[Congressional Record Volume 167, Number 212 (Wednesday, December 8, 2021)]
[House]
[Pages H7487-H7490]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  CATTLE CONTRACT LIBRARY ACT OF 2021

  Mr. DAVID SCOTT of Georgia. Mr. Speaker, I move to suspend the rules 
and pass the bill (H.R. 5609) to amend the Agricultural Marketing Act 
of 1946, to establish a cattle contract library, and for other 
purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 5609

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Cattle Contract Library Act 
     of 2021''.

     SEC. 2. CATTLE CONTRACT LIBRARY.

       Chapter 2 of subtitle B of the Agricultural Marketing Act 
     of 1946 (7 U.S.C. 1635d et seq.) is amended by adding at the 
     end the following:

     ``SEC. 224. CATTLE CONTRACT LIBRARY.

       ``(a) In General.--Not later than 90 days after the 
     enactment of this Act, the Secretary shall establish and 
     maintain a library or catalog of each type of contract 
     offered by packers to producers for the purchase of all or 
     part of the producers' production of fed cattle (including 
     cattle that are purchased or committed for delivery), 
     including any schedules of premiums or discounts associated 
     with the contract.
       ``(b) Information Collection.--
       ``(1) In general.--To maintain the library or catalog 
     established under subsection (a), the Secretary shall obtain 
     information from each packer on each type of contract of the 
     packer by requiring a filing or other form of information 
     submission from each packer.
       ``(2) Contracted cattle information.--Information submitted 
     to the Secretary by a packer under paragraph (1) shall 
     include, with respect to each contract of a packer--
       ``(A) the type of contract;
       ``(B) the duration of the contract;
       ``(C) all contract summary information;
       ``(D) provisions in the contract that may affect the price 
     of cattle covered by the contract including--
       ``(i) base price;
       ``(ii) schedules of premiums or discounts; and
       ``(iii) transportation arrangements;
       ``(E) the total number of cattle covered by the contract 
     solely committed to the packer each week within the 6-month 
     and 12-month periods following the date of the contract, by 
     reporting region;
       ``(F) in the case of a contract in which a specific number 
     of cattle are not solely committed to the packer--
       ``(i) an indication that the contract is an open 
     commitment; and
       ``(ii) any weekly, monthly, annual, or other limitations on 
     the number of cattle that may be delivered to the packer 
     under the contract; and
       ``(G) a description of the provisions in the contract that 
     provide for expansion in the committed numbers of fed cattle 
     to be delivered under the contract for the 6-month and 12-
     month periods following the date of the contract.
       ``(c) Availability of Information.--
       ``(1) Library contents.--The Secretary shall make publicly 
     available in a user-friendly format a summary of the 
     information collected for each type of contract under 
     subsection (b), including notice (on a real-time basis, if 
     practicable) of the types of contracts that are being offered 
     by packers to, and are open to acceptance by, producers for 
     the purchase of fed cattle.
       ``(2) Reports required.--Beginning not later than 30 days 
     after the date on which the library or catalog is established 
     under subsection (a), the Secretary shall make publicly 
     available weekly or monthly reports for producers and other 
     interested persons, which shall include--
       ``(A) based on the information collected under subsection 
     (b)(2)(E), the total number of fed cattle committed under 
     contracts for delivery to packers within the 6-month and 12-
     month periods following the date of the report, organized by 
     reporting region and type of contract;
       ``(B) based on the information collected under subsection 
     (b)(2)(F), the number of contracts with an open commitment 
     along with any weekly, monthly, annual or other limitations 
     on the number of cattle that may be delivered under such 
     contracts; and

[[Page H7488]]

