[Federal Register Volume 65, Number 53 (Friday, March 17, 2000)]
[Proposed Rules]
[Pages 14652-14691]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-6322]



[[Page 14651]]

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Part II





Department of Agriculture





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Agricultural Marketing Service



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7 CFR Part 57



Livestock and Grain Market News Branch: Livestock Mandatory Reporting; 
Proposed Rule

  Federal Register / Vol. 65, No. 53 / Friday, March 17, 2000 / 
Proposed Rules  

[[Page 14652]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 57

[No. LS-99-18]
RIN 0581-AB64


Livestock and Grain Market News Branch: Livestock Mandatory 
Reporting

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule and invitation for comment.

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SUMMARY: This proposed rule would establish a mandatory program of 
reporting information regarding the marketing of cattle, swine, lambs, 
and products of such livestock under the ``Livestock Mandatory 
Reporting Act of 1999.'' This proposed rule requires the reporting of 
market information by certain livestock packers, and livestock product 
processors and importers who annually slaughter an average of 125,000 
cattle or 100,000 swine, or slaughter or process an average of 75,000 
lambs. Importers who annually import an average of 5,000 metric tons of 
lamb are also required to report. These entities would be required to 
report the details of all transactions involving purchases of livestock 
and of domestic and imported lamb carcasses and imported lamb cuts, and 
the details of all transactions involving domestic and export sales of 
boxed beef cuts including branded product, sales of domestic and 
imported boxed lamb cuts including branded product, purchases of 
imported boxed lamb cuts including branded product, and lamb carcasses 
to the Agricultural Marketing Service (AMS). This program is intended 
to provide information on pricing, contracting for purchase, and supply 
and demand conditions for livestock, livestock production, and 
livestock products, that can be readily understood by producers, 
packers, and other market participants.

DATES: Written comments on this proposed rule must be received on or 
before April 17, 2000, and will be considered before the rule is made 
final. The AMS has requested and received approval from the Office of 
Management and Budget for a 30-day comment period on the information 
collection and recordkeeping requirements of this proposed rule. 
Accordingly, comments on the information collection and recordkeeping 
requirements (see Paperwork Reduction Act section of this action) must 
be received on or before April 17, 2000.

ADDRESSES: Send two copies of comments to John E. Van Dyke, Chief, 
Livestock and Grain Market News Branch, Docket No. LS-99-18, Room 2619-
S; 1400 Independence Avenue; SW., Washington, D.C. 20250-0252. Comments 
may also be sent by fax to (202) 690-3732, by electronic mail to: 
[email protected], or filed via an on-line form through the AMS 
website at: http://www.ams.usda.gov/lsg/mprcomment.htm. State that your 
comments refer to Docket No. LS-99-18. Comments received may be 
inspected at the above location between 8:00 a.m. and 4:30 p.m., Monday 
through Friday, except holidays, or over the AMS website at: http://www.ams.usda.gov/lsg/price.htm.
    Comments sent to the above location that specifically pertain to 
the information collection and recordkeeping requirements of this 
action should also be sent to the Desk Officer for Agriculture, Office 
of Information and Regulatory Affairs, Office of Management and Budget, 
Washington, D.C. 20503.

FOR FURTHER INFORMATION CONTACT: John E. Van Dyke, Chief, Livestock and 
Grain Market News Branch at (202) 720-6231, fax (202) 690-3732, or e-
mail [email protected].

SUPPLEMENTARY INFORMATION:

Background

Market News

    The current voluntary market news program for livestock is 
authorized under the provisions of the Agricultural Marketing Act of 
1946, as amended (7 U.S.C. 1621 et seq.). In the Agricultural Marketing 
Act of 1946, Congress declared that a sound, efficient, and privately 
operated system for distributing and marketing agricultural products is 
essential. Furthermore, it is indispensable to the maintenance of full 
employment and to the welfare, prosperity, and health of the Nation. 
Agricultural products, capable of being produced in great abundance, 
must be marketed in an orderly manner and efficiently distributed. Some 
of the objectives of the Agricultural Marketing Act of 1946 are to 
improve marketing methods, reduce distribution costs, and narrow the 
price spread between the producer and consumer. Under the 1946 Act, the 
Market News Program provides for the collection and dissemination of 
information to facilitate the orderly and efficient marketing of 
agricultural products while aiding in the maintenance of farm income. 
Market News provides all market participants with the information 
necessary to make intelligent and informed marketing decisions.
    Market News relies upon voluntary cooperation from the livestock, 
red meat, grain, and wool industry. In addition, Market News maintains 
voluntary working agreements with many States to cooperatively collect 
and disseminate market information. Market News reporters collect 
information daily by telephone, including talking directly with 
producers, packers, feedlot operators, retailers, distributors, 
brokers, and other industry participants. Reporters are on site at 
major auctions and terminal markets, gathering market information first 
hand. Regular trips are made to observe livestock in feedlots, on 
farms, ranches, and in packer holding pens. Meat packing and processing 
facilities are visited to observe current industry practices and 
conditions. Reporters attend industry meetings, seminars, and trade 
shows to keep abreast of the latest information. The information 
collected by reporters is included in reports that are available to all 
interested parties. These reports provide data on cattle, hog, sheep, 
and lamb sales, carlot meat sales of boxed beef, lamb, veal, and pork 
cuts, weekly wool and mohair sales, and grain and feed sales. 
Currently, there are a total of 800 individual reports which are 
released by Market News. Each day, the livestock and red meat industry 
uses these reports in conducting their business. Further, a wide range 
of users outside of and peripheral to the livestock and red meat 
industry depend on the information provided in these reports, including 
Federal and State governmental agencies, foreign governmental agencies, 
academia, analysts, and news media.
    The Livestock Mandatory Reporting Act of 1999 (Act) was enacted 
into law on October 22, 1999 (Pub. L. 106-78; 113 Stat. 1188; 7 U.S.C. 
1635-1636h) as an amendment to the Agriculture Marketing Act of 1946 (7 
U.S.C. 1621 et seq.). The Act provides for the mandatory reporting of 
market information by Federally inspected livestock processing plants 
which have slaughtered an average number of livestock during the 
immediately preceding 5 calendar years (125,000 for cattle and 100,000 
for swine), including any processing plant that did not slaughter 
during the immediately preceding 5 calendar years if the Secretary 
determines that the plant should be considered a packer based on the 
plant's capacity. For entities that did not slaughter during the 
immediately preceding 5 calendar years, such as a new plant or existing 
plant that begins

[[Page 14653]]

operations the AMS will project the plant's annual slaughter or 
production based upon the plant's estimate of annual slaughter capacity 
to determine which entities meet the definition of a packer as defined 
in these regulations.
    The Act gives the Secretary the latitude to provide for the 
reporting of lamb information. The Agricultural Marketing Service (AMS) 
is proposing in these regulations to require reporting of market 
information by Federally inspected lamb processing plants who have 
slaughtered an average of 75,000 head of lambs or processed an average 
of 75,000 lamb carcasses during the immediately preceding 5 calendar 
years. Additionally, a lamb processing plant that did not slaughter an 
average of 75,000 lambs or process an average of 75,000 lamb carcasses 
during the immediately preceding 5 calendar years will be required to 
report information if the Secretary determines the processing plant 
should be considered a packer based on its capacity. It is proposed 
that an importer of lamb that, for any calendar year, imported an 
average of 5,000 metric tons of lamb meat products per year during the 
immediately preceding 5 calendar years report such lamb information as 
specified in these proposed regulations. Additionally, an importer that 
did not import an average of 5,000 metric tons of lamb meat products 
during the immediately preceding 5 calendar years will be required to 
report information if the Secretary determines that the person should 
be considered an importer based on their volume of lamb imports.
    These packers and importers would be required to report the details 
of all transactions involving purchases of livestock (cattle, swine, 
and lambs), lamb carcasses and lamb cuts, and the details of all 
transactions involving domestic and export sales of boxed beef cuts 
including branded product, sales of boxed lamb cuts, including branded 
product, and lamb carcasses to AMS. This information would be reported 
to AMS according to the schedule established by the Act and these 
regulations with purchases of swine reported three times each day, 
purchases of cattle and lambs reported twice each day, domestic and 
export sales of boxed beef cuts including branded boxed beef cuts 
reported twice each day, sales and purchases of lamb carcasses and 
boxed lamb cuts, including branded boxed lamb cuts, to be reported once 
daily, purchases of imported lamb carcasses, and sales and purchases of 
imported lamb cuts once weekly.
    In some instances, mandatory reporting will provide new information 
which has never been reported under the existing voluntary reporting 
program. AMS anticipates that this information will provide the basis 
for newly published market news reports not previously provided for 
under voluntary reporting, including reports covering the prior day 
swine market, forward contract and formula marketing arrangement cattle 
purchases, packer-owned cattle and sheep information, sales and 
purchases of imported boxed lamb cuts, including branded product; 
purchases of imported lamb carcasses; and live lamb premiums and 
discounts. In other instances, mandatory reporting will provide 
information which is already being provided under voluntary reporting. 
This would include packer direct purchases of slaughter cattle, packer 
sales of boxed beef and lamb cuts including branded boxed cuts, packer 
sales of lamb carcasses, and packer negotiated purchases of swine. AMS 
anticipates that, in such cases, the market reports reflecting this 
information will continue to be published but the basis of the market 
reports will become mandatory information. Lastly, many voluntary-based 
market news reports will not be affected by mandatory reporting, 
including reports covering livestock auction sales, packer sales of 
pork cuts and byproducts, and grain trading.
    Initially, AMS expects that mandatory information will be reflected 
in market news reports on a national level. AMS will start with the 
issuance of national reports to ensure the confidentiality is preserved 
regarding the identity of persons, including parties to a contract, and 
proprietary business information. In time, when and where possible, 
these reports may be further refined and subdivided to reflect regional 
and, possibly, statewide markets. AMS anticipates that it would provide 
notice in the Federal Register and opportunity for public comment in 
such an instance. Again, refinement and subdivision of reports will be 
made only where the confidentiality can be preserved regarding the 
identity of persons, including parties to a contract, and proprietary 
business information. In order to effectively address the statistical 
disclosure issues surrounding reporting of data elements below the 
national level, AMS will consult with appropriate experts in the field 
of statistical disclosure limitation during program development. During 
program development, AMS will also include industry participants in 
discussions regarding confidentiality issues surrounding data 
aggregation and reporting.
    The program developed to collect and manage data received from 
those entities required to report will ensure security of data 
transmission and storage, and confidentiality of information that is 
maintained by AMS. During program development, AMS will include 
industry participants, as well as technical experts, in discussions 
regarding issues surrounding data security and confidentiality.
    In all cases, AMS intends to continue to publish a mix of existing 
voluntary market reports along with the proposed mandatory market 
reports where duplication and inferential disclosure (disclosing 
information in such a way that the identity of a respondent can be 
inferred) is not an issue. Any duplication will be resolved with the 
discontinuation of the voluntary report version.

The Livestock Mandatory Reporting Act of 1999 (Act)

    The Act establishes a program of information regarding the 
marketing of cattle, swine, lambs and products of such livestock. AMS 
is responsible for implementing the mandatory reporting of market 
information on livestock and livestock products, which is contained in 
Sections 211 through 256 of the Act. The Sections on mandatory 
reporting of livestock are divided into five Chapters. Chapter 1 and 
Chapter 2, Definitions and Administration, respectively, apply to all 
species of livestock and livestock products required to be reported. 
Chapters 3, 4, and 5 apply to beef, swine, and lamb, respectively, and 
except for lamb, establish the requirements for mandatory reporting. 
AMS is proposing regulations in this rulemaking to implement these 
sections of the Act.
    The Act also directs the Secretary to encourage continued voluntary 
reporting by packers to which these mandatory reporting requirements do 
not apply. Other Agencies in the Department are responsible for 
implementing the remaining sections of the Act. These sections include 
the following provisions. Section 257 of the Act provides for the 
compilation and monthly publication of retail prices of beef, pork, 
lamb, chicken, turkey and veal and the initiation of a meat price 
spreads report. The Act also contains Related Beef Reporting 
Provisions, Sections 921 through 924 which provides for export 
certificates for meat and meat food products, and obtain information on 
imports of beef, beef variety meats, and cattle. Related Swine 
Reporting Provisions, Sections 931 through 934 calls for improving the 
hogs and pigs inventory report, the collection

[[Page 14654]]

of information on barrow and gilt slaughter, and the conduct of an 
average trim loss correlation study and preparation of report. Swine 
Packer Marketing Contracts, Sections 221 and 222 require the 
establishment and maintenance of a library or catalogue of swine packer 
marketing contracts offered to producers and a monthly report of 
contracted swine numbers.

Cattle

    The Act requires that a cattle packer whose Federally inspected 
plant slaughtered an average of at least 125,000 cattle per year for 
the preceding 5 calendar years or did not slaughter cattle during the 
preceding 5 calendar years but is considered a packer based on plant 
capacity as determined by the Secretary, report market information to 
the Secretary. They are required to report the prices for each type of 
cattle purchase, categorized to clearly delineate imported from 
domestic market purchases, negotiated purchase, formula marketing 
arrangement, and forward contract, the quantity of cattle, categorized 
to clearly delineate imported from domestic market purchases, purchased 
on a live weight basis and a carcass basis, the weight, the quality 
grade, and premiums and discounts. This information would be reported 
twice a day not later than 10:00 a.m. and 2:00 p.m. Central Time. The 
Secretary will issue reports to the public of this information at least 
three times each day.
    The Act further requires that a packer report marketing information 
not later than 9 a.m. Central Time on the first reporting day of each 
week for cattle bought by the type of purchase for the prior week. In 
addition, packers must report weekly information on the first reporting 
day not later than 9 a.m. Central Time for cattle purchased on a 
formula or contract marketing arrangement and slaughtered the prior 
week. The Secretary will issue a public report not later than 10 a.m. 
Central Time on the first reporting day of the current slaughter week.
    The Act also mandates that the packer report information on boxed 
beef cut sales to the Secretary at least twice each reporting day not 
less frequently than once before and once after 12:00 noon Central 
Time. This information includes the price per hundredweight, the 
quantity in each lot of boxed beef cuts sold, information regarding the 
characteristics of each lot (i.e., domestic vs. export sale, USDA 
Quality Grade, etc.), the type of beef cut and the trim specification. 
The Secretary will report this information to the public twice each 
reporting day.

Swine

    The Act requires that a swine packer whose Federally inspected 
plant slaughtered an average of at least 100,000 swine per year for the 
preceding 5 calendar years or did not slaughter swine during the 
preceding 5 calendar years but is considered a packer based on plant 
capacity as determined by the Secretary, report market information to 
the Secretary.
    The packer must report to the Secretary not later than 7:00 a.m. 
Central Time information on all swine purchased, priced, or slaughtered 
on the prior business day. The packer must report all purchasing data 
including the number of swine purchased, swine scheduled for delivery 
and the base price and purchase data for slaughtered swine for which a 
price has been established. The information also includes all slaughter 
data by class for the total number of swine slaughtered including 
information concerning the net price, average net price, lowest net 
price, highest net price, average carcass weight, average sort loss, 
average backfat, average lean percentage, and total slaughter quantity. 
When a packer reports the average lean percentage and whenever the 
packer changes the manner in which the average lean percentage is 
calculated, the packer shall make available to the Secretary the 
underlying data, applicable methodology and formulae, and supporting 
materials used to determine the average lean percentage, which the 
Secretary will convert to the carcass measurements or lean percentage 
of the swine of the individual packer to correlate to a common percent 
lean measurement. Additionally, the information to be reported includes 
packer purchase commitments, which shall be equal to the number of 
swine scheduled for delivery to a packer for slaughter each of the next 
14 calendar days.
    The Secretary will publish the information in a prior day report 
not later than 8:00 a.m. Central Time on the reporting day on which the 
information is received from the packer.
    The Act also requires packers to report to the Secretary in the 
morning not later than 10:00 a.m. Central Time and in the afternoon not 
later than 2:00 p.m. Central Time each reporting day. The information 
to be reported is the same for the morning and afternoon reports and 
includes an estimate of (1) the total number of swine purchased by each 
method of pricing, (2) the total number of swine purchased up until the 
time of reporting, and (3) the base price paid for all negotiated 
purchases of market hogs and the base price paid for each type of 
purchase of market hogs other than through a negotiated purchase. The 
Secretary will make the morning report available to the public not 
later than 11:00 a.m. Central Time and the afternoon report at 3:00 
p.m. Central Time on each reporting day.
    The Secretary will compile and issue a weekly noncarcass merit 
premium report on the first reporting day of the week not later than 
5:00 p.m. Central Time. This report is prepared from information 
furnished to the Secretary by packers who must report not later than 
4:00 p.m. Central Time on the first reporting day of the week. The 
information required includes each category of standard noncarcass 
merit premiums and the amount in dollars per hundred pounds of carcass 
weight paid to producers by the packer.
    Further, the Act provides that the Secretary review the information 
required to be reported by packers at least once very two years. Also, 
the Act directs the Secretary to promulgate regulations that specify 
additional information to be reported by packers if the Secretary 
determines information currently reported does not accurately reflect 
the methods by which swine are valued or priced, or account for the 
fact that packers that slaughter a significant majority of the swine 
produced in the United States no longer use backfat or lean percentage 
factors as indicators of price.

