[Federal Register Volume 71, Number 21 (Wednesday, February 1, 2006)]
[Notices]
[Pages 5233-5235]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-1335]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration


Request for Extension and Revision of a Currently Approved 
Information Collection

AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.

ACTION: Notice and request for comments.

-----------------------------------------------------------------------

SUMMARY: This notice announces our intention to request a 3-year 
extension and revision of a currently approved information collection 
in support of the reporting and recordkeeping requirements for the 
Swine Contract Library program. This approval is required under the 
Paperwork Reduction Act.

DATES: We will consider comments that we receive by April 3, 2006.

ADDRESSES: We invite you to submit comments on this notice. You may 
submit comments by any of the following methods:
     E-mail: Send comments via electronic mail to 
[email protected].
     Mail: Send hardcopy written comments to Tess Butler, 
GIPSA, USDA, 1400 Independence Avenue, SW., Room 1647-S, Washington, DC 
20250-3604.
     Fax: Send comments by facsimile transmission to: (202) 
690-2755.
     Hand Delivery or Courier: Deliver comments to: Tess 
Butler, GIPSA, USDA, 1400 Independence Avenue, SW., Room 1647-S, 
Washington, DC 20250-3604.
    Instructions: All comments should make reference to the date and 
page number of this issue of the Federal Register.
    Background Documents: Information collection package and other 
documents relating to this action will be available for public 
inspection in the above office during regular business hours.
    Read Comments: All comments will be available for public inspection 
in the above office during regular business hours (7 CFR 1.27(b)).

FOR FURTHER INFORMATION CONTACT: For information regarding the 
information collection activities and the use of the information, 
contact Bryice Wilke, at (515) 323-2579 or Bryice.A.Wilke @usda.gov.

SUPPLEMENTARY INFORMATION: The Grain Inspection, Packers and Stockyards 
Administration (GIPSA) is responsible for maintaining the Swine 
Contract Library, which is authorized by the Packers and Stockyards Act 
and requires that certain hog packers submit hog procurement contracts 
and delivery estimates to GIPSA. Reauthorization of the Swine Contract 
Library by Congress is pending, and is anticipated this year; in the 
interim, packers are voluntarily submitting information for the Swine 
Contract Library. Due to the length of time required to renew 
information collection approvals, in anticipation of the 
reauthorization of the Swine Contract Library program, we are 
publishing this notice to announce our intention to request approval 
from the Office of Management and Budget to continue collecting the 
required information. This information collection notice descries the 
requirements as they exist under the Swine Contract Library legislation 
even though that legislation is not currently in effect. Therefore, the 
language will indicate, for example, that packers are ``required'' to 
submit certain information. If the Swine Contract Library is not 
reauthorized we will determine if continuing the program on a voluntary 
basis would provide a benefit to the agency and market participants. 
The regulations implementing the Swine Contract Library are contained 
in 9 CFR part 206.
    Title: Swine Contract Library.
    OMB Number: 0580-0021.
    Expiration Date of Approval: July 31, 2006.
    Type of Request: Extension and revision of a currently approved 
information collection.
    Abstract: The information collection and recordkeeping requirements 
for the Swine Contract Library are essential to maintaining the 
mandatory library of swine marketing contracts and reporting the number 
of swine contracted for delivery. There are currently 32 packers that 
are required to file contracts and report certain information on 
deliveries for a total of 51 plants that they operate or at which they 
have swine slaughtered. We expect the overall number of plants and 
packers to remain relatively constant, but the specific packers 
required to report will vary with consolidation and construction in the 
industry. Of the initial 32 reporting packers operating 51 plants, 2 
packers operating 1 plant each have ceased business, 2 plants operated 
by different packers have fallen below the reporting threshold, and 2 
plants operated by different packers have ceased slaughtering but 
continue to operate as processing facilities. Since reporting began in 
2003, two packers operating one plant each have increased slaughter 
levels above the reporting threshold and two packers have built new 
plants that slaughter or expect to slaughter above the threshold level. 
One packer utilizing custom slaughter facilities has increased 
slaughter above the threshold level.
    Packers are required to report information for individual plants 
even in instances when a given company owned or used more than one 
plant. The information collection burden estimate provided below are 
based on time and cost requirements at the plant level, so packers that 
report for more than one plant would bear a cost that would be a 
multiple of the per-plant estimates.
    We understand from discussions with packers complying with current 
reporting requirements that reporting packers have adapted pre-existing 
data and information systems to provide the required information.
    There are two types of information collections required for the 
Swine Contract Library.
    The first information collection requirement consists of submitting 
example contracts. Initially, a packer submits example contracts 
currently in effect or available for each swine processing plant that 
is subject to the regulations. Subsequently, a packer submits example 
contracts for any offered, new, or amended contracts that vary from 
previously submitted contracts in regard to the base price 
determination, the application of a ledger or accrual account, carcass 
merit premium and discount schedules (including the determination of 
the lean percent or other merits of the carcass that are used to 
determine the amount of the premiums and discounts and how those 
premiums and discounts are applied), or the use and amount of 
noncarcass merit premiums or discounts. The initial submission of 
example contracts requires more time than subsequent filings of new 
contracts or changes, as packers initially need to review all their 
contracts to identify the unique types that need to be represented by 
an example submitted to GIPSA. Thereafter, subsequent filings require a 
minimal amount of effort on the part of packers, as only example 
contracts that represent a new or different type need to be filed with 
GIPSA. An optional contract submission cover sheet is available, but 
not required, for submitting example contracts. Approximately half the 
packers currently subject to the regulations use the optional cover 
sheet for contract

