, the SBA defines a firm regulations. This accounts for an
assume that all costs are incurred at the having fewer than 100 employees as a expected 49 out of 636 Federally
beginning of each year of the program. small business. inspected cattle plants or 7.7 percent of
In formulating this proposed rule, all Federally inspected cattle plants.

Regulatory Flexibility Act particular consideration was given to For any calendar year, any Federally
In General. This proposed rule has reducing the burden on entities while inspected swine plant that slaughtered
been reviewed under the requirements still achieving the objectives of the rule. an average of 100,000 head of swine a
of the Regulatory Flexibility Act (RFA) Under the proposed rule, thresholds are year for the immediately preceding 5
(5 U.S.C. 601 et seq.). The purpose of set that define those entities that are calendar years is required to report
the RFA is to consider the economic required to report information on information, as is any person that
slaughtered and average of at least livestock slaughter plants will be carcass and lamb meat importers
200,000 sows, boars, or any combination required to report under this proposed required to report under the proposed
thereof, per year during the immediately rule. Conversely, 2,743 or 96.1 percent rule. However, based on its knowledge
preceding 5 calendar years. of all livestock plants in the United of the industry and previous experience
Additionally, any Federally inspected States would be exempt from mandatory with livestock mandatory reporting,
swine plant or person that did not reporting under this proposed rule. AMS estimates that all of the lamb
slaughter swine during the immediately According to U.S. Census Bureau importers would be classified as small
preceding 5 calendar years if the Statistics of U.S. Businesses, there were businesses under the SBA size standard
Secretary determines that the plant 1,718 animal (except poultry) of fewer than 100 employees for meat
should be considered a packer based on slaughtering 6 firms with payroll in the and meat product merchant
the capacity of the processing plant is United States in 2004. These firms wholesalers.7 In combination with the
required to report. This accounts for an operated 1,816 establishments. Of these animal slaughtering firms, AMS
expected 52 out of 614 Federally concerns, there were 46 firms with 500 estimates that a total of 19 firms out of
inspected swine plants or 8.5 percent of employees or more, accounting for 136 65 firms required to report under this
all Federally inspected swine plants. establishments. Conversely, there were proposed rule meet the SBA definition
In any calendar year, a Federally 1,672 firms with fewer than 500 for small businesses. In percentage
inspected lamb plant that slaughtered employees, accounting for 1,680 terms, about 29 percent of the firms
the equivalent of an average of 75,000 establishments. required to report under this proposed
head of lambs a year for the The companies required to report rule would be classified as small
immediately preceding 5 calendar years under the Act and this proposed rule businesses. Although classified as small
is considered a packer and required to represent the largest slaughtering businesses, these firms are the largest
report. A packer includes a Federally operations in each respective species. firms in their respective specialties.
inspected processing plant that This proposed rule will require Projected Reporting. This proposed
purchases and processes an average of mandatory reporting by an estimated 60 rule requires the reporting of specific
75,000 lamb carcasses annually rather livestock slaughtering firms market information regarding the buying
than slaughter live lambs. Additionally, representing the largest cattle, swine, and selling of livestock and livestock
any Federally inspected processing and sheep slaughtering companies. This products. The information will be
plant that did not slaughter an average fact, coupled with the Statistics of U.S. reported to AMS by electronic means.
of 75,000 lambs during the immediately Businesses data leads to the conclusion Electronic reporting involves the
preceding 5 calendar years if the that 46 of the livestock slaughtering transfer of data from a packer’s or
Secretary determines that the plant firms required to report under this importer’s electronic recordkeeping
should be considered a packer based on proposed rule have 500 employees or system to a centrally located AMS
the capacity of the processing plant is more. Therefore, AMS estimates that 14 electronic database. The packer or
required to report. This accounts for an of the 60 livestock slaughtering firms importer is required to organize the
expected 10 lamb plants and 6 required to report under this proposed information in an AMS-approved format
importers. The expected total of 10 out rule are small businesses as defined by before electronically transmitting the
of 484 lamb plants amounts to 2.1 SBA. In percentage terms, about 23 information to AMS (Appendices A–C).
percent of all Federally inspected lamb percent of the animal slaughtering Once the required information has
plants. companies required to report under this been entered into the AMS database, it
For any calendar year, lamb importers proposed rule are small businesses. In will be aggregated and processed into
that imported an average of 2,500 metric terms of the industry, this rule requires various market reports which will be
tons of lamb meat products per year reporting by only 0.8 percent of all released according to the daily and
during the immediately preceding 5 small businesses in the animal (except weekly time schedule set forth in these
calendar years are required to report. poultry) slaughtering industry. regulations.
Additionally, any lamb importer that Moreover, the firms required to report As an alternative, based on prior
did not import an average of 2,500 are the largest of the firms in the experience, AMS found that some of the
metric tons of lamb meat products industry classified as small businesses. smaller entities covered under
during the immediately preceding 5 U.S. Census Bureau statistics are not mandatory reporting would benefit from
calendar years if the Secretary sufficiently disaggregated to enable a web-based system for data submission.
determines that the person should be inferences to be drawn about the small Accordingly, AMS developed a system
considered an importer based on the business classification of the lamb that will be available to firms that find
volume of lamb imports is required to it to be more cost effective than
report. Some lamb plants may also be 6 North American Industry Classification System
developing an electronic interface to
importers. (NAICS) code 311611. U.S. Census Bureau 2004
Nonemployer Statistics show that there were 1,921 submit data to AMS.
An estimated 92.3 percent of all nonemployer establishments in the animal AMS estimates the total annual
Federally inspected cattle plants, 91.5 slaughtering and processing industry (NAICS code burden on each cattle packer and boxed
percent of all Federally inspected swine 31161), but nonemployer statistics at the more beef processing firm to average $7,548,
plants, and 97.9 percent of all Federally disaggregated NAICS six-digit level are not
reported. A nonemployer is a business without paid including $4,953 for annual costs
inspected lamb plants in the U.S. are employees that is subject to federal income tax. associated with electronically
exempted by this proposed rule from Most nonemployers are self-employed individuals submitting data, $672 for startup/annual
reporting information. For all livestock operating very small unincorporated businesses. maintenance costs, and $1,923 for the
species, there were 793 slaughter plants The NASS data on the number of livestock
storage and maintenance of electronic
slaughter plants includes businesses with payroll as

