[Federal Register Volume 73, Number 96 (Friday, May 16, 2008)]
[Rules and Regulations]
[Pages 28606-28662]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-10185]



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Part III





Department of Agriculture





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Agricultural Marketing Service



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7 CFR Part 59



Livestock Mandatory Reporting; Reestablishment and Revision of the 
Reporting Regulation for Swine, Cattle, Lamb, and Boxed Beef; Final 
Rule

  Federal Register / Vol. 73 , No. 96 / Friday, May 16, 2008 / Rules 
and Regulations  

[[Page 28606]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 59

[Docket No. AMS-LS-07-0106]
RIN 0581-AC67


Livestock Mandatory Reporting; Reestablishment and Revision of 
the Reporting Regulation for Swine, Cattle, Lamb, and Boxed Beef

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: On April 2, 2001, the Agricultural Marketing Service (AMS) 
implemented the Livestock Mandatory Reporting (LMR) program as required 
by the Livestock Mandatory Reporting Act of 1999 (1999 Act). The 
statutory authority for the program lapsed on September 30, 2005. In 
October 2006, legislation was enacted to reauthorize the 1999 Act until 
September 30, 2010, and to amend the swine reporting requirements of 
the 1999 Act (Pub. L. 109-296) (Reauthorization Act). This final rule 
will re-establish the regulatory authority for the program's continued 
operation and incorporate the swine reporting changes contained within 
the Reauthorization Act as well as make other changes to enhance the 
program's overall effectiveness and efficiency based on AMS' experience 
in the administration of the program over the last 6 years.

DATES: Effective Date: This final rule is effective July 15, 2008.

FOR FURTHER INFORMATION CONTACT: Warren P. Preston, Chief, Livestock 
and Grain Market News Branch at (202) 720-6231, fax (202) 690-3732, or 
e-mail [email protected].
    Information about these regulations will be posted on the Livestock 
and Grain Market News Web site: http://www.ams.usda.gov/lsmnpubs/.

SUPPLEMENTARY INFORMATION: 

Background

    The 1999 Act was enacted into law on October 22, 1999 (Pub. L. 106-
78), as an amendment to the Agriculture Marketing Act of 1946 (7 U.S.C. 
1621 et seq.). In the December 1, 2000, Federal Register, AMS published 
a final rule implementing the program (65 FR 75464) (2000 final rule) 
with an effective date of January 30, 2001. This effective date was 
subsequently delayed until April 2, 2001.
    The statutory authority for the program lapsed on September 30, 
2005. In October 2006, legislation was passed to reauthorize the 1999 
Act until September 30, 2010, and amend swine reporting requirements.
    Because reauthorization was not completed by September 30, 2005, 
AMS sent letters to each packer required to report under the 1999 Act 
requesting their voluntary cooperation in continuing to submit 
information. Based on the response to AMS' request for voluntary packer 
participation in LMR, most reports have continued to be published. The 
only reports that are not being published are imported boxed lamb cuts 
and slaughter cow reports. AMS has continued compliance audits during 
the lapse in authority for the mandatory program for companies that 
agreed to continue submitting information and will continue this 
practice.
    The 1999 Act as originally passed provided for the mandatory 
reporting of market information by Federally inspected livestock 
processing plants that 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 operations, AMS projects 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 this regulation.
    The 1999 Act also gave the Secretary of Agriculture (Secretary) the 
latitude to provide for the reporting of lamb information. Under the 
2000 final rule implementing the program, Federally inspected lamb 
processing plants that 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 were required to submit information to AMS. 
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 was required to report 
information if the Secretary determined the processing plant should be 
considered a packer based on its capacity. In addition, the final rule 
also established that for any calendar year, an importer of lamb that 
imported an average of 5,000 metric tons of lamb meat products per year 
during the immediately preceding 5 calendar years report information on 
the domestic sales of imported boxed lamb cuts. 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 was 
required to report information if the Secretary determined that the 
person should be considered an importer based on their volume of lamb 
imports. On September 2, 2004, AMS published a final rule (69 FR 
53783)(2004 final rule) that revised the threshold for importers to 
2,500 metric tons and modified the definition of carlot when used in 
reference to boxed lamb cuts.

Key Components of the Statute

Cattle

    The Reauthorization Act did not modify the cattle reporting 
requirements contained in the 1999 Act. The 1999 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; and the weight, the quality grade, 
and premiums and discounts. This information will be reported twice a 
day not later than 10 a.m. and 2 p.m. central time. The Secretary will 
issue reports to the public of this information at least three times 
each day.
    The 1999 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, the 1999 Act states that 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. However, under this 
regulation, the required information for the weekly submission for 
cattle purchased on a formula will be obtained by aggregating packers' 
daily submissions of this information. Therefore, no additional weekly 
submission will be required for this

[[Page 28607]]

purchase type. 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 1999 Act also mandates that a 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 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 Reauthorization Act revised the requirements for swine 
reporting. Under the 1999 Act, the term packer includes a Federally 
inspected plant that slaughtered an average of at least 100,000 swine 
per year during the immediately preceding 5 calendar years. Under the 
Reauthorization Act, the term packer also includes a person that 
slaughtered an average of at least 200,000 sows, boars, or combination 
thereof per year during the immediately preceding 5 calendar years. 
Additionally, in the case of a swine processing plant or person 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 or person should be considered a packer under this 
subpart after considering its capacity.
    The Reauthorization Act separated the reporting requirements for 
sows and boars from barrows and gilts. For barrows and gilts, the 
packer must report to the Secretary not later than 7 a.m. central time 
on each reporting day information regarding all swine purchased or 
priced, during the prior business day of the packer. The 
Reauthorization Act modified the reporting time for information 
regarding all barrows and gilts slaughtered during the prior business 
day from not later than 7 a.m. central time to not later than 9 a.m. 
central time on each reporting day. The packer must report all purchase 
data including the number of barrows and gilts purchased, barrows and 
gilts scheduled for delivery and the base price and purchase data for 
slaughtered barrows and gilts for which a price has been established. 
The information also includes all slaughter data for the total number 
of barrows and gilts 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. However, the information 
on the lowest net price and highest net price can be obtained from the 
LMR system from packers' submissions. Therefore, under this rule, there 
is no requirement for packers to submit this information separately. 
Packers reporting the average lean percentage must report the manner in 
which the average lean percentage is calculated as well as whenever a 
change in such calculation is made. In doing so, 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 barrows and gilts 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 a.m. central time for all swine purchased and 10 a.m. 
central time for all barrows and gilts slaughtered on the reporting day 
on which the information is received from the packer. In addition, as 
required by the Reauthorization Act, the Secretary shall publish a net 
price distribution for all barrows and gilts slaughtered on the 
previous day not later than 3 p.m. central time.
    The Reauthorization Act also requires packers that process barrows 
and gilts to report to the Secretary in the morning not later than 10 
a.m. central time and in the afternoon not later than 2 p.m. central 
time each reporting day. The reporting requirements for the morning and 
afternoon reports contained in the Reauthorization Act for barrows and 
gilts were not altered from those contained in the 1999 Act. The 
information to be reported is the same for the morning and afternoon 
reports and includes an estimate of (1) the total number of barrows and 
gilts purchased by each method of pricing, (2) the total number of 
barrows and gilts purchased, 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. This information must be submitted for 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 will report those 
transactions at the next prescribed reporting time. The Secretary will 
make the morning report available to the public not later than 11 a.m. 
central time and the afternoon report at 3 p.m. central time on each 
reporting day.
    The Reauthorization Act requires each packer of sows and boars to 
report to the Secretary not later than 9:30 a.m. central time, or such 
other time as the Secretary considers appropriate, on each reporting 
day, information regarding all sows and boars purchased or priced 
during the prior business day of the packer. The information to be 
reported includes the total number of sows and boars purchased, each 
divided into at least three weight classes specified by the Secretary, 
the number of sows and boars that qualify as packer-owned swine, the 
average price paid for all sows and boars, the average price paid for 
sows and boars in each weight class, the number of sows and boars for 
which prices are determined, by each type of purchase, and the average 
prices for sows and boars for which prices are determined, by each type 
of purchase. The Secretary will publish the information in a prior day 
report not later than 11 a.m. central time on the reporting day on 
which the information is received from the packer. Under the 1999 Act, 
the reporting requirements for sows and boars were the same as the 
reporting requirements for barrows and gilts.
    The Secretary will compile and issue a weekly noncarcass merit 
premium report on the first reporting day of the week not later than 5 
p.m. central time. This report will be prepared from information 
furnished to the Secretary by packers who must report not later than 4 
p.m. central time on the first reporting day of the week. The 
information required includes noncarcass merit premiums used and paid 
to producers during the prior slaughter week by category.
    The 1999 Act provides that the Secretary review the information 
required to be reported by packers at least once very two years. Also, 
the 1999 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

[[Page 28608]]

lean percentage factors as indicators of price.

Lamb

    The Reauthorization Act did not change the lamb reporting 
provisions contained in the 1999 Act. The 1999 Act gives the Secretary 
the authority to establish a mandatory lamb price reporting program 
that will provide timely, accurate, and reliable market information. It 
does not specify the requirements for establishing a mandatory lamb 
price reporting program as it does for cattle and swine. Accordingly, 
in the 2000 final rule, AMS established a mandatory lamb price 
reporting program based upon its extensive knowledge of the lamb 
industry and market news reporting of lamb.
    Under the established 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 
reports to the Secretary once daily the price of each type of lamb 
purchase, negotiated purchase, formula marketing arrangements, forward 
contract, quantity of lamb purchased on live weight or carcass weight, 
a range and average estimated live weights, quality grade, premiums and 
discounts, class type, pelt type, state of origin, and estimated 
dressing percentage. The Secretary issues a report to the public on 
this information not less than once each day.
    Lamb packers are required to report to the Secretary on a weekly 
basis on the second reporting day of the week information from the 
prior week. This information includes the quantity and certain carcass 
characteristics of lambs purchased through a formula marketing 
arrangement or forward contract that were slaughtered, and the quantity 
and carcass characteristics of packer owned lamb that were slaughtered. 
Reported information includes, 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, and 
dressing percentage. In addition, a lamb packer is 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. Under this rule, packers will also be required to report 
information on the quantity of lambs purchased on a negotiated basis.
    The Secretary makes available to the public the information on the 
second reporting day of the current slaughter week.
    Packers report information on daily sales of carcass lamb and sales 
of boxed lamb cuts each reporting day. Under this rule, packers will 
also be required to report carcass purchases. Due to the changing 
structure of the lamb industry, an increasing number of transactions 
are not required to be reported under the existing regulation. 
Requiring packers to also report their carcass purchases will greatly 
increase the volume of covered transactions.
    For sales and purchases of carcass lamb, the information includes 
prices for each lot, the type of sale, the quantity of each sale quoted 
in number of carcasses, the USDA grade, the estimated weight range, and 
delivery date. For sales of boxed lamb cuts, the packer reports the 
price for each lot, the quantity for each lot quoted by product weight, 
the type of sale, branded product characteristics, if applicable, the 
USDA quality and yield grade, the cut of lamb, the product state of 
refrigeration, the weight range of each cut, and the delivery period. 
The Secretary issues 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 imports an average of 
2,500 metric tons of lamb meat products per year during the immediately 
preceding 5 calendar years reports to the Secretary weekly the prices 
received for imported lamb cuts sold on the domestic market. 
Additionally, an importer that does not import an average of 2,500 
metric tons of lamb meat products during the immediately preceding 5 
calendar years is also 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.

Other Provisions of the Act Involving Administration

    The administrative provisions of the 1999 Act set forth the 
requirements for maintaining confidentiality regarding the packer 
reporting of proprietary information and list 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 1999 Act enumerates unlawful acts and provides for what 
constitutes violations of that Act. To be unlawful and a violation, a 
packer or other subject person must willfully engage in a prohibited 
practice. Prohibited acts include failing to report the required 
information timely; failing to report accurate information; soliciting 
that any person fail to provide the required information accurately or 
timely, as a condition of any transaction; failing or refusing to 
comply with the requirements; or reporting estimated information in a 
manner that demonstrates a pattern of significant variance when 
compared to the actual information that is reported for the same 
period. The Reauthorization Act did not change any of these provisions.
    The section on enforcement establishes a civil penalty--not more 
than $10,000--that may be assessed for each violation and provides that 
the Secretary may issue a cease and desist order in addition to, or in 
lieu of, a civil penalty. Each day that a violation continues shall be 
considered to be a separate violation. Factors to be considered in 
determining the amount of a civil penalty are the gravity of the 
offense, the size of the business involved, and the effect of the 
penalty on the ability of the involved person to remain in business. In 
determining whether to assess a civil penalty, the Secretary shall 
consider whether the person engaged in a pattern of errors, delays, or 
omissions that were in violation.
    The section on enforcement also provides that no civil penalty 
shall be assessed, or cease and desist order issued, unless the person 
involved is given notice and opportunity for a hearing before the 
Secretary with respect to the violation. This section also spells out 
requirements for judicial review, details procedures for issuance of an 
injunction or restraining order, and establishes a civil penalty of not 
more than $10,000 for each offense 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 1999 Act provides

[[Page 28609]]

that reporting entities will 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 1999 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.

