[Congressional Record (Bound Edition), Volume 151 (2005), Part 15]
[House]
[Pages 20177-20179]
[From the U.S. Government Publishing Office, www.gpo.gov]




      REAUTHORIZING THE LIVESTOCK MANDATORY REPORTING ACT OF 1999

  Mr. GOODLATTE. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 3408) to reauthorize the Livestock Mandatory Reporting Act 
of 1999 and to amend the swine reporting provisions of that Act, as 
amended.
  The Clerk read as follows:

                               H.R. 3408

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

     SECTION 1. EXTENSION.

       (a) In General.--Chapter 5 of subtitle B of the 
     Agricultural Marketing Act of 1946 (7 U.S.C. 1636 et seq.) is 
     amended by adding at the end the following new section:

     ``SEC. 260. TERMINATION OF AUTHORITY.

       ``The authority provided by this subtitle terminates on 
     September 30, 2010.''.
       (b) Conforming Amendment and Extension.-- Section 942 of 
     the Livestock Mandatory Reporting Act of 1999 (7 U.S.C. 1635 
     note; Public Law 106-78) is amended by striking ``terminate 
     on September 30, 2005'' and inserting ``(other than section 
     911 of subtitle A and the amendments made by that section) 
     terminate on September 30, 2010''.

     SEC. 2. DEFINITIONS.

       (a) Base Market Hogs.--Section 231(4) of the Agricultural 
     Marketing Act of 1946 (7 U.S.C. 1635i(4)) is amended to read 
     as follows:
       ``(4) Base market hog.--The term `base market hog' means a 
     barrow or gilt for which no discounts are subtracted from and 
     no premiums are added to the base price.''.
       (b) Boars.--Section 231(5) of such Act (7 U.S.C. 1635i(5)) 
     is amended to read as follows:
       ``(5) Boar.--The term `boar' means a sexually-intact male 
     swine.''.
       (c) Packer of Sows and Boars.--Section 231(12) of such Act 
     (7 U.S.C. 1635i(12)) is amended by--
       (1) striking subparagraph (B) and inserting the following 
     new subparagraph:
       ``(B) for any calendar year, the term includes only--
       ``(i) a swine processing plant that slaughtered an average 
     of at least 100,000 swine per year during the immediately 
     preceding five calendar years; and
       ``(ii) a person that slaughtered an average of at least 
     200,000 sows, boars, or any combination thereof, per year 
     during the immediately preceding five calendar years; and''; 
     and
       (2) in subparagraph (C)--
       (A) by inserting ``or person'' after ``swine processing 
     plant'';
       (B) by inserting ``or person'' after ``plant capacity of 
     the processing plant''; and
       (C) by inserting ``or person'' after ``determining whether 
     the processing plant''.

     SEC. 3. REPORTING; BARROWS AND GILTS.

       Section 232(c) of the Agricultural Marketing Act of 1946 (7 
     U.S.C. 1635j(c)) is amended to read as follows:
       ``(c) Daily Reporting; Barrows and Gilts.--
       ``(1) Prior day report.--
       ``(A) In general.--The corporate officers or officially 
     designated representatives of each packer processing plant 
     that processes barrows or gilts shall report to the 
     Secretary, for each business day of the packer, such 
     information as the Secretary determines necessary and 
     appropriate to--
       ``(i) comply with the publication requirements of this 
     section; and
       ``(ii) provide for the timely access to the information by 
     producers, packers, and other market participants.
       ``(B) Reporting deadline and plants required to report.--A 
     packer required to report under subparagraph (A) shall--
       ``(i) not later than 7:00 a.m. Central Time on each 
     reporting day, report information regarding all barrows and 
     gilts purchased or priced, and
       ``(ii) not later than 9:00 a.m. Central Time on each 
     reporting day, report information regarding all barrows and 
     gilts slaughtered,
     during the prior business day of the packer.
       ``(C) Information required.--The information from the prior 
     business day of a packer required under this paragraph shall 
     include--
       ``(i) all purchase data, including--

       ``(I) the total number of--

       ``(aa) barrows and gilts purchased; and
       ``(bb) barrows and gilts scheduled for delivery; and

       ``(II) the base price and purchase data for slaughtered 
     barrows and gilts for which a price has been established;

       ``(ii) all slaughter data for the total number of barrows 
     and gilts slaughtered, including--

       ``(I) information concerning the net price, which shall be 
     equal to the total amount paid by a packer to a producer 
     (including all premiums, less all discounts) per hundred 
     pounds of carcass weight of barrows and gilts delivered at 
     the plant--