       ``(C) based on the information collected under subsection 
     (b)(2)(G), the total maximum number of fed cattle that may be 
     delivered within the 6-month and 12-month periods following 
     the date of the report, organized by reporting region and 
     type of contract.
       ``(d) Maintenance of Library or Catalog.--Information in 
     the library or catalog established under subsection (a) about 
     types of contracts that are no longer offered or in use shall 
     be labeled as inactive in the library or catalog.
       ``(e) Confidentiality.--The publication of information 
     under this section shall be subject to the confidentiality 
     protections provided under section 251 of the Agricultural 
     Marketing Act of 1946 (7 U.S.C. 1636).
       ``(f) Violations.--It shall be unlawful and a violation of 
     this Act for any packer to willfully fail or refuse--
       ``(1) to provide to the Secretary accurate information 
     required under this section; or
       ``(2) to comply with any other requirement of this section.
       ``(g) Producer Education Grants.--
       ``(1) In general.--The Secretary, acting through the 
     Administrator of the Agricultural Marketing Service and in 
     coordination with the Director of the National Institute of 
     Food and Agriculture, shall make competitive grants to 
     eligible entities for producer outreach and education efforts 
     on best uses of cattle market information, including 
     information made available through the livestock mandatory 
     reporting program and the catalog or library established 
     under subsection (a).
       ``(2) Selection criteria.--In selecting grant recipients 
     under this section, the Secretary shall give priority to 
     eligible entities that--
       ``(A) demonstrate an ability to work directly with cattle 
     producers;
       ``(B) can quickly and accurately publish and disseminate 
     information and analysis of relevant Department of 
     Agriculture data in a manner that benefits producer decision 
     making; and
       ``(C) collaborate with trade associations or other 
     organizations with a demonstrated ability to provide 
     educational programs on markets and risk management.
       ``(3) Eligible entity.--The term `eligible entity' means an 
     entity listed in subsection (b)(7) of the Competitive, 
     Special, and Facilities Research Grant Act (7 U.S.C. 
     3157(b)(7)).
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary such sums as 
     are necessary to carry out this section.''.

     SEC. 3. DEFINITIONS.

       Section 221 of the Agricultural Marketing Act of 1946 (7 
     U.S.C. 1635d) is amended--
       (1) by amending paragraph (3) to read as follows:
       ``(3) Formula marketing arrangement.--The term `formula 
     marketing arrangement' means the advance commitment of cattle 
     for slaughter--
       ``(A) by any means other than through a negotiated 
     purchase, negotiated grid purchase, or a forward contract; 
     and
       ``(B) using a method for calculating price under which the 
     price is determined at a future date.'';
       (2) by redesignating paragraphs (5), (6), (7), and (8) as 
     paragraphs (6), (7), (8), and (10), respectively;
       (3) by inserting after paragraph (4) the following:
       ``(5) Negotiated grid purchase.--The term `negotiated grid 
     purchase' means a purchase of fed cattle by a packer from a 
     producer under which--
       ``(A) the base price for the cattle is determined by 
     seller-buyer interaction on a day;
       ``(B) the cattle are scheduled for delivery to the packer 
     not more than 14 days after the date on which the agreement 
     for purchase is made; and
       ``(C) the base price is subject to adjustment by premiums 
     and discounts after delivery.''; and
       (4) by inserting after paragraph (8) the following:
       ``(9) Type of contract.--The term `type of contract' means 
     the classification of contracts for the purchase of fed 
     cattle based on the mechanism used to determine the base 
     price for the fed cattle committed to a packer under the 
     contract, including formula purchases, negotiated grid 
     purchases, forward contracts, and other purchase agreements, 
     as determined by the Secretary.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Georgia (Mr.   David Scott) and the gentleman from Pennsylvania (Mr. 
Thompson) each will control 20 minutes.
  The Chair recognizes the gentleman from Georgia.