under Federal inspection and 2,060 well as nonemployer firms, but does not report the files that were submitted to AMS. This
slaughter plants under other forms of size of firms nor the number of employees. figure was calculated by estimating the
inspection (such as State inspection) on Therefore, the NASS data provides the most time required to complete the necessary
January 1, 2007. Plants that are not accurate measure of the number of businesses
potentially subject to the proposed rule, while the data submission and factoring by the
under Federal inspection are smaller Census Bureau data provide a means for estimating
operations that would be considered the number of small businesses potentially subject 7 North American Industry Classification System
small businesses. An estimated 110 to the proposed rule. code 424470.
number of times reporting is required years. Packers and importers are not collect, review, process, aggregate and
per day for an estimated total of 260 required to report any other new or publish reports while complying with
reporting days in a year (see Paperwork additional information that they do not the specific time-frames set forth in the
Reduction Act section for a complete, generally have available or maintain. Act.
detailed discussion). Because data Further, they are not required to keep To respond to concerns of smaller
submission costs are directly associated any information that would prove operations, AMS developed a web-based
with the volume of data submissions, unduly burdensome to maintain. The input forms for submitting data online.
total annual costs for smaller operations paperwork burden that is imposed on Based on prior experience, AMS found
likely will be less than the average, the packers and importers is further that some of the smaller entities covered
while costs for larger operations likely discussed in the section entitled under mandatory price reporting would
will exceed the average. Paperwork Reduction Act that follows. benefit from such a web-based
AMS estimates the total annual In addition, AMS has not identified submission system. Accordingly, AMS
burden on each swine packing firm to any relevant Federal rules that are developed such a system for program
be $5,544, including $2,949 for annual currently in effect that duplicate, implementation.
costs associated with electronically overlap, or conflict with this proposed Additionally, to further assist small
submitting data, $672 for startup/annual rule. AMS will continue to report businesses, AMS may provide for an
maintenance costs, and $1,923 for the market information collected through its exception to electronic reporting in
storage and maintenance of electronic voluntary market reporting program emergencies, such as power failures or
files that were submitted to AMS. This provided the collection of such loss of Internet accessibility, or in cases
estimate does not include costs information does not duplicate the when an alternative is agreeable to AMS
associated with reporting sales of pork information collection requirements of and the reporting entity.
products, which are not required to be this proposed rule. Other than these alternatives, there
reported. As with cattle packers, annual Professional skills required for are no other practical and feasible
costs for smaller swine packing recordkeeping under this proposed rule alternatives to the methods of data
operations likely will be less than the are not different than those already transmission that are less burdensome
average, while costs for larger employed by the reporting entities. to small businesses. AMS will work
operations likely will exceed the Reporting will be accomplished using actively with those small businesses
average. computers or similar electronic means. required to report to minimize the
AMS estimates the total annual AMS believes the skills needed to burden on them to the maximum extent
burden on each lamb packer to be maintain such systems are already in practicable.
$5,724 including $3,129 for annual costs place in those small businesses affected To assist the industry in achieving
associated with electronically by this proposed rule. compliance with this rule, during the
submitting data, $672 for startup/annual Alternatives. This proposed rule, as period between publication of this
maintenance costs, and $1,923 for the directed by the Reauthorization Act, proposed rule and its effective date,
storage and maintenance of electronic requires cattle and swine packing plants AMS will provide assistance and
files that were submitted to AMS. AMS of a certain size to report information to training to covered entities as needed to
estimates the total annual burden on the Secretary at prescribed times ensure that they have been given the
each importer of lamb to be $2,688, throughout the day and week. Further, technical information necessary to
including $93 for annual costs lamb slaughter and processing plants comply with the electronic data
associated with electronically and lamb importers of a certain size are transmission requirements.
submitting data, $672 for startup/annual required by these proposed regulations
maintenance costs, and $1,923 for the to report information to the Secretary at Paperwork Reduction Act.
storage and maintenance of electronic prescribed times throughout the day and In accordance with OMB regulation (5
files that were submitted to AMS. week. The Act and these proposed CFR Part 1320) that implements the
Projected Recordkeeping. Each packer regulations exempt the vast majority of Paperwork Reduction Act (44 U.S.C.
and importer required to report small businesses by the establishment of 3501–3520) (PRA), the information
information to the Secretary must slaughter, processing, and import collection requirements associated with
maintain such records as are necessary capacity thresholds. this program have been previously
to verify the accuracy of the information AMS recognizes that most economic approved by OMB and assigned OMB
provided to AMS. This includes impact of this proposed rule on those control number 0581–0186. A revised
information regarding price, class, head small entities required to report information collection package has been
count, weight, quality grade, yield involves the manner in which submitted to OMB for approval of a
grade, and other factors necessary to information must be reported to the 2,862 hour decrease in total burden
adequately describe each transaction. Secretary. However, in developing this hours. In accordance with 5 CFR Part
These records are already kept by the proposed rule, AMS considered other 1320, we have included below a
industry. Reporting packers and means by which the objectives of this description of the reporting and
importers are required by these rule could be accomplished, including recordkeeping requirements and an
regulations to maintain and to make reporting the required information by estimate of the annual burden on
available the original contracts, telephone, facsimile and regular mail. packers that would be required to report
agreements, receipts, and other records AMS believes these alternatives are not information under this proposed rule.
associated with any transaction relating capable of meeting the program Title: Livestock Mandatory Reporting
to the purchase, sale, pricing, objectives, especially timely reporting. Act of 1999.
transportation, delivery, weighing, The Reauthorization Act prescribes OMB Number: 0581–0186.
slaughter, or carcass characteristics of specific times that reporting entities Expiration Date: December 31, 2007.
all livestock. Reporting packers and must report to AMS and similarly Type of Request: Revision of currently
importers are also required to maintain prescribes specific times for publication approved information collection.
copies of the information provided to of reports by AMS. AMS believes Abstract: The information collection
AMS. All of the above-mentioned electronic submission to be the only and recordkeeping requirements in this
paperwork must be kept for at least 2 method capable of allowing AMS to regulation are essential to operating a
mandatory program of livestock and cost of electronic data storage media, information to AMS, including one for
livestock products reporting. Based on backup electronic data storage media, daily lamb reporting, three for weekly
the information available, AMS and backup software required to lamb reporting, one for daily and
estimates that there are 48 beef packer maintain an estimated annual electronic weekly boxed lamb cuts reporting, and
plants, 52 pork packer plants, 12 lamb recordkeeping and backup burden of 20 one for daily lamb carcass reporting.
packer plants and 6 lamb importers that megabytes, on average, per respondent. Lamb importers will utilize one of these
are required to report market In addition, this estimate includes the forms when reporting information to
information under this rule (1 lamb cost per employee to maintain such AMS for reporting weekly imported
entity is both a packer and an importer). records, which is estimated to average boxed lamb cut sales.
These companies have similar 70 hours per year at $21.33 per hour for These information collection
recordkeeping systems and business a total salary component cost of requirements have been designed to
operation practices and conduct their $1,493.10 per year. minimize disruption to the normal
operations in a similar manner. AMS business practices of the affected
believes that all of the information ANNUAL RECORDKEEPING COST PER entities. Each of these forms requires the
required under this rule can be collected RESPONDENT minimal amount of information
from existing materials and systems. In necessary to properly describe each
addition, most of these firms already Labor hours per year ................ 70 reportable transaction, as required
have established systems for reporting Labor cost per hour .................. × $21.33 under this proposed rule. The number
information to AMS because they were of forms is a result of an attempt to
Sub-total labor cost per year .... $1,493.10
subject to the requirements of the Electronic storage cost * ........... + $430.00 reduce the complexity of each form.
program when it was in effect from Live Cattle Daily Report (Current
April 2, 2001, through September 30, Total Recordkeeping Cost $1,923.10 Established Prices): Form LS–113
2005. Moreover, most firms have
* Includes cost of hard electronic storage Estimate of Burden: Public reporting
continued to report data voluntarily to (estimated to average 20 Mb/year), backup
AMS. These firms will have minimal tape media, backup tape drive, and backup burden for collection of information is
startup costs, requiring only minor software. estimated to be .17 hours per
modifications of their current data In this rule, information collection electronically submitted response.
reporting systems to be compatible with requirements include the submission of Respondents: Packer processing
the requirements of the proposed rule. the required information on a daily and plants required to report information on
The PRA also requires AMS to measure weekly basis in the standard format live cattle purchases to the Secretary.
the recordkeeping burden. Under this provided in the following forms: (1) Estimated Number of Respondents: 34
proposed rule, each packer and importer Live Cattle Daily Report (Current plants.
required to report must maintain and Established Prices), (2) Live Cattle Daily Estimated Number of Responses per
make available upon request for 2 years Report (Committed and Delivered Respondent: 520 (2 per day for 260
such records as are necessary to verify Cattle), (3) Live Cattle Weekly Report, days).
the accuracy of the information required (4) Cattle Premiums and Discounts Estimated Total Annual Burden on
to be reported. These records include Weekly Report, (5) Cow/Bull Plant Respondents: 3,006 hours.
original contracts, agreements, receipts, Delivered Bids (Dressed Basis), (6) Live Total Cost: $64,118.
and other records associated with any Cow/Bull Daily Purchase Report, (7) Live Cattle Daily Report (Committed
transaction relating to the purchase, Boxed Beef Daily Report, (8) Swine and Delivered Cattle): Form LS–114
sale, pricing, transportation, delivery, Prior Day Report, (9) Swine Daily
weighing, slaughter, or carcass Report, (10) Swine Noncarcass Merit Estimate of Burden: Public reporting
characteristics of all livestock. Under Premium Weekly Report, (11) Live burden for collection of information is
this proposed rule, the electronic data Lamb Daily Report (Current Established estimated to be .17 hours per
files which the packers are required to Prices), (12) Live Lamb Weekly Report, electronically submitted response.
utilize when submitting information to (13) Live Lamb Weekly Report (Formula Respondents: Packer processing
AMS will have to be maintained as Purchases), (14) Lamb Premiums and plants required to report information on
these files provide the best record of Discounts Weekly Report, (15) Boxed live cattle purchases to the Secretary.
compliance. The recordkeeping burden Lamb Daily Report, and (16) Lamb Estimated Number of Respondents: 34
includes the amount of time needed to Carcass Report. Copies of these 16 forms plants.
store and maintain records. AMS are included in Appendices at the end Estimated Number of Responses per
estimates that, since records of original of this rule. Cattle packers will utilize Respondent: 520 (2 per day for 260
contracts, agreements, receipts, and up to seven of these forms (not all cattle days).
other records associated with any packers must submit all cattle forms) Estimated Total Annual Burden on
transaction relating to the purchase, (Appendix A) when reporting Respondents: 3,006 hours.
sale, pricing, transportation, delivery, information to AMS, including four for Total Cost: $64,118.
weighing, slaughter, or carcass daily cattle reporting, two for weekly
Live Cattle Weekly Report: Form LS–
characteristics of all livestock are stored cattle reporting, and one for daily boxed
115
and maintained as a matter of normal beef cuts reporting. Swine packers will
business practice by these companies utilize up to three forms (not all swine Estimate of Burden: Public reporting
for a period in excess of 2 years, packers must submit all swine forms) burden for collection of information is
additional annual costs will be nominal. (Appendix B), two for daily reporting of estimated to be .25 hours per
AMS estimates the annual cost per swine purchases and one for weekly electronically submitted response.
respondent for the storage of the reporting of non-carcass merit premium Respondents: Packer processing
electronic data files which were information. Lamb packers will utilize plants required to report information on
submitted to AMS in compliance with up to six of these forms (not all lamb live cattle purchases to the Secretary.
the reporting provisions of this rule to packers must submit all lamb forms) Estimated Number of Respondents: 34
be $1,923.10. This estimate includes the (Appendix C) when reporting plants.
Estimated Number of Responses per domestic and export boxed beef cut Respondents: Packer processing
Respondent: 52 (1 per week for 52 sales to the Secretary. plants required to report information on
weeks). Estimated Number of Respondents: 48 live lamb purchases to the Secretary.
Estimated Total Annual Burden on plants. Estimated Number of Respondents: 6
Respondents: 442 hours. Estimated Number of Responses per plants.
Total Cost: $9,428. Respondent: 520 (2 per day for 260 Estimated Number of Responses per
days). Respondent: 260 (1 per day for 260
Cattle Premiums and Discounts Weekly
Estimated Total Annual Burden on days).
Report: Form LS–117
Respondents: 3,120 hours. Estimated Total Annual Burden on
Estimate of Burden: Public reporting Total Cost: $66,550. Respondents: 530 hours.
burden for collection of information is Total Cost: $11,305.
estimated to be .08 hours per Swine Prior Day Report: Form LS–118
electronically submitted response. Estimate of Burden: Public reporting Live Lamb Weekly Report: Form LS–123
Respondents: Packer processing burden for collection of information is Estimate of Burden: Public reporting
plants required to report information on estimated to be .25 hours per burden for collection of information is
live cattle purchases to the Secretary. electronically submitted response. estimated to be .25 hours per
Estimated Number of Respondents: 34 Respondents: Packer processing electronically submitted response.
plants. plants required to report information on Respondents: Packer processing
Estimated Number of Responses per live swine purchases to the Secretary. plants required to report information on
Respondent: 52 (1 per week for 52 Estimated Number of Respondents: 52 live lamb purchases to the Secretary.
weeks). plants. Estimated Number of Respondents: 5
Estimated Total Annual Burden on Estimated Number of Responses per plants.
Respondents: 141 hours. Respondent: 260 (1 per day for 260 Estimated Number of Responses per
Total Cost: $3,008. days). Respondent: 52 (1 per week for 52
Estimated Total Annual Burden on weeks).
Cow/Bull Plant Delivered Bids (Dressed
Respondents: 3,380 hours. Estimated Total Annual Burden on
Basis): Form LS–131
Total Cost: $72,095. Respondents: 65 hours.
Estimate of Burden: Public reporting Total Cost: $1,386.
burden for collection of information is Swine Daily Report: Form LS–119
estimated to be .08 hours per Estimate of Burden: Public reporting Live Lamb Weekly Report (Formula
electronically submitted response. burden for collection of information is Purchases): Form LS–124
Respondents: Packer processing estimated to be .17 hours per Estimate of Burden: Public reporting
plants required to report information on electronically submitted response. burden for collection of information is
bid prices for cows and bulls to the Respondents: Packer processing estimated to be .25 hours per
Secretary. plants required to report information on electronically submitted response.
Estimated Number of Respondents: 22 live swine purchases to the Secretary. Respondents: Packer processing
plants. Estimated Number of Respondents: 40 plants required to report information on
Estimated Number of Responses per plants. live lamb purchases to the Secretary.
Respondent: 260 (1 per day for 260 Estimated Number of Responses per Estimated Number of Respondents: 5
days). Respondent: 520 (2 per day for 260 plants.
Estimated Total Annual Burden on days). Estimated Number of Responses per
Respondents: 458 hours. Estimated Total Annual Burden on Respondent: 52 (1 per week for 52
Total Cost: $9,769. Respondents: 3,536 hours. weeks).
Total Cost: $75,423. Estimated Total Annual Burden on
Live Cow/Bull Daily Purchase Report:
Respondents: 65 hours.
Form LS–132 Swine Noncarcass Merit Premium
Total Cost: $1,386.
Estimate of Burden: Public reporting Weekly Report: Form LS–120
burden for collection of information is Estimate of Burden: Public reporting Lamb Premiums and Discounts Weekly
estimated to be .17 hours per burden for collection of information is Report: Form LS–125
electronically submitted response. estimated to be .25 hours per Estimate of Burden: Public reporting
Respondents: Packer processing electronically submitted response. burden for collection of information is
plants required to report information on Respondents: Packer processing estimated to be .08 hours per
cow and bull purchases to the Secretary. plants required to report information on electronically submitted response.
Estimated Number of Respondents: 22 live swine purchases to the Secretary. Respondents: Packer processing
plants. Estimated Number of Respondents: 21 plants required to report information on
Estimated Number of Responses per plants. live lamb purchases to the Secretary.
Respondent: 260 (1 per day for 260 Estimated Number of Responses per Estimated Number of Respondents: 6
days). Respondent: 52 (1 per week for 52 plants.
Estimated Total Annual Burden on weeks). Estimated Number of Responses per
Respondents: 972 hours. Estimated Total Annual Burden on Respondent: 52 (1 per week for 52
Total Cost: $20,733. Respondents: 273 hours. weeks).
Total Cost: $5,823. Estimated Total Annual Burden on
Boxed Beef Daily Report: Form LS–126

Respondents: 25 hours.
Estimate of Burden: Public reporting Live Lamb Daily Report (Current
Total Cost: $533.
burden for collection of information is Established Prices): Form LS–121
estimated to be .125 hours per Estimate of Burden: Public reporting Boxed Lamb Report: Form LS–128
electronically submitted response. burden for collection of information is Estimate of Burden: Public reporting
Respondents: Packer processing estimated to be .34 hours per burden for collection of information is
plants required to report information on electronically submitted response. estimated to be .167 hours per
electronically submitted response for days) for domestic packing plants; 52 (1 estimated to be .167 hours per
domestic packing plants and .084 hours per week for 52 weeks) for importers. electronically submitted response.
per electronically submitted response Estimated Total Annual Burden on Respondents: Packer processing
for importers. Respondents: 434 hours for domestic plants required to report information on
Respondents: Packer processing packing plants and 26 hours for lamb carcass sales to the Secretary.
plants and importers required to report importers. Estimated Number of Respondents: 8
information on boxed lamb cut sales to Total Cost: $9,257 for domestic entities.
the Secretary. packing plants and $555 for importers Estimated Number of Responses per
Estimated Number of Respondents: 16 for a total of $9,812. Respondent: 260 (1 per day for 260
entities (including 1 entity that both days).
processes and imports). Lamb Carcass Report: Form LS–129 Estimated Total Annual Burden on
Estimated Number of Responses per Estimate of Burden: Public reporting Respondents: 347 hours.
Respondent: 260 (1 per day for 260 burden for collection of information is Total Cost: $7,402.
BREAKDOWN OF ESTIMATED DATA SUBMISSION COST BURDEN

Reporting Total
Form × Responses =
days 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/submis- Total hours/

Form × =
year sion 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
Total hours/ Total dollars/