Requirements

Summary of Changes

    The requirements of this regulation are discussed in detail in the 
sections immediately following. However, for the ease of the reader, 
this section contains descriptions and rationale of the substantive 
changes that have been made as compared to the December 1, 2000, and 
September 2, 2004 (that modified reporting requirements for lamb), 
final rules and the August 8, 2007, proposed rule that were published 
in the Federal Register.
Recordkeeping
    To reduce the recordkeeping burden on lamb importers, the Agency 
modifies the recordkeeping requirement to allow lamb importers to 
maintain a record of sale that evidences only the date the sale 
occurred rather than the time and date. Because lamb importers are 
required to report only weekly, the date the sale occurred is 
sufficient for recordkeeping purposes.
Definitions
    The Agency modifies the definition of the term ``discount'' by 
adding ``or other characteristic'' to allow for the inclusion of other 
types of discounts such as a discount for an animal's age, which is 
currently utilized by several reporting packers.
    In the proposed rule published in the August 8, 2007 Federal 
Register, the Agency proposed to modify the definitions of the terms 
``negotiated purchased'' and ``negotiated sale'' by removing the 
language ``and agreement on a delivery day.'' As discussed in the 
comments and responses section, the language is reinserted into the 
respective definitions.
    The Agency adds a definition for the term ``negotiated grid 
purchase.'' When the LMR program was first implemented on April 2, 
2001, negotiated grid purchases, purchases in which the base price is 
determined by seller-buyer interaction from which premiums are added 
and discounts are subtracted, were coded in packer submissions as 
formulas as the system was not initially configured to allow these two 
distinct transaction types to be coded separately. The Agency 
subsequently made a programming change to rectify this problem and adds 
this definition for clarity.
    The Agency adds a definition for the term ``percent lean'' for 
clarification with respect to cow and bull reporting requirements. The 
Agency also added a definition for the term ``person'' for clarity.
Cattle Reporting
    The majority of the changes being made with respect to cattle 
reporting relate to the separation of the reporting requirements for 
cows and bulls. Separation of the reporting requirements for cows and 
bulls is made to minimize the reporting burden on cow and bull packers 
where possible and to make the information published for cows and bulls 
and the resulting meat products more meaningful to the industry.
    The Agency modifies the definition of the term ``boxed beef'' to 
remove references to age limitations on products and to require packers 
to report transactions for frozen primals, subprimals, and cuts in 
addition to the current requirement for packers to submit information 
on frozen beef trimmings and boneless processing beef. Neither the 1999 
Act nor the Reauthorization Act defines the term ``boxed beef.'' Hence 
the term must be defined by regulation. These modifications to the 
definition will provide for more complete reporting of the boxed beef 
trade, consistent with the law's purpose of improving the price and 
supply reporting conditions of USDA. Although the revised definition of 
``boxed beef'' potentially will result in the reporting of more 
transactions by packers to AMS, the Agency believes that there will be 
little to practically no increase in the reporting burden to packers. 
The cost to packers of reporting all trades versus sorting out trades 
beyond certain parameters is minimal, and in many cases, may even be 
less burdensome than sorting out transactions prior to submission to 
AMS.
    In the 2000 final rule, the definition of ``boxed beef'' specified 
that the product not exceed one of three different dates from 
manufacture, depending on the specific item in question. For example, 
primals, subprimals, and cuts fabricated from subprimals were not to be 
older than 14 days from the date of manufacture, while fresh ground 
beef, beef trimmings, and boneless processing beef were not to be older 
than 7 days from the date of manufacture. By removing references to 
these different cutoff dates, there will be less confusion in terms of 
what information reporting packers are required to submit, and hence, 
less uncertainty regarding the information that is subsequently 
reported and disseminated by AMS. In addition, new technologies in 
packaging and processing continue to extend the shelf life of meat 
products, and product that may have been considered aged or distressed 
at the time of the 2000 final rule may now be well within its usable 
shelf life. Removing references to product age in the definition of 
``boxed beef'' will reflect such changes in the state of the industry. 
As discussed in the comments and responses section, however, the 
reporting form for boxed beef is modified from the proposed rule by 
delineating between fresh product that is 14 days or less from that 
which is more than 14 days from the date of manufacture.
    The 2000 final rule defined ``boxed beef'' to include fresh 
primals, subprimals, cuts fabricated from subprimals, ground beef, beef 
trimmings, and boneless processing beef. The definition also included 
frozen beef trimmings and boneless processing beef. By removing the 
references to fresh or frozen product, the final rule reduces confusion 
on the part of reporting packers regarding whether or not to submit 
information on particular trades. AMS believes that this modification 
of the definition of ``boxed beef'' will result in minimal to virtually 
no increase in burden to reporting packers. In the case of frozen 
products, numerous reporting packers already submit information on all 
frozen products. Due to the nature of their electronic systems, it is 
in many cases often less burdensome for packers to submit everything 
rather than having to sort through eligible transactions. AMS believes 
that reporting of trade in frozen products will provide a more accurate 
and comprehensive picture of the market for boxed beef, consistent with 
the purposes of the 1999 Act to improve the price and supply reporting 
services of USDA. For instance, trading of frozen product picked up 
with the reopening of foreign markets following the closures that 
resulted from the discovery of a cow with bovine spongiform 
encephalopathy in the United States in December 2003. Because a 
majority of packers are reporting frozen boxed beef trades, AMS has 
been able to show the number of frozen export loads in its 
comprehensive boxed beef cutout report. Requiring all packers to submit 
information on frozen product trades will ensure that such reporting 
will

[[Page 28610]]

represent a more complete reflection of market conditions.
    The Agency modifies the definition of the term ``carlot-based'' 
such that for cow and bull boxed beef items, the term ``carlot-based'' 
includes any transaction between a buyer and seller consisting of 2,000 
pounds or more of one or more individual items. As discussed in the 
comments and responses, the 2,000 pound threshold is a reduction from 
the 5,000 pound threshold provided for in the proposed rule. This 
modification reflects current industry practice with respect to the 
marketing of cow and bull products.
    The Agency modifies the definition of the term ``terms of trade'' 
to clarify that the requirement to report the terms of trade applies 
only to steers and heifers to coincide with the separation of reporting 
requirements for cows and bulls from steers and heifers. The definition 
of ``terms of trade'' is also modified to require packers to 
distinguish between negotiated transactions that are scheduled for 
delivery not later than 14 days and those negotiated transactions that 
are scheduled for delivery more than 14 days, but fewer than 30 days. 
Currently, transactions that are for delivery more than 14 days out are 
to be coded as forward contracts. This modification does not require 
packers to submit additional transactions, but does allow AMS to 
identify separately these types of transactions, which is a concern of 
some in the industry.
    The Agency modifies the definition of the term ``type of purchase'' 
to include ``negotiated grid purchase'' as a type of purchase.
    The Agency adds a definition for the term ``white cow'' to provide 
clarity to the cow and bull reporting requirements.
    Compared to the 2000 final rule, the Agency modifies and renumbers 
the sections that relate to the daily and weekly reporting requirements 
for live cattle. Section 59.101 and section 59.103 contain the daily 
and weekly reporting requirements for steers and heifers. Section 
59.102 contains the daily reporting requirements for cows and bulls.
    With regard to section 59.101, packers no longer are required to 
report the range of weights of cattle purchased. In addition, the 
phrase ``or other characteristics'' is added to the premium and 
discount reporting requirement to allow for the reporting of other 
kinds of premiums and discounts such as those associated with an 
animal's age.
    Section 59.102 contains the reporting requirements for cow and bull 
purchases. In an effort to reduce the reporting burden on cow and bull 
packers, only the information that pertains to the way cows and bulls 
are marketed is required to be reported. For example, cow and bull 
packers no longer have to report committed and delivered information. 
In addition, there no longer is a weekly reporting requirement for cows 
and bulls.
    With regard to section 59.103, packers are required to report the 
quantity of cattle purchased on a negotiated basis and on a negotiated 
grid basis that were slaughtered in addition to the previous 
requirement to report the number of cattle purchased through forward 
contracts, formula marketing arrangements and the quantity and carcass 
characteristics of packer-owned cattle that were slaughtered. In 
addition, packers are required to provide the basis level month and 
delivery year for all cattle purchased through forward contracts in 
addition to the previous requirement to report the basis level and 
delivery month. These changes are necessary to make the information 
published in AMS market reports more meaningful and useable by the 
industry by providing a complete picture of the prior week's slaughter 
with respect to the numbers of cattle harvested under each purchase 
type. Prices for negotiated purchases and negotiated grid purchases are 
collected currently, but prior week slaughter numbers for these types 
of purchases are not now collected. However, the addition of this 
reporting requirement is expected to have little impact on the 
reporting burden to packers, while contributing to the completeness of 
the information disseminated under the program.
    Another change under section 59.103 is that packers are required to 
provide the basis level month and delivery year for all cattle 
purchased through forward contracts in addition to the previous 
requirement to report the basis level and delivery month. The basis 
level month and delivery year are necessary to provide a more accurate 
picture of the forward contract market and will allow AMS to publish 
more meaningful information. Also, the added information reflects the 
current industry practice of sometimes contracting out very far into 
the future, making it necessary to know the delivery year to categorize 
transactions properly according to not only the month but also the year 
of delivery.
    Finally, in another effort to reduce the burden on reporting 
packers, the weekly requirement to report information for cattle 
purchased through a formula marketing arrangement and slaughtered 
during the prior slaughter week is removed as the Agency can obtain 
this information by aggregating packers' daily submissions.
Swine
    As required by the Reauthorization Act, the reporting requirements 
for sows and boars are separated from the reporting requirements for 
barrows and gilts. Thus under this rule, section 59.202 contains the 
reporting requirements for barrows and gilts and section 59.203 
contains the reporting requirements for sows and boars. Compared to the 
August 8, 2007, proposed rule, section 59.203 was modified for 
consistency in numbering and to delete a subsection that had been 
reserved. Former section 59.203(a)(5) is re-designated as section 
59.203(b), and the term ``Publication'' is added to the beginning of 
the re-designated section. Former section 59.203(b) [Reserved] is 
deleted.
    The Reauthorization Act also makes a few other modifications to the 
swine reporting provisions. Specifically, the definition of a packer is 
modified to also include a person that slaughtered an average of 
200,000 head of sows, boars, or combination thereof per year during the 
immediately preceding 5 calendar years. Under the 1999 Act, a packer 
was defined as a swine processing plant that slaughtered an average of 
at least 100,000 swine per year during the immediately preceding 5 
calendar years. The Reauthorization Act also changes the reporting 
timeframe for packers to submit prior day slaughtered swine information 
from 7 a.m. central time to 9 a.m. central time and requires the 
Secretary to publish a net price distribution on all barrows and gilts 
slaughtered the previous day.
    In addition to the changes required by the Reauthorization Act, the 
Agency makes a few other minor modifications to reduce the reporting 
burden on swine packers. A definition of the term ``inferior swine'' is 
added to allow packers to exclude information on inferior hogs, which 
are discounted in the marketplace, from their data submissions to AMS. 
Also, the requirement to submit information on the lowest net price and 
the highest net price has been removed as the Agency can obtain this 
information from the LMR system from packer submissions.
Lamb
    As previously discussed, the Reauthorization Act did not change the 
reporting provisions for lamb. However, the Agency makes a few changes 
to reduce the reporting burden on lamb packers where possible and to 
provide

[[Page 28611]]

more meaningful information in AMS market reports.
    The Agency deletes the definitions for the terms ``lambs 
committed'' and ``terms of trade'' as the requirements to submit this 
information are deleted to reduce the reporting burden on packers. The 
Agency adds a definition for the term ``yield grade lamb carcass 
reporting'' to add further clarification to the requirement to report 
yield grade information.
    Compared to the August 8, 2007, proposed rule, section 59.301 is 
modified for consistency in numbering and to delete a subsection that 
had been reserved. The language from the former section 59.301(a)(1) is 
incorporated into section 59.301(a) with no change in meaning. Former 
sections 59.301(a)(1)(i) through 59.301(a)(1)(x) are re-designated as 
sections 59.301(a)(1) through 59.301(a)(10). Former section 
59.301(a)(2) is re-designated as section 59.301(b), and the word 
``Publication'' is added to the beginning of the re-designated section. 
Finally, former section 59.203(b) [Reserved] is deleted.
    With respect to weekly reporting, the Agency requires packers to 
submit information on the quantity of lambs purchased through a 
negotiated purchase that were slaughtered in addition to the previous 
requirement to submit this type of information on packer-owned lambs, 
lambs purchased through forward contracts, and lambs purchased under a 
formula arrangement. This change will allow AMS to publish more 
meaningful market information in AMS market reports.
    With respect to reporting requirements for lamb carcasses, the 
Agency requires packers to submit information on their carcass 
purchases in addition to the current requirement to report carcass 
sales. Due to the changing structure of the lamb industry, an 
increasing number of transactions are not required to be reported under 
the prior regulation. Requiring packers to also report their carcass 
purchases will greatly increase the volume of covered transactions and 
will allow AMS to publish more meaningful information in AMS market 
reports.

General Provisions

    Subpart A of part 59, General Provisions, covers those requirements 
pertinent to all aspects of mandatory reporting. Section 59.10 details 
how packers and importers are required to report information and how 
reporting will be handled over weekends and holidays. Electronic 
reporting is required for all information collection. Electronic 
reporting involves 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 is 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 will be aggregated and processed into various market 
reports that will be released according to the daily and weekly time 
schedule set forth in these regulations.
    Section 59.20 identifies the recordkeeping requirements imposed by 
the 1999 Act and these regulations on packers and importers. Reporting 
packers and importers are 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 are 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. These 
records must be made available to employees or agents of USDA for 
routine compliance audits as well as for investigations involving 
suspected noncompliance or potential violations. More information 
regarding compliance and review procedures can be found in the LMR 
Information section of the Livestock and Grain Market News Web site.
    Further, packers are required to maintain a record to indicate the 
time a lot of cattle or swine was purchased, or a unit of boxed beef 
cuts was sold, as occurring either before 10 a.m. central time, between 
10 a.m. and 2 p.m. central time, or after 2 p.m. central time. Lamb 
packers are required to maintain a record to indicate the time a lot of 
lambs was purchased or a lot of lamb carcasses was purchased or sold or 
boxed lamb cuts were sold, as occurring either before 2 p.m. central 
time or after 2 p.m. central time. For lamb importers, the record of 
sale shall evidence the date the sale occurred. 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 are to be reported.
    Lastly, under subpart A, section 59.30 details the general 
definitions of terms used throughout the regulations, which are 
applicable to all subparts. The majority of these definitions remain 
unchanged from those that were published in the 2000 final rule. 
However, as previously discussed, the following changes are made: Minor 
modifications to the definition of ``discount''; the addition of a 
definition for ``negotiated grid purchase''; the addition of a 
definition of ``percent lean''; and the addition of a definition of 
``person.'' The minor modifications to the definitions of ``negotiated 
purchase'' and ``negotiated sale'' contained in the proposed rule are 
not included in this final rule, and the definitions of the two terms 
remain unchanged from the 2000 final rule.

Cattle

    Subpart B of part 59 states what is required to be reported in the 
cattle and boxed beef sectors. For the most part, the reporting 
requirements are similar to those published in the December 1, 2000, 
final rule. The specific changes have been discussed in a previous 
section in this document. Section 59.100 provides definitions of cattle 
terms used in subpart B, including the definition of packer, which 
identifies which entities will be required to report under this rule. 
In any calendar year, the term cattle packer includes any Federally 
inspected cattle plant that 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, 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 definition of ``boxed beef'' includes fresh and frozen primals, 
subprimals, cuts fabricated from subprimals (with some exclusions), and 
fresh and frozen ground beef, beef trimmings, and boneless processing 
beef.
    The definition of ``terms of trade'' applies to steers and heifers 
only and includes the percentage of steers and heifers purchased by a 
packer as a negotiated purchase that are scheduled to be delivered to 
the plant for slaughter not later than 14 days and the

[[Page 28612]]

percentage of slaughter steers and heifers purchased by a packer as a 
negotiated purchase that are scheduled to be delivered to the plant for 
slaughter more than 14 days but fewer than 30 days.
    The term ``type of purchase'' with respect to cattle, means a 
negotiated purchase, negotiated grid purchase, a formula market 
arrangement, and a forward contract.
    The term ``white cow'' means a cow on a ration that tends to 
produce white fat.
    As previously discussed, the reporting requirements for cows and 
bulls are separated from the reporting requirements for steers and 
heifers, which will reduce the reporting burden on cow and bull 
packers. Section 59.101 discusses the daily reporting requirements for 
steer and heifer transactions, including what information will be 
reported, when it will be reported, and when it will be published. 
Steer and heifer plants covered under the rule will report the details 
of their purchases twice each day to AMS (once by 10 a.m. central time, 
and once by 2 p.m. central time) and will 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 will report those transactions at the next 
prescribed reporting time. The Secretary will publish the information 
not less than three times each day. Section 59.102 discusses the daily 
reporting requirements for cows and bulls, including what information 
will be reported, when it will be reported, and when it will be 
published. Cow and bull plants covered under this rule will be required 
to report the base bid price intended to be paid for slaughter cow and 
bull carcasses on that day not later than 10 a.m. central time and the 
prices for cattle purchased during the previous day not later than 2 
p.m. central time. The Secretary will publish the information within 
one hour of the required reporting time on the reporting day on which 
the information is received by the packer. Section 59.103 discusses the 
requirements for weekly reporting for steers and heifers. Packers will 
be required to report information regarding the prior slaughter week on 
the first reporting day of each week not later than 9 a.m. central 
time. This information includes the quantity of cattle purchased 
through a negotiated basis that were slaughtered; the quantity of 
cattle purchased through a negotiated grid basis that were slaughtered; 
the quantity of cattle purchased through forward contracts that were 
slaughtered; the quantity of cattle delivered under a formula marketing 
arrangement that were slaughtered; the quantity and carcass 
characteristics of packer-owned cattle that were slaughtered; the 
quantity, basis level, basis level month, and delivery month and year 
for all cattle purchased through forward contracts; and the range and 
average of intended premiums and discounts that are expected to be in 
effect for the current slaughter week. This information will be 
published by the Secretary on the same day by 10 a.m. central time. 
Finally, under subpart B, section 59.104 details the information 
required to be reported concerning sales of boxed beef cuts including 
what will be reported, when it will be reported, and when it will be 
published. Cattle plants producing boxed beef cuts will 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 
a.m. central time and once by 2 p.m. central time. This should include 
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 will report 
those transactions at the next prescribed reporting time. This 
information will be published by the Secretary twice each day. These 
plants will be required to reference the Institutional Meat Purchase 
Specifications (IMPS) for Fresh Beef Products Series 100, United States 
Department of Agriculture, Agricultural Marketing Service, Livestock 
and Seed Program, when applicable.