       ``(aa) including any sum deducted from the price per 
     hundredweight paid to a producer that reflects the repayment 
     of a balance owed by the producer to the packer or the 
     accumulation of a balance to later be repaid by the packer to 
     the producer; and
       ``(bb) excluding any sum earlier paid to a producer that 
     must later be repaid to the packer;

       ``(II) information concerning the average net price, which 
     shall be equal to the quotient (stated per hundred pounds of 
     carcass weight of barrows and gilts) obtained by dividing--

       ``(aa) the total amount paid for the barrows and gilts 
     slaughtered at a packing plant during the applicable 
     reporting period, including all premiums and discounts, and 
     including any sum deducted from the price per hundredweight 
     paid to a producer that reflects the repayment of a balance 
     owed by the producer to the packer, or the accumulation of a 
     balance to later be repaid by the packer to the producer, 
     less all discounts; by
       ``(bb) the total carcass weight (in hundred pound 
     increments) of the barrows and gilts;

       ``(III) information concerning the lowest net price, which 
     shall be equal to the lowest net price paid for a single lot 
     or a group of barrows or gilts slaughtered at a packing plant 
     during the applicable reporting period per hundred pounds of 
     carcass weight of barrows and gilts;
       ``(IV) information concerning the highest net price, which 
     shall be equal to the highest net price paid for a single lot 
     or group of barrows or gilts slaughtered at a packing plant 
     during the applicable reporting period per hundred pounds of 
     carcass weight of barrows and gilts;
       ``(V) the average carcass weight, which shall be equal to 
     the quotient obtained by dividing--

       ``(aa) the total carcass weight of the barrows and gilts 
     slaughtered at the packing plant during the applicable 
     reporting period, by
       ``(bb) the number of the barrows and gilts described in 
     item (aa),

     adjusted for special slaughter situations (such as skinning 
     or foot removal), as the Secretary determines necessary to 
     render comparable carcass weights;
       ``(VI) the average sort loss, which shall be equal to the 
     average discount (in dollars per hundred pounds carcass 
     weight) for barrows and gilts slaughtered during the 
     applicable reporting period, resulting from the fact that the 
     barrows and gilts did not fall within the individual packer's 
     established carcass weight or lot variation range;

[[Page 20178]]

       ``(VII) the average backfat, which shall be equal to the 
     average of the backfat thickness (in inches) measured between 
     the third and fourth from the last ribs, 7 centimeters from 
     the carcass split (or adjusted from the individual packer's 
     measurement to that reference point using an adjustment made 
     by the Secretary) of the barrows and gilts slaughtered during 
     the applicable reporting period;
       ``(VIII) the average lean percentage, which shall be equal 
     to the average percentage of the carcass weight comprised of 
     lean meat for the barrows and gilts slaughtered during the 
     applicable reporting period, except that when a packer is 
     required to report the average lean percentage under this 
     subclause, the packer shall make available to the Secretary 
     the underlying data, applicable methodology and formulae, and 
     supporting materials used to determine the average lean 
     percentage, which the Secretary may convert to the carcass 
     measurements or lean percentage of the barrows and gilts of 
     the individual packer to correlate to a common percent lean 
     measurement; and
       ``(IX) the total slaughter quantity, which shall be equal 
     to the total number of barrows and gilts slaughtered during 
     the applicable reporting period, including all types of 
     purchases and barrows and gilts that qualify as packer-owned 
     swine; and

       ``(iii) packer purchase commitments, which shall be equal 
     to the number of barrows and gilts scheduled for delivery to 
     a packer for slaughter for each of the next 14 calendar days.
       ``(D) Publication.--
       ``(i) In general.--The Secretary shall publish the 
     information obtained under this paragraph in a prior day 
     report--