                             General Leave

  Mr. DAVID SCOTT of Georgia. Mr. Speaker, I ask unanimous consent that 
all Members may have 5 legislative days in which to revise and extend 
their remarks and include extraneous material on the bill under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Georgia?
  There was no objection.
  Mr. DAVID SCOTT of Georgia. Mr. Speaker, I yield myself such time as 
I may consume.
  Mr. Speaker, I rise in strong support of H.R. 5609.
  One of my goals, Mr. Speaker, as chairman of the House Agriculture 
Committee, is to ensure that our farmers and our ranchers are treated 
fairly. This bill, which creates a cattle contract library, will 
improve fairness through increasing transparency in the marketplaces.
  Mr. Speaker, over the past few years, we have seen significant 
volatility in our cattle markets, and the Agriculture Committee has 
held hearings to discuss this volatility and the events that 
precipitated those price fluctuations.
  As we look for ways to bring about parity to cattle markets, this 
bill is one good step in that right direction.
  Mr. Speaker, I want to thank my friend, Mr. Johnson, for his work on 
this bill. This is a good reminder, another reminder, of the great 
bipartisan legislation that is possible when we Democrats and 
Republicans work together to address important issues. I thank the 
gentleman, Mr. Johnson, for putting this bill forward.
  Mr. Speaker, I reserve the balance of my time.
  Mr. THOMPSON of Pennsylvania. Mr. Speaker, I yield the management of 
this bill to Mr. Johnson of South Dakota.
  Mr. JOHNSON of South Dakota. Mr. Speaker, I yield such time as he may 
consume to the gentleman from Pennsylvania (Mr. Thompson).
  Mr. THOMPSON of Pennsylvania. Mr. Speaker, I rise today in support of 
H.R. 5609, the Cattle Contract Library Act of 2021.
  As I am sure many of my colleagues have heard from their constituents 
back home, the differences between prices paid to producers for their 
live cattle, and those paid by consumers at the meat counter, have led 
to spirited debate about the transparency of the cattle markets in the 
wake of the COVID-19 pandemic.
  A variety of hearings on the matter have amplified those concerns. 
These hearings and other related oversight have also made very clear 
the differing opinions on if and how they should be addressed 
legislatively.
  There is a small, but vocal, faction in support of government 
mandates dictating thresholds of cattle to be purchased on the spot 
market. Frankly, such a proposal lacks broad industry support and, in 
my opinion, needs further review to ensure it would actually achieve 
its intended goals.
  In fact, on two occasions now during this Congress, the House 
Agriculture Committee has heard from diverse groups of respected 
economists and industry stakeholders about the potential costs and 
unintended consequences of this sort of government intervention in the 
marketplace.
  Giving these complex and compelling interests, I am thankful for 
Congressman Dusty Johnson's leadership in pursuit of what I view as a 
pragmatic middle ground with a broad cross-section of industry support.
  If true market transparency is the goal, it seems to make sense that 
a cattle contract library could serve as part of the solution. The 
library would serve as a clearinghouse of information regarding the 
various contract provisions being utilized in a variety of marketing 
arrangements. Hopefully, access to this information would provide 
producers and feeders more insight into market transactions and 
ultimately give them more leverage in negotiating better terms for the 
sale of their cattle.
  It may not be a silver bullet to all that ails the industry, but I 
certainly think H.R. 5609 marks a commonsense step in the right 
direction.
  Mr. Speaker, I urge all Members to join me in support of this 
carefully crafted bill.
  Mr. DAVID SCOTT of Georgia. Mr. Speaker, I reserve the balance of my 
time.
  Mr. JOHNSON of South Dakota. Mr. Speaker, I yield myself such time as 
I may consume.
  Mr. Speaker, let's be honest. It has been a pretty difficult few 
years to be a cattle producer. People in that business understand the 
cyclical nature of prices, so that is not so much their beef, if you 
will.
  But in that environment, it is much more difficult to have black swan 
event after black swan event hit these hardworking men and women. From

[[Page H7489]]

the Holcomb fire to COVID-19 disruptions, it has been an incredibly 
volatile marketplace. They are trying to make a living and they are 
trying to pay their bills in that kind of environment with less price 
transparency than they have ever had.
  Now, it used to be relatively easy. Of course, I think we all know 
that price discovery is a critically important part of any fully 
functional marketplace. It used to be easy. You just went down to the 
sale barn, you sat in the seats, and you were able to see exactly what 
Mr. Mann was selling his cattle for and exactly what Mrs. Hartzler was 
buying them for.
  But as we have seen a migration of sales away from the sale barn and 
to alternative marketing agreements, that has left our producers less 
prepared to understand what is going on in the marketplace.
  That is why I was so grateful to see a broad cross-section of 
stakeholders come together in Phoenix a few months ago. They said: Gosh 
darn it, we are tired of having the livestock industry fight amongst 
each other. Let's settle on what we can agree on, things that we can 
actually get done in the 117th Congress.
  Mr. Speaker, they came out of that meeting with a clear clarion call 
for what Congress can do to help. There were three majors items, but 
the cattle library, along with the bill we just passed, the Livestock 
Mandatory Reporting program, were the heart of one of the three 
recommendations.
  What this bill does is takes the information, basic nonconfidential 
information, from those alternative marketing agreements and makes it 
available, and it makes sure that there is a mechanism for that 
information to be put into resources that can actually be used by the 
independent cattle producers and the small feeders that are so 
critically important to this marketplace.
  This has been widely bipartisan, and this is embraced by a fantastic 
cross-section, from the U.S. cattlemen to NCBA to Farm Bureau to 
National Farmers Union to the Livestock Marketing Association, good 
people who have come together and understand that while this does not 
solve the problem, it is a critically important step in moving us in 
the right direction.
  Mr. Speaker, I reserve the balance of my time.