[[Page 5234]]

submissions. This cover sheet is required for putting the contract into 
our system; if a contract is submitted without a cover sheet, one is 
completed by GIPSA staff.
    The required submission of contracts includes both written and 
verbal contracts. Packers have added documentation of verbal contracts 
to their existing recordkeeping systems in order to comply with this 
requirement. The optional form that is available, but not required, for 
reporting verbal contracts is used by 10 packers; 1 packer that relies 
heavily on verbal contracts uses this optional form exclusively to 
document its verbal contracts. Of 664 contract files on file, the 
optional verbal contract sheet was used to document 137 verbal 
contracts.
    The second information collection requirement is a monthly filing 
of summary information on form P&SP-341, Packer/Plant Report, Estimates 
of Swine Committed to Be Delivered Under Contract. The form for the 
monthly filing is simple and brief. For new packers required to start 
reporting, this data should be available in the packers' existing 
record systems. Electronic submission is encouraged and we provide the 
necessary information on procedures to submit data to GIPSA 
electronically. Web submissions account for 43 percent of all monthly 
report submissions received. Usage of the electronic submission option 
for the monthly reports has steadily increased since the implementation 
of the regulations with 41 percent submitted via the web in 2003, 56 
percent submitted via the web in 2004, and 67 percent submitted via the 
web in 2005.
    The estimates of time requirements used for the burden estimates 
below were developed in consultation with GIPSA personnel knowledgeable 
of the industry's recordkeeping practices. The estimates also reflect 
our experience in assembling large amounts of data during the course of 
numerous investigations involving use of data collected from the 
industry. Estimates of time requirements and hourly wage costs for 
developing electronic recordkeeping and reporting systems are based on 
our experience in developing similar systems, in consultation with our 
automated information systems staff.

(1) Submission of Contracts (no form required; optional form available)

    Estimate of Burden: Reporting burden for submission of contracts is 
estimated to include 4 hours per plant for an initial review of all 
contracts to categorize them into types and identify unique examples, 
plus an additional 0.25 hours per unique contract identified during the 
initial review to submit an example of that contract. After the initial 
filing, the reporting burden is estimated to include 0.25 hours per 
plant to submit an example of each new or amended contract.
    Respondents: Packers required to report information for the Swine 
Contract Library.
    Estimated Number of Respondents: 32 packers (total of 51 plants).
    Estimated Number of Responses per Plant: Number of responses per 
plant vary. Some plants would have no contracts, while others could 
have up to 80 contracts. We receive an average of six example contracts 
per plant per year for offered contracts and amended existing or 
available contracts.
    Estimated Total Annual Burden on Respondents: Initial filing: 5.5 
total hours for the initial filing of examples of existing contracts by 
all plants newly subject to the regulations combined. Based on changes 
in the industry, we anticipate one new plant to become subject to the 
regulations each year. Calculated as follows:

(4 hours per plant for initial review) x (1 new plant) = 4 hours for 
initial review;
(0.25 hours per contract) x (6 example contracts per plant) x (1 new 
plant) = 1.5 hours;
(4 hours) + (1.5 hours) = 5.5 total hours.