Lamb

    The Act gives the Secretary the authority to establish a mandatory 
lamb price reporting program that will provide timely, accurate, and 
reliable market information. The Secretary proposes to establish a 
mandatory lamb price reporting program.
    The Act does not specify the requirements for establishing a 
mandatory lamb price reporting program as it does for cattle and swine. 
Accordingly, AMS proposes to establish a mandatory lamb price reporting 
program based upon its extensive knowledge of the lamb industry and 
market news reporting of lamb. The Agency proposes the following 
requirements for a mandatory lamb price reporting program.
    A lamb packer whose Federally inspected plant slaughtered or 
processed an average of at least the equivalent of 75,000 lambs each 
year for the preceding 5 calendar years would report to the Secretary 
twice daily the price of each type of lamb purchase, negotiated 
purchase, formula marketing arrangements, forward contract, quantity of 
lamb purchased on live

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weight or carcass weight, a range and average estimated live weights, 
quality grade, premiums and discounts, state of origin, and estimated 
dressing percentage. The Secretary would issue a report to the public 
on this information not less than twice each day.
    Lamb packers would be required to report to the Secretary on a 
weekly basis on the first reporting day of the week information from 
the prior week. This information would include the quantity and certain 
carcass characteristics of lambs purchased through a negotiated 
purchase, formula marketing arrangement or forward contract that were 
slaughtered, the quantity and carcass characteristics of packer owned 
lamb that were slaughtered. Reported information would include, by type 
of purchase, the quantity of lamb purchased on live weight and carcass 
weight basis that were slaughtered, the quality grade, premiums and 
discounts paid, dressing percentage, and shrink factor. In addition, a 
lamb packer would be required to report the quantity and basis level 
for forward contracts, the range and average of intended premiums and 
discounts, and the expected slaughter date.
    The Secretary would make available to the public the information on 
the first reporting day of the current slaughter week.
    Packers would report information on daily transactions of carcass 
lamb each reporting day and sales of boxed lamb cuts each reporting 
day. For transactions of carcass lamb, the information would include 
prices for sales, the type of sale, the branded product 
characteristics, the quantity of each sale, the USDA grade, trim 
specification, weight range, and delivery date. For sales of boxed lamb 
cuts, the packer would report the same information plus the quantity of 
boxes of each cut and the weight range of each cut. The Secretary will 
issue to the public a report on carcass lamb sales and boxed lamb cut 
sales once each reporting day.
    For any calendar year, a lamb importer who imported an average of 
5,000 metric tons of lamb meat products per year during the immediately 
preceding 5 calendar years would report to the Secretary weekly the 
prices paid for imported lamb carcasses and boxed lamb cuts, and the 
prices received for imported lamb cuts sold on the domestic market. 
Additionally, an importer that did not import an average of 5,000 
metric tons of lamb meat products during the immediately preceding 5 
calendar years would also be required to report the above information, 
if the Secretary determines that the person should be considered an 
importer based on their volume of lamb imports.
    Lamb importers would be required to report weekly, prices paid for 
imported lamb carcasses during the prior week including the type of 
purchase, the quantity of each transaction, the estimated weight range 
of the carcasses, the product delivery date, and the product nation of 
origin. Lamb importers would be required to report weekly, prices paid 
for boxed lamb cuts during the prior week including the quantity of 
each transaction, the type of purchase, the cut of lamb, the trim 
specification, branded product characteristics, the cut weight range, 
the product delivery date, and the product nation of origin. Finally, 
lamb importers would be required to report weekly, prices received for 
sales of imported boxed lamb cuts sold on the domestic market during 
the prior week including the quantity of each transaction, the type of 
sale, the branded product characteristics, the cut of lamb, the trim 
specification, the cut weight range, the product delivery date, and the 
product nation of origin.

Other Provisions of the Act Involving Administration

    The administrative provisions of the Act set forth the requirements 
for maintaining confidentiality regarding the packer reporting of 
proprietary information and lists the conditions under which Federal 
employees can release such information. These administrative provisions 
also establish that the Secretary can make necessary adjustments in the 
information reported by packers and take action to verify the 
information reported, and directs the Secretary to report and publish 
reports by electronic means to the maximum extent practical. The Act 
provides for what constitutes violations of the Act, such as failure to 
report the required information on time or failure to report accurate 
information.
    The section on enforcement establishes a civil penalty--$10,000--
for each violation and provides for the Secretary's issuance of cease 
and desist orders. This section also provides for notice and hearing of 
violations before the Secretary, judicial review, issuance of an 
injunction or restraining order, and establishes a civil penalty for 
failure to obey a cease and desist order.
    The fees section directs the Secretary to not charge or assess fees 
for the submission, reporting, receipt, availability, or access to 
published reports or information collected through this program.
    The section on recordkeeping requires each packer to make available 
to the Secretary on request for 2 years the original contracts, 
agreements, receipts, and other records associated with any transaction 
relating to the purchase, sale, pricing, transportation, delivery, 
weighing, slaughter, or carcass characteristics of all livestock and 
livestock products, as well as such records or other information that 
is necessary or appropriate to verify the accuracy of information 
required to be reported. Also, the Act provides that reporting entities 
would not be required to report new or additional information that they 
do not generally have available or maintain, or the provisions of which 
would be unduly burdensome.
    Further, the Act provides that the Secretary may suspend any 
requirement if the Secretary determines that the application of the 
requirement would be inconsistent with the Act.

Proposed Rule, New Part 57 of Title 7

    This proposed rule would establish and add a new Part 57 to Title 7 
of the Code of Federal Regulations, implementing the mandatory 
livestock reporting provisions of the Act. Accordingly, these 
regulations include appropriate definitions; a description of which 
entities would be required to report market information; a description 
of what information they would report, when they would report, and how 
they would report; a description of what information the Secretary 
would make available to the public and when this information would be 
made available; an explanation of what records would be required to be 
maintained and made available to the Secretary.

General Provisions

    Part 57 would implement the provisions of the Act. Subpart A of 
Part 57, General Provisions, covers those requirements pertinent to all 
aspects of mandatory reporting. Section 57.10 details how packers and 
importers would be required to report information and how reporting 
will be handled over weekends and holidays. Electronic reporting would 
be required for all information collection. Electronic reporting would 
involve the transfer of data from a packer's or importer's existing 
electronic recordkeeping system to a centrally located AMS electronic 
database. The packer or importer would be required to organize the 
information in an AMS-approved format before electronically 
transmitting the information to AMS.
    Once the required information has been entered into the AMS 
database, it would be aggregated and processed into various market 
reports which would be released according to the daily and

[[Page 14656]]

weekly time schedule set forth in these proposed regulations.
    Section 57.11 identifies the recordkeeping requirements imposed by 
the Act and these regulations on packers and importers. Reporting 
packers and importers would be required to maintain and to make 
available the original contracts, agreements, receipts, and other 
records associated with any transaction relating to the purchase, sale, 
pricing, transportation, delivery, weighing, slaughter, or carcass 
characteristics of all livestock. In addition, they would be required 
to maintain such records or other information as is necessary or 
appropriate to verify the accuracy of the information required to be 
reported under these regulations. All of the above mentioned paperwork 
must be maintained by packers and importers for at least 2 years. 
Further, packers would be required to maintain a record of the time of 
day a lot of cattle, swine, or lambs was purchased, either before 10:00 
a.m. Central Time, between 10:00 a.m. and 2:00 p.m. Central Time, and 
after 2:00 p.m. Central Time. However, to allow packers and importers 
time to collect, assemble and submit the information to AMS by the 
prescribed deadlines, all covered transactions up to within one half 
hour of the specified reporting times would be reported.
    Lastly, under Subpart A, Section 57.20 establishes general 
definitions of terms used throughout the regulations which would be 
applicable to all subparts.

Cattle

    Subpart B of Part 57 states what is required to be reported in the 
cattle and boxed beef sectors. Section 57.100 establishes definitions 
of cattle terms used in Subpart B including the definition of packer 
which identifies which entities would be required to report under this 
proposed rule. In any calendar year, the term cattle packer includes 
any Federally inspected cattle plant which slaughtered an average of 
125,000 head of cattle a year for the immediately preceding 5 calendar 
years. Additionally, the term includes any processing plant that did 
not slaughter cattle during the immediately preceding 5 calendar years 
if the Secretary determines that the plant should be considered a 
packer based on its capacity.
    For entities that did not slaughter cattle during the immediately 
preceding 5 calendar years, such as a new plant or existing plant that 
begins operations the AMS will project the plant's annual slaughter or 
production based upon the plant's estimate of annual slaughter capacity 
to determine which entities meet the definition of a packer as defined 
in these regulations.
    Section 57.101 discusses the daily reporting requirement for live 
cattle transactions including what information would be reported, when 
it would be reported, and when it would be published. Cattle plants 
covered under the rule would report the details of their cattle 
purchases twice each day to AMS (once by 10:00 a.m. Central Time, and 
once by 2:00 p.m. Central Time) and would include all covered 
transactions made up to within one half hour of the specified reporting 
time. Packers completing transactions during the one half hour prior to 
the previous reporting time would report those transactions at the next 
prescribed reporting time. The Secretary would publish the information 
not less than three times each day. Section 57.102 discusses the same 
types of requirements for weekly live cattle reporting. Packers would 
be required to report information regarding the prior slaughter week on 
the first reporting day of each week by 8:00 a.m. Central Time. This 
information would be published by the Secretary on the same day by 
10:00 a.m. Central Time. Finally under Subpart B, Section 57.103 
details the information required to be reported concerning sales of 
boxed beef cuts including what would be reported, when it would be 
reported, and when it would be published. Cattle plants producing boxed 
beef cuts would be required to report their domestic and export sales 
of boxed beef cuts including branded boxed beef cuts to AMS twice each 
reporting day, once by 10:00 a.m. Central Time and once by 2:00 p.m. 
Central Time, including all covered transactions made up to within one 
half hour of the specified reporting time. Cattle plants completing 
transactions during the one half hour prior to the previous reporting 
time would report those transactions at the next prescribed reporting 
time. This information would be published twice each day by the 
Secretary. These plants would be required to reference the USDA's 
Livestock and Seed Program Institutional Meat Purchase Specifications 
(IMPS), Fresh Beef Series 100.

Swine

    Subpart C of Part 57 lists the requirements of swine reporting 
beginning with Section 57.200 which establishes definitions for terms 
used throughout the subpart including the definition of packer which 
identifies which entities would be covered under the regulations. In 
any calendar year, the term swine packer includes any Federally 
inspected swine plant which slaughtered an average of 100,000 head of 
swine a year for the immediately preceding 5 calendar years. 
Additionally, the term includes any processing plant that did not 
slaughter swine during the immediately preceding 5 calendar years if 
the Secretary determines that the plant should be considered a packer 
based on its capacity.
    For entities that did not slaughter swine during the immediately 
preceding 5 calendar years, such as a new plant or existing plant that 
begins operations, the AMS will project the plant's annual slaughter or 
production based upon the plant's estimate of annual slaughter capacity 
to determine which entities meet the definition of a packer as defined 
in these regulations.
    Section 57.201 discusses the daily reporting requirement for live 
hog transactions including what information would be reported, when it 
would be reported, and when it would be published.
    Swine packers required to report under this rule would report the 
details of their swine purchases three times each day including a prior 
day report not later than 7:00 a.m. Central Time, a morning report not 
later than 10:00 a.m. Central Time, and an afternoon report not later 
than 2:00 p.m. Central Time, including all covered transactions made up 
to within one half hour of each specified reporting time. Packers 
completing transactions during the one half hour prior to the previous 
reporting time would report those transactions at the next prescribed 
reporting time. This information would be published by the Secretary 
each reporting day not later than 8:00 a.m. Central Time, 11:00 a.m. 
Central Time, and 3:00 p.m. Central Time, respectively. Section 57.202 
details the requirements for reporting weekly swine information to AMS 
including what would be reported, when it would be reported, and when 
it would be published. On the first reporting day of each week, not 
later than 4:00 p.m. Central Time, packers would be required to report 
information on noncarcass merit premiums used and paid to producers 
during the prior slaughter week by category. This information would be 
published on the first reporting day of each week not later than 5:00 
p.m. Central Time.

Lamb

    Subpart D of Part 57 covers the mandatory reporting of lambs. The 
Act gives the Secretary the authority to establish a mandatory lamb 
price reporting program but does not set forth the requirements. AMS 
proposes to

[[Page 14657]]

establish a mandatory lamb price reporting program.
    Section 57.300 provides definitions for terms used throughout 
Subpart D including definitions for packer and for importer which 
identifies which entities would be required to report under this 
proposed rule. For any calendar year, the term lamb packers includes 
any Federally inspected lamb plant which slaughtered or processed the 
equivalent of an average of 75,000 head of lambs a year for the 
immediately preceding 5 calendar years. Additionally, the term includes 
any processing plant that did not slaughter or process an average of 
75,000 lambs during the immediately preceding 5 calendar years if the 
Secretary determines that the plant should be considered a packer based 
on the capacity of the processing plant.
    For entities that did not slaughter lambs during the immediately 
preceding 5 calendar years, such as a new plant or existing plant that 
begins operations the AMS will project the plant's annual slaughter or 
production based upon the plant's estimate of annual slaughter capacity 
to determine which entities meet the definition of a packer as defined 
in these regulations.
    For any calendar year, the term lamb importer includes any importer 
that imported an average of 5,000 metric tons of lamb meat products per 
year during the immediately preceding 5 calendar years. Additionally, 
for any calendar year, the term importer includes any lamb importer 
that did not import an average of 5,000 metric tons of lamb meat 
products during the immediately preceding 5 calendar years if the 
Secretary determines that the person should be considered an importer 
based on their volume of lamb imports.
    For importers of lamb carcasses and cuts, AMS will annually review 
import lamb volume data obtained from the United States Customs Service 
to determine which importers are required to report imported lamb 
carcasses and boxed lamb cut purchase information and boxed lamb cut 
sales information under these regulations.
    Entities covered under the 75,000 per year provision represent 
nearly all lamb packers and processors which currently contribute to 
voluntary reporting. The lamb packer definition varies from that of the 
cattle and swine definitions in that it includes entities that process 
as well as slaughter. The trading of lamb carcasses continues to be a 
mainstay of the industry and many of the major processors of lamb 
carcasses into boxed lamb cuts do not slaughter but, rather, purchase 
carcasses from slaughterers. The 75,000 head per year provision for 
both slaughterers and processors was included to ensure more 
comprehensive coverage of the lamb carcass and boxed lamb cut markets, 
similar to what is currently being reported under voluntary reporting.
    Because imported products comprise 31% of the U.S. market, lamb 
importers were included for more complete information on lamb meat 
products being imported into the U.S., including the types, quantities, 
and prices of these products.
    Section 57.301 covers the daily reporting requirements for live 
lamb transactions including what would be reported, when it would be 
reported, and when it would be published. Lamb plants covered under the 
rule would report the details of their live lamb purchases twice each 
day to AMS, to include all covered transactions made up to within one 
half hour of the specified reporting time. Lamb plants completing 
transactions during the one half hour prior to the previous reporting 
time would report those transactions at the next prescribed reporting 
time. The Secretary would publish this information not less than twice 
each day. Section 57.302 covers the same type of information for weekly 
reporting of live lamb transactions. Packers would be required to 
report information regarding the prior slaughter week on the first 
reporting day of each week to be published by the Secretary on the same 
day. Finally, Section 57.303 covers the reporting requirements for 
transactions of domestic and imported lamb carcasses and boxed lamb 
cuts including what would be reported, when it would be reported, and 
when it would be published. Packers would be required to report details 
of their domestic transactions of carcass lambs once each day and the 
Secretary would publish the information once each day. Packers would be 
required to report details of their domestic sales of boxed lamb cuts, 
including branded product. This information would be published once 
each day. These plants would be required to reference the USDA's 
Livestock and Seed Program Institutional Meat Purchase Specifications 
(IMPS), Fresh Lamb and Mutton Series 200.
    Importers of lamb carcasses would be required to report the 
required information of their prior week imported lamb carcass 
purchases on the first reporting day of each week to be published by 
the Secretary on the same day. Importers of boxed lamb cuts would be 
required to report the required information of their prior week 
imported boxed lamb cut purchases including branded product on the 
first reporting day of each week to be published by the Secretary on 
the same day. Additionally, importers of boxed lamb cuts would be 
required to report details of their prior week sales of imported boxed 
lamb cuts on the domestic market including branded product on the first 
reporting day of each week to be published by the Secretary on the same 
day.