Form × Cost/hour =
year 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 × Respondents = Total Cost
year
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 associated with electronically submitted maintenance costs of $32,270 ($672.30
Respondents by Species: responses (11,145 annual hours @ per 48 respondents), and $92,309
Live Cattle and Boxed Beef: $362,302 $21.33 per hour), electronic submission ($1,923.10 per 48 respondents) for the
including $237,723 for annual costs development and annual system
storage and maintenance of electronic 07–01, 1400 Independence Ave. SW., Subpart D—Lamb Reporting
files that were submitted to AMS. Room 2619–S, Washington, DC 20250– 59.300 Definitions.
Live Swine: $288,302 including 0252, or by facsimile to (202)–690–3732. 59.301 Mandatory daily reporting for lambs.
$153,341 for annual costs associated All comments received will be posted to 59.302 Mandatory weekly reporting for
with electronically submitted responses Web site at: http://www.regulations.gov. lambs.
(7,189 annual hours @ $21.33 per hour), Comments that specifically pertain to 59.303 Mandatory reporting of lamb
electronic submission development and carcasses and boxed lamb.
the information collection and
annual system maintenance costs of recordkeeping requirements of this Subpart E—OMB Control Number
$34,960 ($672.30 per 52 respondents), action should also be sent to the Desk 59.400 OMB control number assigned
and $100,001 ($1,923.10 per 52 Officer for Agriculture, Office of pursuant to the Paperwork Reduction
respondents) for the storage and Information and Regulatory Affairs, Act.
maintenance of electronic files that were Office of Management and Budget, New Authority: 7 U.S.C. 1635–1636h
submitted to AMS. Executive Office Building, 725 17th
Live Lambs, Boxed Lamb, and Lamb Street, NW., Room 725, Washington, DC Subpart A—General Provisions
Carcasses: $83,620 including $57,224 20503, and should reference the date
for packers ($31,270 for annual costs and page number of this issue of the § 59.10 General administrative provisions.
associated with electronically submitted Federal Register. All responses to this (a) Reporting by Packers and
responses (1,466 annual hours @ $21.33 action will be summarized and included Importers. A packer or importer shall
per hour), electronic submission in the request for OMB approval. All report all information required under
development and annual system comments will become a matter of this Part on an individual lot basis.
maintenance costs of $6,723 ($672.30 public record. (b) Reporting Schedule. Whenever a
per 10 respondents), and $19,231 A 30-day comment period is provided packer or importer is required to report
($1,923.10 per 10 respondents) for the for interested persons to comment on information on transactions of livestock
storage and maintenance of electronic the regulatory provisions of this and livestock products under this Part
files that were submitted to AMS) and by a set time, all covered transactions
proposed rule. The 30-day period is
$16,128 for importers ($555 for annual up to within one half hour of the
deemed appropriate in order to provide
costs associated with electronically reporting deadline shall be reported.
a sufficient amount of time to comment
submitted responses (26 annual hours @ Transactions completed during the one
while resuming the program’s operation
$21.33 per hour), electronic submission half hour prior to the previous reporting
under the Act as soon as possible. The
development and annual system time, but not reported in the previous
comment period for the information
maintenance costs of $4,034 ($672.30 report, shall be reported at the next
collection and recordkeeping
per 6 respondents), and $11,539 scheduled reporting time.
requirements contained in this proposed
($1,923.10 per 6 respondents) for the (c) Regional Reporting and
rule is 60 days.
storage and maintenance of electronic Aggregation. The Secretary shall make
files that were submitted to AMS). List of Subjects in 7 CFR Part 59 information obtained under this Part
AMS is committed to complying with available to the public only in a manner
the E-Government Act to promote the Cattle, Hogs, Sheep, Livestock, Lamb.
that:
use of the Internet and other For the reasons set forth in the (1) Ensures that the information is
information technologies to provide preamble, it is proposed that Title 7, published on a national and a regional
increased opportunities for citizen Chapter I of the Code of Federal or statewide basis as the Secretary
access to Government information and Regulations be amended as follows: determines to be appropriate;
services and for other purposes. 1. Part 59 is revised to read as follows: (2) Ensures that the identity of a
AMS is inviting comments from all reporting person or the entity which
interested parties concerning the PART 59—LIVESTOCK MANDATORY they represent is not disclosed; and
information collection and REPORTING (3) Market information reported to the
recordkeeping requirements contained Subpart A—General Provisions Secretary by packers and importers shall
in this proposed rule. Comments are be aggregated in such a manner that the
Sec.
specifically invited on: (1) The accuracy market reports issued will not disclose
59.10 General administrative provisions.
of the Agency’s burden estimate of the 59.20 Recordkeeping. the identity of persons, packers and
proposed collection of information 59.30 Definitions. importers, including parties to a
including the validity of the contract and packer’s and importer’s
methodology and the assumptions used; Subpart B—Cattle Reporting
proprietary information.
(2) ways to minimize the burden of the 59.100 Definitions. (d) Adjustments. Prior to the
collection of information on those who 59.101 Mandatory daily reporting for steers publication of any information required
would be required to respond, including and heifers. under this Part, the Secretary may make
through the use of appropriate 59.102 Mandatory daily reporting for cows
and bulls.
reasonable adjustments in information
electronic collection methods; (3) 59.103 Mandatory weekly reporting for reported by packers and importers to
whether the proposed collection of steers and heifers. reflect price aberrations or other
information was sufficient or necessary 59.104 Mandatory reporting of boxed beef unusual or unique occurrences that the
for the proper performance of the sales. Secretary determines would distort the
functions of the agency as mandated by published information to the detriment
Subpart C—Swine Reporting
the Act; and (4) ways to enhance the of producers, packers, or other market
quality, utility, and clarity of the 59.200 Definitions. participants.