       ``(I) in the case of information regarding barrows and 
     gilts purchased or priced, not later than 8:00 a.m. Central 
     Time, and
       ``(II) in the case of information regarding barrows and 
     gilts slaughtered, not later than 10:00 a.m. Central time,

     on the reporting day on which the information is received 
     from the packer.
       ``(ii) Price distributions.--The information published by 
     the Secretary under clause (i) shall include a distribution 
     of net prices in the range between and including the lowest 
     net price and the highest net price reported. The publication 
     shall include a delineation of the number of barrows and 
     gilts at each reported price level or, at the option of the 
     Secretary, the number of barrows and gilts within each of a 
     series of reasonable price bands within the range of prices.
       ``(2) Morning report.--
       ``(A) In general.--The corporate officers or officially 
     designated representatives of each packer processing plant 
     that processes barrows or gilts shall report to the Secretary 
     not later than 10:00 a.m. Central Time each reporting day--
       ``(i) the packer's best estimate of the total number of 
     barrows and gilts, and barrows and gilts that qualify as 
     packer-owned swine, expected to be purchased throughout the 
     reporting day through each type of purchase;
       ``(ii) the total number of barrows and gilts, and barrows 
     and gilts that qualify as packer-owned swine, purchased up to 
     that time of the reporting day through each type of purchase;
       ``(iii) the base price paid for all base market hogs 
     purchased up to that time of the reporting day through 
     negotiated purchases; and
       ``(iv) the base price paid for all base market hogs 
     purchased through each type of purchase other than negotiated 
     purchase up to that time of the reporting day, unless such 
     information is unavailable due to pricing that is determined 
     on a delayed basis.
       ``(B) Publication.--The Secretary shall publish the 
     information obtained under this paragraph in the morning 
     report as soon as practicable, but not later than 11:00 a.m. 
     Central Time, on each reporting day.
       ``(3) Afternoon report.--
       ``(A) In general.--The corporate officers or officially 
     designated representatives of each packer processing plant 
     that processes barrows or gilts shall report to the Secretary 
     not later than 2:00 p.m. Central Time each reporting day--
       ``(i) the packer's best estimate of the total number of 
     barrows and gilts, and barrows and gilts that qualify as 
     packer-owned swine, expected to be purchased throughout the 
     reporting day through each type of purchase;
       ``(ii) the total number of barrows and gilts, and barrows 
     and gilts that qualify as packer-owned swine, purchased up to 
     that time of the reporting day through each type of purchase;
       ``(iii) the base price paid for all base market hogs 
     purchased up to that time of the reporting day through 
     negotiated purchases; and
       ``(iv) the base price paid for all base market hogs 
     purchased up to that time of the reporting day through each 
     type of purchase other than negotiated purchase, unless such 
     information is unavailable due to pricing that is determined 
     on a delayed basis.
       ``(B) Publication.--The Secretary shall publish the 
     information obtained under this paragraph in the afternoon 
     report as soon as practicable, but not later than 3:00 p.m. 
     Central Time, on each reporting day.''.

     SEC. 4. REPORTING; SOWS AND BOARS.

       Section 232 of the Agricultural Marketing Act of 1946 (7 
     U.S.C. 1635j) is amended by--
       (1) redesignating subsection (d) as subsection (e); and
       (2) inserting after subsection (c) the following new 
     subsection:
       ``(d) Daily Reporting; Sows and Boars.--
       ``(1) Prior day report.--The corporate officers or 
     officially designated representatives of each packer of sows 
     and boars shall report to the Secretary, for each business 
     day of the packer, such information reported by hog class as 
     the Secretary determines necessary and appropriate to--
       ``(A) comply with the publication requirements of this 
     section; and
       ``(B) provide for the timely access to the information by 
     producers, packers, and other market participants.
       ``(2) Reporting.--Not later than 9:30 a.m. Central Time, or 
     such other time as the Secretary considers appropriate, on 
     each reporting day, a packer required to report under 
     paragraph (1) shall report information regarding all sows and 
     boars purchased or priced during the prior business day of 
     the packer.
       ``(3) Information required.--The information from the prior 
     business day of a packer required under this subsection shall 
     include all purchase data, including--
       ``(A) the total number of sows purchased and the total 
     number of boars purchased, each divided into at least three 
     reasonable and meaningful weight classes specified by the 
     Secretary;
       ``(B) the number of sows that qualify as packer-owned 
     swine;
       ``(C) the number of boars that qualify as packer-owned 
     swine;
       ``(D) the average price paid for all sows;
       ``(E) the average price paid for all boars;
       ``(F) the average price paid for sows in each weight class 
     specified by the Secretary under subparagraph (A);
       ``(G) the average price paid for boars in each weight class 
     specified by the Secretary under subparagraph (A);
       ``(H) the number of sows and the number of boars for which 
     prices are determined, by each type of purchase;
       ``(I) the average prices for sows and the average prices 
     for boars for which prices are determined, by each type of 
     purchase; and
       ``(J) such other information as the Secretary considers 
     appropriate to carry out this subsection.
       ``(4) Price calculations without packer-owned swine.--A 
     packer shall omit the prices of sows and boars that qualify 
     as packer-owned swine from all average price calculations, 
     price range calculations, and reports required by this 
     subsection.
       ``(5) Reporting exception: public auction purchases.--The 
     information required to be reported under this subsection 
     shall not include purchases of sows or boars made by agents 
     of the reporting packer at a public auction at which the 
     title of the sows and boars is transferred directly from the 
     producer to such packer.
       ``(6) Publication.--The Secretary shall publish the 
     information obtained under this paragraph in a prior day 
     report not later than 11:00 a.m. Central Time on the 
     reporting day on which the information is received from the 
     packer.
       ``(7) Electronic submission of information.--The Secretary 
     of Agriculture shall provide for the electronic submission of 
     any information required to be reported under this subsection 
     through an Internet website or equivalent electronic means 
     maintained by the Department of Agriculture.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Virginia (Mr. Goodlatte) and the gentleman from Minnesota (Mr. 
Peterson) each will control 20 minutes.
  The Chair recognizes the gentleman from Virginia (Mr. Goodlatte).
  Mr. GOODLATTE. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise today in support of H.R. 3408, a bill to 
reauthorize the Livestock Mandatory Reporting Act of 1999.
  Mr. Speaker, when the Congress considered this legislation in 1999, 
its intent was to improve the livestock market news reporting system so 
that farmers and ranchers, particularly those that rely on cash market 
sales, could enjoy improved market transparency and better price 
discovery.
  In particular, the Act provided the USDA with the authority to 
collect and disseminate information that can be readily understood by 
livestock producers, packers, and other participants, including 
information with respect to pricing, contract for purchase, and supply 
and demand conditions for livestock, livestock production, and 
livestock products.
  The legislation enacted in 1999 was the product of extensive 
discussion between livestock producers and packers. We relied on this 
process partly because it was such a technical issue, but