Swine

    The Reauthorization Act made several changes to the swine reporting 
provisions. The Agency makes a few other minor modifications, which are 
discussed in detail in a previous section in this document, for clarity 
and to reduce the reporting burden on packers.
    Subpart C of part 59 lists the requirements of swine reporting 
beginning with section 59.200, which establishes definitions for terms 
used throughout the subpart including the definition of a packer. In 
any calendar year, the term swine packer includes a Federally inspected 
plant that slaughtered an average of at least 100,000 swine per year 
during the immediately preceding 5 calendar years and a person that 
slaughtered an average of at least 200,000 sows, boars, or combination 
thereof per year during the immediately preceding 5 calendar years. 
Additionally, in the case of a swine processing plant or person 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 or person should be considered a packer under this 
subpart after considering 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, 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 59.202 discusses the daily reporting requirements for 
barrows and gilts including what information will be reported, when it 
will be reported, and when it will be published.
    For barrows and gilts, packers required to report under this rule 
will report the details of their barrows and gilts purchases three 
times each day including a prior day report not later than 7 a.m. 
central time, a morning report not later than 10 a.m. central time, and 
an afternoon report not later than 2 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 will report those 
transactions at the next prescribed reporting time. This information 
will be published by the Secretary each reporting day not later than 8 
a.m. central time, 11 a.m. central time, and 3 p.m. central time, 
respectively. For barrows and gilts, packers required to report under 
this rule will also have to report not later than 9 a.m. central time 
on each reporting day information regarding all barrow and gilts 
slaughtered during the prior business day. This information will be 
published by the Secretary each reporting day not later than 10 a.m. 
central time. In addition, the Secretary will publish a net price 
distribution for all barrows and gilts slaughtered on the previous day 
not later than 3 p.m. central time. Section 59.203 details the 
reporting requirements for sows and boars. Under this rule, each sow 
and boar packer will report to the Secretary not later than 7 a.m. 
central time on each reporting day information regarding all sows and 
boars purchased or priced during the prior business day of the packer. 
This information will be published by the Secretary each reporting day 
not later than 8 a.m. central time. Section 59.204 details the 
requirements for reporting weekly swine information to AMS including 
what will be reported, when it will be reported, and when it will be

[[Page 28613]]

published. On the first reporting day of each week, not later than 4 
p.m. central time, packers will be required to report information on 
noncarcass merit premiums used and paid to producers during the prior 
slaughter week by category. This information will be published on the 
first reporting day of each week not later than 5 p.m. central time.

Lamb

    Subpart D of part 59 covers the mandatory reporting of lambs. The 
1999 Act gives the Secretary the authority to establish a mandatory 
lamb price reporting program but does not set forth the requirements. 
AMS will resume the previously established mandatory lamb price 
reporting program with some modifications as discussed in a previous 
section in this document.
    Section 59.300 provides definitions for terms used throughout 
subpart D including definitions for packer and for importer, which 
identifies the entities that will be required to report under this 
rule. For any calendar year, the term lamb packer includes any 
Federally inspected lamb processing plant that 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, 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 2,500 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 2,500 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 meat products, AMS will annually review 
import lamb volume data obtained from the United States Bureau of 
Customs and Border Protection to determine which importers are required 
to report imported boxed lamb cut sales information under these 
regulations.
    Under this rule, several changes are made to the definitions 
section that was published in the 2000 final rule. To facilitate the 
publication of more meaningful information in AMS market reports, a 
definition of ``yield grade lamb carcass reporting'' is added, which 
helps clarify the requirements for reporting USDA yield grade 
information. In addition, the definitions of ``lambs committed'' and 
``terms of trade'' are deleted as the requirement to submit the 
information associated with these definitions has been removed as it is 
not used by the industry.
    Section 59.301 covers the daily reporting requirements for live 
lamb transactions including what will be reported, when it will be 
reported, and when it will be published. Lamb plants covered under the 
rule will report the details of their live lamb purchases once 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 will report those transactions at the next prescribed reporting 
time. The Secretary will publish this information not less than once 
each day. Section 59.302 covers the same type of information for weekly 
reporting of live lamb transactions. Packers will be required to report 
information regarding the prior slaughter week, including among other 
things the number of lambs purchased through a negotiated purchase that 
were slaughtered, on the first reporting day of each week to be 
published by the Secretary on the same day. Finally, section 59.303 
covers the reporting requirements for transactions of lamb carcasses 
and boxed lamb cuts including what will be reported, when it will be 
reported, and when it will be published. Packers will be required to 
report details of their sales and purchases of carcass lambs once each 
day and the Secretary will publish the information once each day. 
Packers will be required to report details of their sales of boxed lamb 
cuts, including applicable branded product. This information will be 
published once each day. These plants will be required to reference the 
Institutional Meat Purchase Specifications (IMPS) for Fresh Lamb and 
Mutton Series 200, United States Department of Agriculture, 
Agricultural Marketing Service, Livestock and Seed Program, where 
applicable.
    Importers of boxed lamb cuts will be required to report the 
required information of their prior week sales of imported boxed lamb 
cuts on the domestic market, including applicable branded product on 
the first reporting day of each week and this information will be 
published by the Secretary on the same day.

OMB Control Numbers

    Subpart E of part 59 covers the OMB control number 0581-0186 
assigned pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35) for the information collection requirements listed in 
subparts B through D of part 59. All required information must be 
reported to AMS in a standardized format. The standardized format is 
embodied in 16 data collection forms that are included in Appendix E at 
the end of this document. Cattle packers will utilize up to seven of 
these forms (not all cattle packers must submit all cattle forms) 
(Appendix A) when reporting information to AMS, including four for 
daily cattle reporting, two for weekly cattle reporting, and one for 
daily boxed beef cuts reporting. Swine packers will utilize up to three 
forms (not all swine packers must submit all swine forms) (Appendix B), 
two for daily reporting of swine purchases and one for weekly reporting 
of non-carcass merit premium information. Lamb packers will utilize up 
to six of these forms (not all lamb packers must submit all lamb forms) 
(Appendix C) when reporting information to AMS, including one for daily 
lamb reporting, three for weekly lamb reporting, one for daily and 
weekly boxed lamb cuts reporting, and one for daily lamb carcass 
reporting. Lamb importers will utilize one of these forms when 
reporting information to AMS for reporting weekly imported boxed lamb 
cut sales.

Appendices

    The final section of this document contains a series of five 
appendices. These appendices will not appear in the Code of Federal 
Regulations. The first three appendices, Appendices A to C, have 
already been discussed above. They describe the forms that will be used 
by those required to report information under this program. Appendix D 
contains guidelines for those entities required to report information 
on how to use the forms. The actual forms are contained in Appendix E.

Comments and Responses

    On August 8, 2007, AMS published a proposed rule and invitation for

[[Page 28614]]

comment in the Federal Register (72 FR 44672-44722) reestablishing and 
revising a mandatory program of reporting information regarding the 
marketing of cattle, swine, lambs, and products of such livestock under 
the Act. The initial 30-day comment period was set to expire on 
September 7, 2007. However, on September 5, 2007, AMS announced that 
the deadline for submitting comments had been extended until September 
24, 2007. AMS received 18 comments relevant to the proposed rule. Ten 
comments were received from organizations representing livestock 
producers and meat packers and processors in both the United States and 
overseas; four were received from packer/processors or individuals 
affiliated with packer/processors; and one each was received from an 
industry market information provider, a livestock producer, a foreign 
government, and an individual with no affiliation given. Comments and 
Agency responses are discussed below.

Provisions of the Act

    Summary of Comments: One comment stated that the fine for 
violations of the Act should be $500,000 per occurrence and that the 
entire program should be paid for by taxes on the industry.
    Agency Response: Section 253(a) of the Act provides that the 
Secretary may assess a civil penalty of not more than $10,000 per 
violation. Section 254 of the Act prohibits the Secretary from 
assessing any type of fee for the submission or reporting of 
information, for access to published information, or for any other 
activity required under the Act. Therefore, the comments cannot be 
addressed through this rulemaking.

General Accountability Office Recommendations

    Summary of Comments: Two comments stressed the need for USDA to 
implement the recommendations of the General Accountability Office 
(GAO) report ``Livestock Market Reporting: USDA Has Taken Some Steps to 
Ensure Quality, but Additional Efforts Are Needed'' (GAO-06-202), which 
was published in December, 2005. One of these comments suggested that 
the GAO recommendations should be reflected in the proposed rule.
    Agency Response: AMS concurs that the recommendations of the GAO 
report should be implemented. AMS has implemented most of GAO's 
recommendations, but has not fully implemented all of the 
recommendations while the program has been operating under a voluntary 
basis. AMS will complete implementation of the GAO recommendations 
after this rule has become effective and the mandatory reporting 
program is again in operation. AMS disagrees with the recommendation to 
codify the GAO recommendations within this rulemaking. GAO did not 
recommend any rulemaking or modifications to the rule in effect at the 
time of its audit of the LMR program. Rather, GAO recommended changes 
to AMS procedures for operation of the program and to information 
disseminated by AMS about the program. Thus, AMS is not modifying the 
proposed rule to codify the GAO recommendations.

General and Miscellaneous Comments

    Summary of Comments: Two comments supported the proposed rule 
generally and specifically mentioned support for proposed revisions and 
modifications in definitions. The comments noted the need for timely 
and unbiased market information by market participants, and indicated 
that implementation of the mandatory program would provide the needed 
information.
    Agency Response: AMS concurs with the comments.
    Summary of Comments: One comment encouraged AMS to evaluate the 
impact on the marketplace of modified or new reports, to consider 
industry input as modified or new reports are developed, and to allow 
appropriate time for implementation and testing to assure a smooth 
transition.
    Agency Response: Although the comment does not address the 
rulemaking directly, it does address the primary output of the rule--
the public reports generated from the data submitted under the rule 
that are disseminated by AMS. AMS concurs that any modified or new AMS 
reports need to be developed with care, adequate industry input, and 
appropriate testing.
    Summary of Comments: One comment expressed concern that small farms 
and small farm owners could not survive ``when taxed with the financial 
and time consumption that this mandatory wave promises.''
    Agency Response: Only meat packers, processors, and importers are 
required to report under this rule. Thus, there is no financial or 
reporting burden on farms and farm owners. Indeed, the LMR program 
provides market information to all segments of the industry without any 
cost for accessing the reports.
    Summary of Comments: One comment requested that AMS and the 
Economic Research Service (ERS) use this rulemaking to reestablish the 
collection and public reporting of retail meat prices using high 
quality price scanner data.
    Agency Response: The collection and reporting of retail meat prices 
obtained through price scanner data is a voluntary program and is thus 
not addressed through this rulemaking. Nonetheless, subsequent to the 
passage of the Reauthorization Act, ERS has begun reimplementation of 
the retail meat price scanner data program.

General Provisions--Definitions

Negotiated Purchase and Negotiated Sale
    Summary of Comments: Two comments objected to the proposed 
modifications to the definitions of the terms ``negotiated purchase'' 
and ``negotiated sale'' by removing the language ``and agreement on a 
delivery day.'' The comments asserted that there is no consummated 
transaction between buyer and seller until a price and delivery date 
are known. The comments also stated that the change would require 
packers to make several assumptions that may turn out to be inaccurate, 
would make the AMS audit process more burdensome, and would place 
unnecessary reprogramming costs on packers. Conversely, one comment 
agreed with the proposal to drop the phrase ``and agreement on a 
delivery day'' from the definitions. The comment asserted that the 
definition from the 2000 final rule resulted from a misinterpretation 
of the Act and has caused many negotiated sales to be omitted from the 
data for the day on which the price quote was actually made and 
errantly placed in the data for the day on which a delivery date is 
established.
    Agency Response: AMS does not agree that the proposed removal of 
the phrase ``and agreement on a delivery day'' from the definitions of 
the terms ``negotiated purchase'' and ``negotiated sale'' would 
introduce the level of uncertainty suggested by the comments. 
Nonetheless, there is room for ambiguity regarding the criteria for 
considering a transaction to be consummated, and that agreement on a 
delivery day may be regarded as one of those criteria. AMS concurs that 
the proposed modification likely would have increased the burden of 
this rule compared to no change from the 2000 rule. Because a 
commensurate benefit in the reporting of market information is not 
sufficiently clear, AMS reinserts the phrase ``and agreement on a 
delivery day'' into the definitions of ``negotiated purchase''

[[Page 28615]]

and ``negotiated sale.'' For consistency, AMS also adds the same 
language to the definition of ``negotiated grid purchase.''