                              {time}  1230

  Mr. DAVID SCOTT of Georgia. Mr. Speaker, I reserve the balance of my 
time.
  Mr. JOHNSON of South Dakota. Mr. Speaker, I yield 3 minutes to the 
gentlewoman from Missouri (Mrs. Hartzler).
  Mrs. HARTZLER. Mr. Speaker, I rise today in strong support of H.R. 
5609, a bill that I am a cosponsor of, the Cattle Contract Library Act.
  This legislation includes a vital piece of my Optimizing the Cattle 
Market Act that establishes a USDA-maintained library of cattle 
contracts, including information on the type of contract, length of the 
contract, pricing information, and delivery information. The increased 
market transparency that this bill provides is long overdue.
  American cattle producers continue to face challenges as a result of 
market disruptions and the unprecedented effects of the COVID-19 
pandemic. It is essential that cattle producers are equipped with the 
necessary resources and knowledge to increase their leverage during 
price negotiations for cattle.
  The Cattle Contract Library Act can provide a much-needed tool in 
helping cattle producers make informed decisions and survive volatility 
across today's industry.
  I fully support this bipartisan legislation, and I thank Congressman 
Dusty Johnson for his hard work and leadership on this. I urge my 
colleagues to vote ``yes.''
  Mr. DAVID SCOTT of Georgia. Mr. Speaker, I have no additional 
speakers on this bill, and I reserve the balance of my time.
  Mr. JOHNSON of South Dakota. Mr. Speaker, I want to recognize the 
real leadership that Mrs. Hartzler has shown on these issues for years 
and thank her for that.
  One of the great things about Congress is most of us were just normal 
people before we got here, leaders in our industry, and the next 
speaker is certainly that. He is somebody who understands the finance 
of ag operations and the operation of these farms and ranches. He is 
one of the strongest freshman voices in Congress.
  I yield 2 minutes to the gentleman from Kansas (Mr. Mann).
  Mr. MANN. Mr. Speaker, I thank the gentleman from South Dakota (Mr. 
Johnson) for all of his work in getting this legislation put together 
and bringing it to the floor this morning. It is not a silver bullet, 
but it potentially can help our cattle markets.
  I grew up on a family farm and preconditioning feed yard. I spent 
thousands of hours riding pens and doctoring sick cattle in the Big 
First District of Kansas, which is the largest beef-producing district 
in the country. The Big First is home to cow-calf operations, feed 
yards, and packing plants of all sizes.
  In my district and across the country, cattle producers face 
challenging market dynamics, including historically wide gaps between 
wholesale beef prices and fed cattle prices, packing capacity and 
regulation, and more.
  I have talked to hundreds of cattle producers in Kansas, ranging from 
small cow-calf operations to some of the country's largest feed yards. 
Overwhelmingly, I have heard that we need to increase price discovery 
in the cash market, make sure that producers benefit when they provide 
a superior product, refuse to let the government in the free market, 
and acknowledge regional differences in the industry.
  The Cattle Contract Library Act is a simple step toward addressing 
some of today's concerns with more fairness, transparency, and healthy 
competition in the cattle market. I am committed to working with the 
gentleman from South Dakota (Mr. Johnson), my colleagues in the House, 
and others across Kansas and the country in addressing any concerns 
with the program and the cattle market before reauthorization of the 
program at this time next year.
  The Cattle Contract Library Act will help ensure that all market 
participants are both paying and receiving a fair price for their 
goods. It sends a clear message to ranchers, farmers, and livestock 
producers across the country that their voices are being heard in 
Washington. I urge my colleagues to support it.
  Mr. JOHNSON of South Dakota. Mr. Speaker, I yield 3 minutes to the 
gentlewoman from Illinois (Mrs. Miller), a Member who has firsthand 
experience with the true operation of America's farms and ranches.
  Mrs. MILLER of Illinois. Mr. Speaker, I rise today in support of H.R. 
5609, the Cattle Contract Library Act of 2021.
  My fellow farmers, farm families, and members of the House 
Agriculture Committee know the importance of bringing transparency to 
the cattle market. Currently, cattlemen are unaware of contract terms 
being offered by producers, which leads to a decline in leverage for 
smaller producers during price negotiations.
  This bill will require packers to report terms of alternative 
marketing agreements between packers and producers to the USDA, 
equipping ranchers with additional market data needed to make informed 
business decisions.
  The USDA library will provide producers with key details on cattle 
contracts, including the type and duration. Market transparency is a 
critical component of price discovery in cattle marketing.
  Mr. Speaker, I thank the gentleman from South Dakota (Mr. Johnson) 
for putting forth this important legislation.
  Mr. JOHNSON of South Dakota. Mr. Speaker, I yield 3 minutes to the 
gentlewoman from Iowa (Mrs. Miller-Meeks).
  Mrs. MILLER-MEEKS. Mr. Speaker, I thank my friend and colleague from 
South Dakota for yielding me time to speak today.
  Iowa's farmers, ranchers, and producers know the value of a hard 
day's work. For years, they have endured challenges beyond their 
control. Even though I am a doctor, I know of no work more demanding 
than birthing calves in the middle of winter and helping them to 
survive.