    Thereafter, 76.5 total hours annually for all subsequent filing of 
examples of offered or amended existing or available contracts by all 
plants combined, based on an average of 6 offered or amended existing 
or available contracts annually. Calculated as follows: (0.25 hours per 
contract) x (6 example contracts per plant) x (51 plants) = 76.5 hours
    Total Cost: Initial filing $138 for all plants combined. Calculated 
as follows:

(5.5 hours) x ($25 per hour) = $138

    Thereafter, $1,913 annually for all plants combined for submission 
of subsequent filings. Calculated as follows:

(76.5 hours) x ($25 per hour) = $1,913

(2) Submission of Monthly Swine Marketing Contract Report (Form P&SP-
341)

    Estimate of Burden: The reporting burden for compiling data, 
completing and submitting the form is estimated to average 2 hours per 
manually prepared and submitted (via mail or facsimile) report and 1 
hour per electronically prepared and submitted report. There would be 
an estimated additional one-time set up burden of 1 hour at a cost of 
$55 per plant for a packer that chose to create a spreadsheet or 
database for recordkeeping and preparation of monthly estimates. There 
would be an estimated additional 2 hour burden at a cost of $55 per 
hour or $110 per plant for a packer to develop procedures to extract 
and format the required information and to develop an interface between 
the packer's electronic recordkeeping system and GISPA's system. The 
hourly rate for development of electronic tools is assumed to be higher 
due to the need to use personnel with specialized computer skills.
    Respondents: Packers required to report information for the Swine 
Contract Library.
    Estimated Number of Respondents: 32 packers (total of 51 plants).
    Estimated Number of Responses per Plant: 12 (1 per month for 12 
months).
    Estimated Total Annual Burden on Respondents: 1,224 hours for all 
plants combined if all plants used manual compiling, preparation, and 
submission. Calculated as follows:

(2 hours per response) x (51 plants) x (12 responses per plant) = 1,224 
hours

    612 hours for all plants combined if all plants use electronic 
compiling, preparation, and submission. Calculated as follows:

(1 hour per response) x (51 plants) x (12 responses per plant) = 612 
hours.
    Total Cost: $30,600 annually for all plants combined if all use 
manual submission. Calculated as follows:

(1224 hours) x ($25 per hour) = $30,600

    $15,300 annually for all plants combined if all were to completely 
utilize electronic preparation and submission. Calculated as follows:

(612 hours) x ($25 per hour) = $15,300

    Additional $165 one-time set-up cost if all plants newly subject to 
the regulations were to completely utilize electronic systems for 
preparation and submission. Calculated as follows:

(1 hour build spreadsheet/database) + (2 hours develop electronic 
interface) = 3 hours
(3 hours total development) x ($55.00 per hour) x (1 new plant) = 
$165.00

    Most entities have chosen to use electronic recordkeeping and 
reporting methods. Thus, the cost burden to respondents would be at the 
lower end of the range provided. We estimate the range of costs in the 
first year for a packer reporting for one plant would be $640 using 
electronic submission and $775 for manual submission. In subsequent 
years, we estimate the range of costs would be $338 using electronic 
submission and $638 for manual submission.
    The Paperwork Reduction Act also requires GIPSA to measure the

[[Page 5235]]

recordkeeping burden. Under the P&S Act and its existing regulations, 
each packer is required to maintain and make available upon request 
such records as are necessary to verify information on all transactions 
between the packer and producers from whom the packer obtains swine for 
slaughter. Records that packers are required to maintain under existing 
regulations would meet the requirements for verifying the accuracy of 
information required to be reported for the Swine Contract Library. 
These records include original contracts, agreements, receipts, 
schedules, and other records associated with any transaction related to 
the purchase, pricing, and delivery of swine for slaughter under the 
terms of marketing contracts. Additional annual costs of maintaining 
records would be nominal since packers are required to store and 
maintain such records as a matter of normal business practice and in 
conformity with existing regulations.
    As required by the Paperwork Reduction Act (44 U.S.C. 
3506(c)(2)(A)) and its implementing regulations (5 CFR 
1320.8(d)(1)(i)), we specifically request comments on:
    (a) Whether the proposed collection of information is necessary for 
the proper performance of the functions of the agency, including 
whether the information will have practical utility;
    (b) the accuracy of the agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used;
    (c) ways to enhance the quality, utility, and clarity of the 
information to be collected; and
    (d) ways to minimize the burden on the collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology.
    All responses to this notice will be summarized and included in the 
request for the Office of Management and Budget approval. All comments 
will also become a matter of public record.

    Authority: 44 U.S.C. 3506 and 5 CFR 1320.8.

David R. Shipman,
Acting Administrator, Grain Inspection, Packers and Stockyards 
Administration.
[FR Doc. E6-1335 Filed 1-31-06; 8:45 am]
BILLING CODE 3410-EN-P