Cattle Reporting--General

    Summary of Comments: One comment indicated support for areas of 
expanded reporting for cattle, such as separate reporting for 
negotiated grid purchases. However, the comment further indicating that 
there were reduced reporting requirements in a number of areas and that 
the impact of altering such requirements on users of the information 
did not appear to have been adequately analyzed. The comment indicated 
that discounts would be reported for weight, quality, yield, livestock 
class and breed, dressing percentage, dark cutting, and for all other 
characteristics, but that no similar change has been consistently 
incorporated for premiums. In addition, the comment expressed concern 
regarding the elimination of the requirement for packers to report 
information for cattle purchased through a formula marketing 
arrangement and slaughtered the previous week. The comment expressed 
doubt that there would be sufficient detail for AMS to aggregate the 
daily information submitted by packers to obtain the information 
previously required to be reported weekly.
    Agency Response: AMS thoroughly considered the impact of all 
proposed rule changes on the information that would be collected and 
subsequently summarized and disseminated to the public users of the 
information. AMS believes that the modifications in reporting 
requirements for cattle will lead to a net increase in the utility of 
the information that will be disseminated, thus benefiting all users of 
the data. In terms of information obtained on premiums and discounts 
for steers and heifers, the rule requires reporting of any premiums or 
discounts associated with weight, quality grade, yield grade, or other 
characteristic. The reporting requirements apply to both premiums and 
discounts, and AMS disagrees with the comment that changes for 
reporting of discounts differ from those for premiums. For both 
premiums and discounts, the phrase ``or other characteristic'' was 
added the reporting requirements for steers and heifers to ensure that 
all potential categories of premiums and discounts would be reported. 
Finally, AMS has evaluated carefully the reporting requirements for 
cattle purchased through a formula marketing arrangement and is 
confident that the elimination of the weekly reporting requirement will 
not impact the Agency's ability to report weekly summaries of 
information aggregated from daily information. All of the information 
necessary to produce the weekly reports will be contained in the 
information that will be included in the daily submissions by packers. 
Hence, AMS retains these cattle reporting requirements as proposed.

Cattle Reporting--Definitions

Boxed Beef
    Summary of Comments: Four comments addressed proposed changes in 
the definition of ``boxed beef.'' One comment supported the proposed 
changes generally, but exhorted AMS to maintain consistency with 
historical data. One comment noted that including frozen product within 
the definition of ``boxed beef'' would not improve reporting unless the 
frozen category would be reported separately. One comment noted that 
removing the age limitations on fresh product would put downward 
pressure on reported prices of boxed beef. Two comments generally 
supported the elimination of age restrictions in the definition of 
boxed beef, but questioned how AMS would identify and handle discounted 
products so as not to distort reported market prices and information.
    Agency Response: AMS concurs with the sense of the comments that 
the proposed changes in the definition of boxed beef are generally 
favorable, but need to be implemented with caution. In particular, AMS 
concurs that there needs to be a means for distinguishing fresh product 
transactions that may be discounted or priced differently due to age of 
the product. Therefore, AMS adds a third code to the ``Refrigeration'' 
category, which is line 16 on the Boxed Beef Daily Report LS-126. The 
proposed rule include two categories, namely, ``fresh'' and ``frozen.'' 
The form is modified to include three categories of ``Refrigeration''--
(1) Fresh, 14 days or less; (2) Frozen; and (3) Fresh, over 14 days. 
Splitting the fresh category into two product age groups will provide a 
means for identifying product that may be discounted due to potential 
shelf life limitations.
Carlot-Based
    Summary of Comments: Two comments expressed concern regarding the 
definition of ``carlot-based'' for cow and bull beef to mean any 
transaction between a buyer and seller consisting of 5,000 pounds or 
more of one or more individual items. The comments indicated that 
certain cuts may be trading in high volume, but in lots of less than 
5,000 pounds, and thus precluding the reporting of these often high-
value items.
    Agency Response: AMS concurs with the comments that a minimum 
threshold of 5,000 pounds for reporting of cow and bull boxed beef 
transactions would preclude the reporting of important high-value 
items. To increase the range of items for which sufficient information 
will be submitted for reporting, AMS lowers the minimum threshold for 
reporting of boxed cow and bull beef from 5,000 to 2,000 pounds. AMS 
believes that this minimum threshold will enable valid, accurate market 
information to be reported on high-value boxed cow beef items with 
comparatively little increase in the reporting burden on subject 
packers.
Terms of Trade
    Summary of Comments: One comment supported the change in the 
application of ``Terms of trade'' to steer and heifer transactions only 
to coincide with the separation of reporting requirements for steers 
and heifers versus cows and bulls. The comment also supported the 
requirement to distinguish between negotiated transactions that are 
scheduled to be delivered for slaughter within 14 days versus those 
that are to be delivered in more than 14 days but fewer than 30 days. 
Another comment noted that the requirement to report on steers and 
heifers to be delivered between 14 days and 30 days would provide 
additional information regarding those transactions, while the 
elimination of the reporting requirement for cattle scheduled to be 
delivered within 7 days and between 7 and 14 days would result in a 
loss of information.
    Agency Response: AMS recognizes that there is a tradeoff involved 
in revising the reporting requirement for the delivery schedule for 
steers and heifers. The gain in information on negotiated purchases 
scheduled for delivery between 14 and 30 days must be weighed against 
the loss of information in terms of detail on purchases scheduled for 
delivery within 14 days because the data would no longer be obtained to 
distinguish between purchases with delivery scheduled within 7 days or 
less versus 8 to 14 days. Past experience with the LMR program has 
shown that the percentage of transactions falling into the 8 to 14 day 
delivery window is small and no price difference has been found for 
those purchases versus those scheduled for delivery within 7 days. 
However, no information is available on purchases with deliveries 
scheduled between 14 and 30 days, as that

[[Page 28616]]

information was not previously required. Therefore, AMS concludes that 
the potential benefit of obtaining information on transactions with 
extended delivery terms exceeds the potential loss of information on 
the breakdown regarding transactions scheduled within 14 days.

General Provisions--Recordkeeping

    Summary of Comments: One comment supported the modification in the 
recordkeeping requirements for lamb importers to maintain the time of 
day of a sale.
    Agency Response: AMS concurs with the comment. Because lamb 
importers are required to report only weekly, the date that the sale 
occurred is sufficient to permit a transaction to be verified.

Cattle Reporting--Daily Reporting

    Summary of Comments: Two comments suggested changing the current 
method of collecting information on delivered cattle. The comments 
stated that the current method of collecting this information provides 
little value and is redundant and burdensome to packers. The comments 
suggested collecting the information for delivered cattle in a manner 
similar to prior day reporting for swine.
    Agency Response: The Act provides for only reporting twice per day 
regarding cattle delivered to the packer and does not provide for a 
prior day report as is the case for swine. Therefore, AMS does not 
adopt the recommendation to require prior day reporting for all cattle.
    Summary of Comments: Two comments support the proposed reduction in 
reporting requirements for cow and bull packers and noted that the 
adjustment would not reduce the quality or quantity of important data. 
Conversely, another comment asserted that the only justification for 
the proposed change was to reduce reporting requirements for cow and 
bull packers and that the proposed rule did not analyze the impact of 
these changes on producers who sell such animals.
    Agency Response: AMS concurs with the comments that the changes to 
cow and bull reporting requirements will reduce the burden on reporting 
plants without adversely affecting the value of the information 
available to be disseminated. AMS disagrees with the comment that the 
impact of the changes was not analyzed. In drafting the proposed rule, 
AMS carefully considered the organization of the industry and past 
experience with the information collected under the LMR program. 
Deliveries of cows and bulls to packing plants are overwhelmingly cull 
animals that are neither committed nor scheduled in advance of 
delivery. Conversely, steers and heifers are placed on feed with the 
intention of reaching finished weights and grades within marketing 
windows of a few weeks. Previous experience with the LMR program has 
proven that the committed and delivered reporting required for cows and 
bulls created a substantial reporting burden while resulting in little 
useful information. For the most part, these animals are delivered to 
the plant in small lots of one or a few head without prior scheduling 
and thus are both committed and delivered simultaneously. However, 
plants were required to report these lots twice simultaneously (once as 
committed and once as delivered) under the previous rule that did not 
distinguish between reporting requirements for cows and bulls versus 
that for steers and heifers. Separating the reporting requirements for 
cows and bulls versus steers and heifers enabled AMS to add the 
reporting form LS-131 (Cow/Bull Plant Delivered Bids) to collect more 
detailed information from cow and bull packers once per day. AMS 
believes that there will be a net gain in the utility of the 
information collected and ultimately disseminating regarding cow and 
bull purchases by packers. Thus, AMS retains the requirements of the 
proposed rule for cow and bull reporting.
    Summary of Comments: One comment addressed the manner in which 
cattle market information obtained by AMS is summarized for public 
reporting. Specifically, the comment noted that some companies report 
all cattle purchases, including live purchases, FOB the feedyard and 
FOB the packing plant, but both are not included in reporting by AMS. 
The comment recommended reporting these transactions. The comment also 
recommended reporting cattle on a ``clean up'' basis, using premiums 
and discounts to ``clean up'' each lot to provide better information 
regarding the real value of each lot.
    Agency Response: AMS appreciates the recommendations on AMS 
reporting of information required under this rule. However, the 
recommendations do not address the regulatory requirements and thus 
entail no changes to the proposed rule.

Cattle Reporting--Weekly Reporting

    Summary of Comments: One comment supported the addition of the 
negotiated grid purchase category to the purchase types. The comment 
also deemed as necessary the requirement to report the delivery year in 
addition to the basis-level month for cattle purchased through forward 
contracts. Conversely, another comment asserted that the addition of 
the field ``delivery year'' would impose additional and unnecessary 
programming costs with little or no attendant benefit because few such 
transactions take place annually and those that occur are not material 
to the market.
    Agency Response: AMS agrees that there are relatively few 
transactions that occur beyond the immediate forward contracting year, 
but such transactions nonetheless do occur. AMS disagrees that such 
transactions are not material to the market. The concern is that 
without data on the delivery year, there is no way to distinguish 
between a forward contract for delivery in, say, 3 months versus 15 
months. Aggregating information on forward contracts scheduled for 
delivery 12 months apart would distort market information and could 
result in misleading signals with material consequences for the market. 
Thus, AMS retains the requirement to report the delivery year for 
forward contract purchases.

Swine Reporting--General

    Summary of Comments: One comment supported all of the changes to 
swine reporting, noting that the changes should enable the Agency to 
publish more meaningful reports while reducing the burden on packers.
    Agency Response: AMS concurs with the comment.
    Summary of Comments: One comment noted a reference to section 
59.303 in the discussion of the key components of the proposed rule (72 
FR 44676), and questioned whether the reference should be to section 
59.203.
    Agency Response: The comment indeed identified a typographical 
error, which has been corrected in this notice.

Swine Reporting--Definitions

Packer
    Summary of Comments: One comment suggested setting the threshold 
number for reporting on sows at 100,000 head per year because the 
sausage industry is comprised of many small packers.
    Agency Response: The size thresholds for a ``packer'' are defined 
by the Act. Thus, AMS retains the statutory requirements in the 
definition of a swine ``packer.''
Inferior Hogs
    Summary of Comments: One comment supported the proposal to define 
``inferior hogs'' and to allow packers to exclude these animals from

[[Page 28617]]

data submitted to AMS. The comment asserted that packers submitting 
data would be in the best position to know which animals are 
``inferior,'' and that the modification would not be detrimental to 
producers and would add transparency to the system. The comment also 
noted inconsistency in references to ``inferior swine'' as opposed to 
the term ``inferior hogs.''
    Agency Response: AMS concurs with the comment. For consistency, the 
term ``inferior hogs'' is replaced by the term ``inferior swine'' 
throughout.

Swine Reporting--Daily Reporting

    Summary of Comments: One comment strongly supported the publication 
of a net price distribution report and encouraged AMS to work closely 
with the industry to determine the most effective reporting format. The 
comment noted that the Act grants the Secretary authority to make 
``reasonable adjustments'' to submitted data to prevent harm to 
producers, packers, and other market participants. The comment noted 
that the Act requires AMS to publish a net price distribution report 
for all barrows and gilts slaughtered on the previous day not later 
than 3 p.m. Central time. Nonetheless, the comment encouraged AMS to 
publish the distribution at 10 a.m. Central time with the prior day 
slaughter report.
    Agency Response: AMS concurs with the suggestion to work with 
industry to develop the most effective reporting format for net price 
distributions for slaughtered barrows and gilts and explore the 
feasibility of publishing the report earlier in the day. However, no 
changes are made as a result of this comment to the proposed rule.
    Summary of Comments: One comment regarding swine reporting 
suggested that multiple daily reports are not warranted and that a 
daily report from each packer would accomplish the desired results.
    Agency Response: Reporting requirements for swine are specified in 
the Act. Therefore, AMS retains the reporting requirements of the 
proposed rule.
    Summary of Comments: One comment noted that current morning and 
afternoon reports for swine are based on State of origin, while prior 
day reports are based on delivered location. The comment suggested that 
the prior day report should be based on State of origin for 
consistency.
    Agency Response: AMS will obtain State of origin information in the 
prior day report from packers, and thus will have the information 
necessary to report prior day information by State of origin.
    Summary of Comments: One comment observed that the daily reporting 
requirements for sows and boars appear to be reasonable, but questioned 
the 7 a.m. Central time reporting deadline. The comment noted that the 
Reauthorization Act requires that sow and boar information be reported 
by packers not later than 9:30 a.m. Central time, and urged that the 
deadline in the rule be set to no later than 9 a.m. and preferably 9:30 
a.m. as the statute reads. The comment noted that the 8 a.m. Central 
publication time for AMS would need to be changed if the submission 
deadline were to be changed.
    Agency Response: AMS acknowledges that a later reporting deadline 
is permissible under the Reauthorization Act. However, AMS believes 
that the proposed 7 a.m. reporting deadline will not be unduly 
burdensome to sow and boar packers. Previously, many sow and boar 
packers submitted prior day information at the close of business on the 
``prior'' day, rather than submitting the data the following morning. 
As such, a 7 a.m. reporting time imposes no additional reporting burden 
on these packers.
    Summary of Comments: One comment urged USDA to comply fully with 
the Reauthorizations Act's requirements for electronic submission of 
sow and boar information through an Internet Web site or equivalent 
electronic means. The comment noted that sow and boar packers are 
relatively small firms that cannot absorb significant compliance costs.
    Agency Response: Under this program, firms will be able to submit 
data either through electronic data transfer or through a web 
interface.