OMB Control Numbers

    Lastly, Subpart E of Part 57 covers the OMB control numbers for the 
information collection requirements listed in Subparts B through D of 
Part 57. All required information must be reported to AMS in a 
standardized format. The standardized format is embodied in 16 OMB-
approved data collection forms. Copies of these 16 forms are included 
in Appendices at the end of this rule. Cattle packers would utilize six 
of these forms (Appendix A) when reporting information to AMS including 
two for daily cattle reporting, three for weekly cattle reporting, and 
one for daily boxed beef cuts reporting. Swine packers would utilize 
three forms (Appendix B), two for daily reporting of swine purchases 
and one for weekly reporting of non-carcass merit premium information. 
Lamb packers would utilize seven of these forms (Appendix C) when 
reporting information to AMS including two for daily lamb reporting, 
three for weekly lamb reporting, one for daily and weekly boxed lamb 
cuts reporting and one for daily and weekly lamb carcass reporting. 
Lamb importers would utilize two of these forms when reporting 
information to AMS including one for reporting weekly imported lamb 
carcass and one for reporting weekly imported boxed lamb cut purchases 
and sales.

Executive Order 12866

    Although not economically significant, this rule has been 
determined to be significant for the purposes of Executive Order 12866, 
and therefore, has been reviewed by the Office of Management and Budget 
(OMB). Regulations must be designed in the most cost-effective manner 
possible to obtain the regulatory objective while imposing the least 
burden on society. AMS has prepared a Regulatory Impact Assessment 
(RIA) consisting of a statement of the need for the proposed action, an 
examination of alternative approaches, and an analysis of the benefits 
and costs. A complete analysis of the number of affected entities and 
the required volume of reporting is discussed under the Paperwork 
Reduction Act section following this section.

[[Page 14658]]

Need for Proposed Action

    As stated in the background section, currently, packers are not 
required to report prices or the terms of sale for the animals they buy 
from producers. Rather, AMS collects information on daily sales and 
price information from packers and others on a voluntary basis. 
However, in recent years more animals are now being transacted under 
marketing arrangements where neither the arrangements nor the final 
purchase prices are publicly disclosed. While some of these marketing 
arrangements are using publicly reported prices as a base, many use the 
base price plus a premium and a premium/discount schedule depending 
upon the quality of the carcass. Current market price reports do not 
capture these pricing mechanisms.
    Likewise, importers of lamb carcasses and cuts are not required to 
report purchases and sales of such imported products.
    In recent years, the livestock industry has undergone fundamental 
changes due to economies of size at both the producer and packer level. 
These changes are reflected in the structure and marketing practices 
used today. Today, four firms slaughter about 80 percent of all fed 
cattle, about 55 percent of all hogs, and about 80 percent of all 
lambs. On the producer side, about 105 feedlots account for about 39 
percent of feedlot cattle marketings, the remaining 104,000 feedlots 
account for 61 percent of the marketings. About 2,005 hog operations 
control about 47 percent of the hog inventory and the remaining 90,000 
farms hold 53 percent. To assure the packers consistent quantities and 
quality of animals, many of the larger producers, often at a premium 
price, will enter into private marketing agreements with the packers. 
The packer is assured of larger lots, scheduled delivery, and 
consistent quality animals yielding meat with characteristics desired 
by consumers. The producer gets a higher price than in the traditional 
open markets and reduced transaction costs.
    Rather than buy and sell on the open market, many large 
slaughtering firms increasingly feed their own animals or utilize 
private marketing arrangements, such as forward contracts, formula 
pricing, and exclusive purchase agreements--for which prices and terms 
of sale are not publicly disclosed. The procurement methods make it 
difficult for producers, particularly smaller ones, who utilize open 
cash markets or wish to consider alternative marketing arrangements, to 
determine the actual purchase prices of livestock.
    Most major packers provide information daily to Market News on cash 
prices and total numbers of livestock involved in transactions. This 
does not provide full coverage of animals purchased. Market News 
estimates that 60-65 percent of all slaughter steer and heifer 
transactions, 25 percent of slaughter hog transactions, and 60 percent 
of all slaughter lamb transactions are reported daily through the 
voluntary process. The remaining 35-40 percent of cattle transactions, 
75 percent of the hog transactions, and 40 percent of the lamb 
transactions, which are not reported voluntarily, represent private 
marketing arrangements. As private marketing agreements become more 
prevalent, the number of reported transactions will further shrink and 
the accuracy and completeness of the information for U.S. marketings 
will erode.
    Various groups have asked for mandatory price reporting of 
livestock products, arguing that fewer publicly reported marketing 
arrangements make it difficult for producers to determine the actual 
prevailing purchase prices of livestock. The pressure for mandatory 
reporting has steadily increased in recent years, though prior attempts 
to pass mandatory reporting legislation have been unsuccessful, largely 
due to a lack of broad, unified support from the industry. Over the 
past couple of years, reported price levels for cattle, hogs, and lambs 
have run below the 5-year average leading some to argue that it was due 
to market forces of supply and demand or lower quality animals in the 
cash market. In the fall of 1998, slaughter plants operated at full 
capacity and reported cash hog prices reached a 30 year low. During 
this period, producers and policy officials were looking for accurate 
and timely market information to guide their decisions. A true hog 
price picture eluded them as a large amount of unreported transactions 
kept market news from being able to report the actual purchase price of 
hogs.
    Private marketing arrangements or otherwise coordinated agreements 
between hog producers and slaughter plants are increasingly the norm. 
As a result, spot-market demand for slaughter hogs is greatly 
influenced by slaughter capacity utilization. When the available supply 
of slaughter hogs exceeds the designed plant capacity, slaughter costs 
rise as packers turn to overtime labor. To compensate for sharply 
higher labor costs, slaughter plants lower their bids for slaughter 
hogs on the public cash markets. This reduces demand for the 
uncontracted supply of slaughter hogs and is reflected in sharply lower 
spot market cash prices. This was the situation in late 1998.
    Many market participants were no longer able to obtain the actual 
purchase prices of hogs on which to base their marketing decisions. 
Even the large farm producers were unable to evaluate contracts because 
of the unknown premium/discount schedules, which may be different in 
each marketing agreement. These circumstances helped to galvanize 
industry support for mandatory reporting and industry groups worked 
throughout the latter half of 1999 to fashion a mandatory reporting 
proposal.
    During the same time period, the General Accounting Office (GAO) 
was requested by members of Congress to conduct a study on USDA's pork 
price reporting system. The study found that USDA's current methods for 
reporting farm and retail prices did not accurately reflect actual 
prices for all methods of purchase. During periods of plentiful hog 
supplies, packers frequently pay a lower price for hogs procured 
through the spot market than those procured by contract. However, the 
study did point out spot market hogs are of generally lower quality and 
more variable in weight and availability which may explain why packers 
are willing to pay a premium for a stable flow of hogs with consistent 
quality and weights.
    Ultimately, Congress passed the Livestock Mandatory Reporting Act 
of 1999 (Act) which seeks to provide more transparency in the price 
discovery process and, thereby, to encourage competition in the 
marketplace for livestock and livestock products. By mandating 
reporting, the Act seeks to provide more market information to all 
market participants. These proposed regulations would implement the 
Act. It would require packers to provide to Market News the terms of 
all their livestock purchases, including those obtained through private 
marketing arrangements. Moreover, it would require processors of boxed 
beef and lamb cuts, breakers of lamb carcasses, and importers of lamb 
carcasses and boxed lamb cuts to report all transactions.
    In some instances, mandatory reporting will provide new information 
which has never been reported under the existing voluntary reporting 
program. AMS anticipates that this information will provide the basis 
for newly published market news reports not previously provided for 
under voluntary reporting, including reports covering the prior day 
swine market, forward contract and formula marketing arrangement cattle 
purchases, packer-owned cattle and sheep information,

[[Page 14659]]

sales and purchases of imported boxed lamb cuts, including branded 
product; purchases of imported lamb carcasses; and live lamb premiums 
and discounts. In other instances, mandatory reporting will provide 
information which is already being provided under voluntary reporting. 
This would include packer direct purchases of slaughter cattle, packer 
sales of boxed beef and lamb cuts including branded boxed cuts, packer 
sales of lamb carcasses, and packer negotiated purchases of swine. AMS 
anticipates that, in such cases, the market reports reflecting this 
information will continue to be published but the basis of the market 
reports will become mandatory information. Lastly, many voluntary-based 
market news reports will not be affected by mandatory reporting, 
including reports covering livestock auction sales, packer sales of 
pork cuts and byproducts, and grain trading. Collectively, the new 
mandatory information and the current voluntary information will 
provide more transparency in the price discovery process and, thereby, 
encourage competition in the marketplace for livestock and livestock 
products.

Alternatives

    As required by E.O. 12866, various methods were considered by which 
the objectives of the rule could be accomplished. Most private 
marketing reporting services rely on basic AMS livestock prices and 
organize the data in a particular way for a client. Further, the Act 
directs the Secretary to, the maximum extent practicable, provide for 
the reporting and publishing of information by electronic means. 
However, in developing these proposed regulations AMS did consider 
other means by which the objectives of this proposed rule could be 
accomplished, including reporting the required information by 
telephone, facsimile, and regular mail. AMS believes these alternatives 
are not capable of meeting the program objectives, especially timely 
reporting. The Act prescribes specific times that reporting entities 
must report to AMS. Similarly, the Act prescribes specific times for 
publication of a report by AMS. AMS believes electronic submission to 
be the only method capable of allowing for AMS to collect, aggregate 
and publish reports while complying with the specific time-frames set 
forth in the Act. AMS believes it would not be possible for the Agency 
to receive information over the telephone, facsimile or regular mail 
and then transcribe the information into electronic format before 
aggregating and publishing the information while still complying with 
the publication time-frames set forth in the Act. However, AMS may 
provide for an exception to electronic reporting in emergencies or in 
cases when an alternative is agreeable to AMS and the reporting entity. 
The major cost of complying with this proposed rule involves the 
information collection and reporting process. The information 
collection and reporting process is explained in the Summary of Costs 
Section and is referenced in Section 57.10(f) Reporting Methods. We are 
inviting comments concerning both the potential cost burden and methods 
for expediting information collection. In particular, we are interested 
in any costs not discussed in the analysis and any additional 
electronic reporting methods that may provide greater cost efficiencies 
to the industry as a whole. A complete discussion of the cost analysis 
can be found in the summary of costs section.

Summary of Benefits

    Many producers contend that they cannot obtain the market 
information needed to easily and quickly compare marketing 
possibilities available from different packers. This information is 
needed for producers to devise a marketing strategy that obtains the 
best possible prices for their livestock. Private advisory services 
would be able to provide a more in depth analysis to clients about 
alternative marketing strategies. In addition, producers selling under 
a private marketing agreement need benchmark prices and terms to 
evaluate their particular agreement to assure an equitable price for 
their livestock. Furthermore, the growth of private marketing 
arrangements in the red meat industry and declining participation in 
the public markets make it difficult for producers to determine 
prevailing market prices. Mandatory reporting would require packers to 
provide USDA all terms of their marketing contracts.
    The implementation of this proposed rule would improve the price 
and supply reporting services of the USDA. In addition, participants in 
the marketplace for livestock and livestock products would be able to 
easily monitor price and market conditions. The price discovery process 
would become more transparent ensuring equal market information access 
for all participants. The increased transparency would more clearly 
transmit market signals about qualities first buyers demand thereby 
rewarding producers who produce animals that yield the meat consumers 
desire with a higher price. The increase in the quantity and quality of 
available market information would encourage competition in the 
marketplace while providing participants with the ability to make more 
informed marketing decisions.
    Although quantities and prices of production inputs are obtained by 
surveys and production costs are derived, the question remains as to 
how to value the output in a complex marketing environment. Producers 
would benefit from the increase in information brought about by 
mandatory reporting by being able to consider more detailed market 
reports and previously unavailable data on non-cash market livestock 
procurements. These reports would better reflect the overall supply and 
demand situation of the marketplace and would allow producers to better 
determine prevailing market prices, conditions, and arrangements 
pertinent to the marketing process.

Summary of Costs

    The proposed regulations have been designed to achieve the 
regulatory objectives in as cost-effective manner as possible. To the 
extent practicable, they draw upon current industry practices in order 
to minimize the burden to the industry. The regulatory objective is to 
increase the amount of information available to participants in the 
marketplace for livestock and livestock products by mandating reporting 
of market information by certain members of the industry. Methods of 
accomplishing the required information collection in the most timely 
manner while minimizing the opportunity for errors and maximizing 
existing systems and processes were contemplated. Electronic transfer 
of data from the reporting entity to the Agency was chosen as the least 
cost reporting method to accomplish all of the objectives of mandatory 
information collection.
    AMS considered other alternatives for firms lacking electronic data 
transfer capabilities, such as faxing the required information to a 
Market News office for hand data entry. This was rejected because of 
the costs to both the respondent and to AMS, the amount of time 
required with this alternative is unworkable given the short time-
frames required for public dissemination. However, there would be an 
exception in emergencies or in cases when an alternative method is 
agreeable to AMS and the reporting entity.
    Electronic data transmission of information is accomplished using 
an interface with an existing electronic record keeping system. In most 
cases, the information packers and importers

[[Page 14660]]

are required to report already exists in internal computerized record 
keeping systems. Packers and importers would provide for the 
translation of the information from their existing electronic 
recordkeeping system into the required AMS standardized format. Once 
accomplished, the information would be electronically transmitted to 
AMS where it would be automatically loaded into an AMS database. We 
estimate that the cost in terms of time and money for this alternative 
is in the initial creation of the interface. We estimate that the 
creation of this interface by in-house computer personnel would require 
an industry average of 15 hours per respondent. Further, we estimate 
the cost per hour to average $50.00 for a total cost, on average, of 
$750.00. Those companies not having in-house computer personnel would 
incur such costs as are necessary to bring in outside computer 
programmers to accomplish the task. The Agency would estimate this cost 
to be from $750.00 to $1,000.00.
    The respondent reporting costs vary widely by species and the size 
of lots purchased. Section 251 (c) General Provisions Reporting by 
Packers requires packers to report all information required under this 
subtitle on an individual lot basis. Therefore, larger lots bought by 
the larger packers would result in a lower reporting cost per head 
slaughtered. Respondent reporting costs of cattle packers are estimated 
to be $7,420 per plant, $5,308 for hog packers, $6,042 for sheep 
slaughtering plants, and $2,404 for lamb importers. Using 1998 
federally inspected slaughter data; the cost per animal slaughtered 
would decline as slaughter volume increased. The smaller cattle packers 
would have the highest reporting cost per head slaughter, while the 
largest hog slaughtering firms would have the lowest. Based on a 
preliminary analysis by specie, cost for cattle would be 0.012 dollars 
per head, swine 0.002 dollars per head, sheep 0.013 dollars per head, 
and lamb importers 0.097 dollars per metric ton. Comments on costs are 
requested, particularly as they relate to size of operation are being 
sought. See Table 1 Respondent Cost.

                                            Table 1.--Respondent cost
----------------------------------------------------------------------------------------------------------------
                                                                                Respondent cost   Cost per head
                 Size Group                        Plants        Head (1,000)       dollars          dollars
----------------------------------------------------------------------------------------------------------------
                                Respondent cost per head slaughtered, Cattle 1998
----------------------------------------------------------------------------------------------------------------
1-124,999 (Exempted)........................              746           3480.4                0                0
125,000-199,999.............................                7          1,365.5           50,449         0.036945
200,000-299,999.............................               11          2,695.8           79,277         0.029408
300,000-499,999.............................                8          3,335.6           57,656         0.017285
500,000-999,999.............................                9          5,856.6           64,863         0.011075
1,000,000-1,499,999.........................               11         13,245.7           79,277         0.005985
1,500,000+..................................                3          4,673.6           21,621         0.004626
                                             -------------------------------------------------------------------
    Total (Subject to regulation)...........               49         31,172.8          353,143         0.011329
----------------------------------------------------------------------------------------------------------------
                                 Respondent cost per head slaughtered, Hogs 1998
----------------------------------------------------------------------------------------------------------------
1-99,999 (Exempted).........................              704          3,526.9                0                0
100,000-249,999.............................               12          2,006.1           39,936         0.019907
250,000-499,999.............................                4          1,367.7           13,312         0.009733
500,000-999,999.............................                5          3,304.7           16,640         0.005035
1,000,000-1,499,999.........................                3          4,396.5            9,984         0.002271
1,500,000-1,999,999.........................                7         12,469.3           23,296         0.001868
2,000,000-2,999,999.........................               11         24,333.3           36,608         0.001504
3,000,000-3,999,999.........................                4         14,403.2           13,312         0.000924
4,000,000+..................................                7         33,074.6           23,296         0.000704
                                             -------------------------------------------------------------------
    Total (Subject to regulation)...........               53         95,355.4          176,384         0.001850
----------------------------------------------------------------------------------------------------------------
                                Respondent cost per head slaughtered, Sheep, 1998
----------------------------------------------------------------------------------------------------------------
1-74,999 (Exempted).........................              548            594.2                0                0
75,000-499,999..............................                6          1,614.3           29,232         0.018108
500,000+....................................                2          1,448.8            9,744         0.006726
                                             -------------------------------------------------------------------
    Total (Subject to regulation)...........                8           3063.1           38,976         0.012724
----------------------------------------------------------------------------------------------------------------
                       Respondent cost per metric ton (MT) imported, Lamb and mutton, 1998
----------------------------------------------------------------------------------------------------------------
                 Size Group                      Importers       Metric tons    Respondent cost    Cost per ton
                                                                   imported         dollars          dollars
----------------------------------------------------------------------------------------------------------------
Under 5,000 MT (Exempted)...................              371          6,684.3                0                0
5,000 MT and over...........................                5         26,738.4            2,600      0.097238429
                                             -------------------------------------------------------------------
    Total (Subject to regulation)...........                5         26,738.4            2,600      0.097238429
----------------------------------------------------------------------------------------------------------------

    In addition to these costs to packers for submitting information, 
the mandatory price reporting program will cost approximately $4.7 
million in FY 2000 and $5.9 million in FY 2001. In order to implement 
the program in FY 2000, AMS is hiring additional staff, issuing 
regulations, and setting up an electronic database to capture data and

[[Page 14661]]

develop reports to begin in July. The 56 staff years required to 
administer and produce high quality mandatory price reports include 
reporters, auditors, clerical personnel, and computer specialists. 
These employees will be located in three AMS offices located across the 
country. Salary-related costs in FY 2001 are estimated at $3.5 million. 
Other costs include approximately $600 thousand for travel and 
transportation; $600 thousand for miscellaneous costs such as office 
space, utilities, communications costs, printing, reimbursements to 
cooperating States, training, and office supplies; $200 thousand for 
equipment, including computers, software, and licenses; and $1 million 
for a computer systems contract to develop the database required to 
manage the data.