information to be collected. Comments 59.201 General reporting provisions. (e) Reporting of Activities on
59.202 Mandatory daily reporting for
can be submitted on the Internet at: barrows and gilts.
Weekends and Holidays. Livestock and
http://www.regulations.gov. Written 59.203 Mandatory daily reporting for sows livestock products committed to a
comments can be sent to Warren P. and boars. packer, or importer, or purchased, sold,
Preston, Chief, Livestock and Grain 59.204 Mandatory weekly reporting for or slaughtered by a packer or importer
Market News Branch, Docket No. LS– swine. on a weekend day or holiday shall be
reported to the Secretary in accordance the boxed beef items’ cutting and at: http://www.ams.usda.gov/lsg/stand/
with the provisions of this Part and trimming specifications. st-pubs.htm.
reported by the Secretary on the (3) Lamb packers and importers must Livestock. The term ‘livestock’ means
immediately following reporting day. A report all sales of boxed lamb items by cattle, swine, and lambs.
packer shall not be required to report the applicable Institutional Meat Lot. (1) When used in reference to
such actions more than once on the Purchase Specifications (IMPS) item livestock, the term ‘lot’ means a group
immediately following reporting day. number or the boxed lamb items’ cutting of one or more livestock that is
(f) Reporting Methods. Whenever and trimming specifications. identified for the purpose of a single
information is required to be reported transaction between a buyer and a
under this Part, it shall be reported by § 59.30 Definitions. seller;
electronic means and shall adhere to a The following definitions apply to (2) When used in reference to lamb
standardized format established by the this part. carcasses, the term ‘lot’ means a group
Secretary to achieve the objectives of Act. The term ‘‘Act’’ means Subtitle B of one or more lamb carcasses sharing
this Part, except in emergencies or in of the Agricultural Marketing Act of a similar weight range category and
cases when an alternative method is 1946, as amended; 7 U.S.C. 1635–1636h. comprising a single transaction between
agreeable to the entity required to report Base price. The term ‘base price’ a buyer and seller; or
and AMS. means the price paid for livestock, (3) When used in reference to boxed
delivered at the packing plant, before beef and lamb, the term ‘lot’ means a
§ 59.20 Recordkeeping. application of any premiums or group of one or more boxes of beef or
(a) In General. Each packer or discounts, expressed in dollars per lamb items sharing cutting and
importer required to report information hundred pounds of hot carcass weight. trimming specifications and comprising
to the Secretary under the Act and this Basis level. The term ‘basis level’ a single transaction between a buyer and
Part shall maintain for 2 years and make means the agreed on adjustment to a seller.
available to the Secretary the following Marketing. The term ‘marketing’
future price to establish the final price
information on request: means the sale or other disposition of
paid for livestock.
(1) The original contracts, agreements, livestock, livestock products, or meat or
Current slaughter week. The term
receipts, and other records associated meat food products in commerce.
‘current slaughter week’ means the Negotiated purchase. The term
with any transaction relating to the period beginning Monday, and ending
purchase, sale, pricing, transportation, ‘negotiated purchase’ means a cash or
Sunday, of the week in which a spot market purchase by a packer of
delivery, weighing, slaughter, or carcass reporting day occurs.
characteristics of all livestock or livestock from a producer under which
Discount. The term ‘discount’ means the base price for the livestock is
livestock products; and the adjustment, expressed in dollars per
(2) Such records or other information determined by seller-buyer interaction.
one hundred pounds, subtracted from The livestock are scheduled for delivery
as is necessary or appropriate to verify the base price due to weight, quality
the accuracy of the information required to the packer not more than 14 days
characteristics, yield characteristics, after the date on which the livestock are
to be reported under the Act and this livestock class, dark cutting, breed,
Part. committed to the packer.
dressing percentage, or other Negotiated grid purchase. The term
(b) Purchases of Cattle and Swine and
characteristic. ‘negotiated grid purchase’ in reference
Sales of Boxed Beef Cuts. A record of a
Exported. The term ‘exported’ means to cattle means the negotiation of a base
purchase of a lot of cattle or swine, or
livestock or livestock products that are price determined by seller-buyer
a sale of a unit of boxed beef cuts, by
physically shipped to locations outside interaction from which premiums are
a packer shall evidence whether the
of the 50 States. added and discounts are subtracted. The
purchase or sale occurred:
(1) Before 10 a.m. central time; F.O.B. The term ‘F.O.B.’ means free on livestock are scheduled for delivery to
(2) Between 10 a.m. and 2 p.m. central board, regardless of the mode of the packer not more than 14 days after
time; or transportation, at the point of direct the date on which the livestock are
(3) After 2 p.m. central time. shipment by the seller to the buyer (e.g., committed to the packer.
(c) Purchases of Lambs. A record of a F.O.B. Plant, F.O.B. Feedlot). Negotiated sale. The term ‘negotiated
purchase of a lot of lambs by a packer Imported. The term ‘imported’ means sale’ means a cash or spot market sale
shall evidence whether the purchase livestock that are raised to slaughter by a producer of livestock to a packer
occurred: weight outside of the 50 States or under which the base price for the
(1) Before 2 p.m. central time; or livestock products produced outside of livestock is determined by seller-buyer
(2) After 2 p.m. central time. the 50 States. interaction. The livestock are scheduled
(d) Sales of Lamb Carcasses and Sales Institutional Meat Purchase for delivery to the packer not later than
of Boxed Lamb Cuts. A record of a sale Specifications. Specifications describing 14 days after the date on which the
by a packer of lamb carcasses and cuts, various meat cuts, meat products, and livestock are committed to the packer.
shall evidence time and date the sale meat food products derived from all When used in reference to sales of
occurred: livestock species, commonly boxed beef or lamb cuts or lamb
(1) Before 2 p.m. central time; or abbreviated ‘‘IMPS’’, and intended for carcasses the term ‘negotiated sale’
(2) After 2 p.m. central time. use by any meat procuring activity. means a sale by a packer selling boxed
A record of sale by an importer of Copies of the IMPS may be obtained beef or lamb cuts or lamb carcasses to
lamb cuts shall evidence the date the from the U.S. Department of a buyer of boxed beef or lamb cuts or
sale occurred. Agriculture, Agricultural Marketing lamb carcasses under which the price
(e) Reporting Sales of Boxed Beef Cuts Service, Livestock and Seed Program for the boxed beef or lamb cuts or lamb
and Sales of Boxed Lamb Cuts. (1) Beef located at Room 2603 South Building, carcasses is determined by seller-buyer
packers must report all sales of boxed 1400 Independence Ave, SW., interaction.
beef items by the applicable Washington, DC 20250. Phone (202) Origin. The term ‘origin’ means the
Institutional Meat Purchase 720–4486 or Fax (202) 720–1112. Copies State where the livestock were fed to
Specifications (IMPS) item number or may also be obtained over the Internet slaughter weight.
Percent lean. The term ‘percent lean’ ground beef, beef trimmings, and base price is established by reference to
means the value equal to the average boneless processing beef. prices quoted on the Chicago Mercantile
percentage of the carcass weight Branded. The term ‘branded’ means Exchange, or other comparable publicly
comprised of lean meat. boxed beef cuts produced and marketed available prices.
Person. The term ‘person’ means any under a corporate trademark (for (2) When used in reference to boxed
individual, group of individuals, example, products that are marketed on beef, the term ‘forward contract’ means
partnership, corporation, association, or their quality, yield, or breed an agreement for the sale of boxed beef,
other entity. characteristics), or boxed beef cuts executed in advance of manufacture,
Premium. The term ‘premium’ means produced and marketed under one of under which the base price is
the adjustment, expressed in dollars per USDA’s Meat Grading and Certification established by reference to publicly
one hundred pounds, added to the base Branch, Certified Beef programs. available quoted prices.
price due to weight, quality Carcass characteristics. The term Packer. The term ‘packer’ means any
characteristics, yield characteristics, ‘carcass characteristics’ means the range person engaged in the business of
livestock class, and breed. and average carcass weight in pounds, buying cattle in commerce for purposes
Priced. The term ‘priced’ means the the quality grade and yield grade (if of slaughter, of manufacturing or
time when the final price is determined applicable), and the average cattle preparing meats or meat food products
either through buyer-seller interaction dressing percentage. from cattle for sale or shipment in
and agreement or as a result of some Carlot-based. The term ‘carlot-based’ commerce, or of marketing meats or
other price determining method. means any transaction between a buyer meat food products from cattle in an
Prior slaughter week. The term ‘prior and a seller destined for two or less unmanufactured form acting as a
slaughter week’ means the Monday delivery stops consisting of one or more wholesale broker, dealer, or distributor
through Sunday prior to a reporting day. individual boxed beef items. When used in commerce. For any calendar year, the
Producer. The term ‘producer’ means in reference to cow and bull boxed beef term ‘packer’ includes only a federally
any person engaged in the business of items, the term ‘carlot-based’ means any inspected cattle processing plant that
selling livestock to a packer for transaction between a buyer and seller slaughtered an average of 125,000 head
slaughter (including the sale of livestock consisting of 5,000 pounds or more of of cattle per year during the
from a packer to another packer). one or more individual items. immediately preceding 5 calendar years.
Purchased. The term ‘purchased’ Cattle committed. The term ‘cattle Additionally, in the case of a cattle
means the agreement on a price, or the committed’ means cattle that are processing plant that did not slaughter
method for calculating a price, scheduled to be delivered to a packer cattle during the immediately preceding
determined through buyer-seller within the 7-day period beginning on 5 calendar years, it shall be considered
interaction and agreement. the date of an agreement to sell the a packer if the Secretary determines the
Reporting day. The term ‘reporting cattle. processing plant should be considered a
day’ means a day on which a packer Cattle type. The term ‘cattle type’ packer under this subpart after
conducts business regarding livestock means the following types of cattle considering its capacity.
committed to the packer, or livestock purchased for slaughter: Packer-owned cattle. The term
purchased, sold, or slaughtered by the (1) Fed steers; ‘packer-owned cattle’ means cattle that
packer; the Secretary is required to (2) Fed heifers; a packer owns for at least 14 days
make such information available to the (3) Fed Holsteins and other fed dairy immediately before slaughter.
public; and the Department of steers and heifers; Prices for cattle. The term ‘prices for
Agriculture is open to conduct business. (4) Cows; and cattle’ includes the price per
Secretary. The term ‘Secretary’ means (5) Bulls. hundredweight; the purchase type; the
the Secretary of Agriculture of the Established. The term ‘established’, quantity on a live and a dressed weight
United States or any other officer or when used in connection with prices, basis; the estimated live weight range;
employee of the Department of means that point in time when the the average live weight; the estimated
Agriculture to whom authority has been buyer and seller agree upon a net price. percentage of cattle of a USDA quality
delegated or may hereafter be delegated Formula marketing arrangement. (1) grade Choice or better; beef carcass
to act in the Secretary’s stead. When used in reference to live cattle, classification; any premiums or
State. The term ‘State’ means each of the term ‘formula marketing discounts associated with weight,
the 50 States. arrangement’ means the advance quality grade, yield grade, or type of
commitment of cattle for slaughter by purchase; cattle State of origin;
Subpart B—Cattle Reporting any means other than through a estimated cattle dressing percentage;
negotiated purchase or a forward and price basis as F.O.B. feedlot or
§ 59.100 Definitions. contract, using a method for calculating delivered at the plant.
The following definitions apply to price in which the price is determined Terms of trade. The term ‘terms of
this subpart. at a future date. trade’ means, with respect to the
Boxed Beef. The term ‘boxed beef’ (2) When used in reference to boxed purchase of steers and heifers for
means those carlot-based portions of a beef, the term ‘formula marketing slaughter:
beef carcass including fresh and frozen arrangement’ means the advance (1) Whether a packer provided any
primals, subprimals, cuts fabricated commitment of boxed beef by any financing agreement or arrangement
from subprimals (excluding portion- means other than through a negotiated with regard to the steers and heifers;
control cuts such as chops and steaks purchase or a forward contract, using a (2) Whether the delivery terms
similar to those portion cut items method for calculating price in which specified the location of the producer or
described in the Institutional Meat the price is determined at a future date. the location of the packer’s plant;
Purchase Specifications (IMPS) for Forward contract. (1) When used in (3) Whether the producer is able to
Fresh Beef Products Series 100), thin reference to live cattle, the term unilaterally specify the date and time
meats (e.g. inside and outside skirts, ‘forward contract’ means an agreement during the business day of the packer
pectoral meat, cap and wedge meat, and for the purchase of cattle, executed in that the cattle are to be delivered for
blade meat), and fresh and frozen advance of slaughter, under which the slaughter; and
(4) The percentage of steers and (iii) The quantity of cattle committed (2) The quantity of cattle purchased
heifers purchased by a packer as a on a dressed weight basis. through a negotiated grid basis that were
negotiated purchase that are scheduled (4) The terms of trade regarding the slaughtered;
to be delivered to the plant for slaughter cattle, as applicable. (3) The quantity of cattle purchased
not later than 14 days and the (b) Publication. The Secretary shall through forward contracts that were
percentage of slaughter steers and make the information available to the slaughtered;
heifers purchased by a packer as a public not less frequently than three (4) The quantity of cattle delivered
negotiated purchase that are scheduled times each reporting day. under a formula marketing arrangement
to be delivered to the plant for slaughter that were slaughtered;
§ 59.102 Mandatory daily reporting for (5) The quantity and carcass
more than 14 days, but fewer than 30 cows and bulls.
days. characteristics of packer-owned cattle
(a) In General. The corporate officers that were slaughtered;
Type of purchase. The term ‘type of
or officially designated representatives (6) The quantity, basis level, basis
purchase’ with respect to cattle, means
of each cow and bull packer processing level month, and delivery month and
a negotiated purchase, negotiated grid
plant shall report to the Secretary each year for all cattle purchased through
purchase, a formula market
reporting day the following information forward contracts;
arrangement, and a forward contract.
for each cattle type, inclusive since the (7) The range and average of intended
Type of sale. The term ‘type of sale’
last reporting, categorized to clearly premiums and discounts (including
with respect to boxed beef, means a
delineate domestic from imported those associated with weight, quality
negotiated sale, a formula market
market purchases as described in grade, yield grade, or type of cattle) that
arrangement, and a forward contract.
White cow. Cow on a ration that tends § 59.10(b). are expected to be in effect for the
(1) The base bid price (per current slaughter week.
to produce white fat.
hundredweight) intended to be paid for (b) Publication. The Secretary shall
§ 59.101 Mandatory daily reporting for slaughter cow and bull carcasses on that make available to the public the
steers and heifers. day not later than 10 a.m. central time information obtained under paragraph
(a) In General. The corporate officers categorized by: (a) of this section on the first reporting
or officially designated representatives (i) Weight; and day of the current slaughter week by 10
of each steer and heifer packer (ii) For slaughter cows, percent lean a.m. central time.
processing plant shall report to the (e.g., breaker, boner, cutter (lean)).
(2) The prices for cattle (per § 59.104 Mandatory reporting of boxed
Secretary at least two times each beef sales.
reporting day not later than 10 a.m. hundredweight) purchased during the
previous day not later than 2 p.m. (a) Daily Reporting. The corporate
central time and not later than 2 p.m.
central time categorized by: officers or officially designated
central time the following information,
(i) The type of purchase; representatives of each packer
inclusive since the last reporting,
(ii) The quantity of cattle purchased processing plant shall report to the
categorized to clearly delineate
on a live weight basis; Secretary at least twice each reporting
domestic from imported market (iii) The quantity of cattle purchased day (once by 10 a.m. central time, and
purchases as described in 59.10(b). on a dressed weight basis; once by 2 p.m. central time) the
(1) The prices for cattle (per (iv) The estimated weight of the cattle following information on total boxed
hundredweight) established on that day, purchased; beef domestic and export sales
categorized by: (v) The quality classification; and
(i) The type of purchase; established on that day inclusive since
(vi) Any premiums or discounts the last reporting as described in
(ii) The quantity of cattle purchased associated with weight or quality
on a live weight basis; § 59.10(b):
expressed in dollars per hundredweight (1) The price for each lot of each
(iii) The quantity of cattle purchased on a dressed basis. boxed beef sale, quoted in dollars per
on a dressed weight basis; (3) The volume of cows and bulls
(iv) The estimated weights of cattle hundredweight on a F.O.B. plant basis;
slaughtered the previous day. (2) The quantity for each lot of each
purchased; (b) Publication. The Secretary shall sale, quoted by number of pounds sold;
(v) An estimate of the percentage of make the information available to the and
the cattle purchased that were of a public within one hour of the required (3) The information regarding the
quality grade of Choice or better; and reporting time on the reporting day on characteristics of each sale is as follows:
(vi) Any premiums or discounts which the information is received from (i) The type of sale;
associated with weight, quality grade, the packer. (ii) The branded product
yield grade, or other characteristic characteristics, if applicable;
expressed in dollars per hundredweight § 59.103 Mandatory weekly reporting for (iii) The grade for steer and heifer beef
on a dressed basis. steers and heifers.
(e.g., USDA Prime, USDA Choice or
(2) The quantity of cattle delivered to (a) In General. The corporate officers better, USDA Choice, USDA Select,
the packer (quoted in numbers of head) or officially designated representatives ungraded no-roll product);