Lamb Reporting

    Summary of Comments: One comment noted that lamb carcass price 
information is used by all segments of the domestic lamb business. The 
comment recommended that audits be conducted not only by reviewing 
seller invoices but also by calling buyers, that the minimum for carlot 
trades be set at 200 carcasses, and that USDA call both sellers and 
buyers on a weekly basis to ensure that reporting does not include 
special programs. The comment also questioned whether inter-company 
trades should be used.
    Agency Response: With regard to verification of sales of lamb 
carcasses, AMS will obtain information only from those entities 
required to report. AMS conducts thorough audits of all the entities 
required to report, and thus there is no need to confirm selling 
information with buyers. The rule does not set a minimum threshold for 
carlot trades of carcasses, just as there is no minimum threshold set 
for live animal transactions. A threshold of 200 carcasses likely would 
exclude smaller lots that represent a meaningful segment of the carcass 
trade. The comment questioning whether to use inter-company trades is 
unclear. The only information that will be collected and subsequently 
reported by AMS will be inter-company (that is, company-to-company) 
trades. Perhaps the comment intended to refer to intra-company trades, 
but such transactions internal to a single firm will not be submitted 
under the LMR program.
    Summary of Comments: Three comments objected to the reporting 
requirements for imported lamb out of principle and on the basis that 
the information would have no correlation with U.S. domestic slaughter 
lamb prices and would increase costs of international trade. 
Conversely, three comments indicated support for the lamb reporting 
requirements. Of these, one comment specifically singled out support 
for the mandatory reporting requirements for lamb. Another comment 
supported the proposed rule generally and specifically cited the need 
for weekly data generated from lamb reporting for operation of a new 
livestock risk protection insurance product. Finally, one of the 
comments supported the modifications in the proposed rule for lamb 
packers, indicating that requiring lamb packers to report on carcass 
purchases in addition to the previous requirement to report on carcass 
sales would enable AMS to make more complete and meaningful information 
available in its reports.
    Agency Response: AMS disagrees that there is no relationship 
between values for imported boxed lamb cuts and U.S. domestic slaughter 
lamb prices. First, U.S. lamb producers are not the only intended 
beneficiaries of this market information program. All market 
participants from producers through buyers and final customers benefit 
from more transparent market information, including information not 
only on prices but also on quantities and characteristics of products 
being traded. Because imported lamb now accounts for more than half of 
the U.S. domestic supply of lamb meat, information on that segment of 
the market is critical regardless of whether domestic and imported 
product prices are highly correlated or not.
    AMS acknowledges that there will be costs for lamb importers that 
are required to report, but there likewise will be costs for domestic 
lamb

[[Page 28618]]

suppliers. Indeed, costs for domestic lamb processors are estimated to 
be higher than that for lamb importers, as domestic lamb carcass and 
boxed lamb information is required to be reported daily while imported 
boxed lamb information is required to be reported weekly. Therefore, 
the rule does not impose a disproportionate burden on lamb importers 
versus domestic lamb suppliers.
    AMS concurs with the comment that the rule needs to be implemented 
as quickly as possible to provide vital market information to the lamb 
industry. AMS also concurs with the comment that the modified lamb 
reporting requirements will enable more complete and meaningful market 
reports to be published. Accordingly, AMS retains the lamb reporting 
requirements as set forth in the proposed rule.
    Summary of Comments: Four comments raised concerns about the 
confidentiality of information submitted by lamb importers. The 
comments noted the relatively small number and wide size distribution 
of lamb importers that would be required to report. The comments argued 
that a competitor knowing its own market share would be well-positioned 
to determine the price of the major market shareholder.
    Agency Response: AMS agrees that confidentiality of proprietary 
business information is of utmost concern in the operation of the 
mandatory reporting program. Section 251(a) of the Act directs the 
Secretary to ``make available to the public information * * * in a 
manner that ensures that confidentiality is preserved regarding--(1) 
the identity of persons * * * and (2) proprietary business 
information.'' Thus, AMS implemented the ``3/70/20'' confidentiality 
guideline to enable the Agency to issue more frequent and more complete 
reports on livestock and meat, providing all segments of the livestock 
and meat industries with information on which to base market decisions, 
while preserving the confidentiality of proprietary business 
transactions. The guideline consists of three requirements: (1) At 
least three reporting entities need to provide data at least 50 percent 
of the time over the most recent 60-day time period, (2) no single 
reporting entity may provide more than 70 percent of the data for a 
report over the most recent 60-day time period, and (3) no single 
reporting entity may be the sole reporting entity for an individual 
report more than 20 percent of the time over the most recent 60-day 
time period. AMS is confident that application of these guidelines 
protects the confidentiality of information disseminated under the LMR 
program, and thus maintains the reporting requirements for lamb 
importers as proposed.
    Summary of Comments: Two comments expressed concern about possible 
requirements for reporting country of origin for imported lamb. The 
comments stated that reporting of country of origin could increase the 
risk of disclosure of individual companies' pricing information. One of 
the comments noted that domestic boxed lamb data is not subject to any 
comparable regional classification, while the other comment supported 
the reporting requirement that identifies product as domestic or 
imported only.
    Agency Response: Given the small number of lamb importers, AMS 
acknowledges the concern regarding potential disclosure of proprietary 
business information in relation to the country of origin of imported 
lamb. However, AMS has guidelines and procedures in place to ensure 
that confidential information is not disclosed. As noted by one of the 
comments, the rule does not require importers to submit the country of 
origin of imported lamb, but only to designate whether lamb is sourced 
domestically or is imported. On the other hand, AMS recognizes the 
product description for lamb cuts often reveals the country of origin 
of the product. Accurate product information is necessary for the data 
to be aggregated and subsequently reported by AMS in sensible and 
meaningful ways. AMS is cognizant of the confidentiality concerns 
particular to imported lamb and will be especially vigilant in applying 
its confidentiality guidelines before publicly reporting lamb market 
information. If submitted data do not meet the confidentiality 
guidelines, then the data will not be disclosed until sufficient 
information is obtained to meet the guidelines. Thus, AMS retains the 
requirements for reporting of imported lamb as proposed.
    Summary of Comments: Two comments stated the economic and time 
burden on lamb importers is significantly higher than estimated in the 
proposed rule. One of the comments indicated that the startup/
maintenance cost estimate of $672 per respondent was understated by an 
order of magnitude. The other comment stated that lamb importers are 
relatively small, and that costs of compliance are higher for small 
companies due to lower staff numbers and higher overhead costs compared 
to larger businesses. The comment requested that USDA minimize the time 
and resources required to collect data from lamb importers wherever 
possible.
    Agency Response: The comments asserted that costs of compliance for 
lamb importers are higher than estimated by AMS, but did not provide 
sufficient detail to permit the validity of the assertions to be 
evaluated. AMS concurs with the comment that the Agency needs to 
minimize the time and resources necessary to collect data wherever 
possible. In developing the proposed rule, AMS has sought to minimize 
the compliance burden consistent with the Agency's ability to collect 
and disseminate useful information of value to industry participants, 
including those required to submit data.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
Section 259 of the 1999 Act prohibits States or political subdivisions 
of a State to impose any requirement that is in addition to, or 
inconsistent with, any requirement of the 1999 Act 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. In addition, the 1999 Act does not restrict or modify the 
authority of the Secretary to administer or enforce the Packers and 
Stockyards Act of 1921 (7 U.S.C. 181 et seq.); administer, enforce, or 
collect voluntary reports under the 1999 Act or any other law; 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, national origin, gender, religion, age, disability, sexual 
orientation, marital or family status, political beliefs, parental 
status, or protected genetic information. This review included persons 
who are employees of the entities that are subject to this regulation. 
This rule does not require affected entities to relocate or alter their 
operations in ways that could adversely affect such persons or groups. 
Further, this rule will not deny any persons or groups the benefits of 
the program or subject any persons or groups to discrimination.

[[Page 28619]]

Executive Order 13132

    This 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 express preemption provision. This rule is required by the 
1999 Act. Section 259 of the 1999 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.''
    Prior to the passage of the 1999 Act, several States enacted 
legislation mandating, to various degrees, the reporting of market 
information on transactions of cattle, swine, and lambs conducted 
within that particular State. However, since the National program was 
implemented on April 2, 2001, these State programs are no longer in 
effect. Therefore, there are no Federalism implications associated with 
this rulemaking.

Executive Order 12866

    This rule has been determined to be significant for purposes of 
Executive Order 12866 and therefore has been reviewed by the Office of 
Management and Budget (OMB). In accordance with Executive Order 12866, 
this regulatory analysis contains a statement of the need for the rule, 
an examination of alternative approaches, and an analysis of benefits 
and costs.

Executive Summary

    This rule implements the Reauthorization Act, which reauthorized 
the 1999 Act and amended the swine reporting provisions of that Act. As 
stated in the 1999 Act, the purpose of the Act is to establish a 
program of information regarding the marketing of cattle, swine, lambs, 
and the products of such livestock that provides information that can 
be readily understood by producers; improves the price and supply 
reporting services of the Department of Agriculture; and encourages 
competition in the marketplace for livestock and livestock products. (7 
U.S.C. 1635)
    This rule facilitates open, transparent price discovery and 
provides all market participants, both large and small, with comparable 
levels of market information. The rule is expected to reduce the time 
and resources that market participants would otherwise expend to assess 
current market conditions, reduce risk and uncertainty, and contribute 
to considerations of fairness and equity to all participants in the 
marketplace. However, these anticipated benefits are difficult to 
measure and quantify.
    This rule is strictly an informational measure and does not impose 
any restrictions on the form, timing, or location of procurement and 
sales arrangements in which subject packers and importers may engage. 
Therefore, costs of the rule are simply the costs associated with 
system development and maintenance, data submission, and recordkeeping 
activities of the packers and importers required to report information 
under this rule, plus the costs to the Federal government for operation 
of the program. However, most of the entities that will be required to 
report under this rule already reported information prior to expiration 
of the 1999 Act on September 30, 2005, and have since continued to do 
so voluntarily. As a result, incremental costs for implementation of 
this rule are negligible relative to total costs associated with the 
program. Moreover, total costs estimated for this rule are lower than 
costs estimated in the 2000 final rule expressed in comparable current 
(May 2007) dollar values.
    Total costs to reporting packers and importers are estimated at 
approximately $724,000 per year, while costs to the Federal government 
for operation of the program total $6.3 million per year. By 
comparison, the total costs to reporting packers and importers in the 
2000 final rule (65 FR 75464) were estimated at $836,000 per year in 
current dollars, while costs to the Federal government in FY 2001 were 
estimated at $6.9 million in current dollars. In current dollar terms, 
the rule represents a reduction of $112,000 in estimated annual costs 
to reporting packers and importers, and a reduction of $600,000 in 
estimated annual costs to the Federal government.
    For both respondents and the Federal government, total costs for 
the rule are estimated at approximately $7.0 million annually, while 
total costs for the 2000 final rule were estimated at $7.8 million 
annually in current dollars. Because the Act expires on September 30, 
2010, the rule is assumed to have a life cycle of 3 years. At a real 
discount rate of 3 percent, the discounted present value of the total 
private and public sector costs for the rule is estimated at almost 
$20.5 million for the duration of the program, compared to over $22.6 
million for the 2000 final rule (expressed in current dollars over a 3-
year life cycle). This represents a reduction of more than $2.1 million 
over the life of the rule in comparison to the 2000 final rule. At a 
real discount rate of 7 percent, the discounted present value of the 
total private and public sector costs for the rule is estimated at 
$19.7 million for the duration of the program, compared to $21.8 
million for the 2000 final rule (expressed in current dollars over a 3-
year life cycle). This represents a reduction of $2.1 million over the 
life of the rule in comparison to the 2000 final rule.

Need for Federal Regulatory Action

    This rule implements the Reauthorization Act, which reauthorized 
the 1999 Act and amended the swine reporting provisions of that Act. 
The 1999 Act first became law on October 22, 1999, as an amendment to 
the Agricultural Marketing Act of 1946. The first reports disseminated 
under LMR were issued in April 2001. In December 2004, the 1999 Act was 
reauthorized through September 30, 2005. The legislative authority 
lapsed until October 5, 2006, when it was reauthorized through 
September 30, 2010, with the Reauthorization Act. During the two 
periods of lapsed mandatory reporting authority, most firms that would 
have been required to report information under the requirements of LMR 
continued to report the same information voluntarily. As a result, AMS 
continued to release most of the reports that would have been released 
under the mandatory reporting program.
    The 1999 Act as amended by the Reauthorization Act directs the 
Department of Agriculture (USDA) ``to establish a program of 
information regarding the marketing of cattle, swine, lambs, and 
products of such livestock.'' This Act contains specific requirements 
that provide limited discretionary authority for regulatory 
implementation of many of the law's provisions. As a result, many of 
the provisions within this rule represent straightforward 
implementation of the requirements of this Act.
    As stated in the 1999 Act, the purpose of the statute is to 
establish a program that--
    (1) Provides information that can be readily understood by 
producers, packers, and other market participants, including 
information with respect to the pricing, contracting for purchase, and 
supply and demand conditions for

[[Page 28620]]

livestock, livestock production, and livestock products;
    (2) Improves the price and supply reporting services of the 
Department of Agriculture; and
    (3) Encourages competition in the marketplace for livestock and 
livestock products. (7 U.S.C. 1635)
    Increasingly, transactions between livestock producers and meat 
packers occur by way of private negotiations rather than through public 
trades. Compared to prices established in public markets, prices 
established in private transactions are difficult to observe, collect, 
summarize, and disseminate. Data reported by USDA's Grain Inspection, 
Packers and Stockyards Administration (GIPSA) show that of total cattle 
purchases by reporting packers, the share purchased in public markets 
declined from 30.2 percent in 1977 to 12.0 percent in 2004.\1\ For 
hogs, the decline was larger, dropping from 27.5 percent in 1977 to 
just 1.7 percent in 2004. For sheep and lambs, public market purchases 
declined from 23.4 percent to 8.3 percent of total purchases by 
reporting packers over the same period.
---------------------------------------------------------------------------

    \1\ GIPSA, USDA. Packers and Stockyards Statistical Report, 2005 
Reporting Year. GIPSA SR-01-1, February 2007.
---------------------------------------------------------------------------

    Open, transparent price discovery provides all market participants 
with comparable levels of market information, providing each economic 
agent with similar information. The decline in public market trading of 
livestock over the years led to increasingly opaque price discovery in 
these markets. As stated in the 1999 Act, mandatory livestock reporting 
provides a means of providing information to market participants and 
improving the price and supply reporting services of USDA.
    Similar to many sectors of the economy, both the livestock 
production and meat packing industries have undergone substantial 
consolidation during the past few decades. However, the rate and extent 
of the consolidation among meat packers has been greater compared to 
livestock producers.
    The four-firm concentration ratio for steer and heifer slaughter 
increased from 35.7 percent in 1980 to 81.1 percent in 2004. \2\ Over 
the same period, the four-firm concentration ratio for cow and bull 
slaughter increased from 9.7 percent to 48.0 percent. Hog slaughter 
concentration by the top four firms increased from 33.6 percent to 61.3 
percent over the same period, while sheep and lamb slaughter 
concentration increased from 55.9 percent to 66.9 percent. Between 1986 
and 2005, the number of bonded packers reporting to GIPSA declined from 
691 to 312.
---------------------------------------------------------------------------

    \2\ Ibid.
---------------------------------------------------------------------------

    According to the National Agricultural Statistics Service (NASS), 
the number of cattle operations in the United States declined from 1.6 
million in 1980 to 983,000 in 2005. Over the same time period, the 
number of hog and pig operations declined from 667,000 to 67,000, while 
the number of sheep and lamb operations declined from 120,000 to 
68,000. Thus, consolidation occurred among livestock production 
operations, but the number of livestock operations still far exceeds 
the number of livestock packers.
    For slaughter livestock, the predominant marketing relationship is 
characterized by comparatively small livestock operations dealing with 
large meat packing firms. In addition, markets for slaughter livestock 
are local or regional in geographic scope. The distances over which it 
is economically rational to transport slaughter livestock is dictated 
by differences in relative prices for livestock in different geographic 
areas versus shipping costs. Shipping costs include not only costs of 
trucking equipment, labor, fuel, insurance and other out-of-pocket 
expenses, but also include additional stress and weight shrink of 
animals hauled for greater distances and longer periods of time. In 
these regionalized trade areas, there typically are relatively large 
numbers of livestock operations, but only a handful of packers for any 
given type of slaughter animal. As a result, relatively few packers 
engage in many, frequent negotiations and completed transactions with a 
large number of producers. In contrast, even larger livestock 
operations typically engage in negotiations with a few packers within 
their economically viable trade area and may only complete transactions 
with one or two packers. Smaller livestock operations may only engage 
in sales transactions a few times per year, while packers procure 
livestock to run their plants every business day of the year. The 1999 
Act and the Reauthorization Act were passed by Congress in light of 
these structural and organizational conditions present in the livestock 
and meat industries.
    The rule does not constitute economic regulation of the permissible 
business practices in which meat packers and importers may engage. 
Affected entities are free to conduct their businesses in any manner 
consistent with other relevant Federal, State, and local laws and 
regulations. The rule only requires that the subject entities disclose 
information about their livestock purchases and meat sales to AMS, 
which will then process, summarize, and disseminate the information. 
The identity of persons, including parties to a contract, and 
proprietary business information will be kept confidential in 
accordance with the 1999 Act.