Executive Order 12988

    This proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform, and is not intended to have retroactive effect. States 
and political divisions of States are specifically preempted by section 
259 of the Act from imposing requirements in addition to, or 
inconsistent with, any requirements of the Act with respect to the 
submission or publication of information on the prices and quantities 
of livestock or livestock products. Further, the Act does not restrict 
or modify the authority of the Secretary to administer or enforce the 
Packers and Stockyards Act, 1921 (7 U.S.C. 181 et seq.); administer, 
enforce, or collect voluntary reports under the Act or any other laws; 
or access documentary evidence as provided under sections 9 and 10 of 
the Federal Trade Commission Act (15 U.S.C. 49, 50). There are no 
administrative procedures that must be exhausted prior to any judicial 
challenge to the provisions of this rule.

Civil Rights Review

    AMS has considered the potential civil rights implications of this 
rule on minorities, women, or persons with disabilities to ensure that 
no person or group shall be discriminated against on the basis of race, 
color, sex, national origin, religion, age, disability, or marital or 
family status. This included those persons who are employees of those 
entities required to participate and those individuals who wish to use 
information collected by this proposed mandatory program of information 
regarding the marketing of cattle, swine, lambs, and products of such 
livestock. This proposed rule does not require affected entities to 
relocate or alter their operations in ways that could adversely affect 
such persons or groups. Further, this proposed program would not 
exclude from participation any persons or groups, deny any persons or 
groups the benefits of the program, or subject any persons or groups to 
discrimination.

Executive Order 13132

    This proposed rule has been reviewed under Executive Order 13132, 
Federalism. This Order directs agencies to construe, in regulations and 
otherwise, a Federal statute to preempt State law only when the statute 
contains an expressed preemption provision. This proposed rule is 
required by the Livestock Mandatory Reporting Act of 1999. Section 259 
of the Act, Federal Preemption, states, ``In order to achieve the 
goals, purposes, and objectives of this title on a nationwide basis and 
to avoid potentially conflicting State laws that could impede the 
goals, purposes, or objectives of this title, no State or political 
subdivision of a State may impose a requirement that is in addition to, 
or inconsistent with, any requirement of this subtitle with respect to 
the submission or reporting of information, or the publication of such 
information, on the prices and quantities of livestock or livestock 
products.
    For a number of years, States have operated programs of voluntary 
market reporting of livestock and livestock products. Many of these 
programs have been operated in conjunction with the USDA through 
Federal-State agreements. Under these agreements, the USDA and the 
States work cooperatively to gather and disseminate information on the 
livestock markets within the State. Until now, all of these programs 
have been based on voluntary reporting of market information. The Act 
and these proposed regulations are not intended to have an effect on 
any voluntary market reporting programs currently being operated by the 
States.
    However, recently, several States have enacted legislation 
mandating, to various degrees, the reporting of market information on 
transactions of cattle, swine, and lambs conducted within that 
particular State. Currently, this includes the States of Iowa, 
Minnesota, Missouri, Nebraska, and South Dakota. Of these, only 
Minnesota and South Dakota are collecting mandated market information.
    Section 259 of the Act, preempts States from imposing mandatory 
reporting requirements that are in addition to or inconsistent with any 
requirement of this proposed rule with respect to the collection and 
publication of information on the prices and quantities of livestock 
and livestock products. This preemption clause would affect all 
mandatory reporting programs currently in effect by the States and the 
implementation of any mandatory reporting programs currently developed, 
in the process of being developed, or that may be developed at a later 
date.
    With regard to consultation with States, AMS has made sure that the 
States are aware of the Act and AMS has engaged in formal and informal 
discussions regarding the implications of Federal livestock mandatory 
reporting with those States which either currently have mandatory 
reporting programs or are in the process of developing mandatory 
reporting programs. Further, States and local jurisdictions are 
expressly invited to comment on this proposal as it relates to the 
operation of State livestock and livestock products reporting programs.

Regulatory Flexibility Act

In General

    This proposed rule has been reviewed under the requirements of the 
Regulatory Flexibility Act (RFA)(5 U.S.C. 601 et seq.). The purpose of 
the RFA is to consider the economic impact of a proposed rule on small 
business entities. Alternatives, which would accomplish the objectives 
of the rule without unduly burdening small entities or erecting 
barriers that would restrict their ability to compete in the 
marketplace, have been evaluated. Regulatory action should be 
appropriate to the scale of the businesses subject to the action. The 
proposed collection of information is necessary for the proper 
performance of the functions of AMS concerning the mandatory reporting 
of livestock information. The Livestock Mandatory Reporting Act of 1999 
requires AMS to collect and publish livestock market information. The 
required information is only available directly from those entities 
required to report under the Act and by these proposed regulations and 
exists nowhere else. Therefore, this proposed rule does not duplicate 
market information reasonably accessible to the Agency.
    In formulating this proposed rule, particular consideration was 
given to reducing the burden on entities while still achieving the 
objectives of the proposed regulation. Accordingly, thresholds were set 
which defined those entities which would be required to report 
information on purchases of live cattle, swine, lambs, lamb carcasses, 
and boxed lamb cuts including branded product, as well as information 
on domestic and export sales of boxed beef cuts including branded 
product, and sales of lamb carcasses, boxed lamb cuts

[[Page 14662]]

including branded product, and imported boxed lamb cuts including 
branded product.
    In any calendar year, only Federally inspected cattle plants which 
slaughtered an average of 125,000 head of cattle a year for the 
immediately preceding 5 calendar years are required to report. 
Additionally, any cattle plant that did not slaughter cattle during the 
immediately preceding 5 calendar years would be required to report if 
the Secretary determines that the plant should be considered a packer 
based on its capacity. For entities that did not slaughter cattle 
during the immediately preceding 5 calendar years, such as a new plant 
or existing plant that begins operations the AMS will project the 
plant's annual slaughter or production based upon the plant's estimate 
of annual slaughter capacity to determine which entities meet the 
definition of a packer as defined in these regulations. This accounts 
for approximately 49 out of 795 cattle plants or 6.2% of all Federally 
inspected cattle plants.
    For any calendar year, any Federally inspected swine plant which 
slaughtered an average of 100,000 head of swine a year for the 
immediately preceding 5 calendar years would be required to report 
information. Additionally, any swine plant that did not slaughter swine 
during the immediately preceding 5 calendar years if the Secretary 
determines that the plant should be considered a packer based on the 
capacity of the processing plant would be required to report. This 
accounts for approximately 50 out of 757 swine plants or 6.6% of all 
Federally inspected swine plants.
    In any calendar year, Federally inspected lamb plants which 
slaughtered the equivalent of an average of 75,000 head of lambs a year 
for the immediately preceding 5 calendar years would be considered a 
packer and required to report. A packer includes a processing plant 
that purchases and processes an average of 75,000 lamb carcasses 
annually rather than slaughter live lambs. Additionally, any processing 
plant that did not slaughter an average of 75,000 lambs during the 
immediately preceding 5 calendar years if the Secretary determines that 
the plant should be considered a packer based on the capacity of the 
processing plant would be required to report.
    For any calendar year, lamb importers that imported an average of 
5,000 metric tons of lamb meat products per year during the immediately 
preceding 5 calendar years would be required to report. Additionally, 
lamb importers that did not import an average of 5,000 metric tons of 
lamb meat products during the immediately preceding 5 calendar years if 
the Secretary determines that the person should be considered an 
importer based on the volume of lamb imports would be required to 
report. Some lamb plants may also be importers. This accounts for 
approximately 16 out of 556 lamb plants and importers or 2.9% of all 
Federally inspected lamb plants and importers.
    Fully 93.8% of all cattle, 93.4% of all swine, and 97.1% of all 
lamb plants in the U.S. would be exempted by this proposed rule from 
reporting information.
    Accordingly, we also have prepared an initial regulatory 
flexibility analysis. The RFA compares the size of meat packing plants 
to the Standard Industrial Code (SIC) to determine the percentage of 
small businesses within the meat packing industry. Under these size 
standards, meat packing companies with 500 or less employees are 
considered small business entities.

Objectives and Legal Basis

    The objective of this proposed rule is to improve the price and 
supply reporting services of the Department of Agriculture in order to 
encourage competition in the marketplace for livestock and livestock 
products by increasing the amount of information available to 
participants. This is accomplished through the establishment of a 
program of information regarding the marketing of cattle, swine, lambs, 
and products of such livestock as specifically directed by the Act and 
these proposed regulations, as described in detail in the background 
section.

Estimated Number of Small Businesses

    This proposed rule provides for the mandatory reporting of market 
information by livestock packers who for any calendar year have 
slaughtered a certain number of livestock during the immediately 
preceding 5 calendar years. This number is 125,000 head per year for 
cattle and 100,000 head per year for swine. Lamb plants required to 
report include those that for any calendar year slaughter or process 
the equivalent of 75,000 head per year during the immediately preceding 
5 calendar years. Additionally, for any calendar year lamb importers 
that imported an average of 5,000 metric tons of lamb meat products per 
calendar year during the immediately preceding 5 calendar years are 
also required to report details of their purchases. For cattle and 
swine processing plants that have not slaughtered livestock during the 
immediately preceding 5 calendar years are also required to report if 
the Secretary determines that the plants should be considered packers 
based on their capacity. Additionally, lamb packers and lamb meat 
processors and importers that did not slaughter or process the 
equivalent of 75,000 head per year or import 5,000 metric tons of lamb 
meat products per year during the immediately preceding 5 calendar 
years would be required to report if the Secretary determines that they 
should be considered an importer based on their volume of lamb imports.
    These packers and importers would be required to report the details 
of all transactions involving purchases of livestock, of lamb 
carcasses, and of import lamb carcasses and boxed lamb cuts including 
branded boxed lamb cuts; and the details of all transactions involving 
domestic and export sales of boxed beef cuts including branded product, 
and sales of domestic boxed lamb cuts including branded product, 
imported boxed lamb cuts including branded product and lamb carcasses 
to AMS. Cattle and swine information would be reported to AMS according 
to the schedule directed by the Act and these proposed regulations with 
purchases of swine reported three times each day, purchases of cattle 
twice each day, and sales of domestic and exported boxed beef cuts, 
including branded product, reported twice each day. Lamb information 
would be reported to AMS according to the schedule mandated by these 
proposed regulations with purchases of lambs reported twice each day 
and sales and purchases of lamb carcasses reported once each day. 
Previous week purchases of imported lamb carcasses and boxed lamb cuts 
including branded boxed lamb cuts would be reported once weekly on the 
first reporting day of the week and sales of imported boxed lamb cuts 
including branded boxed lamb cuts would be reported once weekly on the 
first reporting day of the week.
    The SIC size standard classifies a small business in the meat 
packing industry as a company with less than 500 employees. Although it 
is common in the red meat industry for larger companies to own several 
plants, some of which may employ less than 500 people, those companies 
and lamb importers with a total slaughter plant employment at all 
locations of less than 500 are considered to be small businesses for 
the purposes of this proposed rule even though individual plants are 
mandated to report as provided by the Act and these proposed 
regulations.
    For any calendar year, Federally inspected beef plants required to 
report

[[Page 14663]]

include those that slaughtered an average of 125,000 head per year 
during the immediately preceding 5 calendar years. Also included are 
processing plants that did not slaughter cattle during the immediately 
preceding 5 calendar years but are determined to be a packer by the 
Secretary based on the capacity of the processing plant. By this 
definition, approximately 30 individual beef packing companies 
representing 49 individual plants would be required to report 
information to AMS. Based on the SBA size standard, 10 of these 30 beef 
packing companies would be considered small businesses, representing 10 
plants that would be required to report. The figure of 49 plants 
required to report represents 6.2% of the cattle plants in the U.S. The 
remaining 93.8% of cattle plants, nearly all estimated to qualify as 
small business, are exempt from mandatory reporting.
    For any calendar year, Federally inspected pork plants required to 
report include those that slaughtered an average of 100,000 head per 
year during the immediately preceding 5 calendar years. Also included 
are processing plants that did not slaughter swine during the 
immediately preceding 5 calendar years but are determined to be a 
packer by the Secretary based on the capacity of the processing plant. 
By this definition, approximately 29 individual pork packing companies 
representing a total of 50 individual plants, would be required to 
report information to AMS. Based on the SBA size standard, 15 of these 
29 pork packing companies would be considered small businesses, 
representing 15 individual plants that would be required to report. The 
figure of 50 plants required to report represents 6.6% of the swine 
plants in the U.S. The remaining 93.4% of swine plants, nearly all 
estimated to qualify as small business, are exempt from mandatory 
reporting.
    For any calendar year, lamb packers required to report include 
those that slaughtered or processed the equivalent of 75,000 head per 
year during each of the immediately preceding 5 calendar years. Also 
included are processing plants that did not slaughter or process an 
average of 75,000 lambs during the immediately preceding 5 calendar 
years but are determined to be a packer by the Secretary based on the 
capacity of the processing plant. For any calendar year, an importer 
that imported an average of 5,000 metric tons of lamb meat products per 
year during the immediately preceding 5 calendar years would be 
required to report. Additionally, a lamb importer that did not import 
an average of 5,000 metric tons of lamb meat products during the 
immediately preceding 5 calendar years if the Secretary determines that 
the person should be considered an importer based on the volume of lamb 
imports, would also be required to report. By this definition, 16 
individual companies including importers representing a total of 14 
plants, would be required to report information. Based on the SBA size 
standard, all 14 of these lamb plants would be considered small 
businesses with none employing more than 500 people. The figure of 14 
plants required to report represents 2.9% of the lamb plants in the 
U.S. Nearly all of the remaining 97.1% of lamb plants are estimated to 
qualify as small businesses and are exempt from mandatory reporting.