[[Page 20179]]

mostly we wanted to avoid the situation where segments of the industry 
were divided against each other. After considerable give and take, the 
final product was agreed on by all participants.
  As the time for reauthorization neared, producers and packers engaged 
again in a dialogue to develop a consensus proposal for 
reauthorization. H.R. 3408 is the product of this hard work. The 
coalition that supports this consensus legislation included the 
National Pork Producers Council, the American Meat Institute, the 
National Cattlemen's Beef Association, the Chicago Mercantile Exchange, 
the American Sheep Industry Association, and the American Farm Bureau 
Federation.
  This package, as it appears before us today, is a carefully crafted 
document. All of these organizations have agreed that they will oppose 
it ``if any amendment is adopted that does not have the prior 
agreement'' of the coalition.
  Mandatory price reporting expires at the end of September, and this 
bill reauthorizes it for 5 years with minor changes representing the 
consensus of our constituents.
  Mr. Speaker, I would like to thank my colleague, the ranking member, 
the gentleman from Minnesota (Mr. Peterson) for working with us on this 
legislation. I urge my colleagues to support the bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. PETERSON of Minnesota. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I thank the chairman for his leadership on this issue. 
Policy is always best when we can work together in a bipartisan manner 
to craft legislation which we have done on this piece of legislation 
and we have legislation that addresses the needs of his stakeholders. I 
think we have accomplished that today with the reauthorization of the 
mandatory price reporting law.
  I think it should be noted that when this was first put together and 
considered back in 1999, it was somewhat controversial and there were 
some groups that were opposed to it. And to show you kind of what has 
happened this time, the groups that were concerned back then support 
this law and support this reauthorization.
  Originally, it was balanced to address the concerns of the livestock 
producers with price transparency, and mandatory price reporting I 
think has served the industry well. Mandatory price reporting is a 
necessary tool to ensure that our producers have a transparent market 
atmosphere. As the structure of our livestock production systems 
continue to change, it is necessary to preserve the safety net that 
guarantees our producers are receiving fair prices for their livestock.
  The legislation we consider today improves the quality and quantity 
of information, making the process more accurate and more efficient. 
The 5-year reauthorization is important and should be completed as soon 
as possible. It is important that we complete this task so we can avoid 
the gap in reporting that occurred last year.
  I am pleased to support this bill with the gentleman from Virginia 
(Mr. Goodlatte) and I urge its passage.
  Mr. Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  Mr. GOODLATTE. Mr. Speaker, I have no further requests for time, and 
I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Virginia (Mr. Goodlatte) that the House suspend the 
rules and pass the bill, H.R. 3408, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________