Alternative Regulatory Approaches

    AMS believes that the rule represents the most cost effective means 
of fulfilling the statutory mandate of the 1999 Act as amended by the 
Reauthorization Act. While this Act provides some discretionary 
authority for operation of the program, many of the definitions, 
reporting times, and disclosure requirements are specified in the law 
itself. Since the program was first implemented in April 2001, 
experience has proven that electronic reporting is the least-cost means 
for both subject entities and AMS to comply with the requirements of 
the Reauthorization Act. During the periods in which mandatory 
reporting requirements lapsed (including October 2005 through the 
present), entities that continued to report voluntarily did so through 
electronic submission of information in the same manner as had be 
required under mandatory reporting authority.
    The LMR system provides two methods for firms to transmit livestock 
mandatory reporting data to the system: A Web interface and electronic 
data transfer. For most firms, electronic data transfer provides the 
most efficient mechanism for transferring required data. USDA provides 
a software utility for users to transfer comma-delimited ASCII files 
directly to the LMR system. The comma-delimited files can be generated 
electronically from livestock purchase and meat sales records. For 
smaller operations with relatively few transactions, the Web interface 
may be more efficient than electronic data transfer. The Web interface 
module is available over the Internet using a Web browser, but requires 
more manual inputting of data compared to the electronic data transfer 
option. Nonetheless, the Web interface option provides smaller 
operations with a mechanism for submitting the required data without 
the need to incur fixed costs of developing a software application to 
prepare data for electronic data transfer. Historically, about 90 
percent of plants and importers have submitted data electronically, 
with the remaining 10 percent of respondents submitting data through 
the Web interface.

[[Page 28621]]

Analysis of Benefits and Costs

    The baseline for this analysis is the LMR program as it currently 
operates. Specifically, the baseline is the LMR program as directed by 
the 1999 Act and implemented by the 2000 final rule. Although the 2000 
final rule expired when the 1999 Act expired on September 30, 2005, the 
current voluntary participation by most packers allows the LMR program 
to function nearly identically to how it operated under the mandatory 
authority of the 1999 Act.
    Despite the fundamental role played by market information for 
private and public decision-making, research, outlook, and analysis, 
there is comparatively little empirical research on market reporting in 
and of itself. Likewise, there is a paucity of quantitative research 
regarding the benefits and costs of LMR specifically.
    Perry, et al. note that some local and regional market news reports 
were no longer available after the implementation of LMR because of the 
program's confidentiality restrictions.\3\ However, the authors also 
conclude that far more information on formula transactions became 
available, allowing for comparisons with negotiated transactions that 
had not been possible before. Formula prices for cattle were found to 
closely mirror prices for negotiated purchases. The study found that 
volatility in weekly reported cattle prices rose after implementation 
of LMR, but was unable to determine whether the change resulted from 
the change in the reporting system or from changes in cattle markets. 
The authors observed that the trend toward formula pricing arrangements 
in cattle markets slowed after LMR was implemented, and cautiously 
speculated that the program may have played a role in stabilizing the 
volume of negotiated transactions.
---------------------------------------------------------------------------

    \3\ Perry, J., J. MacDonald, K. Nelson, W. Hahn, C. Arnade, and 
G. Plato. ``Did the Mandatory Requirement Aid the Market? Impact of 
the Livestock Mandatory Reporting Act.'' Economic Research Service, 
U.S. Department of Agriculture, LDP-M-135-01, September 2005.
---------------------------------------------------------------------------

    Ward provides perhaps the most comprehensive review and assessment 
of research relating to LMR.\4\ Ward notes that satisfaction or 
dissatisfaction with mandatory reporting depends on individuals' 
expectations regarding what the 1999 Act would achieve or the problems 
that it would address. Ward concludes that mandatory reporting provides 
more information in some areas than what was previously available and 
has increased transparency and price reporting accuracy. He suggests 
that satisfaction with the program likely has increased due to 
increased familiarity with the data and information available through 
mandatory reporting and enhanced confidence in reported prices.
---------------------------------------------------------------------------

    \4\ Ward, C.E. ``An Assessment of the Livestock Mandatory 
Reporting Act.'' Paper presented at the NCCC-134 Conference on 
Applied Commodity Price Analysis, Forecasting, and Market Risk 
Management, St. Louis, Missouri, April 17-18, 2006.
---------------------------------------------------------------------------

    Benefits. One of the fundamental conditions underlying the theory 
of competitive markets is that market participants possess relevant 
information necessary to make the correct economic decisions. This rule 
seeks to ensure market transparency by providing current and potential 
participants in livestock and meat markets with timely, accurate, and 
comprehensive information about prices paid and received for livestock 
and meat products. Market transparency facilitates market efficiency by 
reducing search costs for market participants and by reducing risk and 
uncertainty. Widely available market information reduces the time and 
resources that market participants would otherwise expend to assess 
current market conditions. With reliable market information, market 
participants can make informed marketing decisions and thus reduce 
exposure to risks associated with buying or selling at prices 
inconsistent with the prevailing market norms. Unrestricted 
availability of market information may also contribute to 
considerations of equity and fairness in the marketplace. Unrestricted 
dissemination of market news reporting provides all market participants 
with comparable access to current market information regardless of the 
size or financial resources of their respective operations.
    Livestock mandatory reporting under this rule will provide 
comprehensive information on slaughter livestock, beef, and lamb meat 
prices. Using the information submitted by packers under the provisions 
of the 1999 Act, AMS publishes over 100 daily, weekly, and monthly 
reports covering market transactions for fed cattle, swine, lamb, beef, 
and lamb meat. Based on the information available, AMS estimates that 
reports issued under LMR cover approximately 95 percent of slaughter 
hogs, 77 percent of the slaughter cattle, 60 percent of slaughter 
sheep, 41 percent of boxed lamb, 26 percent of the carcass lamb, and 93 
percent of boxed beef. AMS market reports are utilized by producers and 
others in the marketing chain to formulate contracts and make marketing 
decisions, and by Government agencies to make policy decisions, address 
trade disputes, and in a variety of other functions. For example, AMS 
Market News data played a key role in the analysis conducted by the 
U.S. International Trade Commission as part of its investigation of 
live swine imports from Canada, which was released in April 2005.
    Despite the fundamental role played by price information in 
underpinning fair, competitive, and efficient markets, quantifying the 
impact of mandatory livestock reporting is difficult. There is a 
considerable economic literature addressing the value of information, 
but little research on the economics of market reporting in and of 
itself.\5\ Research mainly has addressed the accuracy and adequacy of 
price reporting, but no published works have been identified that 
monetize the benefits of mandatory reporting programs such as that 
contained in this rule.
---------------------------------------------------------------------------

    \5\ Ward, op. cit.
---------------------------------------------------------------------------

    Costs. This rule is strictly an informational measure and does not 
impose any restrictions on the form, timing, or location of procurement 
and sales arrangements in which subject packers and importers may 
engage. The rule places no additional limitations on current or future 
business relationships into which affected firms may enter, although 
other local, State, and Federal laws and regulations regarding such 
relationships continue to apply. Therefore, costs of the rule are 
simply the costs associated with system development and maintenance, 
data submission, and recordkeeping activities of the packers and 
importers that will be required to report information under this rule, 
plus the costs to the Federal government for operation of the program.
    Although this rule is not identical to the 2000 final rule, most of 
the regulatory provisions are the same or only slightly modified from 
that rule. As such, costs for firms subject to the rule will be similar 
to costs required to comply with the 2000 final rule. Hence, the 
methods for developing the cost estimates presented in this impact 
analysis largely follow from the methods used in developing the cost 
estimates contained in the final impact analysis published in the 
Federal Register along with the 2000 final rule. As applicable, 
estimates of employer costs for employee compensation are updated using 
recent statistics from the Bureau of Labor Statistics.
    For reporting packers and importers, there are essentially three 
phases required to comply with this rule:

[[Page 28622]]

(1) Development or modification of a system for electronic reporting of 
data and periodic system maintenance, updating, and compliance; (2) 
ongoing submission of required data; and (3) maintenance of records for 
a period of 2 years following submission of data to AMS. AMS estimates 
that most costs associated with this rule will result from costs 
associated with ongoing submission of required data. As explained 
below, AMS expects that there will be relatively low costs imposed on 
reporting packers and importers for program startup, systems 
maintenance and updating, and records maintenance.
    AMS estimates that approximately 65 packers and importers, 
representing approximately 115 plants or establishments, will be 
required to submit information under this rule. However, most of these 
firms already have established systems for reporting information to AMS 
because they were subject to the requirements of the program when it 
was in effect from 2001 through 2005. Moreover, most firms have 
continued to report data voluntarily to AMS during the period that the 
Act expired on September 30, 2005, to the present. These firms will 
need to modify their current data reporting systems to be compatible 
with the requirements of the rule.
    AMS estimates that there will be an average of about three 
additional packers and importers annually that will reach the size 
thresholds for reporting under this rule, but that had not previously 
reported under the requirements of the Act. Some of these firms will be 
new entrants to the industry and others will have increased their 
slaughter volume to the level at which they are required to submit data 
under the requirements of the law and this rule. These firms will need 
to develop an electronic interface to translate the information from 
their existing computerized recordkeeping systems into the standardized 
format required for automated submission of the data to AMS. Firms with 
existing reporting systems will need to modify the electronic interface 
to accommodate changes in reporting requirements. AMS estimates that 15 
hours of development and computer programming time per plant will be 
required to develop or modify the interface.
    Electronic data transmission of information is accomplished using 
an interface with an existing electronic recordkeeping system. In most 
cases, the information packers and importers are required to report 
already exists in internal computerized recordkeeping systems. Packers 
and importers will provide for the translation of the information from 
their existing electronic recordkeeping system into the required AMS 
standardized format. Once accomplished, the information will be 
electronically transmitted to AMS where it will be automatically loaded 
into an AMS database. AMS estimates that the development and computer 
programming to establish and maintain this interface will require an 
industry average of 15 hours per respondent per year. AMS estimates the 
employer costs for employee total compensation per hour to average 
$44.82, which is the average for all civilian management, professional, 
and related occupations for the second quarter of 2006 according to the 
Bureau of Labor Statistics. The management, professional, related 
occupations category includes the managers who will oversee development 
and maintenance of the electronic interface and the computer systems 
and programming personnel who will actually implement and maintain the 
interface. With 15 hours of time, AMS estimates the total cost, on 
average, for the electronic interface development and maintenance to be 
$672.30 per year.

Electronic Submission Development and Annual System Maintenance Cost per
                               Respondent
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Hours to develop and maintain interface....................           15
Employee compensation cost per hour........................     x $44.82
                                                            ------------
    Total annual cost per respondent.......................      $672.30
------------------------------------------------------------------------
* Hours required annually to develop and maintain electronic interface
  between existing company electronic recordkeeping system and AMS
  required electronic submission format.

    Additionally, AMS estimates the annual cost per respondent for the 
storage of the electronic data files submitted to AMS in compliance 
with the reporting provisions of this rule to be $1,923.10 (see 
Paperwork Reduction Act section for a full discussion). 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 20 
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 $21.33 per hour for a total 
employee compensation component cost of $1,493.10 per year. For this 
record maintenance activity, AMS estimates the employer costs for 
employee total compensation per hour to average $21.33, which is the 
average for all civilian office and administrative support occupations 
for the second quarter of 2006 according to data from the Bureau of 
Labor Statistics.

                Annual Recordkeeping Cost per Respondent
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Labor hours per year.......................................           70
Labor cost per hour........................................     x $21.33
                                                            ------------
    Sub-total labor cost per year..........................    $1,493.10
    Electronic storage cost *..............................    + $430.00
                                                            ------------
        Total Recordkeeping Cost...........................    $1,923.10
------------------------------------------------------------------------
* Includes cost of hard electronic storage (estimated to average 20
  megabytes/year), backup media, backup drive, and backup software.


[[Page 28623]]

    In this 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, (4) 
Cattle Premiums and Discounts Weekly Report, (5) Cow/Bull Plant 
Delivered Bids (Dressed Basis), (6) Live Cow/Bull Daily Purchase 
Report, (7) Boxed Beef Daily Report, (8) Swine Prior Day Report, (9) 
Swine Daily Report, (10) Swine Noncarcass Merit Premium Weekly Report, 
(11) Live Lamb Daily Report (Current Established Prices), (12) Live 
Lamb Weekly Report, (13) Live Lamb Weekly Report (Formula Purchases), 
(14) Lamb Premiums and Discounts Weekly Report, (15) Boxed Lamb Daily 
Report, and (16) Lamb Carcass Report. Copies of these 16 forms are 
included in Appendices at the end of this rule.
    Cattle packers will utilize up to seven 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. AMS estimates the total data submission cost 
burden to cattle packers to be $237,734. In comparison, the annual data 
submission cost burden to cattle packers was estimated at $266,560 in 
the 2000 final rule, which took effect in April 2001. According to the 
Bureau of Labor Statistics CPI inflation calculator, $1.00 in 2001 has 
the same buying power as $1.17 today. More precisely, the inflation 
factor to convert the average Consumer Price Index for 2001 to the 
current (May 2008) value is 1.174. In current dollar terms, then, the 
estimated data submission cost burden to cattle packers under the 2000 
final rule equals $312,941. Thus, the total data submission cost burden 
to cattle packers is estimated at $75,207 less in the rule compared to 
the 2000 final rule expressed in comparable current dollar terms.
    Swine packers will utilize up to three forms (Appendix B), two for 
daily reporting of swine purchases and one for weekly reporting of non-
carcass merit premium information. AMS estimates the total data 
submission cost burden to swine packers to be $153,329. In comparison, 
the annual data submission cost burden to swine packers was estimated 
at $166,400 in the 2000 final rule. In current dollar terms using the 
CPI inflation calculator, the estimated data submission cost burden to 
swine packers under the 2000 final rule will be $195,354. Thus, the 
total data submission cost burden to swine packers is estimated at 
$42,025 less in the rule compared to the 2000 final rule expressed in 
comparable current dollar terms.
    Lamb packers will utilize up to six 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 will utilize one of these forms when 
reporting information to AMS for reporting weekly imported boxed lamb 
cut sales. AMS estimates the total data submission cost burden to lamb 
packers and lamb importers to be $31,846. In comparison, the annual 
data submission cost burden to lamb packers and lamb importers was 
estimated at $48,390 in the 2000 final rule. In current dollar terms 
using the CPI inflation calculator, the estimated data submission cost 
burden to lamb packers and lamb importers under the 2000 final rule 
will be $56,810. Thus, the total data submission cost burden to lamb 
packers and lamb importers is estimated at $24,964 less in the rule 
compared to the 2000 final rule expressed in comparable current dollar 
terms.
    The cost estimates for the rule are discussed in detail in the 
Paperwork Reduction Act Section.