Projected Reporting

    This proposed rule requires the reporting of specific market 
information regarding the buying and selling of livestock and livestock 
products. The information would be reported to AMS by electronic means. 
Electronic reporting would involve the transfer of data from a packer's 
or importer's electronic recordkeeping system to a centrally located 
AMS electronic database. The packer or importer would be required to 
organize the information in an AMS-approved format before 
electronically transmitting the information to AMS.
    Once the required information has been entered into the AMS 
database, it would be aggregated and processed into various market 
reports which would be released according to the daily and weekly time 
schedule set forth in these proposed regulations.
    Information regarding the specific characteristics of each reported 
sale must be supplied by lot without aggregation. In order to 
adequately describe and categorize each transaction, as many as fifteen 
separate pieces of information are required to be reported. This 
information includes price, head count, weight, quality grade, and 
yield grade. The frequency respondents are required to report is 1 to 3 
times each reporting day depending on the species and type of 
information required.
    In 1999, an average of 700,000 cattle were slaughtered each week. 
Beef plants identified as small businesses contributed an estimated 
7,000 head per day, on average, to this weekly slaughter with each 
business contributing an estimated 700 head per day on average based 
upon publicly available information. At a maximum, if each of these 700 
cattle were purchased in lots of one head each and 15 pieces of 
information were required for each purchase, as many as 10,500 
individual pieces of information would have to be reported by each 
small beef packing plant each reporting day. In addition, each of the 
small beef packing plants is required to report all domestic and export 
sales of boxed beef cuts including branded product. On average, each of 
these small entities slaughters an estimated 700 head per day. Since 
most beef carcasses are usually fabricated at the point of slaughter, 
each of these small beef packers would be processing about 700 beef 
cattle into boxed beef cuts each day. Normally, boxed beef cut sales 
average about 200 boxes per transaction and each head of cattle equals 
7 boxes. This would represent 25 separate transactions which, if 15 
pieces of information were required per transaction, would translate 
into 375 pieces of information reported by each small beef packing 
business producing boxed beef each business day. AMS estimates the 
total annual burden on each small cattle packer and boxed beef 
processing entity to be $7,420, including $5,590 for annual costs 
associated with electronically submitting data and $1,830 for the 
storage and maintenance of electronic files that were submitted to AMS.
    This figure was calculated by estimating the time required to 
complete the necessary data submission and factoring by the number of 
times reporting is required per day for an estimated total of 260 
reporting days in a year (see Paperwork Reduction Act section for a 
complete, detailed discussion).
    On average each week in 1999, 1.9 million swine were slaughtered. 
Pork plants identified as small businesses contributed an estimated 
17,000 head per day to this weekly slaughter with each business 
contributing on average an estimated 1,125 head per day, based on 
publicly available figures. If each of these head were purchased in 
lots of one head each and 15 pieces of information were required for 
each purchase, 16,875 pieces of information would have to be reported 
by each small pork packing plant per day.
    Using the same methodology as described above for cattle, AMS 
estimates the total annual burden on each small swine packing entities 
to be $5,308, including $3,478 for annual costs associated with 
electronically submitting data and $1,830 for the storage and 
maintenance of electronic files that were submitted to AMS. This 
estimate does not include costs associated with reporting sales of pork

[[Page 14664]]

products which would not be required to be reported.
    Sheep slaughter in 1999 averaged 70,000 head per week. All lamb 
plants contributing to this weekly slaughter are identified as small 
businesses. On average, these lamb plants each slaughtered an estimated 
2,200 head per day, based on publicly available information. If each of 
these lambs were purchased one at a time and 15 pieces of information 
were required for each transaction, 33,000 pieces of information would 
have to be reported by each small lamb packing plant. In addition, all 
lamb plants processing the equivalent of 75,000 lambs per year during 
each of the immediately preceding 5 calendar years, which are required 
to report, qualify as small businesses. These plants would be required 
by regulation to report information on their sales of boxed lamb cuts. 
It is estimated that negotiated sales comprise the majority of all 
boxed lamb cut sales. Based on publicly available information, lamb 
plants processing lamb into boxed lamb cuts, on average, process the 
equivalent of an estimated 1,200 head per day. It is normal business 
practice that these lamb cuts are sold in units averaging between 25-
150 boxes per transaction, representing about 8-50 head of lambs (about 
3 boxes per head). At 1,200 head per day, there could be as many as 150 
transactions per day per reporting packer. Assuming that each of these 
150 transactions required 15 pieces of information per transaction, 
2,250 pieces of information would have to be reported by each small 
lamb packing plant.
    In any calendar year, importers of lamb meat products that imported 
an average of 5,000 metric tons of lamb meat products per year during 
the immediately preceding 5 calendar years would be required to report 
the details of their purchases and sales of boxed lamb cuts including 
branded product and their purchases of lamb carcasses to AMS on a 
weekly basis. Additionally, in any calendar year, lamb importers that 
did not import an average of 5,000 metric tons of lamb meat products 
during the immediately preceding 5 calendar years if the Secretary 
determines that the person should be considered an importer based on 
the volume of lamb imports would be required to report the above 
information. AMS estimates that each of the 5 importers required to 
report import, on average, 180 metric tons of lamb products per week. 
AMS estimates that the majority of these imports are contracted over a 
period of time, usually from 3-6 months, possibly as much as 12 months. 
Price would normally be negotiated at the time the contract was entered 
into along with the particular cut of lamb and the volume. During the 
time the contract is in effect, prices would not be expected to change 
from week to week but quantities might. Assuming that an average 
importer would purchase an average of 10 different cut styles, each at 
a single price, from an average of 2 suppliers, AMS estimates that the 
weekly reporting burden for each importer would include information for 
up to 20 different transactions. Each transaction would require 7 
pieces of information including, price, quantity, cut, trim, weight, 
delivery date, and nation of origin, for a total of 140 separate pieces 
of information.
    AMS estimates the total annual burden on each small lamb packer 
would be $6,042 including $4,212 for annual costs associated with 
electronically submitting data and $1,830 for the storage and 
maintenance of electronic files that were submitted to AMS.
    AMS estimates the total annual burden on each small importer of 
lamb to be $2,404 including $574 for annual cost associated with 
electronically submitting data and $1,830 for storage and maintenance 
of electronic files that were submitted to AMS.
    Normally, few packers buy livestock or livestock products in one 
head or one head equivalent lots. Similarly, few importers buy imported 
carcasses or imported lamb cuts in less than carlot volumes. Therefore, 
the estimated reporting burden described here would reflect the maximum 
reporting burden on small businesses.

Projected Recordkeeping

    Each packer and importer required to report information to the 
Secretary must maintain such records as are necessary to verify the 
accuracy of the information provided to AMS. This includes information 
regarding price, class, head count, weight, quality grade, yield grade, 
and other factors necessary to adequately describe each transaction. 
These records are already kept by the industry. Reporting packers and 
importers are required by these proposed regulations to maintain and to 
make available the original contracts, agreements, receipts, and other 
records associated with any transaction relating to the purchase, sale, 
pricing, transportation, delivery, weighing, slaughter, or carcass 
characteristics of all livestock. Reporting packers and importers are 
also required to maintain copies of the information provided to AMS. 
All of the above-mentioned paperwork must be kept for at least 2 years. 
Packers and importers are not required to report any other new or 
additional information that they do not generally have available or 
maintain. Further, they would not be required to keep any information 
that would prove unduly burdensome to maintain. The paperwork burden 
that would be imposed on the packers and importers is further discussed 
in the section entitled Paperwork Reduction Act that follows.
    In addition, we have not identified any relevant Federal rules that 
are currently in effect that duplicate, overlap, or conflict with this 
rule. AMS will continue to report market information collected through 
its voluntary market reporting program provided the collection of such 
information does not duplicate the information collection requirements 
of this proposed rule.
    Professional skills required for recordkeeping under this proposed 
rule would not be different than those already employed by the 
reporting entities. Reporting would be accomplished using computers or 
similar electronic means. AMS believes the skills needed to maintain 
such systems are already in place in those small businesses affected by 
this proposed rule. Comments are requested on the extent to which 
employees of these small businesses already possess the skills required 
to report and maintain recordkeeping systems.

Alternatives

    This proposed rule as directed by the Act requires cattle and swine 
packing plants of a certain size to report information to the Secretary 
at prescribed times throughout the day and week. Further, lamb 
slaughter and processing plants and lamb importers of a certain size 
are required by these proposed regulations to report information to the 
Secretary at prescribed times throughout the day and week. These 
proposed regulations already exempt many small businesses by the 
establishment of daily slaughter, processing, and import capacity 
thresholds. Based on figures published by the National Agricultural 
Statistics Service (NASS), there were 795 cattle, 757 swine, and 556 
lamb Federally inspected slaughter plants operating in the U.S. at the 
end of 1998. AMS estimates that approximately 49 cattle plants would be 
required to report information (6.2% of all Federally inspected cattle 
plants), 50 swine plants would be required to report information (6.6% 
of all Federally inspected swine plants), and 16 lamb packers and 
importers would be required to report

[[Page 14665]]

information (1.9% of all Federally inspected lamb plants and 1.3% of 
all lamb importers). Therefore, fully 93.8% of all cattle plants, 93.4% 
of all swine plants, and 98.1% of all lamb packers and 98.7% of lamb 
importers would not be required to report.
    AMS recognizes that a major economic impact of this proposed rule 
on those small entities required to report involves the manner in which 
information must be reported to the Secretary. However, in developing 
these proposed regulations AMS did consider other means by which the 
objectives of this proposed rule could be accomplished, including 
reporting the required information by telephone, facsimile and regular 
mail. AMS believes these alternatives are not capable of meeting the 
program objectives, especially timely reporting. The Act prescribes 
specific times that reporting entities must report to AMS. Similarly, 
the Act prescribes specific times for publication of a report by AMS. 
AMS believes electronic submission to be the only method capable of 
allowing for AMS to collect, aggregate and publish reports while 
complying with the specific time-frames set forth in the Act. AMS 
believes it would not be possible for the Agency to receive information 
over the telephone, facsimile or regular mail and then transcribe the 
information into electronic format before aggregating and publishing 
the information while still complying with the publication time-frames 
set forth in the Act. However, AMS may provide for an exception to 
electronic reporting in emergencies or in cases when an alternative is 
agreeable to AMS and the reporting entity.
    AMS cannot envision an alternative to the proposed method of data 
transmission that would be less burdensome to small businesses. 
Therefore, AMS is expressly seeking comment from those small businesses 
covered by this proposed rule regarding the burden imposed on them by 
this program. Specifically, AMS is seeking comments on the reporting 
format, including alternatives from small businesses that would be less 
burdensome. AMS will work actively with those small businesses required 
to report to minimize the burden on them to the maximum extent 
practicable.

Paperwork Reduction Act

    This proposed rule contains recordkeeping and submission 
requirements that are subject to public comment and review by the 
Office of Management and Budget (OMB) under the Paperwork Reduction Act 
of 1995 (PRA) (44 U.S.C. Chapter 35). In accordance with 5 CFR Part 
1320, we include the description of the reporting and recordkeeping 
requirements and an estimate of the annual burden on packers required 
to report information under this proposed rule. Because there is 
insufficient time for a normal clearance procedure, AMS has requested 
emergency processing and received temporary approval from OMB for the 
use of the information collection and recordkeeping requirements that 
we propose to use to implement the mandatory livestock reporting 
program on an expedited basis.
    Title: Livestock Mandatory Reporting Act of 1999.
    OMB Number: 0581-0186.
    Expiration Date of Assessment: July 31, 2000.
    Type of Request: Extension.
    Abstract: The information collection and recordkeeping requirements 
in this regulation would be essential to establishing and implementing 
a mandatory program of livestock and livestock products reporting. 
Based on the information available, AMS estimates that there would be 
49 beef packer plants, 50 pork packer plants, 11 lamb packer plants and 
5 lamb importers that would be required to report market information 
under this proposed rule. These companies have similar recordkeeping 
systems and business operation practices and conduct their operations 
in a similar manner. AMS believes that all of the information required 
under this proposed rule can be collected from existing materials and 
systems and that these materials and systems can be adapted to satisfy 
the proposed forms. The PRA also requires AMS to measure the 
recordkeeping burden. Under this proposed rule, each packer and 
importer required to report must maintain and make available upon 
request for 2 years, such records as would be necessary to verify the 
accuracy of the information required to be reported. These records 
include original contracts, agreements, receipts, and other records 
associated with any transaction relating to the purchase, sale, 
pricing, transportation, delivery, weighing, slaughter, or carcass 
characteristics of all livestock. Under this proposed rule, the 
electronic data files which the packers would be required to utilize 
when submitting information to AMS would have to be maintained as these 
files provide the best record of compliance. The recordkeeping burden 
includes the amount of time needed to store and maintain records. AMS 
estimates that, since records of original contracts, agreements, 
receipts, and other records associated with any transaction relating to 
the purchase, sale, pricing, transportation, delivery, weighing, 
slaughter, or carcass characteristics of all livestock are stored and 
maintained as a matter of normal business practice by these companies 
for a period in excess of 2 years, additional annual costs would be 
nominal. AMS estimates the annual cost per respondent for the storage 
of the electronic data files which were submitted to AMS in compliance 
with the reporting provisions of this proposed rule to be $1,830.00. 
This estimate includes the cost of electronic data storage media, 
backup electronic data storage media, and backup software required to 
maintain an estimated annual electronic recordkeeping and backup burden 
of 42 megabytes, on average, per respondent. In addition, this estimate 
includes the cost per employee to maintain such records which is 
estimated to average 70 hours per year at $20.00 per hour for a total 
salary component cost of $1,400.00 per year. AMS welcomes any 
additional information from the industry regarding such costs.
    In this proposed rule, information collection requirements include 
the submission of the required information on a daily and weekly basis 
in the standard format provided in the following forms: (1) Live Cattle 
Daily Report (Current Established Prices), (2) Live Cattle Daily Report 
(Committed and Delivered Cattle), (3) Live Cattle Weekly Report 
(Forward Contract and Packer-Owned), (4) Live Cattle Weekly Report 
(Formula Purchases), (5) Cattle Premiums and Discounts Weekly Report, 
(6) Boxed Beef Daily Report, (7) Swine Prior Day Report, (8) Swine 
Daily Report, (9) Swine Noncarcass Merit Premium Weekly Report, (10) 
Live Lamb Daily Report (Current Established Prices), (11) Live Lamb 
Daily Report (Committed and Delivered Lambs), (12) Live Lamb Weekly 
Report (Packer-Owned), (13) Live Lamb Weekly Report (Formula and 
Forward Contract Purchases), (14) Lamb Premiums and Discounts Weekly 
Report, (15) Boxed Lamb Report, and (16) Lamb Carcass Report. Copies of 
these 16 forms are included in Appendices at the end of this rule. 
Cattle packers would utilize six of these forms (Appendix A) when 
reporting information to AMS including two for daily cattle reporting, 
three for weekly cattle reporting, and one for daily boxed beef cuts 
reporting. Swine packers would utilize three forms (Appendix B), two 
for daily reporting of swine purchases and one for weekly reporting of 
non-carcass merit premium information. Lamb packers would utilize seven 
of these forms (Appendix

[[Page 14666]]

C) when reporting information to AMS including two for daily lamb 
reporting, three for weekly lamb reporting, one for daily and weekly 
boxed lamb cuts reporting and one for daily and weekly lamb carcass 
reporting. Lamb importers would utilize two of these forms when 
reporting information to AMS including one for reporting weekly 
imported lamb carcass and one for reporting weekly imported boxed lamb 
cut purchases and sales.
    These information collection requirements have been designed to 
minimize disruption to the normal business practices of the affected 
entities. Each of these forms requires the minimal amount of 
information necessary to properly describe each reportable transaction, 
as required under this proposed rule. The number of forms is a result 
of an attempt to reduce the complexity of each form.
    1. Live Cattle Daily Report (Current Established Prices): Form LS-
113.
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .17 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live cattle purchases to the Secretary.
    Estimated Number of Respondents: 49 plants.
    Estimated Number of Responses per Respondent: 520 (2 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 4,332 hours.
    Total Cost: $86,640.

    2. Live Cattle Daily Report (Committed and Delivered
    Cattle): Form LS-114.
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .17 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live cattle purchases to the Secretary.
    Estimated Number of Respondents: 49 plants.
    Estimated Number of Responses per Respondent: 520 (2 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 4,332 hours.
    Total Cost: $86,640.

    3. Live Cattle Weekly Report (Forward Contract and Packer-Owned): 
Form LS-115.
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .25 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live cattle purchases to the Secretary.
    Estimated Number of Respondents: 49 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 637 hours.
    Total Cost: $12,740.

    4. Live Cattle Weekly Report (Formula Purchases): Form LS-116.
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .25 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live cattle purchases to the Secretary.
    Estimated Number of Respondents: 49 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 637 hours.
    Total Cost: $12,740.

    5. Cattle Premiums and Discounts Weekly Report: Form LS-117.
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .08 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live cattle purchases to the Secretary.
    Estimated Number of Respondents: 49 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 204 hours.
    Total Cost: $4,080.

    6. Boxed Beef Daily Report: Form LS-126.
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .125 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on domestic and export boxed beef cut sales to the 
Secretary.
    Estimated Number of Respondents: 49 plants.
    Estimated Number of Responses per Respondent: 520 (2 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 3,185 hours.
    Total Cost: $63,700.

    7. Swine Prior Day Report: Form LS-118.
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .25 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live swine purchases to the Secretary.
    Estimated Number of Respondents: 50 plants.
    Estimated Number of Responses per Respondent: 260 (1 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 3,250 hours.
    Total Cost: $65,000.

    8. Swine Daily Report: Form LS-119.
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .17 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live swine purchases to the Secretary.
    Estimated Number of Respondents: 50 plants.
    Estimated Number of Responses per Respondent: 520 (2 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 4,420 hours.
    Total Cost: $88,400.

    9. Swine Noncarcass Merit Premium Weekly Report: Form LS-120.
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .25 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live swine purchases to the Secretary.
    Estimated Number of Respondents: 50 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 650 hours.
    Total Cost: $13,000.

    10. Live Lamb Daily Report (Current Established Prices): Form LS-
121.
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .17 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live lamb purchases to the Secretary.
    Estimated Number of Respondents: 8 plants.
    Estimated Number of Responses per Respondent: 520 (2 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 707 hours.
    Total Cost: $14,140.

    11. Live Lamb Daily Report (Committed and Delivered Lambs): Form 
LS-122.
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .17 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live lamb purchases to the Secretary.

[[Page 14667]]

    Estimated Number of Respondents: 8 plants.
    Estimated Number of Responses per Respondent: 520 (2 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 707 hours.
    Total Cost: $14,140.