on that day, categorized by: of each steer and heifer packer (iv) The grade for cow beef or packer
(i) The type of purchase; processing plant shall report to the yield and/or quality sort for cow beef
(ii) The quantity of cattle delivered on Secretary on the first reporting day of (e.g., Breakers, Boners, White Cow,
a live weight basis; and each week, not later than 9 a.m. central Cutters (lean));
(iii) The quantity of cattle delivered time, the following information (v) The cut of beef, referencing the
on a dressed weight basis. applicable to the prior slaughter week, most recent version of the Institutional
(3) The quantity of cattle committed categorized to clearly delineate Meat Purchase Specifications (IMPS),
to the packer (quoted in numbers of domestic from imported market when applicable;
head) as of that day, categorized by: purchases: (vi) The trim specification;
(i) The type of purchase; (1) The quantity of cattle purchased (vii) The weight range of the cut;
(ii) The quantity of cattle committed through a negotiated basis that were (viii) The product delivery period;
on a live weight basis; and slaughtered; and
(ix) The beef type (steer/heifer, dairy total carcass weight of the swine (in producer (including all premiums, less
steer/heifer, or cow). hundred pound increments). all discounts) per hundred pounds of
(b) Publication. The Secretary shall Average sort loss. The term ‘average carcass weight of swine delivered at the
make available to the public the sort loss’ means the average discount (in plant. The total amount paid shall
information obtained under paragraph dollars per hundred pounds carcass include any sum deducted from the
(a) of this section not less frequently weight) for swine slaughtered during the price (per hundredweight) paid to a
than twice each reporting day. applicable reporting period, resulting producer that reflects the repayment of
from the fact that the swine did not fall a balance owed by the producer to the
Subpart C—Swine Reporting within the individual packer’s packer or the accumulation of a balance
established carcass weight range or lot to later be repaid by the packer to the
§ 59.200 Definitions.
variation range. producer. The total amount paid shall
The following definitions apply to Backfat. The term ‘backfat’ means the exclude any sum earlier paid to a
this subpart. fat thickness (in inches) measured producer that must be repaid to the
Affiliate. The term ‘affiliate’, with between the third and fourth rib from packer.
respect to a packer, means: the last rib, 7 centimeters from the Noncarcass merit premium. The term
(1) A person that directly or indirectly carcass split (or adjusted from the ‘noncarcass merit premium’ means an
owns, controls, or holds with power to individual packer’s measurement to that increase in the base price of the swine
vote, 5 percent or more of the reference point using an adjustment offered by an individual packer or
outstanding voting securities of the made by the Secretary) of the swine packing plant, based on any factor other
packer; slaughtered during the applicable than the characteristics of the carcass, if
(2) A person 5 percent or more of reporting period. the actual amount of the premium is
whose outstanding voting securities are Barrow. The term ‘barrow’ means a known before the sale and delivery of
directly or indirectly owned, controlled, neutered male swine, with the neutering the swine.
or held with power to vote, by the performed before the swine reached Other market formula purchase. The
packer; and sexual maturity. term ‘other market formula purchase’
(3) A person that directly or indirectly Base market hog. The term ‘base means a purchase of swine by a packer
controls, or is controlled by or under market hog’ means a barrow or gilt for in which the pricing mechanism is a
common control with, the packer. which no discounts are subtracted from formula price based on any market other
Applicable reporting period. The term and no premiums are added to the base than the market for swine, pork, or a
‘applicable reporting period’ means the price. pork product. The term ‘other market
period of time prescribed by the prior Base price. The term ‘base price’ formula purchase’ includes a formula
day report, the morning report, and the means the price from which no purchase in a case which the price
afternoon report, as provided in discounts are subtracted and no formula is based on 1 or more futures
§ 59.202. premiums are added. or options contracts.
Boars. The term ‘boar’ means a
Average carcass weight. The term Other purchase arrangement. The
sexually-intact male swine.
‘average carcass weight’ means the term ‘other purchase arrangement’
Bred female swine. The term ‘bred
weight obtained by dividing the total means a purchase of swine by a packer
female swine’ means any female swine,
carcass weight of the swine slaughtered that is not a negotiated purchase, swine
whether a sow or gilt, that has been
at the packing plant during the or pork market formula purchase, or
mated or inseminated, or has been
applicable reporting period by the other market formula purchase; and
confirmed, to be pregnant.
number of these same swine. Formula price. The term ‘formula does not involve packer-owned swine.
Average lean percentage. The term price’ means a price determined by a Packer. The term ‘packer’ means any
‘average lean percentage’ means the mathematical formula under which the person engaged in the business of
value equal to the average percentage of price established for a specified market buying swine in commerce for purposes
the carcass weight comprised of lean serves as the basis for the formula. of slaughter, of manufacturing or
meat for the swine slaughtered during Gilt. The term ‘gilt’ means a young preparing meats or meat food products
the applicable reporting period. female swine that has not produced a from swine for sale or shipment in
Whenever the packer changes the litter. commerce, or of marketing meats or
manner in which the average lean Hog Class. The term ‘hog class’ meat food products from swine in an
percentage is calculated, the packer means, as applicable, barrows or gilts; unmanufactured form acting as a
shall make available to the Secretary the sows; or boars or stags. wholesale broker, dealer, or distributor
underlying data, applicable Inferior hogs. The term ‘inferior hogs’ in commerce. For any calendar year, the
methodology and formulae, and means swine that are discounted in the term ‘packer’ includes only a federally
supporting materials used to determine market place due to light-weight, health, inspected swine processing plant that
the average lean percentage, which the or physical conditions that affects their slaughtered an average of 100,000 head
Secretary may convert either to the value. of swine per year during the
carcass measurements or lean Loin depth. The term ‘loin depth’ immediately preceding 5 calendar years
percentage of the swine of the means the muscle depth (in inches) and a person that slaughtered an average
individual packer to correlate to a measured between the third and fourth of 200,000 head of sows, boars, or
common percent lean measurement. ribs from the last rib, 7 centimeters from combination thereof per year during the
Average net price. The term ‘average the carcass split (or adjusted from the immediately preceding 5 calendar years.
net price’ means the quotient (stated per individual packer’s measurement to that Additionally, in the case of a swine
hundred pounds of carcass weight of reference point using an adjustment processing plant or person that did not
swine) obtained by dividing the total made by the Secretary) of the swine slaughter swine during the immediately
amount paid for the swine slaughtered slaughtered during the applicable preceding 5 calendar years, it shall be
at a packing plant during the applicable reporting period. considered a packer if the Secretary
reporting period (including all Net price. The term ‘net price’ means determines the processing plant or
premiums and less all discounts) by the the total amount paid by a packer to a person should be considered a packer
under this subpart after considering its (4) Other purchase arrangement. later than 8 a.m. central time for all
capacity. barrows and gilts purchased and 10 a.m.
Packer-owned swine. The term § 59.201 General reporting provisions. central time for all barrows and gilts
‘packer-owned swine’ means swine that (a) Packer-Owned Swine. Information slaughtered on the reporting day on
a packer (including a subsidiary or required under this section for packer- which the information is received from
affiliate of the packer) owns for at least owned swine shall include quantity and the packer. In addition, the Secretary
14 days immediately before slaughter. carcass characteristics, but not price. shall publish a net price distribution for
Packer-sold swine. The term ‘packer- (b) Type of Purchase. If information all barrows and gilts slaughtered on the
sold swine’ means the swine that are regarding the type of purchase is previous day not later than 3 p.m.
owned by a packer (including a required under this section, the central time.
subsidiary or affiliate of the packer) for information shall be reported according (b) Morning Report. The corporate
more than 14 days immediately before to the numbers and percentages of each officers or officially designated
sale for slaughter; and sold for slaughter type of purchase comprising: representatives of each packer
to another packer. (1) Packer-sold swine; and processing plant that processes barrows
Pork. The term ‘pork’ means the meat (2) All other swine. and gilts shall report to the Secretary
of a porcine animal. not later than 10 a.m. central time each
Pork product. The term ‘pork product’ § 59.202 Mandatory daily reporting for
barrows and gilts. reporting day as described in § 59.10(b):
means a product or byproduct produced
(a) Prior Day Report. The corporate (1) The packer’s best estimate of the
or processed in whole or in part from
officers or officially designated total number of barrows and gilts, and
pork.
Purchase data. The term ‘purchase representatives of each packer that barrows and gilts that qualify as packer-
data’ means all of the applicable data, processes barrows and gilts shall report owned swine, expected to be purchased
including base price and weight (if to the Secretary for each business day of throughout the reporting day through
purchased live), for all swine purchased the packer not later than 7 a.m. central each type of purchase;
during the applicable reporting period, time on each reporting day information (2) The total number of barrows and
regardless of the expected delivery date regarding all barrows and gilts gilts, and barrows and gilts that qualify
of the swine, reported by: purchased or priced, during the prior as packer-owned swine, purchased up
(1) Hog class; business day of the packer, and not later to that time of the reporting day through
(2) Type of purchase; and than 9 a.m. central time on each each type of purchase;
(3) Packer-owned swine. reporting day information regarding all (3) All purchase data for base market
Slaughter data. The term ‘slaughter barrows and gilts slaughtered, excluding hogs purchased up to that time of the
data’ means all of the applicable data for inferior swine, as specified in § 59.10(b): reporting day through negotiated
all swine slaughtered by a packer during (1) All purchase data, reported by lot, purchases; and
the applicable reporting period, including: (4) All purchase data for base market
regardless of whether the price of the (i) The total number of barrows and hogs purchased through each type of
swine was negotiated or otherwise gilts purchased; purchase other than negotiated purchase
determined, reported by: (ii) The total number of barrows and up to that time of the reporting day,
(1) Hog class; gilts scheduled for delivery to a packer unless such information is unavailable
(2) Type of purchase; and for slaughter; due to pricing that is determined on a
(3) Packer-owned swine. (iii) The base price and weight for all delayed basis. The packer shall report
Sow. The term ‘sow’ means an adult information on such purchases on the
barrows and gilts purchased on a live
female swine that has produced 1 or first reporting day or scheduled
weight basis; and
more litters. reporting time on a reporting day after
(iv) The base price and premiums and
Stag. The term ‘stag’ means a male the price has been determined.
discounts paid for carcass
swine that was neutered after reaching (5) The Secretary shall publish the
characteristics for all barrows and gilts
sexual maturity. information obtained under this
Swine. The term ‘swine’ means a purchased on a carcass basis for which
a price has been established. For paragraph (b) in the morning report as
porcine animal raised to be a feeder pig, soon as practicable, but not later than 11
raised for seedstock, or raised for barrows and gilts that were not priced,
this information shall be reported on the a.m. central time, on each reporting day.
slaughter.
next prior day report after the price is (c) Afternoon Report. The corporate
Swine committed. The term ‘swine
established. officers or officially designated
committed’ means swine scheduled and
(2) The following slaughter data for representatives of each packer
delivered to a packer within the 14-day
the total number of barrows and gilts processing plant that processes barrows
period beginning on the date of an
slaughtered: and gilts shall report to the Secretary
agreement to sell the swine.
Swine or pork market formula (i) The average net price; not later than 2 p.m. central time each
purchase. The term ‘swine or pork (ii) The average carcass weight; reporting day as described in § 59.10(b):
market formula purchase’ means a (iii) The average sort loss; (1) The packer’s best estimate of the
purchase of swine by a packer in which (iv) The average backfat; total number of barrows and gilts, and
the pricing mechanism is a formula (v) The average loin depth; barrows and gilts that qualify as packer-
price based on a market for swine, pork, (vi) The average lean percentage; and owned swine expected to be purchased
or a pork product, other than a future or (vii) Total quantity slaughtered. throughout the reporting day through
option for swine, pork, or a pork (3) Packer purchase commitments, each type of purchase;
product. which shall be equal to the number of (2) The total number of barrows and
Type of purchase. The term ‘type of barrows and gilts scheduled for delivery gilts, and barrows and gilts that qualify
purchase,’ with respect to swine, means: to a packer for slaughter for each of the as packer-owned swine, purchased up
(1) A negotiated purchase; next 14 calendar days. to that time of the reporting day through
(2) Other market formula purchase; (4) The Secretary shall publish the each type of purchase;
(3) A swine or pork market formula information obtained under this (3) The base price paid for all base
purchase; and paragraph (a) in a prior day report not market hogs purchased up to that time
of the reporting day through negotiated (1) Each category of standard used in reference to boxed lamb cuts the
purchases; and noncarcass merit premiums used by the term ‘carlot-based’ means any
(4) The base price paid for all base packer in the prior slaughter week; and transaction between a buyer and seller
market hogs purchased through each (2) The dollar value (in dollars per consisting of 1,000 pounds or more of
type of purchase other than negotiated hundred pounds of carcass weight) paid one or more individual boxed lamb
purchase up to that time of the reporting to producers by the packer, by category. items.
day, unless such information is (b) Premium List. A packer shall Established. The term ‘established’,
unavailable due to pricing that is maintain and make available to a when used in connection with prices,
determined on a delayed basis. The producer, on request, a current listing of means that point in time when the
packer shall report information on such the dollar values (per hundred pounds buyer and seller agree upon a net price.
purchases on the first reporting day or of carcass weight) of each noncarcass Formula marketing arrangement. (1)
scheduled reporting time on a reporting merit premium used by the packer When used in reference to live lambs,
day after the price has been determined. during the current or the prior slaughter the term ‘formula marketing
(5) The Secretary shall publish the week. arrangement’ means the advance
information obtained under this (c) Publication. The Secretary shall commitment of lambs for slaughter by
publish the information obtained under any means other than through a
paragraph (c) in the afternoon report as
this subsection as soon as practicable, negotiated purchase or a forward
soon as practicable, but not later than 3
but not later than 5 p.m. central time, contract, using a method for calculating
p.m. central time, on each reporting day.
on the first reporting day of each week. price in which the price is determined
§ 59.203 Mandatory daily reporting for at a future date.
sows and boars. Subpart D—Lamb Reporting (2) When used in reference to boxed
(a) Prior Day Report. The corporate lamb, the term ‘formula marketing
§ 59.300 Definitions. arrangement’ means the advance
officers or officially designated
The following definitions apply to commitment of boxed lamb by any
representatives of each packer of sows
this subpart. means other than through a negotiated
and boars shall report to the Secretary Boxed Lamb. The term ‘boxed lamb’
for each business day of the packer not purchase or a forward contract, using a
means those carlot-based portions of a method for calculating price in which
later than 7 a.m. central time on each lamb carcass including fresh primals,
reporting day information regarding all the price is determined at a future date.
subprimals, cuts fabricated from Forward contract. (1) When used in
sows and boars purchased or priced, subprimals (excluding portion-control reference to live lambs, the term
excluding inferior swine, during the cuts such as chops and steaks similar to ‘forward contact’ means an agreement
prior business day of the packer. All those portion cut items described in the for the purchase of lambs, executed in
purchase data, reported by lot, Institutional Meat Purchase advance of slaughter, under which the
including: Specifications (IMPS) for Fresh Lamb base price is established by reference to
(1) The total number of sows and and Mutton Series 200, and thin meats publicly available prices.
boars purchased divided into at least (e.g. inside and outside skirts, pectoral (2) When used in reference to boxed
three weight groups as specified by the meat, cap and wedge meat, and blade lamb, the term ‘forward contract’ means
Secretary; meat) not older than 14 days from date an agreement for the sale of boxed lamb,
(2) The average price paid by each of manufacture; fresh ground lamb, executed in advance of manufacture,
purchase type for all sows in each lamb trimmings, and boneless under which the base price is
weight class specified by the Secretary; processing lamb not older than 7 days established by reference to publicly
and from date of manufacture; frozen available quoted prices.
(3) The average price paid by each primals, subprimals, cuts fabricated Importer. The term ‘importer’ means
purchase type for all boars in each from subprimals, and thin meats not any person engaged in the business of
weight class specified by the Secretary. older than 180 days from date of importing lamb meat products who
(4) The packer is required to report manufacture; and frozen ground lamb, takes ownership of such lamb meat
only the volume of sows and boars that lamb trimmings, and boneless products with the intent to sell or ship
qualify as packer owned swine and shall processing lamb not older than 90 days in U.S. commerce. For any calendar
omit packer owned sows and boars from from date of manufacture. year, the term includes only those that
all average price calculations. Branded. The term ‘branded’ means imported an average of 2,500 metric
(5) The Secretary shall publish the boxed lamb cuts produced and tons of lamb meat products per year