Breakdown of Estimated Data Submission Cost Burden

                                 I. Number of Responses per Respondent per Year
----------------------------------------------------------------------------------------------------------------
                                                  Reporting                                              Total
                      Form                          days                    Responses                  responses
----------------------------------------------------------------------------------------------------------------
Cattle:
    LS-113.....................................         260   x  2 daily                           =         520
    LS-114.....................................         260   x  2 daily                           =         520
    LS-115.....................................          52   x  1 weekly                          =          52
    LS-117.....................................          52   x  1 weekly                          =          52
    LS-126.....................................         260   x  2 daily                           =         520
    LS-131.....................................         260   x  1 daily                           =         260
    LS-132.....................................         260   x  1 daily                           =         260
Swine:
    LS-118.....................................         260   x  1 daily                           =         260
    LS-119.....................................         260   x  2 daily                           =         520
    LS-120.....................................          52   x  1 weekly                          =          52
Lamb:
Domestic:
    LS-121.....................................         260   x  1 daily                           =         260
    LS-123.....................................          52   x  1 weekly                          =          52
    LS-124.....................................          52   x  1 weekly                          =          52
    LS-125.....................................          52   x  1 weekly                          =          52
    LS-128.....................................         260   x  1 daily                           =         260
    LS-129.....................................         260   x  1 daily                           =         260
Importer:
    LS-128.....................................          52   x  1 weekly                          =          52
----------------------------------------------------------------------------------------------------------------


[[Page 28624]]


                             II. Number of Submission Hours per Respondent per Year
----------------------------------------------------------------------------------------------------------------
                                                                                                         Total
                               Form                                Submissions/         Hours/          hours/
                                                                       year           submission         year
----------------------------------------------------------------------------------------------------------------
Cattle:
    LS-113.......................................................           520   x          .17   =       88.40
    LS-114.......................................................           520   x          .17   =       88.40
    LS-115.......................................................            52   x          .25   =       13.00
    LS-117.......................................................            52   x          .08   =        4.16
    LS-126.......................................................           520   x         .125   =       65.00
    LS-131.......................................................           260   x          .08   =       20.80
    LS-132.......................................................           260   x          .17   =       44.20
Swine:
    LS-118.......................................................           260   x          .25   =       65.00
    LS-119.......................................................           520   x          .17   =       88.40
    LS-120.......................................................            52   x          .25   =       13.00
Lamb:
Domestic:
    LS-121.......................................................           260   x          .34   =       88.40
    LS-123.......................................................            52   x          .25   =       13.00
    LS-124.......................................................            52   x          .25   =       13.00
    LS-125.......................................................            52   x          .08   =        4.16
    LS-128.......................................................           260   x         .167   =       43.42
    LS-129.......................................................           260   x         .167   =       43.42
Importer:
    LS-128.......................................................            52   x         .084   =        4.37
----------------------------------------------------------------------------------------------------------------


           III. Total Submission Cost per Respondent per Year
------------------------------------------------------------------------
                                  Total                          Total
             Form                 hours/         Cost/         dollars/
                                   year           hour           year
------------------------------------------------------------------------
Cattle:
    LS-113....................      88.40   x     $21.33   =      $1,886
    LS-114....................      88.40   x      21.33   =       1,886
    LS-115....................      13.00   x      21.33   =         277
    LS-117....................       4.16   x      21.33   =          89
    LS-126....................      65.00   x      21.33   =       1,386
    LS-131....................      20.80   x      21.33   =         444
    LS-132....................      44.20   x      21.33   =         943
                               -----------------------------------------
        Totals................     323.96   x      21.33   =       6,911
------------------------------------------------------------------------
Swine:
    LS-118....................      65.00   x      21.33   =       1,386
    LS-119....................      88.40   x      21.33   =       1,886
    LS-120....................      13.00   x      21.33   =         277
                               -----------------------------------------
        Totals................     166.40   x      21.33   =       3,549
------------------------------------------------------------------------
Lamb:
Domestic:
    LS-121....................      88.40   x      21.33   =       1,886
    LS-123....................      13.00   x      21.33   =         277
    LS-124....................      13.00   x      21.33   =         277
    LS-125....................       4.16   x      21.33   =          89
    LS-128....................      43.42   x      21.33   =         926
    LS-129....................      43.42   x      21.33   =         926
Importer:
    LS-128....................       4.37   x      21.33   =          93
                               -----------------------------------------
        Totals................     209.77   x      21.33   =       4,474
------------------------------------------------------------------------


                              IV. Total Yearly Submission Cost for All Respondents
----------------------------------------------------------------------------------------------------------------
                                                                     Total
                               Form                                 dollars/        Respondents          Total
                                                                      year                               cost
----------------------------------------------------------------------------------------------------------------
Cattle:
    LS-113.......................................................     $1,886   x             34    =     $64,124
    LS-114.......................................................      1,886   x             34    =      64,124

[[Page 28625]]

 
    LS-115.......................................................        277   x             34    =       9,418
    LS-117.......................................................         89   x             34    =       3,026
    LS-126.......................................................      1,386   x             48    =      66,528
    LS-131.......................................................        444   x             22    =       9,768
    LS-132.......................................................        943   x             22    =      20,746
                                                                  ----------------------------------------------
        Subtotal.................................................  .........  ..  ..............  ..     237,734
----------------------------------------------------------------------------------------------------------------
Swine:
    LS-118.......................................................      1,386   x             52    =      72,072
    LS-119.......................................................      1,886   x             40    =      75,440
    LS-120.......................................................        277   x             21    =       5,817
                                                                  ----------------------------------------------
        Subtotal.................................................  .........  ..  ..............  ..     153,329
----------------------------------------------------------------------------------------------------------------
Lamb:
Domestic:
    LS-121.......................................................      1,886   x              6    =      11,316
    LS-123.......................................................        277   x              5    =       1,385
    LS-124.......................................................        277   x              5    =       1,385
    LS-125.......................................................         89   x              6    =         534
    LS-128.......................................................        926   x             10    =       9,260
    LS-129.......................................................        926   x              8    =       7,408
Importer:
    LS-128.......................................................         93   x              6    =         558
                                                                  ----------------------------------------------
        Subtotal.................................................  .........  ..  ..............  ..      31,846
                                                                  ==============================================
            Grand total..........................................  .........  ..  ..............  ..     422,909
----------------------------------------------------------------------------------------------------------------

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

                                     Total Annual Cost Burden to Respondents
----------------------------------------------------------------------------------------------------------------
                                                                Cost per            Number of         Total cost
                                                               respondent          respondents             *
----------------------------------------------------------------------------------------------------------------
Cattle:
    Startup/Maintenance....................................            $672   x              48    =     $32,256
    Recordkeeping..........................................           1,923   x              48    =      92,304
    Data Submission........................................           4,953   x              48    =     237,734
                                                                                                     -----------
                                                             ..............  ..  ...............  ..    362,294
Average Cost per Respondent: $362,294 / 48 = $7,548
----------------------------------------------------------------------------------------------------------------
Swine:
    Startup/Maintenance....................................             672   x              52    =      34,944
    Recordkeeping..........................................           1,923   x              52    =      99,996
    Data Submission........................................           2,949   x              52    =     153,329
                                                                                                     -----------
                                                             ..............  ..  ...............  ..    288,269
Average Cost per Respondent: $288,269 / 52 = $5,544
----------------------------------------------------------------------------------------------------------------
Lamb:
Domestic:
    Startup/Maintenance....................................             672   x              10    =       6,720
    Recordkeeping..........................................           1,923   x              10    =      19,230
    Data Submission........................................           3,129   x              10    =      31,288
                                                                                                     -----------

[[Page 28626]]

 
                                                             ..............  ..  ...............  ..     57,238
Average Cost per Respondent: $57,238 / 10 = $5,724
----------------------------------------------------------------------------------------------------------------
Importer:
    Startup/Maintenance....................................             672   x               6    =       4,032
    Recordkeeping..........................................           1,923   x               6    =      11,538
    Data Submission........................................              93   x               6    =         558
                                                                                                     -----------
                                                             ..............  ..  ...............  ..     16,128
Average Cost per Respondent: $16,128 / 6 = $2,688
----------------------------------------------------------------------------------------------------------------
            Grand total, all species.......................  ..............  ..  ...............  ..    723,929
----------------------------------------------------------------------------------------------------------------
* Totals may reflect differences in numerical rounding.

    In addition to these costs to packers for submitting information, 
the mandatory price reporting program will cost approximately $6.3 
million per fiscal year to the Federal government. The 50 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 are estimated at $4.9 
million per year. Other costs include approximately $.3 million for 
travel and transportation; and $1.1 million for miscellaneous costs 
such as office space, utilities, communications costs, printing, 
training, office supplies, equipment (including computers, software, 
and licenses), and contractual services necessary to maintain the 
system. In the 2000 final rule, costs to the Federal government for the 
program were estimated at $5.9 million for fiscal year 2001, which 
equals $6.9 million in current dollar value. Thus, estimated costs to 
the Federal government are $600,000 less in the rule compared to the 
2000 final rule expressed in current dollar values.
    The authority for the Act expires on September 30, 2010. Therefore, 
this rule will be effective for approximately 3 years (2008-2010). 
Annual costs for this rulemaking are estimated at approximately $7.0 
million per year: $723,929 for respondents to submit and maintain data 
plus $6.3 million to USDA for operation of the LMR program. At a real 
discount rate of 3 percent, the discounted present value of the total 
cost to the private sector and the Federal government for the life of 
the program will be nearly $20.5 million. Using estimated costs from 
the 2000 final rule and assuming the same 3-year duration, the 
comparable discounted present value for the life of the program would 
be over $22.6 million expressed in current dollars. Thus, estimated 
total program costs are reduced by nearly $2.1 million over the life 
cycle of the rule in comparison to the 2000 final rule at the 3 percent 
discount rate. At a real discount rate of 7 percent, the discounted 
present value of the total cost to the private sector and the Federal 
government for the life of the program will be $19.7 million. Using 
estimated costs from the 2000 final rule and assuming the same 3-year 
duration, the comparable discounted present value for the life of the 
program would be $21.8 million expressed in current dollars. Estimated 
total program costs are reduced by $2.1 million over the life cycle of 
the rule in comparison to the 2000 final rule at the 7 percent discount 
rate. The present values for the 3-year life of the program assume that 
all costs are incurred at the beginning of each year of the program.

Regulatory Flexibility Act

    In General. This 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 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 
collection of information is necessary for the proper performance of 
the functions of AMS concerning the mandatory reporting of livestock 
information. The Act requires AMS to collect and publish livestock 
market information. The required information is only available directly 
from those entities required to report under these regulations and 
exists nowhere else. Therefore, this rule does not duplicate market 
information reasonably accessible to the Agency.
    Objectives and Legal Basis. The objective of this rule is to 
improve the price and supply reporting services of USDA in order to 
increase 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 Reauthorization Act and these 
regulations, as described in detail in the background section.
    Estimated Number of Small Businesses. AMS estimates that 
approximately 65 firms operating approximately 115 plants will be 
required to report market information under this rule. AMS estimates 
that 60 of these firms represent cattle, swine, and sheep slaughtering 
companies, with approximately 5 additional firms that import lamb 
carcasses and lamb meat.
    According to Small Business Administration (SBA) definitions, a 
meat packing firm having fewer than 500 employees is a small business. 
This criterion applies to most of the firms required to report under 
the rule, including all of the cattle and swine packers. Some of the 
lamb importers required to report under this rule are brokerage 
operations that do not slaughter lambs. For meat and meat product 
merchant wholesalers, the SBA defines a firm having fewer than 100 
employees as a small business.
    In formulating this rule, particular consideration was given to 
reducing the burden on entities while still achieving the objectives of 
the rule. Under the rule, thresholds are set that define those entities 
that are required to report information on purchases of live cattle, 
swine and lambs, as well as information on domestic and export sales of 
boxed beef cuts including applicable branded product, and sales of lamb 
carcasses,

[[Page 28627]]

boxed lamb cuts including applicable branded product, and imported 
boxed lamb cuts including applicable branded product.
    These packers and importers are required to report to AMS the 
details of all transactions involving purchases of livestock, domestic 
and export sales of boxed beef cuts including applicable branded 
product, sales of domestic boxed lamb cuts including applicable branded 
product, imported boxed lamb cuts including applicable branded product, 
and lamb carcasses. Cattle and swine information will be reported to 
AMS according to the schedule directed by this rule 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 
applicable branded product, reported twice each day. Lamb information 
will be reported to AMS according to the schedule mandated by this rule 
with purchases of lambs reported once each day and sales of lamb 
carcasses reported once each day. Previous week sales of imported boxed 
lamb cuts including applicable branded boxed lamb cuts will be reported 
once weekly on the first reporting day of the week.
    In any calendar year, only Federally inspected cattle plants that 
slaughtered an average of 125,000 head of cattle a year for the 
immediately preceding 5 calendar years are required to report. 
Additionally, any Federally inspected cattle plant that did not 
slaughter cattle during the immediately preceding 5 calendar years is 
required to report if the Secretary determines that the plant should be 
considered a packer required to report 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 resumes 
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 the law and these regulations. This accounts for an expected 49 out 
of 636 Federally inspected cattle plants or 7.7 percent of all 
Federally inspected cattle plants.
    For any calendar year, any Federally inspected swine plant that 
slaughtered an average of 100,000 head of swine a year for the 
immediately preceding 5 calendar years is required to report 
information, as is any person that slaughtered an average of at least 
200,000 sows, boars, or any combination thereof, per year during the 
immediately preceding 5 calendar years. Additionally, any Federally 
inspected swine plant or person 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 is required to report. This accounts for an expected 
52 out of 614 Federally inspected swine plants or 8.5 percent of all 
Federally inspected swine plants.
    In any calendar year, a Federally inspected lamb plant that 
slaughtered the equivalent of an average of 75,000 head of lambs a year 
for the immediately preceding 5 calendar years is considered a packer 
and required to report. A packer includes a Federally inspected 
processing plant that purchases and processes an average of 75,000 lamb 
carcasses annually rather than slaughter live lambs. Additionally, any 
Federally inspected 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 is required to report. 
This accounts for an expected 10 lamb plants and 6 importers. The 
expected total of 10 out of 484 lamb plants amounts to 2.1 percent of 
all Federally inspected lamb plants.
    For any calendar year, lamb importers that imported an average of 
2,500 metric tons of lamb meat products per year during the immediately 
preceding 5 calendar years are required to report. Additionally, any 
lamb importer that did not import an average of 2,500 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 is required to report. 
Some lamb plants may also be importers.
    An estimated 92.3 percent of all Federally inspected cattle plants, 
91.5 percent of all Federally inspected swine plants, and 97.9 percent 
of all Federally inspected lamb plants in the U.S. are exempted by this 
rule from reporting information. For all livestock species, there were 
793 slaughter plants under Federal inspection and 2,060 slaughter 
plants under other forms of inspection (such as State inspection) on 
January 1, 2007. Plants that are not under Federal inspection are 
smaller operations that would be considered small businesses. An 
estimated 110 livestock slaughter plants will be required to report 
under this rule. Conversely, 2,743 or 96.1 percent of all livestock 
plants in the United States will be exempt from mandatory reporting 
under this rule.
    According to U.S. Census Bureau Statistics of U.S. Businesses, 
there were 1,718 animal (except poultry) slaughtering \6\ firms with 
payroll in the United States in 2004. These firms operated 1,816 
establishments. Of these concerns, there were 46 firms with 500 
employees or more, accounting for 136 establishments. Conversely, there 
were 1,672 firms with fewer than 500 employees, accounting for 1,680 
establishments.
---------------------------------------------------------------------------