    12. Live Lamb Weekly Report (Packer-Owned): Form LS-123.
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .25 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live lamb purchases to the Secretary.
    Estimated Number of Respondents: 8 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 104 hours.
    Total Cost: $2,080.

    13. Live Lamb Weekly Report (Formula and Forward Contract 
Purchases): Form LS-124.
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .25 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live lamb purchases to the Secretary.
    Estimated Number of Respondents: 8 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 104 hours.
    Total Cost: $2,080.

    14. Lamb Premiums and Discounts Weekly Report: Form LS-125.
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .08 hours per electronically submitted 
response.
    Respondents: Packer processing plants required to report 
information on live lamb purchases to the Secretary.
    Estimated Number of Respondents: 8 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 33 hours.
    Total Cost: $660.

    15. Boxed Lamb Report: Form LS-128.
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .167 hours per electronically submitted 
response.
    Respondents: Packer processing plants and importers required to 
report information on boxed lamb cut purchases and sales to the 
Secretary.
    Estimated Number of Respondents: 14 entities (including 1 entity 
that both processes and imports).
    Estimated Number of Responses per Respondent: 260 (1 per day for 
260 days) for domestic packing plants; 52 (1 per week for 52 weeks) for 
importers.
    Estimated Total Annual Burden on Respondents: 434 hours for 
domestic packing plants and 43 hours for importers.
    Total Cost: $8,680 for domestic packing plants and $860.00 for 
importers for a total of $9,540.00.

    16. Lamb Carcass Report: Form LS-129.
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .167 hours per electronically submitted 
response.
    Respondents: Packer processing plants and importers required to 
report information on lamb carcass purchases and sales to the 
Secretary.
    Estimated Number of Respondents: 12 entities (including 1 entity 
that both slaughters and imports).
    Estimated Number of Responses per Respondent: 260 (1 per day for 
260 days) for domestic packing plants; 52 (1 per week for 52 weeks) for 
importers.
    Estimated Total Annual Burden on Respondents: 347 hours for 
domestic packing plants and 43 hours for importers.
    Total Cost: $6,940 for domestic packing plants and $860.00 for 
importers for a total of $7,800.00.
    Estimated Total Annual Burden on Respondents by Species:
    Live Cattle and Boxed Beef: $363,560 including $273,890 for annual 
costs associated with electronically submitted responses (13,327 annual 
hours @ $20.00 per hour plus initial electronic data transfer setup 
costs of $7,350 consisting of 147 annual hours at $50 per hour) and 
$89,670 for the storage and maintenance of electronic files that were 
submitted to AMS.
    Live Swine: $265,400 including $173,900 for annual costs associated 
with electronically submitted responses (8,320 annual hours @ $20.00 
per hour plus initial electronic data transfer setup costs of $7,500 
consisting of 150 annual hours at $50 per hour) and $91,500 for the 
storage and maintenance of electronic files that were submitted to AMS.
    Live Lambs, Boxed Lamb, and Lamb Carcasses: $82,120 including 
$52,840 for annual costs associated with electronically submitted 
responses (2,522 annual hours @ $20.00 per hour plus initial electronic 
data transfer setup costs of $2,400 consisting of 48 annual hours at 
$50 per hour) and $29,280 for the storage and maintenance of electronic 
files that were submitted to AMS.
    AMS is soliciting comments from all interested parties concerning 
the information collection and recordkeeping requirements contained in 
this proposed rule. Comments are specifically invited on the following: 
(1) The accuracy of the agency's burden estimate of the proposed 
collection of information including the validity of the methodology and 
assumptions used; (2) ways to minimize the burden of the collection of 
information on those who would be required to respond, including 
through the use of appropriate electronic collection methods; (3) 
whether the proposed collection of information is sufficient or 
necessary for the proper performance of the functions of the agency as 
mandated by the Act; and (4) ways to enhance the quality, utility, and 
clarity of the information to be collected. Comments concerning the 
information collection and recordkeeping requirements contained in this 
action should reference OMB number 0581-0186 together with the date and 
page number of this issue of the Federal Register and should be sent in 
duplicate to John E. Van Dyke, Chief, Livestock and Grain Market News 
Branch, Docket No. LS-99-18, Room 2619-S; 1400 Independence Avenue; 
SW., Washington, D.C. 20250-0252. Comments may also be sent by fax to 
(202) 690-3732, by electronic mail to: [email protected], or filed 
via an on-line form through the AMS website at: http://www.ams.usda.gov/lsg/mprcomment.htm. State that your comments refer to 
Docket No. LS-99-18. Comments received may be inspected at the above 
location between 8:00 a.m. and 4:30 p.m., Monday through Friday, except 
holidays, or over the AMS website at: http://www.ams.usda.gov/lsg/price.htm.
    Comments sent to the above location should also be sent to the Desk 
Officer for Agriculture, Office of Information and Regulatory Affairs, 
Office of Management and Budget, Washington, D.C. 20503. All responses 
to this action will be summarized and included in the request for OMB 
approval. All comments will become a matter of public record.
    A 30-day comment period is provided for interested persons to 
comment on this proposed rule. The 30-day period is deemed appropriate 
in order to provide a sufficient amount of time to comment while 
conforming, as closely as possible, to the time-frames contemplated by 
the Act.

[[Page 14668]]

List of Subjects in 7 CFR Part 57

    Cattle, Hogs, Lamb, Livestock, Sheep.

    For the reasons set forth in the preamble, it is proposed that 
Chapter I of Title 7 of the CFR be amended by adding Part 57 to read as 
follows:

PART 57--LIVESTOCK MANDATORY REPORTING

Subpart A--General Provisions
Sec.
57.10   General administrative provisions.
57.11   Recordkeeping.
57.20   Definitions.
Subpart B--Cattle Reporting
57.100   Definitions.
57.101   Mandatory daily reporting for live cattle.
57.102   Mandatory weekly reporting for live cattle.
57.103   Mandatory reporting of boxed beef sales.
Subpart C--Swine Reporting.
57.200   Definitions.
57.201   General reporting provisions.
57.202   Mandatory daily reporting for swine.
57.203   Mandatory weekly reporting for swine.
Subpart D--Lamb Reporting
57.300   Definitions.
57.301   Mandatory daily reporting for lambs.
57.302   Mandatory weekly reporting for lambs.
57.303   Mandatory roporting of lamb carcasses and boxed lamb.
Subpart E--OMB Control Number
57.400   OMB control number assigned pursuant to the Paperwork 
Reduction Act.

    Authority: 7 U.S.C. 1621 et seq.

Subpart A--General Provisions


Sec. 57.10  General administrative provisions.

    (a) Reporting by Packers and Importers. A packer or importer shall 
report all information required under this part on an individual lot 
basis.
    (b) Reporting Schedule. Whenever a packer or importer is required 
to report information on transactions of livestock and livestock 
products under this part by a set time, all covered transactions up to 
within one half hour of the reporting deadline shall be reported. 
Transactions completed during the one half hour prior to the previous 
reporting time, but not reported in the previous report, shall be 
reported at the next scheduled reporting time.
    (c) Regional reporting and aggregation. The Secretary shall make 
information obtained under this part available to the public only in a 
manner that:
    (1) Ensures that the information is published on a national and a 
regional or statewide basis as the Secretary determines to be 
appropriate;
    (2) Ensures that the identity of a reporting person or the entity 
which they represent is not disclosed; and
    (3) Market information reported to the Secretary by packers and 
importers shall be aggregated in such a manner that the market reports 
issued will not disclose the identity of persons, packers and 
importers, including parties to a contract and packer's and importer's 
proprietary information.
    (d) Adjustments. Prior to the publication of any information 
required under this part, the Secretary may make reasonable adjustments 
in information reported by packers and importers to reflect price 
aberrations or other unusual or unique occurrences that the Secretary 
determines would distort the published information to the detriment of 
producers, packers, or other market participants.
    (e) Reporting of activities on weekends and holidays. Livestock and 
livestock products committed to a packer, or importer, or purchased, 
sold, or slaughtered by a packer or importer on a weekend day or 
holiday shall be reported to the Secretary in accordance with the 
provisions of this part and reported by the Secretary on the 
immediately following reporting day. A packer shall not be required to 
report such actions more than once on the immediately following 
reporting day.
    (f) Reporting methods. Whenever information is required to be 
reported under this part, it shall be reported by electronic means and 
shall adhere to a standardized format established by the Secretary to 
achieve the objectives of this part, except in emergencies or in cases 
when an alternative method is agreeable to the entity required to 
report and AMS.


Sec. 57.11  Recordkeeping.

    (a) In general. Each packer or importer required to report 
information to the Secretary under the Act and this part shall maintain 
for 2 years and make available to the Secretary the following 
information on request:
    (1) The original contracts, agreements, receipts, and other records 
associated with any transaction relating to the purchase, sale, 
pricing, transportation, delivery, weighing, slaughter, or carcass 
characteristics of all livestock or livestock products; and
    (2) Such records or other information as is necessary or 
appropriate to verify the accuracy of the information required to be 
reported under the Act and this part.
    (b) Purchases of livestock and sales of boxed beef cuts. A record 
of a purchase of a lot of cattle, a unit of boxed beef cuts, a lot of 
swine, or a lot of lambs by a packer shall evidence whether the 
purchase occurred:
    (1) Before 10:00 a.m. Central Time;
    (2) Between 10:00 a.m. and 2:00 p.m. Central Time; or
    (3) After 2:00 p.m. Central Time.
    (c) Purchases and sales of domestic and imported lamb carcasses and 
cuts. A record of a purchase or sale by a packer of lamb carcasses and 
cuts, or by an importer of lamb carcasses and cuts shall evidence time 
and date the purchase or sale occurred.
    (d) Reporting sales of boxed beef cuts and sales and purchases of 
lamb carcasses and cuts.
    (1) Beef packers must report all sales of boxed beef cuts by the 
applicable Institutional Meat Purchase Specification (IMPS), Fresh Beef 
Series 100 item number or by the packer's cut and trim specifications.
    (2) Lamb packers and importers must report all sales and purchases 
of boxed lamb carcasses and cuts by the applicable IMPS, Fresh Lamb and 
Mutton Series 200 item number or by the packer's and importer's cut and 
trim specifications.
    (3) You may obtain a copy of IMPS Fresh Beef Series 100 and Fresh 
Lamb and Mutton Series 200 from U.S. Department of Agriculture, 
Agricultural Marketing Service, Livestock and Seed Program, Livestock 
and Meat Standardization Branch, Room 2603 South Building STOP 0254, PO 
Box 96456 Washington, D.C. 20090-6456. You may inspect a copy of the 
above in Room 2603, South Building, 14th and Independence Ave., SW, 
Washington, D.C. 20250, or at the office of the Federal Register, 800 
North Capitol Street, NW, Suite 700, Washington, D.C. 20488.


Sec. 57.20  Definitions.

    The following definitions apply to this part:
    Base price. The term `base price' means the price paid for 
livestock, delivered at the packing plant, before application of any 
premiums or discounts, expressed in dollars per hundred pounds of hot 
carcass weight.
    Basis level. The term `basis level' means the agreed on adjustment 
to a future price to establish the final price paid for livestock.
    Committed. The term `committed' means the agreement between a buyer 
and seller to schedule livestock for delivery at some date.
    Current slaughter week. The term `current slaughter week' means the 
period beginning Monday, and ending Sunday, of the week in which a 
reporting day occurs.

[[Page 14669]]

    Discount. The term `discount' means the adjustment, expressed in 
dollars per hundred pounds, subtracted from the base price due to 
weight, quality grade, yield grade, livestock class, dark cutting, 
breed, or dressing percentage.
    F.O.B. The term `F.O.B.' means free on board, regardless of the 
mode of transportation, at the point of direct shipment by the seller 
to the buyer (F.O.B. Plant or F.O.B. Feedlot).
    Livestock. The term `livestock' means cattle, swine, and lambs.
    Lot. The term `lot' means a group of one or more livestock that is 
identified for the purpose of a single transaction between a buyer and 
a seller.
    Marketing. The term `marketing' means the sale or other disposition 
of livestock, livestock products, or meat or meat food products in 
commerce.
    Negotiated purchase. The term `negotiated purchase' means a cash or 
spot market purchase by a packer of livestock from a producer under 
which the base price for the livestock is determined by seller-buyer 
interaction and agreement on a delivery day, and the livestock are 
scheduled for delivery to the packer not more than 14 days after the 
date on which the livestock are committed to the packer.
    Negotiated sale. The term `negotiated sale' means a cash or spot 
market sale by a producer of livestock to a packer under which the base 
price for the livestock is determined by seller-buyer interaction and 
agreement on a delivery day and the livestock are scheduled for 
delivery to the packer not later than 14 days after the date on which 
the livestock are committed to the packer. When used in reference to 
sales of boxed meat cuts and carcasses the term `negotiated sale' means 
a cash or spot market sale by a processor of boxed meat cuts or 
carcasses to a buyer of boxed meat cuts or carcasses under which the 
base price for the boxed meat cuts or carcasses is determined by 
seller-buyer interaction and agreement on a day.
    Premium. The term `premium' means the adjustment, expressed in 
dollars per hundred pounds, added to the base price due to weight, 
quality grade, yield grade, livestock class, and breed.
    Priced. The term `priced' means the actual determination of a price 
either through buyer-seller interaction and agreement or as the result 
of a formula marketing arrangement or forward contract.
    Prior slaughter week. The term `prior slaughter week' means the 
Monday through Sunday prior to a reporting day.
    Producer. The term `producer' means any person engaged in the 
business of selling livestock to a packer for slaughter (including the 
sale of livestock from a packer to another packer).
    Purchased. The term `purchased' means the agreement on a price, or 
the method for calculating a price, determined through buyer-seller 
interaction and agreement.
    Reporting day. The term `reporting day' means a day on which a 
packer conducts business regarding livestock committed to the packer, 
or livestock purchased, sold, or slaughtered by the packer; the 
Secretary is required to make such information available to the public; 
and the Department of Agriculture is open to conduct business.
    Secretary. The term `Secretary' means the Secretary of Agriculture 
of the United States or any other officer or employee of the Department 
of Agriculture to whom authority has been delegated or may hereafter be 
delegated to act in the Secretary's stead.
    State. The term `State' means each of the 50 States.

Subpart B--Cattle Reporting


Sec. 57.100  Definitions.

    The following definitions apply to this part:
    Branded. The term `branded' means boxed beef cuts which are 
marketed based on a distinctive characteristic or combination of 
characteristics. These characteristics are categorized by quality grade 
(including ungraded or no-roll), trim specification, weight, breed, and 
packaging.
    Carcass characteristics. The term `carcass characteristics' means 
those traits pertinent to the proper categorization of live cattle 
including the estimated average live weight in pounds, the estimated 
percentage of cattle of a quality grade of Choice or better, and an 
estimate of the cattle dressing percentage.
    Cattle committed. The term `cattle committed' means cattle that are 
scheduled to be delivered to a packer within the 7-day period beginning 
on the date of an agreement to sell the cattle.
    Cattle type. The term `cattle type' means the following types of 
cattle purchased for slaughter:
    (1) Fed steers;
    (2) Fed heifers;
    (3) Fed Holsteins and other fed dairy steers and heifers;
    (4) Cows; and
    (5) Bulls.
    Formula marketing arrangement. The term `formula marketing 
arrangement' means the advance commitment of cattle for slaughter by 
any means other than through a negotiated purchase or a forward 
contract, using a method for calculating price in which the price is 
determined at a future date. When used in reference to boxed beef, the 
term `formula marketing arrangement' means the advance commitment of 
boxed beef by any means other than through a negotiated purchase or a 
forward contract, using a method for calculating price in which the 
price is determined at a future date.
    Forward contract. The term `forward contract' means an agreement 
for the purchase of cattle, executed in advance of slaughter, under 
which the base price is established by reference to prices quoted on 
the Chicago Mercantile Exchange, or other comparable publicly available 
prices. When used in reference to boxed beef, the term `forward 
contract' means an agreement for the sale of boxed beef, executed in 
advance of manufacture, under which the base price is established by 
reference to publicly available quoted prices.
    Packer. The term `packer' means any person engaged in the business 
of buying cattle in commerce for purposes of slaughter, of 
manufacturing or preparing meats or meat food products from cattle for 
sale or shipment in commerce, or of marketing meats or meat food 
products from cattle in an unmanufactured form acting as a wholesale 
broker, dealer, or distributor in commerce. For any calendar year, the 
term `packer' includes only a Federally inspected cattle processing 
plant that slaughtered an average of 125,000 head of cattle per year 
during the immediately preceding 5 calendar years. Additionally, in the 
case of a cattle processing plant that did not slaughter cattle during 
the immediately preceding 5 calendar years, it shall be considered a 
packer if the Secretary determines the processing plant should be 
considered a packer under this subpart after considering its capacity.
    Packer-owned cattle. The term `packer-owned cattle' means cattle 
that a packer owns for at least 14 days immediately before slaughter.
    Prices for cattle. The term `prices for cattle' includes the price 
per hundredweight; the purchase type; the quantity on a live and a 
dressed weight basis; the range and estimated live weights; the 
estimated percentage of cattle of a quality grade Choice or better; any 
premiums or discounts associated with weight, quality grade, yield 
grade, or type of cattle; cattle State of origin; expected date of 
slaughter; estimated cattle dressing percentage; and price basis as 
F.O.B. feedlot or delivered at the plant.
    Terms of trade. The term `terms of trade' means, with respect to 
the purchase of cattle for slaughter:

[[Page 14670]]

    (1) Whether a packer provided any financing agreement or 
arrangement with regard to the cattle;
    (2) Whether the delivery terms specified the location of the 
producer or the location of the packer's plant;
    (3) Whether the producer is able to unilaterally specify the date 
and time during the business day of the packer that the cattle are to 
be delivered for slaughter; and
    (4) The percentage of cattle purchased by a packer as a negotiated 
purchase that are delivered to the plant for slaughter more than 7 
days, but fewer than 14 days, after the earlier of either the date on 
which the cattle were committed to the packer, the date on which the 
cattle were purchased by the packer, or the date on which the cattle 
were priced by the packer.
    Type of purchase. The term `type of purchase' with respect to 
cattle, means a negotiated purchase, a formula market arrangement, and 
a forward contract.
    Type of sale. The term `type of sale' with respect to boxed beef, 
means a negotiated sale, a formula market arrangement, and a forward 
contract.