information obtained under this marketed under a corporate trademark during the immediately preceding 5
paragraph (a) as soon as practicable, but (for example, products that are marketed calendar years. Additionally, the term
not later than 8 a.m. central time, on the on their quality, yield, or breed includes those that did not import an
reporting day on which the information characteristics), or boxed lamb cuts average of 2,500 metric tons of lamb
is received from the packer. produced and marketed under one of meat products during the immediately
(b) [Reserved] USDA’s Meat Grading and Certification preceding 5 calendar years, if the
Branch, Certified programs. Secretary determines that the person
§ 59.204 Mandatory weekly reporting for Carcass characteristics. The term should be considered an importer based
swine. ‘carcass characteristics’ means the range on their volume of lamb imports.
(a) Weekly Noncarcass Merit Premium and average carcass weight in pounds, Packer. The term ‘packer’ means any
Report. Not later than 4 p.m. central the quality grade and yield grade (if person engaged in the business of
time in accordance with § 59.10(b) on applicable), and the lamb average buying lambs in commerce for purposes
the first reporting day of each week, the dressing percentage. of slaughter, of manufacturing or
corporate officers or officially Carlot-based. The term ‘carlot-based’ preparing meat products from lambs for
designated representatives of each means any transaction between a buyer sale or shipment in commerce, or of
packer processing plant shall report to and a seller destined for three or less marketing meats or meat products from
the Secretary a noncarcass merit delivery stops consisting of any lambs in an unmanufactured form
premium report that lists: combination of carcass weights. When acting as a wholesale broker, dealer, or
distributor in commerce. For any (x) The estimated lamb dressing information obtained under paragraphs
calendar year, the term includes only a percentage. (a)(1) through (a)(5) and (a)(7) of this
federally inspected lamb processing (2) The Secretary shall make the section on the second reporting day of
plant which slaughtered or processed information available to the public not the current slaughter week and
the equivalent of an average of 75,000 less than once each reporting day. information obtained in paragraph (a)(6)
head of lambs per year during the (b) [Reserved] of this section on the first reporting day
immediately preceding 5 calendar years. of the current slaughter week.
§ 59.302 Mandatory weekly reporting for
Additionally, the term includes a lamb lambs.
processing plant that did not slaughter § 59.303 Mandatory reporting of lamb
or process an average of 75,000 lambs (a) In General. The corporate officers carcasses and boxed lamb.
during the immediately preceding 5 or officially designated representatives (a) Daily Reporting of Lamb Carcass
calendar years if the Secretary of each packer processing plant shall Transactions. The corporate officers or
determines that the processing plant report to the Secretary the following officially designated representatives of
should be considered a packer after information applicable to the prior each packer shall report to the Secretary
considering its capacity. slaughter week contained in paragraphs each reporting day the following
Packer-owned lambs. The term (a)(1) through (a)(5) and (a)(7) of this information on total carlot-based lamb
‘packer-owned lambs’ means lambs that section not later than 9 a.m. central time carcass transactions not later than 3
a packer owns for at least 14 days on the second reporting day of the p.m. central time in accordance with
immediately before slaughter. current slaughter week, and the § 59.10(b):
Type of purchase. The term ‘type of following information applicable to the (1) The price for each lot of each lamb
purchase’ means a negotiated purchase, prior slaughter week contained in carcass transaction, quoted in dollars
a formula market arrangement, and a paragraph (a)(6) of this section not later per hundredweight on an F.O.B. plant
forward contract. than 9 a.m. central time on the first basis;
Type of sale. The term ‘type of sale’ reporting day of the current slaughter (2) The quantity for each lot of each
with respect to boxed lamb, means a week categorized to clearly delineate transaction, quoted by number of
negotiated sale, a formula market domestic from imported market carcasses sold and purchased; and
arrangement, and a forward contract. purchases: (3) The following information
Yield grade lamb carcass reporting. (1) The quantity of lambs purchased regarding the characteristics of each
The term ‘yield grade lamb carcass through a negotiated purchase that were transaction:
reporting’ means if the lot includes 80 slaughtered; (i) The type of transaction;
percent or more of one yield grade, the (2) The quantity of lambs purchased (ii) The USDA quality grade of lamb;
lot will be considered a single yield through forward contracts that were (iii) The USDA yield grade;
grade lot. If the lot contains less than 80 slaughtered; (iv) The estimated weight range of the
percent of one yield grade, the lot will (3) The quantity of lambs delivered carcasses; and
be considered a mixed grade lot and all under a formula marketing arrangement (v) The product delivery period.
yield grades comprising 10 percent or that were slaughtered; (b) Daily Reporting of Domestic Boxed
more will be used to describe the lot. (4) The quantity and carcass Lamb Sales. The corporate officers or
characteristics of packer-owned lambs officially designated representatives of
§ 59.301 Mandatory daily reporting for that were slaughtered; each packer shall report to the Secretary
lambs. (5) The quantity, basis level, and each reporting day the following
(a) In General. The corporate officers delivery month for all lambs purchased information on total domestic boxed
or officially designated representatives through forward contracts; lamb cut sales not later than 2:30 p.m.
of each packer processing plant shall (6) The following information central time as described in § 59.10(b):
report to the Secretary at least once each applicable to the current slaughter (1) The price for each lot of each
reporting day not later than 2 p.m. week. The range and average of boxed lamb cut sale, quoted in dollars
central time the following information intended premiums and discounts per hundredweight on a F.O.B. plant
for lamb, categorized to clearly delineate (including those associated with weight, basis;
domestic from imported market quality grade, yield grade, or type of (2) The quantity for each lot of each
purchases as described in § 59.10(b): lamb) that are expected to be in effect sale, quoted by product weight sold; and
(1) The prices for lambs (per for the current slaughter week; and (3) The following information
hundredweight) established on that day (7) The following information for regarding the characteristics of each
as F.O.B. feedlot or delivered at the lambs purchased through a formula transaction:
plant, categorized by: marketing arrangement and slaughtered (i) The type of sale;
(i) The type of purchase; during the prior slaughter week, (ii) The branded product
(ii) The class of lamb; categorized to clearly delineate characteristics, if applicable;
(iii) The quantity of lambs purchased domestic from imported market (iii) The USDA quality grade of lamb;
on a live weight basis; purchases: (iv) The cut of lamb, referencing the
(iv) The quantity of lambs purchased (i) The quantity (quoted in both most recent version of the Institutional
on a dressed weight basis; numbers of head and pounds) of lambs; Meat Purchase Specifications (IMPS),
(v) A range and average of estimated (ii) The weighted average price paid when applicable;
live weights of lambs purchased; for a carcass, including applicable (v) USDA yield grade, if applicable;
(vi) An estimate of the percentage of premiums and discounts; (vi) The product state of refrigeration;
the lambs purchased that were of a (iii) The range of premiums and (vii) The weight range of the cut; and
quality grade of Choice or better; discounts paid; (viii) The product delivery period.
(vii) Any premiums or discounts (iv) The weighted average of (c) Weekly Reporting of Imported
associated with weight, quality grade, premiums and discounts paid; and Boxed Lamb Sales. The corporate
yield grade, or any type of purchase; (v) The range of prices paid. officers or officially designated
(viii) Lamb State of origin; (b) Publication. The Secretary shall representatives of each lamb importer
(ix) The pelt type; and make available to the public the shall report to the Secretary on the first
reporting day of each week the LS–126 Boxed Beef Daily Report. imported, if cattle were purchased outside of
following information applicable to the the 50 States.
Appendix B—Swine Mandatory (iii) Purchase type code (13). Enter the
prior week for imported boxed lamb cut Reporting Forms code that describes the type of purchase.
sales not later than 10 a.m. central time:
The following 3 forms referenced in (iv) Class code (14). Enter the code that
(1) The price for each lot of a boxed
Subpart C of Part 59 visually represent the best describes the type of cattle.
lamb cut sale, quoted in dollars per (v) Selling basis (15a–b). For 15a, enter ‘1’
hundredweight on a F.O.B. plant basis; mandatory swine market information that is
required to be reported electronically to the if cattle were purchased on a live basis or ‘2’
(2) The quantity for each lot of a if cattle were purchased on a dressed basis.
Agricultural Marketing Service.
transaction, quoted by product weight For 15b, enter ‘1’ if cattle are shipped on an
sold; and Swine FOB feedlot basis or ‘2’ if cattle are delivered
(3) The following information LS–118 Swine Prior Day Report. at the plant.
regarding the characteristics of each LS–119 Swine Daily Report. (vi) Head count (16). Enter the quantity of
transaction: LS–120 Swine Noncarcass Merit Premium cattle in the lot in number of head.
(i) The type of sale; Weekly Report. (vii) Estimated average weight (17). Enter
(ii) The branded product the estimated average weight of the lot in
Appendix C—Lamb Mandatory pounds.
characteristics, if applicable;
Reporting Forms (viii) Average price (18). Enter the price
(iii) The cut of lamb, referencing the
established on that day for the lot in dollars
most recent version of the Institutional The following 6 forms referenced in
per hundredweight.
Meat Purchase Specifications (IMPS), Subpart D of Part 59 visually represent the
(I) For negotiated purchases, enter the price
when applicable; mandatory lamb market information that is
required to be reported electronically to the that was agreed upon.
(iv) The product state of refrigeration; (II) For formula purchases, enter the base
(v) The weight range of the cut; and Agricultural Marketing Service.
price when established (with estimated
(vi) The product delivery period. Lamb grading information if not yet known). Then
(d) Publication. The Secretary shall LS–121 Live Lamb Daily Report (Current enter the final net price with all actual
make available to the public the Established Prices). grading information when it is known.
information required to be reported in LS–123 Live Lamb Weekly Report. (III) For forward contract purchases, enter
paragraphs (a) and (b) of this section not LS–124 Live Lamb Weekly Report the base price when established (with
less frequently than once each reporting (Formula Purchases). estimated grading information if not yet
day and the information required to be LS–125 Lamb Premiums and Discounts known). Then enter the final net price paid
Report. on the contract with actual grading
reported in paragraph (c) of this section
LS–128 Boxed Lamb Report. information.
on the first reporting day of the current (IV) For negotiated grid purchases, enter
LS–129 Lamb Carcass Report.
slaughter week. the base price when established (with
Appendix D—Mandatory Reporting estimated grading information if not yet
Subpart E—OMB Control Number Forms Guideline known). Then enter the final net price with
§ 59.400 OMB control number assigned The following mandatory reporting form all actual grading information.
pursuant to the Paperwork Reduction Act. guidelines will be used by persons required (ix) Percent Choice or better (19). Enter the
to report electronically transmitted percentage of the number of cattle in the lot
The information collection and of a quality grade of Choice or better.
recordkeeping requirements of this part mandatory market information to the
Agricultural Marketing Service. (x) Classification code (20). Enter the code
have been previously approved by the which best describes the quality of the
The first 10 fields of each mandatory
Office of Management and Budget reporting form provide the following majority of the cattle in the lot.
(OMB) under the provisions of 44 U.S.C. information: identification number (plant (xi) Dressing percentage (21). Enter an
Chapter 35 and have been assigned establishment number or importer ID average dressing percentage for the cattle in
OMB Control Number 0581–0186. number), company name (name of parent the lot. For negotiated purchases, enter an
company), plant street address (street address estimate. For all other purchase types, enter
Dated: July 27, 2007. the actual average dressing percentage.
for plant), plant city (city where plant is
Kenneth C. Clayton, located), plant state (state where plant is (xii) Origin (22). Enter the 2-letter postal
Acting Administrator, Agricultural Marketing located), plant zip code (zip code where abbreviation for the State in which the cattle
Service. plant is located), contact name (the name of were fed to slaughter weight. For imported
the corporate representative contact at the cattle enter ‘‘CN’’ for Canada.
Note: The following Appendices will not (xiii) Premiums and discounts paid (23a–
plant), phone number (full phone number for
appear in the Code of Federal Regulations. h). Enter the total net value of the adjustment
the plant including area code), reporting date
(date the information was submitted (mm/ for the lot (in dollars per hundredweight) for
Appendix A—Cattle Mandatory dd/yyyy), and reporting time, if applicable any premiums associated with weight,
Reporting Forms (the submission time corresponding to the 10 quality, yield or other expressed as a positive
a.m. and the 2 p.m. reporting requirements). value and for any discounts associated with
The following 7 forms referenced in
The reporting time requirement is only weight, quality, yield or other expressed as
Subpart B Part 59 visually represent the
mandatory cattle and boxed beef market applicable to forms LS–113 Live Cattle Daily a negative value in parenthesis.
information that is required to be reported to Report (current established prices), LS–114 (xiv) Terms of Trade (24a–d).
the Agricultural Marketing Service. Live Cattle Daily Report (Committed and (I) Packer financing (24a). Enter ‘1’ (yes) or
Delivered Cattle), LS–126 Boxed Beef Daily ‘2’ (no) in response to: ‘‘Did packer provide
Cattle Report, LS–131 Cow/Bull Plant Delivered financing agreement or arrangement with
LS–113 Live Cattle Daily Report (Current Bids (Dressed Basis) (10 a.m. submission regards to the cattle?’’
Established Prices). only), LS–132 Live Cow/Bull Daily Purchase (II) Delivery location (24b). Enter ‘1’ if
LS–114 Live Cattle Daily Report Report, and LS–119 Swine Daily Report. delivery terms specify producer location, ‘2’
(Committed and Delivered Cattle). (a) Cattle Mandatory Reporting Forms. (See if they specify packer’s plant location.
LS–115 Live Cattle Weekly Report. Appendix E for samples). (III) Delivery Date (24c). Enter ‘1’ if
LS–117 Cattle Premiums and Discounts (1) LS–113— Live Cattle Daily Report producer sets date of delivery for slaughter
Weekly Report. (current established prices). unilaterally; otherwise enter ‘2’ for packer.
LS–131 Cow/Bull Plant Delivered Bids (i) Lot identification (11). Enter code used (IV) Delivered (24d). Enter ‘1’ if negotiated
(Dressed Basis). to identify the lot to the packer. purchased cattle are to be delivered for
LS–132 Live Cow/Bull Daily Purchase (ii) Source (12). Enter ‘1’, domestic, if cattle slaughter 14 or less days from the committed,
Report. were purchased inside of the 50 States, or ‘2’, purchased, or priced date. Enter ‘2’ if they are
to be delivered for slaughter between 15 and number of head purchased through grading info if not yet known). Then enter the
30 days from the date the cattle were negotiated grids, categorized by domestic or final net price paid on the contract with
committed, purchased, or priced. imported sources. Enter this information actual grading information.
(2) LS–114—Live Cattle Daily Report once per each week’s submission. (V) For negotiated grid purchases, enter the
(committed and delivered cattle). (ix) Forward contract purchases lot base price when established (estimated
(i) Lot identification (11). Enter code used identification ( ) (26). Enter code used to grading info if not yet known). Then enter the
to identify the lot to the packer. identify forward contracted cattle to the final net price with all actual grading
(ii) Purchasing basis (12). Enter ‘1’ if cattle packer. information.
are delivered or ‘2’ if cattle are committed. (x) Forward contract purchases head count (ix) Classification code (19). Enter the code
(iii) Source (13). Enter ‘1’, domestic, if (27). Enter quantity of forward contracted which best describes the quality of the
cattle are purchased within the 50 States or cattle in the lot in number of head. majority of the cattle in the lot.
‘2’, imported, if cattle are purchased outside (xi) Forward contract purchases basis level (x) Origin (20). Enter the 2-letter postal
of the 50 States. (28). Enter the agreed upon adjustment to a abbreviation for the State in which the cattle
(iv) Purchase type code (14). Enter the code future price to establish the final price of the were fed to slaughter weight. For imported
that best describes the type of purchase. forward contracted cattle in dollars per one cattle enter ‘‘CN’’ for Canada.
(v) Class Code (15). Enter the code that best hundred pounds. (xi) Premiums and discounts paid (21a–f).
describes the type of cattle in the lot. (xii) Forward contract purchases delivery Enter the total net value of the adjustment for
(vi) Selling basis (16). Enter ‘1’ if cattle month (29). Enter the delivery month of the the lot (in dollars per hundredweight) for any
were purchased on a live basis or a ‘2’ if cattle purchased through forward contracts as premiums associated with weight, quality,
cattle were purchased on a dressed basis. a 3-letter abbreviation. yield or other expressed as a positive value
(vii) Head count (17). Enter the quantity of (xiii) Forward contract purchases delivery and for any discounts associated with weight,
cattle in the lot in number of head. year (30). quality, yield or other expressed as a negative
(viii) Origin (18). Enter the 2-letter postal (xiv) Forward contract purchases basis value in parenthesis.
abbreviation for the State in which the cattle level month (31). Enter the basis month (7) LS–126—Boxed Beef Daily Report. For
were fed to slaughter weight. For imported which the contract was based off of. Use 3- lots comprising multiple items, provide
cattle, enter ‘‘CN’’ for Canada. letter abbreviation. information for each item in a separate record
(ix) Terms of Trade (19a–d). Enter when (4) LS–117—Cattle Premiums and identified with the same lot identification or
applicable, otherwise leave blank. Discounts Weekly Report. purchase order number.
(I) Packer financing (19a). Enter ‘1’ (yes) or (i) Enter the premiums and discounts (in (i) Lot identification or purchase order
‘2’ (no) in response to: ‘‘Did packer provide dollars per hundredweight) expected to be in number (11). Enter code used to identify the
financing agreement or arrangement with effect for the current slaughter week for each lot to the packer.
applicable category of premium and discount (ii) Destination (12). Enter ‘1’, domestic, for
regards to the cattle?’’
(11–34). For ‘other’ categories (35–39), product shipped within the 50 States; or ‘2’,