  Natural disasters such as fires, drought, and derechos have created 
significant market disruptions.
  I was proud to be a cosponsor of Congressman Johnson's Cattle 
Contract Library Act to give cattlemen access

[[Page H7490]]

to the most accurate data to make the best decisions possible for their 
families and their business in the face of these conditions and provide 
more transparency in the markets.
  For months, I have been calling for increased transparency in our 
cattle markets to help both producers and consumers. I was proud to 
introduce the bipartisan Meat Packing Special Investigator Act to take 
on anticompetitive practices and give producers a fair shake and 
strictly enforce the Packers and Stockyards Act.
  I was also proud to help introduce the Cattle Price Discovery and 
Transparency Act, which aims to return fairness to the cattle 
marketplace dominated by four major meatpackers.
  It is crucial for Iowa's producers that there is fairness and 
transparency in our cattle industry. I thank Congressmen Johnson and 
Cuellar for their incredible work on this issue. I urge all of my 
colleagues to vote ``yes'' on this important legislation, H.R. 5609.
  Mr. JOHNSON of South Dakota. Mr. Speaker, I yield myself the balance 
of my time to close.
  Mr. Speaker, I don't know that I can say it any better than the 
Members of Congress here who have so much firsthand experience with 
working ranches and farms. This is a beautiful bipartisan solution.
  If you believe in the marketplace, then you understand the importance 
of price discovery, and you cannot have price discovery if you don't 
have transparency. This just provides additional leverage and 
additional tools to the hardworking, independent cow-calf operators and 
small feeders who have seen their position, their leverage, in the 
marketplace erode in recent years.
  I urge my colleagues on both sides of the aisle to enthusiastically 
support this promarket legislation. I look forward to the Senate 
expeditiously taking up this issue as well.
  Mr. Speaker, I yield back the balance of my time.
  Mr. DAVID SCOTT of Georgia. Mr. Speaker, I yield myself the balance 
of my time to close.
  First of all, I thank the gentleman from South Dakota (Mr. Johnson) 
for his dedication, hard work, and talent in putting forward this bill.
  I believe that our ranchers, farmers, and those in the agriculture 
industry are looking at a great day for agriculture today to get these 
four important bills over to the Senate, where we will be working 
together on them.
  Mr. Speaker, again, I thank Mr. Johnson, and I yield back the balance 
of my time.
  The SPEAKER pro tempore (Mr. Courtney). The question is on the motion 
offered by the gentleman from Georgia (Mr.   David Scott) that the 
House suspend the rules and pass the bill, H.R. 5609.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. BIGGS. Mr. Speaker, on that I demand the yeas and nays.
  The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution 
8, the yeas and nays are ordered.
  Pursuant to clause 8 of rule XX, further proceedings on this motion 
are postponed.

                          ____________________