Sec. 57.101  Mandatory daily reporting for live cattle.

    (a) In general. The corporate officers or officially designated 
representatives of each packer processing plant shall report to the 
Secretary at least two times each reporting day not later than 10:00 
a.m. Central Time and not later than 2:00 p.m. Central Time the 
following information for each cattle type, inclusive since the last 
reporting, categorized to clearly delineate domestic from imported 
market purchases as described in (57.10(b).
    (1) The prices for cattle (per hundredweight) established on that 
day, categorized by:
    (i) The type of purchase;
    (ii) The quantity of cattle purchased on a live weight basis;
    (iii) The quantity of cattle purchased on a dressed weight basis;
    (iv) A range and average of estimated live weights of cattle 
purchased;
    (v) An estimate of the percentage of the cattle purchased that were 
of a quality grade of Choice or better; and
    (vi) Any premiums or discounts associated with weight, quality 
grade, yield grade, or type of purchase.
    (2) The quantity of cattle delivered to the packer (quoted in 
numbers of head) on that day, categorized by:
    (i) The type of purchase;
    (ii) The quantity of cattle delivered on a live basis; and
    (iii) The quantity of cattle delivered on a dressed basis.
    (3) The quantity of cattle committed to the packer (quoted in 
numbers of head) as of that day, categorized by the type of purchase, 
quantity of cattle to be delivered on a live basis, and the quantity of 
cattle to be delivered on a dressed basis.
    (4) The terms of trade regarding the cattle, as applicable.
    (b) Publication. The Secretary shall make the information available 
to the public not less frequently than three times each reporting day.


Sec. 57.102  Mandatory weekly reporting for live cattle.

    (a) In general. The corporate officers or officially designated 
representatives of each packer processing plant shall report to the 
Secretary, on the first reporting day of each week, not later than 9:00 
a.m. Central Time, the following information applicable to the prior 
slaughter week, categorized to clearly delineate domestic from imported 
market purchases:
    (1) The quantity of cattle purchased through forward contracts that 
were slaughtered;
    (2) The quantity of cattle delivered under a formula marketing 
arrangement that were slaughtered;
    (3) The quantity and carcass characteristics of packer-owned cattle 
that were slaughtered; and
    (4) The quantity, basis level, and delivery month for all cattle 
purchased through forward contracts.
    (b) Premiums and discounts. The corporate officers or officially 
designated representatives of each packer processing plant shall report 
to the Secretary, on the first reporting day of each week, not later 
than 9:00 a.m. Central Time, the range and average of intended premiums 
and discounts (associated with weight, quality grade, yield grade, or 
type of cattle) that are expected to be in effect for the current 
slaughter week.
    (c) Formula purchases. The corporate officers or officially 
designated representatives of each packer processing plant shall report 
to the Secretary, on the first reporting day of each week, by 8:00 a.m. 
Central Time, the following information for cattle purchased through a 
formula marketing arrangement and slaughtered during the prior 
slaughter week, categorized to clearly delineate domestic from imported 
market purchases:
    (1) The quantity (quoted in both numbers of head and pounds) of 
cattle;
    (2) The weighted average price paid for a carcass, including 
applicable premiums and discounts;
    (3) The range of premiums and discounts paid;
    (4) The weighted average of premiums and discounts paid;
    (5) The range of prices paid;
    (6) The aggregate weighted average price paid for a carcass; and
    (7) The terms of trade regarding the cattle, as applicable.
    (d) Publication. The Secretary shall make available to the public 
the information obtained under paragraphs (a), (b), and (c) of this 
section on the first reporting day of the current slaughter by 10:00 
a.m. Central Time.


Sec. 57.103  Mandatory reporting of boxed beef sales.

    (a) Daily reporting. The corporate officers or officially 
designated representatives of each packer processing plant shall report 
to the Secretary at least twice each reporting day (once by 10:00 a.m. 
Central Time, and once by 2:00 p.m. Central Time) the following 
information on total boxed beef domestic and export sales established 
on that day inclusive since the last reporting as described in 
Sec. 57.10(b):
    (1) The price for each lot of each boxed beef sale, quoted in 
dollars per hundredweight on a F.O.B. plant basis;
    (2) The quantity for each lot of each sale, quoted by number of 
boxes sold; and
    (3) The information regarding the characteristics of each sale is 
as follows:
    (i) The type of sale;
    (ii) The branded product characteristics, if applicable;
    (iii) The grade of beef (USDA Choice or better, Select, or ungraded 
no-roll product);
    (iv) The cut of beef, referencing the USDA's Livestock and Seed 
Program Institutional Meat Purchase Specifications (IMPS), Fresh Beef 
Series 100, when applicable;
    (v) The trim specification;
    (vi) The weight range of the cut;
    (vii) The number of boxes;
    (viii) The product weight;
    (ix) The product delivery period;
    (x) The product manufacture date;
    (xi) The product buyer and delivery location; and
    (xii) The beef type (steer/heifer, dairy steer/heifer, or cow).
    (b) Publication. The Secretary shall make available to the public 
the information obtained under paragraph (a) of this section not less 
frequently than twice each reporting day.

Subpart C--Swine Reporting


Sec. 57.200  Definitions.

    The following definitions apply to this subpart:
    Affiliate. The term `affiliate', with respect to a packer, means:
    (1) A person that directly or indirectly owns, controls, or holds 
with power to

[[Page 14671]]

vote, 5 percent or more of the outstanding voting securities of the 
packer;
    (2) A person 5 percent or more of whose outstanding voting 
securities are directly or indirectly owned, controlled, or held with 
power to vote, by the packer; and
    (3) A person that directly or indirectly controls, or is controlled 
by or under common control with, the packer.
    Applicable reporting period. The term `applicable reporting period' 
means the period of time prescribed by the prior day report, the 
morning report, and the afternoon report, as provided in Sec. 57.202.
    Average backfat. The term `average backfat' means 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 swine slaughtered during 
the applicable reporting period.
    Average carcass weight. The term `average carcass weight' means the 
weight obtained by dividing the total carcass weight of the swine 
slaughtered at the packing plant during the applicable reporting period 
by the number of these same swine.
    Average lean percentage. The term `average lean percentage' means 
the value equal to the average percentage of the carcass weight 
comprised of lean meat for the swine slaughtered during the applicable 
reporting period. Whenever the packer changes the manner in which the 
average lean percentage is calculated, the packer shall make available 
to the Secretary the underlying data, applicable methodology and 
formulae, and supporting materials used to determine the average lean 
percentage, which the Secretary may convert either to the carcass 
measurements or lean percentage of the swine of the individual packer 
to correlate to a common percent lean measurement; and the total 
slaughter quantity, which shall be equal to the total number of swine 
slaughtered during the applicable reporting period, including all types 
of purchases and packer-owned swine.
    Average net price. The term `average net price' means the quotient 
(stated per hundred pounds of carcass weight of swine) obtained by 
dividing the total amount paid for the swine slaughtered at a packing 
plant during the applicable reporting period (including all premiums 
and less all discounts) by the total carcass weight of the swine (in 
hundred pound increments). The average net price includes 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.
    Average sort loss. The term `average sort loss' means the average 
discount (in dollars per hundred pounds carcass weight) for swine 
slaughtered during the applicable reporting period, resulting from the 
fact that the swine did not fall within the individual packer's 
established carcass weight range or lot variation range.
    Barrow. The term `barrow' means a neutered male swine, with the 
neutering performed before the swine reached sexual maturity.
    Base market hog. The term `base market hog' means a hog for which 
no discounts are subtracted from and no premiums are added to the base 
price.
    Boars. The term `boar' means a sexually-intact male swine.
    Bred female swine. The term `bred female swine' means any female 
swine, whether a sow or gilt, that has been mated or inseminated, or 
has been confirmed, to be pregnant.
    Formula price. The term `formula price' means a price determined by 
a mathematical formula under which the price established for a 
specified market serves as the basis for the formula.
    Gilt. The term `gilt' means a young female swine that has not 
produced a litter.
    Highest net price. The term `highest net price' means the highest 
net price paid for a single lot or group of swine slaughtered at a 
packing plant during the applicable reporting period per hundred pounds 
of carcass weight of swine.
    Hog Class. The term `hog class' means, as applicable, barrows or 
gilts; sows; or boars or stags.
    Lowest net price. The term `lowest net price' means the lowest net 
price paid for a single lot or group of swine slaughtered at a packing 
plant during the applicable reporting period per hundred pounds of 
carcass weight of swine.
    Net price. The term `net price' means the total amount paid by a 
packer to producers (including all premiums, less all discounts) per 
hundred pounds of carcass weight of swine delivered at the plant. The 
total amount paid shall include any sum deducted from the price (per 
hundredweight) paid to a producer that reflects the repayment of a 
balance owed by the producer to the packer or the accumulation of a 
balance to later be repaid by the packer to the producer. The total 
amount paid shall exclude any sum earlier paid to a producer that must 
be repaid to the packer.
    Noncarcass merit premium. The term `noncarcass merit premium' means 
an increase in the base price of the swine offered by an individual 
packer or packing plant, based on any factor other than the 
characteristics of the carcass, if the actual amount of the premium is 
known before the sale and delivery of the swine.
    Other market formula purchase. The term `other market formula 
purchase' means a purchase of swine by a packer in which the pricing 
mechanism is a formula price based on any market other than the market 
for swine, pork, or a pork product. The term `other market formula 
purchase' includes a formula purchase in a case which the price formula 
is based on 1 or more futures or options contracts.
    Other purchase arrangement. The term `other purchase arrangement' 
means a purchase of swine by a packer that is not a negotiated 
purchase, swine or pork market formula purchase, or other market 
formula purchase; and does not involve packer-owned swine.
    Packer. The term `packer' means any person engaged in the business 
of buying swine in commerce for purposes of slaughter, of manufacturing 
or preparing meats or meat food products from swine for sale or 
shipment in commerce, or of marketing meats or meat food products from 
cattle in an unmanufactured form acting as a wholesale broker, dealer, 
or distributor in commerce. For any calendar year, the term `packer' 
includes only a Federally inspected swine processing plant that 
slaughtered an average of 100,000 head of swine per year during the 
immediately preceding 5 calendar years. Additionally, in the case of a 
swine processing plant that did not slaughter swine during the 
immediately preceding 5 calendar years, it shall be considered a packer 
if the Secretary determines the processing plant should be considered a 
packer under this subpart after considering its capacity.
    Packer-owned swine. The term `packer-owned swine' means swine that 
a packer (including a subsidiary or affiliate of the packer) owns for 
at least 14 days immediately before slaughter.
    Packer-sold swine. The term `packer-sold swine' means the swine 
that are owned by a packer (including a subsidiary or affiliate of the 
packer) for more than 14 days immediately before sale for slaughter; 
and sold for slaughter to another packer.
    Pork. The term `pork' means the meat of a porcine animal.

[[Page 14672]]

    Pork product. The term `pork product' means a product or byproduct 
produced or processed in whole or in part from pork.
    Purchase data. The term `purchase data' means all of the applicable 
data, including weight (if purchased live), for all swine purchased 
during the applicable reporting period, regardless of the expected 
delivery date of the swine, reported by:
    (1) Hog class;
    (2) Type of purchase; and
    (3) Packer-owned swine.
    Slaughter data. The term `slaughter data' means all of the 
applicable data for all swine slaughtered by a packer during the 
applicable reporting period, regardless of whether the price of the 
swine was negotiated or otherwise determined, reported by:
    (1) Hog class;
    (2) Type of purchase; and
    (3) Packer-owned swine.
    Sow. The term `sow' means an adult female swine that has produced 1 
or more litters.
    Stag. The term `stag' means a male swine that was neutered after 
reaching sexual maturity.
    Swine. The term `swine' means a porcine animal raised to be a 
feeder pig, raised for seedstock, or raised for slaughter.
    Swine or pork market formula purchase. The term `swine or pork 
market formula purchase' means a purchase of swine by a packer in which 
the pricing mechanism is a formula price based on a market for swine, 
pork, or a pork product, other than a future or option for swine, pork, 
or a pork product.
    Type of purchase. The term `type of purchase', with respect to 
swine, means:
    (1) A negotiated purchase;
    (2) Other market formula purchase;
    (3) A swine or pork market formula purchase; and
    (4) Other purchase arrangement.


Sec. 57.201  General Reporting Provisions.

    (a) Packer-owned swine. Information required under this section for 
packer-owned swine shall include quantity and carcass characteristics, 
but not price.
    (b) Packer-sold swine. If information regarding the type of 
purchase is required under this section, the information shall be 
reported according to the numbers and percentages of each type of 
purchase:
    (1) Packer-sold swine; and
    (2) All other swine.


Sec. 57.202  Mandatory Daily Reporting for Swine.

    (a) Prior day report. The corporate officers or officially 
designated representatives of each packer shall report to the Secretary 
for each business day of the packer not later than 7:00 a.m. Central 
Time on each reporting day information regarding all swine purchased, 
priced, or slaughtered during the prior business day of the packer as 
specified in Sec. 57.10(b):
    (1) All purchase data including the total number of swine purchased 
and swine scheduled for delivery; and the base price and purchase data 
for slaughtered swine for which a price has been established.
    (2) The following slaughter data for the total number of swine 
slaughtered:
    (i) Information concerning the net price;
    (ii) Information concerning the average net price;
    (iii) Information concerning the lowest net price;
    (iv) Information concerning the highest net price;
    (v) The average carcass weight;
    (vi) The average sort loss;
    (vii) The average backfat;
    (viii) The average lean percentage; and
    (ix) Total quantity slaughtered.
    (3) Packer purchase commitments, which shall be equal to the number 
of swine scheduled for delivery to a packer for slaughter for each of 
the next 14 calendar days.
    (4) Publication. The Secretary shall publish the information 
obtained under this paragraph in a prior day report not later than 8:00 
a.m. Central Time on the reporting day on which the information is 
received from the packer.
    (b) Morning report. The corporate officers or officially designated 
representatives of each packer processing plant shall report to the 
Secretary not later than 10:00 a.m. Central Time each reporting day as 
described in Sec. 57.10(b):
    (1) The packer's best estimate of the total number of swine, 
packer-owned swine, and packer-sold swine expected to be purchased 
throughout the reporting day through each type of purchase;
    (2) The total number of swine, packer-owned swine, and packer-sold 
swine purchased up to that time of the reporting day through each type 
of purchase;
    (3) The base price paid for all base market hogs purchased up to 
that time of the reporting day through negotiated purchases; and
    (4) The base price paid for all base market hogs purchased through 
each type of purchase other than negotiated purchase up to that time of 
the reporting day, unless such information is unavailable due to 
pricing that is determined on a delayed basis. The packer shall report 
information on such purchases on the first reporting day or scheduled 
reporting time on a reporting day after the price has been determined.
    (5) 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.
    (c) Afternoon report. The corporate officers or officially 
designated representatives of each packer processing plant shall report 
to the Secretary not later than 2:00 p.m. Central Time each reporting 
day as described in Sec. 57.10(b):
    (1) The packer's best estimate of the total number of swine, 
packer-owned swine, and packer-sold swine expected to be purchased 
throughout the reporting day through each type of purchase;
    (2) The total number of swine, packer-owned swine, packer-sold 
swine purchased up to that time of the reporting day through each type 
of purchase;
    (3) The base price paid for all base market hogs purchased up to 
that time of the reporting day through negotiated purchases; and
    (4) The base price paid for all base market hogs purchased through 
each type of purchase other than negotiated purchase up to that time of 
the reporting day, unless such information is unavailable due to 
pricing that is determined on a delayed basis. The packer shall report 
information on such purchases on the first reporting day or scheduled 
reporting time on a reporting day after the price has been determined.
    (5) 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. 57.203  Mandatory Weekly Reporting for Swine.