(II) Delivery location (19b). Enter ‘1’ if
provide a brief description of the basis for the exported, for product shipped overseas; or
delivery terms specify producer location, ‘2’
premium/ discount along with the value of ‘3’, exported, for product shipped NAFTA
if they specify packer’s plant location.
the premium/discount. Enter negative values (Canada or Mexico).
(III) Delivery Date (19c). Enter ‘1’ if
in parenthesis. (iii) Purchase type code (13). Enter the
producer sets date of delivery for slaughter (5) LS–131—Cow/Bull Plant Delivered code corresponding to the sale type of the lot
unilaterally; otherwise enter ‘2’ for packer. Bids. of boxed beef.
(IV) Delivered (19d). Enter ‘1’ if negotiated Enter the plant delivered bids the plant (iv) Delivery period code (14). Enter the
purchased cattle are to be delivered for expects to have in effect for that day in code corresponding to the delivery time
slaughter 7 or less days from the committed, dollars per cwt. for each category. period of the lot of boxed beef.
purchased, or priced date. Enter ‘2’ if they are (6) LS–132—Live Cow/Bull Daily Purchase (v) Refrigeration (15). Enter ‘1’ if the
to be delivered for slaughter between 8 and report. product is sold in a fresh condition or ‘2’ if
14 days from the date the cattle were (i) Lot identification (11). Enter code used the product is sold in a frozen condition.
committed, purchased, or priced. to identify the lot to the packer. (vi) Class code (16). Enter the code that
(3) LS–115—Live Cattle Weekly Report (ii) Source (12). Enter ‘1’, domestic, if cattle best describes the class of cattle from which
(i) Packer-Owned lot identification (11). were purchased inside of the 50 States, or ‘2’, the boxed beef was produced.
Enter code used to identify the lot of packer- imported, if cattle were purchased outside of (vii) Classification code (17). Enter the
owned cattle to the packer. the 50 States. code corresponding to the grade of the boxed
(ii) Packer-Owned source (12). Enter ‘1’, (iii) Purchase type code (13). Enter the beef.
domestic, if packer-owned cattle are from code that describes the type of purchase. (viii) Beef cut (18a–b). Enter the numerical
within the 50 States or ‘2’, imported, if cattle (iv) Class code (14). Enter the code that code corresponding to the Institutional Meat
are from outside of the 50 States. best describes the type of cattle. Purchase Specifications (IMPS) (3 to 4
(iii) Packer-Owned head count (13). Enter (v) Selling basis (15a–b). For 15a, enter ‘1’ characters) (18a) or the internal corporate
the quantity of packer-owned cattle in the lot if cattle were purchased on a live basis or ‘2’ descriptor used to identify the product (18b).
in number of head. if cattle were purchased on a dressed basis. Descriptors must be entered consistently for
(iv) Packer-Owned actual carcass weight For 15b, enter ‘1’ if cattle are shipped on an all submissions.
range (14). Enter the actual average carcass FOB feedlot basis or ‘2’ if cattle are delivered (ix) Trim spec code (19). Enter the code
weight of the lot in pounds. at the plant. corresponding to the trim level of the boxed
(v) Packer-Owned average dressing (vi) Head count (16). Enter the quantity of beef.
percentage (15). Enter the average dressing cattle in the lot in number of head. (x) Weight (20). Enter the code
percentage of the lot of packer-owned cattle. (vii) Estimated average weight (17). Enter corresponding to the relative weight of the
(vi) Percentage yield grade 3 or better (16). the estimated average weight of the lot in product. Where weight is a factor, enter ‘1’
Enter the percentage of packer-owned cattle pounds. to signify the lighter weight range, ‘2’ to
in the lot of a yield grade of 3 or better. (viii) Average price (18). Enter the price signify the middle weight range, or ‘3’ to
(vii) Quality grade percentage (17). Enter established on that day for the lot in dollars signify the heavier weight range. Where
the percentage of packer-owned cattle in the per hundredweight. weight is not a factor, enter ‘4’ to signify all
lot of a quality grade of Choice or better. (I) For negotiated purchases, enter the final weights or mixed.
(viii) Prior week slaughtered cattle head net price that was paid. (xi) Total product weight (21). Enter the
counts ( ) (18–25). Enter the total number of (II) For formula purchases, enter the base total weight of the boxed beef cut in the lot
head of cattle slaughtered for the prior week price when established (with estimated in pounds.
that were purchased through forward grading info if not yet known). Then enter the (xii) Price (22). Enter the price received for
contracts, the total number of head for cattle final net price with all actual grading each boxed beef cut in the lot in dollars per
purchased through formula arrangements, the information when it is known. one hundred pounds, FOB Plant basis.
total number of head of cattle purchased (III) For forward contract purchases, enter (xiii) USDA Certified schedule code (23).
through negotiated cash, and the total the base price when established (estimated Enter the code for the USDA Certified
Program schedule, if applicable (e.g.; G1, G2, for the lot of purchased swine in dollars per (iv) Class code (14). Enter the code that
etc.); otherwise leave blank. one hundred pounds. best describes the type of lambs.
(xiv) Branded product code (24a–b). Enter (xx) Purchased swine origin (30). Enter the (v) Selling basis (15a–b). For 15a, enter ‘1’
the quality grade code (24a) and the yield 2-letter postal abbreviation for the State in if lambs were purchased on a live basis or ‘2’
grade code (24b) that best describes the which the swine were fed to slaughter if lambs were purchased on a dressed basis.
brand. Leave blank if not applicable. weight. For 15b, enter ‘1’ if lambs are shipped on an
(b) Swine Mandatory Reporting Forms (see (xxi) Scheduled swine (31–44). Enter the FOB feedlot basis or ‘2’ if lambs are delivered
Appendix E for samples). number of head of purchase commitment at the plant.
(1) LS–118—Swine Prior Day Report. swine that were scheduled for delivery for (vi) Head count (16). Enter the quantity of
(i) Slaughtered swine lot identification each of the next 14 days. Enter the total lambs in the lot in number of head.
(11). Enter code used to identify the lot of quantity currently scheduled for each day at (vii) Weight range (17a & 17b). Enter the
slaughtered swine to the packer. the time of reporting for each submission. lowest (17a) and highest (17b) weights for
(ii) Slaughtered swine class code (12). (2) LS–119—Swine Daily Report. lambs in the lot in pounds.
Enter the code that best describes the type of (i) Purchased swine lot identification (11). (viii) Estimated average weight (18). Enter
slaughtered swine in the lot. Enter code used to identify the lot of the estimated average weight of the lot in
(iii) Slaughtered swine purchase type code purchased swine to the packer. pounds.
(13). Enter the code that describes the type (ii) Purchased swine purchase type code (ix) Average price (19). Enter the price
of purchase for the slaughtered swine in the (12). Enter the code that describes the type established on that day for the lot in dollars
lot. of purchase for the swine in the lot. per hundredweight.
(iv) Slaughtered swine head count (14). (iii) Purchased swine average live weight (I) For negotiated purchases, enter the final
Enter the quantity of slaughtered swine in the (13). Enter the average live weight of the lot (net) price paid.
lot in number of head. of swine in pounds if swine were purchased (II) For formula purchases, enter the net
(v) Slaughtered swine base price (15). Enter on a live basis, otherwise leave blank. price.
the base price established on that day for the (iv) Purchased swine class code (14). Enter (III) For forward contract purchases, enter
lot of slaughtered swine in dollars per one the code that best describes the type of swine the final (net) price paid.
hundred pounds. in the lot. (x) Percent Choice or better (20). Enter the
(vi) Slaughtered swine average net price (v) Purchased swine head count (15). Enter percentage of the number of lambs in the lot
(16). Enter the average net price established the quantity of swine in the lot in number of of a quality grade of Choice or better.
on that day for the lot of slaughtered swine head. (xi) Classification code (21). Enter the code
in dollars per one hundred pounds. (vi) Purchased swine base price (16). Enter which best describes the quality of the
(vii) Slaughtered swine average live weight the base price established on that day for the majority of the lambs in the lot.
(17). Enter the average live weight of the lot lot of swine in dollars per one hundred
(xii) Dressing percentage (22). Enter an
of swine in pounds if slaughtered swine were pounds.
average dressing percentage for the lambs in
purchased on a live basis, otherwise leave (vii) Purchased swine origin (17). Enter the
the lot. For negotiated purchases, enter an
blank. 2-letter postal abbreviation for the State in
estimate. For all other purchase types, enter
(viii) Slaughtered swine average carcass which the swine were fed to slaughter
the actual average dressing percentage.
weight (18). Enter the average carcass weight weight.
of the lot of slaughtered swine in pounds. (viii) Packer-sold swine purchases (18–25). (xiii) Origin (23). Enter the 2-letter postal
(ix) Slaughtered swine average sort loss Enter the best estimate of the total number of abbreviation for the State in which the lambs
(19). Enter the average sort loss for the lot of packer-sold swine expected to be purchased were fed to slaughter weight. Enter ‘CN’ if
slaughtered swine in dollars per one hundred throughout the reporting day for each lambs originate from Canada.
pounds. purchase type and the total number of (xiv) Pelt Code (24). Enter the code that
(x) Slaughtered swine average backfat (20). packer-sold swine purchased up to that time best describes the type of pelt for the majority
Enter the average backfat measurement for of the reporting day for each purchase type. of lambs in the lot.
the lot of slaughtered swine in inches (ix) All other swine purchases (26–33). (xv)Premiums and discounts paid (25a–f).
rounded to the nearest tenth of an inch. Enter the best estimate of the total number of Enter the total net value of the adjustment for
(xi) Slaughtered swine average loin depth all other swine expected to be purchased the lot (in dollars per hundredweight) for any
(21). Enter the average loin depth throughout the reporting day for each premiums associated with weight, quality, or
measurement for the lot of slaughtered swine purchase type and the total number of all yield expressed as a positive value and for
in inches rounded to the nearest tenth of an other swine purchased up to that time of the any discounts associated with weight,
inch. reporting day for each purchase type. quality, or yield expressed as a negative
(xii) Slaughtered swine average lean (3) LS–120—Swine Noncarcass Merit value in parenthesis.
percentage (22). Enter the average lean Premium Weekly Report. (2) LS–123—Live Lamb Weekly Report.
percentage for the lot of slaughtered swine. Enter the standard noncarcass merit (i) Packer-Owned lot identification (11).
(xiii) Purchased swine lot identification premiums used during the prior slaughter Enter code used to identify the lot of packer-
(23). Enter code used to identify the lot of week (11–15) in dollars per hundredweight. owned lambs to the packer.
purchased swine to the packer. If a range of standard noncarcass merit (ii) Packer-Owned source (12). Enter ‘1’,
(xiv) Purchased swine ownership code premiums was used, enter the low side of the domestic, if packer-owned lambs are from
(24). Enter code which best describes the range (a) and the high side of the range (b). within the 50 States or ‘2’, imported, if lambs
source of the purchased swine whether If only one value was used, enter the same are from outside of the 50 States.
packer-owned, purchased from another number in (a) and (b). If no value for the (iii) Packer-Owned head count (13). Enter
packer, or all other swine. specified merit was used, leave blank. For the quantity of packer-owned lambs in the lot
(xv) Purchased swine class code (25). Enter ‘other’ categories (16–20), provide a brief in number of head.
the code that best describes the type of description of the basis for the premium (iv) Packer-Owned actual carcass weight
purchased swine. along with the value of the premium. range (14a & 14b). Enter the lowest (14a) and
(xvi) Purchased swine purchase type code (c) Lamb Mandatory Reporting Forms. (See highest (14b) actual carcass weights for lambs
(26). Enter the code that describes the type Appendix E for samples). in the lot in pounds.
of purchase for the purchased swine. (1) LS–121—Live Lamb Daily Report (v) Packer-Owned actual average carcass
(xvii) Purchased swine head count (27). (current established prices). weight (15). Enter the actual average carcass
Enter the quantity of purchased swine in the (i) Lot identification (11). Enter code used weight of the lot of packer-owned lambs in
lot. to identify the lot to the packer. pounds.
(xviii) Purchased swine average live weight (ii) Source (12). Enter ‘1’, domestic, if (vi) Packer-Owned average dressing
(28). Enter the average live weight of the lot lambs were purchased inside of the 50 States, percentage (16). Enter the average dressing
of swine in pounds if swine were purchased or ‘2’, imported, if lambs were purchased percentage of the lot of packer-owned lambs.
on a live basis, otherwise leave blank. outside of the 50 States. (vii) Percentage yield grade 3 or better (17).
(xix) Purchased swine base price (29). (iii) Purchase type code (13). Enter the Enter the percentage of packer-owned lambs
Enter the base price established on that day code that describes the type of purchase. in the lot of a yield grade of 3 or better.
(viii) Quality grade percentage (18–). Enter hundredweight. Enter negative values in signify the heavier weight range. Where
the percentage of packer-owned lambs in the parenthesis. weight is not a factor, enter ‘4’ to signify all
lot of a quality grade of Choice or better. (viii) Weighted average of premiums and weights or mixed.
(ix) Prior week slaughtered lambs head discounts paid (18). Enter the weighted (ix) Total product weight (19). Enter the
counts ( ) (19–24). Enter the total number of average of the premiums and discounts paid total weight of the boxed lamb cut in the lot
head of lambs slaughtered for the prior week for the lot of lambs in dollars per in pounds.
that were purchased through forward hundredweight. Enter negative values in (x) Price (20). Enter the price received for
contracts, the total number of head for lambs parenthesis. each boxed lamb cut in the lot in dollars per
purchased through formula arrangements, (4) LS–125—Lamb Premiums and one hundred pounds, FOB Plant basis.
and the total number of head of lambs Discounts Weekly Report. (xi) USDA Certified schedule code (21).
purchased through negotiated cash, Enter the premiums and discounts (in
Enter the code for the USDA Certified
categorized by domestic or imported sources. dollars per hundredweight) expected to be in
Program schedule, if applicable (e.g. CL, etc.);
Enter this information once per each week’s effect for the current slaughter week for each
applicable category of premium and discount otherwise leave blank.
submission. (xii) Branded product code (22a–b). Enter
(11–32). For ‘other’ categories (33–37),
(x) Forward contract purchases lot the quality grade code (22a) and the yield
provide a brief description of the basis for the
identification (25). Enter code used to grade code (22b) that best describes the
premium/discount along with the value of
identify forward contracted lambs to the brand. Leave blank if not applicable.
the premium/discount. Enter negative values
packer. (6) LS–129—Lamb Carcass Report. For lots
in parenthesis.
(xi) Forward contract purchases head count (5) LS–128—Boxed Lamb Daily Report. For comprised of distinct carcass weight range
(26). Enter quantity of forward contracted lots comprising multiple items, provide categories with different prices, provide
lambs in the lot in number of head. information for each item in a separate record information for each weight range in a
(xii) Forward contract purchases basis level identified with the same lot identification or separate record identified with the same lot
(27). Enter the agreed upon adjustment to a purchase order number. identification or purchase order number.
future price to establish the final price of the (i) Lot identification or purchase order (i) Lot identification or purchase order
forward contracted lambs in dollars per one number (11). Enter code used to identify the number (11). Enter code used to identify the
hundred pounds. lot to the packer. lot to the packer.
(xiii) Forward contract purchases delivery (ii) Destination/Source (12). Enter ‘1’, (ii) Transaction type code (12). Enter the
month (28). Enter the delivery month of the domestic, for product originating within the code corresponding to the transaction type of
lambs purchased through forward contracts 50 States or ‘2’, imported, for product the lot of carcass lamb.
as a 3-letter abbreviation. originating from outside of the 50 States. (iii) FOB Plant Price (13). Enter the price
(3) LS–124—Live Lamb Weekly Report (iii) Sale type code (13). Enter the code received for the lamb carcasses in dollars per
(formula purchases). corresponding to the sale type of the lot of one hundred pounds, FOB Plant basis.
(i) Lot identification (11). Enter code used boxed lamb. (iv) Number of carcasses (14). Enter the
to identify the lot to the packer. (iv) Delivery period code (14). Enter the total number of lamb carcasses in the lot.
(ii) Source (12). Enter ‘1’, domestic, if code corresponding to the delivery time (v) Classification code (15) Enter the
lambs are purchased within the 50 States or period of the lot of boxed lamb. corresponding USDA quality grade code.
‘2’, imported, if lambs are purchased outside (v) Refrigeration (15). Enter ‘1’ if the (vi) Yield grade code (16). Enter the
of the 50 States. product is sold in a fresh condition or ‘2’ if corresponding USDA yield grade code.
(iii) Head count (13). Enter the quantity of the product is sold in a frozen condition. (vii) Estimated carcass weight range (17a–
lambs in the lot in number of head. (vi) Classification code (16). Enter the code b). Enter the lowest (17a) and highest (17b)
(iv) Total pounds (14). Enter the total corresponding to the grade of the boxed weights (in pounds) that best describes the
quantity of lambs in the lot in pounds. lamb, if applicable. majority of the lamb carcasses in the lot.
(v) Weighted average carcass price (15). (vii) Lamb cut (17a–b). Enter the numerical (viii) Delivery period code (18). Enter the
Enter the average weighted average carcass code corresponding to the Institutional Meat code corresponding to the time period the
price for the lambs in the lot in dollars per Purchase Specifications (IMPS) (3 to 4 lamb carcasses will deliver.
hundredweight. characters)(17a) or the internal corporate (ix) Transaction basis (19). Enter ‘1’ for
(vi) Range of prices paid (16a–b). Enter the descriptor used to identify the product (17b). purchased carcasses or ‘2’ for sold carcasses.
lowest (16a) and the highest (16b) prices paid Descriptors must be entered consistently for
for the lambs in the lot in dollars per all submissions. Appendix E—Mandatory Reporting
hundredweight. (viii) Weight (18). Enter the code Forms
(vii) Range of premiums and discounts corresponding to the relative weight of the
paid (17a–b). Enter the lowest (17a) and the product. Where weight is a factor, enter ‘1’ The cattle, swine, and lamb mandatory
highest (17b) premium and discount paid for to signify the lighter weight range, ‘2’ to reporting forms follow:
the lot of lambs in dollars per signify the middle weight range, or ‘3’ to 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
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Proposed Rule: Livestock Mandatory Reporting: Swine, Cattle, Lamb, and Boxed Beef Reporting Regulations Reestablishment and Revision