    (a) Weekly noncarcass merit premium report. Not later than 4:00 
p.m. Central Time in accordance with Sec. 57.10(b) on the first 
reporting day of each week, the corporate officers or officially 
designated representatives of each packer processing plant shall report 
to the Secretary a noncarcass merit premium report that lists:
    (1) Each category of standard noncarcass merit premiums used by the 
packer in the prior slaughter week; and
    (2) The dollar value (in dollars per hundred pounds of carcass 
weight) paid to producers by the packer, by category.

[[Page 14673]]

    (b) Premium list. A packer shall maintain and make available to a 
producer, on request, a current listing of the dollar values (per 
hundred pounds of carcass weight) of each noncarcass merit premium used 
by the packer during the current or the prior slaughter week.
    (c) Publication. The Secretary shall publish the information 
obtained under this subsection as soon as practicable, but not later 
than 5:00 p.m. Central Time, on the first reporting day of each week.

Subpart D--Lamb Reporting


Sec. 57.300  Definitions.

    The following definitions apply to this subpart:
    Branded. The term `branded' means boxed lamb cuts which are 
marketed based on a distinctive characteristic or combination of 
characteristics. These characteristics are categorized by quality grade 
(including ungraded or no-roll), trim specification, weight, breed, and 
packaging.
    Formula marketing arrangement. The term `formula marketing 
arrangement' means the advance commitment of lambs for slaughter by any 
means other than through a negotiated purchase or a forward contract, 
using a method for calculating price in which the price is determined 
at a future date. When used in reference to boxed lamb, the term 
`formula marketing arrangement' means the advance commitment of boxed 
lamb cuts for delivery by any means other than through a negotiated 
purchase or a forward contract, using a method for calculating price in 
which the price is determined at a future date.
    Forward contract. The term `forward contact' means an agreement for 
the purchase of lambs, executed in advance of slaughter, under which 
the base price is established by reference to publicly available 
prices. When used in reference to boxed lamb, the term `forward 
contract means' an agreement for the sale of boxed lamb cuts, executed 
in advance of manufacture, under which the base price is established by 
reference to publicly available quoted prices.
    Importer. The term `importer' means any person engaged in the 
business of importing meat products from lambs for sale or shipment in 
commerce. For any calendar year, the term includes only those that 
imported an average of 5,000 metric tons of lamb meat products per year 
during the immediately preceding 5 calendar years. Additionally, the 
term includes those that did not import an average of 5,000 metric tons 
of lamb meat products during the immediately preceding 5 calendar 
years, if the Secretary determines that the person should be considered 
an importer based on their volume of lamb imports.
    Lambs committed. The term `lambs committed' means lambs that are 
scheduled to be delivered to a packer within the 7-day period beginning 
on the date of an agreement to sell the lambs.
    Packer. The term `packer' means any person engaged in the business 
of buying lambs in commerce for purposes of slaughter, of manufacturing 
or preparing meat products from lambs for sale or shipment in commerce, 
or of marketing meats or meat products from lambs in an unmanufactured 
form acting as a wholesale broker, dealer, or distributor in commerce. 
For any calendar year, the term includes only a Federally inspected 
lamb processing plant which slaughtered or processed the equivalent of 
an average of 75,000 head of lambs per year during the immediately 
preceding 5 calendar years. Additionally, the term includes a lamb 
processing plant that did not slaughter or process an average of 75,000 
lambs during the immediately preceding 5 calendar years if the 
Secretary determines that the processing plant should be considered a 
packer after considering its capacity.
    Packer-owned lambs. The term `packer-owned lambs' means lambs that 
a packer owns for at least 14 days immediately before slaughter.
    Terms of trade. The term `terms of trade' includes, with respect to 
the purchase of lambs for slaughter:
    (1) Whether a packer provided any financing agreement or 
arrangement with regard to the lambs;
    (2) Whether the delivery terms specified the location of the 
producer or the location of the packer's plant;
    (3) Whether the producer is able to unilaterally specify the date 
and time during the business day of the packer that the lambs are to be 
delivered for slaughter; and
    (4) The percentage of lambs purchased by a packer as a negotiated 
purchase that are delivered to the plant for slaughter more than 7 
days, but fewer than 14 days, after the earlier of either the date on 
which the lambs were committed to the packer, the date on which the 
lambs were purchased by the packer, or the date on which the lambs were 
priced by the packer.
    Type of purchase. The term `type of purchase' means a negotiated 
purchase, a formula market arrangement, and a forward contract.
    Type of sale. The term `type of sale' with respect to boxed lamb, 
means a negotiated sale, a formula market arrangement, and a forward 
contract.


Sec. 57.301  Mandatory daily reporting for lambs.

    (a) In General. The corporate officers or officially designated 
representatives of each packer processing plant shall report to the 
Secretary at least twice each reporting day not later than 10:00 a.m. 
Central Time and not later than 2:00 p.m. Central Time the following 
information for lamb, categorized to clearly delineate domestic from 
imported market purchases as described in Sec. 57.10(b):
    (1) The prices for lambs (per hundredweight) established on that 
day, categorized by:
    (i) The type of purchase;
    (ii) The quantity of lambs purchased on a live weight basis;
    (iii) The quantity of lambs purchased on a dressed weight basis;
    (iv) A range and average of estimated live weights of lambs 
purchased;
    (v) An estimate of the percentage of the lambs purchased that were 
of a quality grade of Choice or better;
    (vi) Any premiums or discounts associated with weight, quality 
grade, or yield grade;
    (vii) Lamb State of origin;
    (viii) Slaughter plant destination;
    (ix) Expected date of slaughter; and
    (x) Estimated lamb dressing percentage.
    (2) The quantity of lambs delivered to the packer (quoted in 
numbers of head) on that day, categorized by the quantity of lambs 
delivered on a live basis and the quantity of lambs delivered on a 
dressed basis.
    (3) The quantity of lambs committed to the packer (quoted in 
numbers of head) as of that day, categorized by the quantity of lambs 
to be delivered on a live basis and the quantity of lambs to be 
delivered on a dressed basis.
    (4) The terms of trade regarding the lambs, as applicable.
    (b) Publication. The Secretary shall make the information available 
to the public not less than twice each reporting day.


Sec. 57.302  Mandatory Weekly Reporting for Lambs.

    (a) In general. The corporate officers or officially designated 
representatives of each packer processing plant shall report to the 
Secretary on the first reporting day of each week, not later than 9:00 
a.m. Central Time, the following information applicable to the prior 
slaughter week categorized to clearly delineate domestic from imported 
market purchases:

[[Page 14674]]

    (1) The quantity of lambs purchased through forward contracts that 
were slaughtered.
    (2) The quantity of lambs delivered under a formula marketing 
arrangement that were slaughtered.
    (3) The quantity and carcass characteristics of packer-owned lambs 
that were slaughtered, including:
    (i) The quantity of lambs purchased on a live weight basis;
    (ii) The quantity of lambs purchased on a dressed weight basis;
    (iii) A range and average of estimated live weights of lambs 
purchased;
    (iv) An estimate of the percentage of the lambs purchased that were 
of a quality grade of Choice or better;
    (v) Lamb State of origin;
    (vi) Estimated lamb dressing percentage;
    (vii) Price basis as F.O.B. or delivered; and
    (viii) Shrink factor.
    (4) The quantity, basis level, and delivery month for all lambs 
purchased through forward contracts.
    (5) The range and average of intended premiums and discounts 
(associated with weight, quality grade, or yield grade) that are 
expected to be in effect for the current slaughter week.
    (b) Premiums and discounts. The corporate officers or officially 
designated representatives of each packer processing plant shall report 
to the Secretary on the first reporting day of each week, not later 
than 9:00 a.m. Central Time, the following information applicable to 
the current slaughter week. The range and average of intended premiums 
and discounts associated with weight, quality grade, or yield grade, 
categorized to clearly delineate domestic from imported purchases.
    (c) Formula purchases. The corporate officers or officially 
designated representatives of each packer processing plant shall report 
to the Secretary on the first reporting day of each week, not later 
than 9 a.m. Central Time, the following information for lambs purchased 
through a formula marketing arrangement and slaughtered during the 
prior week:
    (1) The quantity (quoted in both numbers of head and pounds) of 
lambs;
    (2) The weighted average price paid for a carcass, including 
applicable premiums and discounts, associated with weight, quality 
grade, or yield grade;
    (3) The range of premiums and discounts, associated with weight, 
quality grade, or yield grade, paid;
    (4) The weighted average of premiums and discounts, associated with 
weight, quality grade, or yield grade, paid;
    (5) The actual premium and discount paid by carcass characteristic;
    (6) The range of prices paid;
    (7) The aggregate weighted average price paid for a carcass;
    (8) The terms of trade regarding the lambs, as applicable; and
    (9) The quantity, basis level, and delivery month for all lamb 
purchased.
    (d) Forward contract purchases. The corporate officers or 
officially designated representatives of each packer processing plant 
shall report to the Secretary on the first reporting day of each week, 
not later than 9 a.m. Central Time, the following information for lambs 
purchased through a forward contract arrangement and slaughtered during 
the prior week:
    (1) The quantity (quoted in both numbers of head and pounds) of 
lambs;
    (2) The weighted average price paid for a carcass, including 
applicable premiums and discounts, associated with weight, quality 
grade, or yield grade;
    (3) The range of premiums and discounts, associated with weight, 
quality grade, or yield grade, paid;
    (4) The weighted average of premiums and discounts, associated with 
weight, quality grade, or yield grade, paid;
    (5) The actual premium and discount paid by carcass characteristic;
    (6) The range of prices paid;
    (7) The aggregate weighted average price paid for a carcass;
    (8) The terms of trade regarding the lambs, as applicable; and
    (9) The quantity, basis level, and delivery month for all lamb 
purchased.
    (e) Publication. The Secretary shall make available to the public 
the information obtained under paragraphs (a), (b), (c), and (d) of 
this section on the first reporting day of the current slaughter week.


Sec. 57.303  Mandatory reporting of lamb carcasses and boxed lamb.

    (a) Daily reporting of domestic lamb carcass transactions. The 
corporate officers or officially designated representatives of each 
packer shall report to the Secretary each reporting day the following 
information on total domestic lamb carcass transactions not later than 
3:00 p.m. Central Time in accordance with Sec. 57.10(b):
    (1) The price for each lot of each lamb carcass transaction, quoted 
in dollars per hundredweight on an F.O.B. plant basis;
    (2) The quantity for each lot of each transaction, quoted by number 
of carcasses sold or bought; and
    (3) The following information regarding the characteristics of each 
transaction:
    (i) The type of sale;
    (ii) The U.S.D.A. quality grade of lamb;
    (iii) The trim specification or U.S.D.A. yield grade;
    (iv) The estimated weight range of the carcasses;
    (v) The product delivery date;
    (vi) The product manufacture date; and
    (vii) The product buyer and delivery location.
    (b) Daily reporting of domestic boxed lamb sales. The corporate 
officers or officially designated representatives of each packer shall 
report to the Secretary each reporting day the following information on 
domestic total boxed lamb cut sales not later than 2:30 p.m. Central 
Time as described in Sec. 57.10(b):
    (1) The price for each lot of each boxed lamb cut sale, quoted in 
dollars per hundredweight on a F.O.B. plant basis;
    (2) The quantity for each lot of each sale, quoted by number of 
boxes or product weight sold; and
    (3) The following information regarding the characteristics of each 
transaction:
    (i) The type of sale;
    (ii) The branded product characteristics, if applicable;
    (iii) The U.S.D.A. quality grade of lamb;
    (iv) The cut of lamb, referencing the USDA's Livestock and Seed 
Program Institutional Meat Purchase Specifications (IMPS), Fresh Lamb 
and Mutton Series 200;
    (v) The cut or trim specification or U.S.D.A. yield grade;
    (vi) The weight range of the cut;
    (vii) The product delivery period;
    (viii) The product manufacture date; and
    (ix) The product buyer and delivery location.
    (c) Weekly reporting of imported lamb carcass purchases. The 
corporate officers or officially designated representatives of each 
lamb importer shall report to the Secretary on the first reporting day 
of each week the following information applicable to the prior week for 
imported lamb carcass purchases not later than 10:00 a.m. Central Time:
    (1) The price for each lot of each lamb carcass transaction, quoted 
in dollars per hundredweight on an F.O.B. Ex-Dock basis;
    (2) The quantity for each lot of each transaction, quoted by number 
of carcasses bought; and
    (3) The following information regarding the characteristics of each 
transaction:
    (i) The type of purchase;

[[Page 14675]]

    (ii) The estimated weight range of the carcasses;
    (iii) The product delivery date; and
    (iv) The product country of origin.
    (d) Weekly reporting of imported boxed lamb purchases. The 
corporate officers or officially designated representatives of each 
lamb importer shall report to the Secretary on the first reporting day 
of each week the following information applicable to the prior week for 
imported boxed lamb cut purchases not later than 10:00 a.m. Central 
Time:
    (1) The price for each lot of each boxed lamb cut purchase, quoted 
in dollars per hundredweight on an F.O.B. Ex-Dock basis;
    (2) The quantity for each lot of each transaction, quoted by number 
of boxes or product weight bought; and
    (3) The following information regarding the characteristics of each 
transaction:
    (i) The type of purchase;
    (ii) The branded product characteristics, if applicable;
    (iii) The cut of lamb;
    (iv) The trim specification;
    (v) The weight range of the cut;
    (vi) The product delivery period; and
    (vii) The product country of origin.
    (e) Weekly reporting of imported boxed lamb sales. The corporate 
officers or officially designated representatives of each lamb importer 
shall report to the Secretary on the first reporting day of each week 
the following information applicable to the prior week for imported 
boxed lamb cut sales not later than 10:00 a.m. Central Time:
    (1) The price for each lot of each boxed lamb cut sale, quoted in 
dollars per hundredweight on a F.O.B. plant basis;
    (2) The quantity for each lot of each transaction, quoted by number 
of boxes or product weight bought; and
    (3) The following information regarding the characteristics of each 
transaction:
    (i) The type of sale;
    (ii) The branded product characteristics, if applicable;
    (iii) The cut of lamb;
    (iv) The trim specification;
    (v) The weight range of the cut;
    (vi) The product delivery period; and
    (vii) The product country of origin.
    (f) Publication. The Secretary shall make available to the public 
the information required to be reported under paragraphs (a) and (b) of 
this section not less frequently than once each reporting day and the 
information required to be reported under paragraphs (c), (d), and (e) 
of this section on the first reporting day of the current slaughter 
week.

Subpart E--OMB Control Number


Sec. 57.400  OMB Control Number Assigned Pursuant to the Paperwork 
Reduction Act.

    The information collection and recordkeeping requirements of this 
part have been approved by the Office of Management and Budget (OMB) 
under the provisions of 44 U.S.C. Chapter 35 and have been assigned OMB 
Control Number 0581-0186.

    Dated: March 9, 2000.
Barry L. Carpenter,
Deputy Administrator, Livestock and Seed Program.

    Note: The following Appendices will not appear in the Code of 
Federal Regulations.

Appendix A.--Cattle Mandatory Reporting Forms

    The following 6 forms referenced in Subpart B Part 57 would be 
used by persons required to report electronically transmitted 
mandatory market information on domestic and import sales and 
purchases of live cattle and boxed beef to the Agricultural 
Marketing Service.

Cattle
    LS-113  Live Cattle Daily Report (Current Established Prices)
    LS-114  Live Cattle Daily Report (Committed and Delivered 
Cattle)
    LS-115  Live Cattle Weekly Report (Forward Contract and Packer-
Owned)
    LS-116  Live Cattle Weekly Report (Formula Purchases)
    LS-117  Cattle Premiums and Discounts Weekly Report
    LS-126 Boxed Beef Daily Report

Appendix B.--Swine Mandatory Reporting Forms

    The following 3 forms referenced in Subpart C of Part 57 would 
be used by persons required to report electronically transmitted 
mandatory market information on domestic and import sales and 
purchases of live swine to the Agricultural Marketing Service.

Swine
    LS-118  Swine Prior Day Report
    LS-119  Swine Daily Report
    LS-120  Swine Noncarcass Merit Premium Weekly Report

Appendix C.--Lamb Mandatory Reporting Forms

    The following 7 forms referenced in Subpart D of Part 57 would 
be used by persons required to report electronically transmitted 
mandatory market information on domestic and import sales and 
purchases of live lamb and boxed lamb to the Agricultural Marketing 
Service.

Lamb
    LS-121  Live Lamb Daily Report (Current Established Prices)
    LS-122  Live Lamb Daily Report (Committed and Delivered Lambs)
    LS-123  Live Lamb Weekly Report (Packer-Owned)
    LS-124  Live Lamb Weekly Report (Formula and Forward Contract 
Purchase)
    LS-125  Lamb Premiums and Discounts Report
    LS-128  Boxed Lamb Report
    LS-129  Lamb Carcass Report

BILLING CODE 3410-02-P

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[FR Doc. 00-6322 Filed 2-14-00; 8:45 am]
BILLING CODE 3410-02-C