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Proposed Rule: Livestock Mandatory Reporting: Swine, Cattle, Lamb, and Boxed Beef Reporting Regulations Reestablishment and Revision

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Wednesday,

I. Number of Responses per Respondent per Year

Submissions/ Hours/ Total hours/

II. Number of Submission Hours per Respondent per Year

LS–115 ................................................................................................................ 52 .25 13.00

Submissions/ Hours/ Total hours/

LS–120 ................................................................................................................ 52 .25 13.00

Total hours/ Total dollars/

III. Total Submission Cost per Respondent per Year

Totals .............................................................................................................. 323.96 21.33 6,911

Totals .............................................................................................................. 166.40 21.33 3,549

Totals .............................................................................................................. 209.77 21.33 4,474

IV. Total Yearly Submission Cost for All Respondents

Subtotal .......................................................................................................... ........................ ........................ 237,734

LS–120 .................................................................................................................. 277 21 5,817

Subtotal .......................................................................................................... ........................ ........................ 153,329

LS–124 .................................................................................................................. 277 5 1,385

Subtotal .......................................................................................................... ........................ ........................ 31,846

Grand total ..................................................................................................... ........................ ........................ 422,909

TOTAL ANNUAL COST BURDEN TO RESPONDENTS

Average Cost per Respondent: $16,128 / 6 = $2,688.

* Totals may reflect differences in numerical rounding.

In formulating this proposed rule, all Federally inspected cattle plants.

slaughter plants includes businesses with payroll as

small businesses. An estimated 110 to the proposed rule. code 424470.

Boxed Beef Daily Report: Form LS–126

BREAKDOWN OF ESTIMATED DATA SUBMISSION COST BURDEN

I. Number of Responses per Respondent per Year

Submissions/ Hours/submis- Total hours/

II. Number of Submission Hours per Respondent per Year

LS–123 ................................................................................................................ 52 .25 13.00

Total hours/ Total dollars/

III. Total Submission Cost per Respondent per Year

Totals .............................................................................................................. 323.96 21.33 6,911

Totals .............................................................................................................. 166.40 21.33 3,549

Totals .............................................................................................................. 209.77 21.33 4,474

IV. Total Yearly Submission Cost for All Respondents

Subtotal .......................................................................................................... ........................ ........................ 237,734

Subtotal .......................................................................................................... ........................ .... ........................ .... 153,329

Subtotal .......................................................................................................... ........................ ........................ 31,846

Grand total ..................................................................................................... ........................ ........................ 422,909

quality, utility, and clarity of the 59.200 Definitions. participants.

[FR Doc. 07–3857 Filed 8–6–07; 8:45 am]

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