    \6\ North American Industry Classification System (NAICS) code 
311611. U.S. Census Bureau 2004 Nonemployer Statistics show that 
there were 1,921 nonemployer establishments in the animal 
slaughtering and processing industry (NAICS code 31161), but 
nonemployer statistics at the more disaggregated NAICS six-digit 
level are not reported. A nonemployer is a business without paid 
employees that is subject to federal income tax. Most nonemployers 
are self-employed individuals operating very small unincorporated 
businesses. The NASS data on the number of livestock slaughter 
plants includes businesses with payroll as well as nonemployer 
firms, but does not report the size of firms nor the number of 
employees. Therefore, the NASS data provides the most accurate 
measure of the number of businesses potentially subject to the rule, 
while the Census Bureau data provide a means for estimating the 
number of small businesses potentially subject to the rule.
---------------------------------------------------------------------------

    The companies required to report under the Act and this rule 
represent the largest slaughtering operations in each respective 
species. This rule will require mandatory reporting by an estimated 60 
livestock slaughtering firms representing the largest cattle, swine, 
and sheep slaughtering companies. This fact, coupled with the 
Statistics of U.S. Businesses data leads to the conclusion that 46 of 
the livestock slaughtering firms required to report under this rule 
have 500 employees or more. Therefore, AMS estimates that 14 of the 60 
livestock slaughtering firms required to report under this rule are 
small businesses as defined by SBA. In percentage terms, about 23 
percent of the animal slaughtering companies required to report under 
this rule are small businesses. In terms of the industry, this rule 
requires reporting by only 0.8 percent of all small businesses in the 
animal (except poultry) slaughtering industry. Moreover, the firms 
required to report are the largest of the firms in the industry 
classified as small businesses.
    U.S. Census Bureau statistics are not sufficiently disaggregated to 
enable inferences to be drawn about the small business classification 
of the lamb carcass and lamb meat importers required to report under 
the rule. However, based on its knowledge of the industry and previous 
experience with livestock mandatory reporting, AMS estimates that all 
of the lamb importers would be classified as small businesses

[[Page 28628]]

under the SBA size standard of fewer than 100 employees for meat and 
meat product merchant wholesalers.\7\ In combination with the animal 
slaughtering firms, AMS estimates that a total of 19 firms out of 65 
firms required to report under this rule meet the SBA definition for 
small businesses. In percentage terms, about 29 percent of the firms 
required to report under this rule would be classified as small 
businesses. Although classified as small businesses, these firms are 
the largest firms in their respective specialties.
---------------------------------------------------------------------------

    \7\ North American Industry Classification System code 424470.
---------------------------------------------------------------------------

    Projected Reporting. This rule requires the reporting of specific 
market information regarding the buying and selling of livestock and 
livestock products. The information will be reported to AMS by 
electronic means. Electronic reporting involves 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 is 
required to organize the information in an AMS-approved format before 
electronically transmitting the information to AMS (Appendices A-C).
    Once the required information has been entered into the AMS 
database, it will be aggregated and processed into various market 
reports which will be released according to the daily and weekly time 
schedule set forth in these regulations.
    As an alternative, based on prior experience, AMS found that some 
of the smaller entities covered under mandatory reporting would benefit 
from a web-based system for data submission. Accordingly, AMS developed 
a system that will be available to firms that find it to be more cost 
effective than developing an electronic interface to submit data to 
AMS.
    AMS estimates the total annual burden on each cattle packer and 
boxed beef processing firm to average $7,548, including $4,953 for 
annual costs associated with electronically submitting data, $672 for 
startup/annual maintenance costs, and $1,923 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). Because data submission costs are directly 
associated with the volume of data submissions, total annual costs for 
smaller operations likely will be less than the average, while costs 
for larger operations likely will exceed the average.
    AMS estimates the total annual burden on each swine packing firm to 
be $5,544, including $2,949 for annual costs associated with 
electronically submitting data, $672 for startup/annual maintenance 
costs, and $1,923 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 products, which are not 
required to be reported. As with cattle packers, annual costs for 
smaller swine packing operations likely will be less than the average, 
while costs for larger operations likely will exceed the average.
    AMS estimates the total annual burden on each lamb packer to be 
$5,724 including $3,129 for annual costs associated with electronically 
submitting data, $672 for startup/annual maintenance costs, and $1,923 
for the storage and maintenance of electronic files that were submitted 
to AMS. AMS estimates the total annual burden on each importer of lamb 
to be $2,688, including $93 for annual costs associated with 
electronically submitting data, $672 for startup/annual maintenance 
costs, and $1,923 for the storage and maintenance of electronic files 
that were submitted to AMS.
    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 
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 are not 
required to keep any information that would prove unduly burdensome to 
maintain. The paperwork burden that is imposed on the packers and 
importers is further discussed in the section entitled Paperwork 
Reduction Act that follows.
    In addition, AMS has 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 rule.
    Professional skills required for recordkeeping under this rule are 
not different than those already employed by the reporting entities. 
Reporting will 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 rule.
    Alternatives. This rule, as directed by the Reauthorization 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 regulations to report 
information to the Secretary at prescribed times throughout the day and 
week. The Act and these regulations exempt the vast majority of small 
businesses by the establishment of slaughter, processing, and import 
capacity thresholds.
    AMS recognizes that most economic impact of this rule on those 
small entities required to report involves the manner in which 
information must be reported to the Secretary. However, in developing 
this rule, AMS considered other means by which the objectives of this 
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 Reauthorization Act prescribes 
specific times that reporting entities must report to AMS and similarly 
prescribes specific times for publication of reports by AMS. AMS 
believes electronic submission to be the only method capable of 
allowing AMS to collect, review, process, aggregate and publish reports 
while complying with the specific time-frames set forth in the Act.
    To respond to concerns of smaller operations, AMS developed a web-
based input form for submitting data online. Based on prior experience, 
AMS found that some of the smaller entities covered under mandatory 
price reporting would

[[Page 28629]]

benefit from such a web-based submission system. Accordingly, AMS 
developed such a system for program implementation.
    Additionally, to further assist small businesses, AMS may provide 
for an exception to electronic reporting in emergencies, such as power 
failures or loss of Internet accessibility, or in cases when an 
alternative is agreeable to AMS and the reporting entity.
    Other than these alternatives, there are no other practical and 
feasible alternatives to the methods of data transmission that are less 
burdensome to small businesses. AMS will work actively with those small 
businesses required to report to minimize the burden on them to the 
maximum extent practicable.
    To assist the industry in achieving compliance with this rule, 
during the period between publication of this rule and its effective 
date, AMS will provide assistance and training to covered entities as 
needed to ensure that they have been given the technical information 
necessary to comply with the electronic data transmission requirements.

Paperwork Reduction Act

    In accordance with OMB regulation (5 CFR part 1320) that implements 
the Paperwork Reduction Act (44 U.S.C. 3501-3520) (PRA), the 
information collection requirements associated with this program have 
been approved by OMB and assigned OMB control number 0581-0186. In 
accordance with 5 CFR part 1320, we have included below a description 
of the reporting and recordkeeping requirements and an estimate of the 
annual burden on packers that will be required to report information 
under this rule.
    Title: Livestock Mandatory Reporting Act of 1999.
    OMB Number: 0581-0186.
    Expiration Date: December 31, 2007.
    Type of Request: Revision of currently approved information 
collection.
    Abstract: The information collection and recordkeeping requirements 
in this regulation are essential to operating a mandatory program of 
livestock and livestock products reporting. Based on the information 
available, AMS estimates that there are 48 beef packer plants, 52 pork 
packer plants, 12 lamb packer plants and 6 lamb importers that are 
required to report market information under this rule (1 lamb entity is 
both a packer and an importer). 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 rule can be collected from existing 
materials and systems. In addition, most of these firms already have 
established systems for reporting information to AMS because they were 
subject to the requirements of the program when it was in effect from 
April 2, 2001, through September 30, 2005. Moreover, most firms have 
continued to report data voluntarily to AMS. These firms will have 
minimal startup costs, requiring only minor modifications of their 
current data reporting systems to be compatible with the requirements 
of the rule. The PRA also requires AMS to measure the recordkeeping 
burden. Under this rule, each packer and importer required to report 
must maintain and make available upon request for 2 years, such records 
as are 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 
rule, the electronic data files which the packers are required to 
utilize when submitting information to AMS will 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 
will 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 rule to be $1,923.10. 
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 20 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 $21.33 per hour for a total 
salary component cost of $1,493.10 per year.

                Annual Recordkeeping Cost per Respondent
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Labor hours per year.......................................           70
Labor cost per hour........................................     x $21.33
                                                            ------------
Sub-total labor cost per year..............................    $1,493.10
Electronic storage cost *..................................    + $430.00
                                                            ------------
    Total Recordkeeping Cost...............................   $1,923.10
------------------------------------------------------------------------
* Includes cost of hard electronic storage (estimated to average 20 Mb/
  year), backup tape media, backup tape drive, and backup software.

    In this 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, (4) 
Cattle Premiums and Discounts Weekly Report, (5) Cow/Bull Plant 
Delivered Bids (Dressed Basis), (6) Live Cow/Bull Daily Purchase 
Report, (7) Boxed Beef Daily Report, (8) Swine Prior Day Report, (9) 
Swine Daily Report, (10) Swine Noncarcass Merit Premium Weekly Report, 
(11) Live Lamb Daily Report (Current Established Prices), (12) Live 
Lamb Weekly Report, (13) Live Lamb Weekly Report (Formula Purchases), 
(14) Lamb Premiums and Discounts Weekly Report, (15) Boxed Lamb Daily 
Report, and (16) Lamb Carcass Report. Copies of these 16 forms are 
included in Appendices at the end of this rule. Cattle packers will 
utilize up to seven of these forms (not all cattle packers must submit 
all cattle forms) (Appendix A) when reporting information to AMS 
including four for

[[Page 28630]]

daily cattle reporting, two for weekly cattle reporting, and one for 
daily boxed beef cuts reporting. Swine packers will utilize up to three 
forms (not all swine packers must submit all swine forms) (Appendix B), 
two for daily reporting of swine purchases and one for weekly reporting 
of non-carcass merit premium information. Lamb packers will utilize up 
to six of these forms (not all lamb packers must submit all lamb forms) 
(Appendix C) when reporting information to AMS, including one for daily 
lamb reporting, three for weekly lamb reporting, one for daily and 
weekly boxed lamb cuts reporting, and one for daily lamb carcass 
reporting. Lamb importers will utilize one of these forms when 
reporting information to AMS for reporting weekly imported boxed lamb 
cut 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 rule. The number of forms is a result of an 
attempt to reduce the complexity of each form.
    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: 34 plants.
    Estimated Number of Responses per Respondent: 520 (2 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 3,006 hours.
    Total Cost: $64,124.
    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: 34 plants.
    Estimated Number of Responses per Respondent: 520 (2 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 3,006 hours.
    Total Cost: $64,124.
    Live Cattle Weekly Report: 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: 34 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 442 hours.
    Total Cost: $9,418.
    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: 34 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 141 hours.
    Total Cost: $3,026.
    Cow/Bull Plant Delivered Bids (Dressed Basis): Form LS-131.
    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 bid prices for cows and bulls to the Secretary.
    Estimated Number of Respondents: 22 plants.
    Estimated Number of Responses per Respondent: 260 (1 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 458 hours.
    Total Cost: $9,768.
    Live Cow/Bull Daily Purchase Report: Form LS-132.
    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 cow and bull purchases to the Secretary.
    Estimated Number of Respondents: 22 plants.
    Estimated Number of Responses per Respondent: 260 (1 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 972 hours.
    Total Cost: $20,746.
    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: 48 plants.
    Estimated Number of Responses per Respondent: 520 (2 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 3,120 hours.
    Total Cost: $66,528.
    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: 52 plants.
    Estimated Number of Responses per Respondent: 260 (1 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 3,380 hours.
    Total Cost: $72,072.
    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: 40 plants.
    Estimated Number of Responses per Respondent: 520 (2 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 3,536 hours.
    Total Cost: $75,440.
    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: 21 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 273 hours.
    Total Cost: $5,817.
    Live Lamb Daily Report (Current Established Prices): Form LS-121.
    Estimate of Burden: Public reporting burden for collection of 
information is estimated to be .34 hours per electronically submitted 
response.

[[Page 28631]]

    Respondents: Packer processing plants required to report 
information on live lamb purchases to the Secretary.
    Estimated Number of Respondents: 6 plants.
    Estimated Number of Responses per Respondent: 260 (1 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 530 hours.
    Total Cost: $11,316.
    Live Lamb Weekly Report: 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: 5 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 65 hours.
    Total Cost: $1,385.
    Live Lamb Weekly Report (Formula 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: 5 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 65 hours.
    Total Cost: $1,385.
    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: 6 plants.
    Estimated Number of Responses per Respondent: 52 (1 per week for 52 
weeks).
    Estimated Total Annual Burden on Respondents: 25 hours.
    Total Cost: $534.
    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 for domestic packing plants and .084 hours per electronically 
submitted response for importers.
    Respondents: Packer processing plants and importers required to 
report information on boxed lamb cut sales to the Secretary.
    Estimated Number of Respondents: 16 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 26 hours for importers.
    Total Cost: $9,260 for domestic packing plants and $558 for 
importers for a total of $9,818.
    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 required to report 
information on lamb carcass sales to the Secretary.
    Estimated Number of Respondents: 8 entities.
    Estimated Number of Responses per Respondent: 260 (1 per day for 
260 days).
    Estimated Total Annual Burden on Respondents: 347 hours.
    Total Cost: $7,408.

Breakdown of Estimated Data Submission Cost Burden

                                 I. Number of Responses per Respondent per Year
----------------------------------------------------------------------------------------------------------------
                                                  Reporting                                              Total
                      Form                          days                    Responses                  responses
----------------------------------------------------------------------------------------------------------------
Cattle:
    LS-113.....................................         260   x  2 daily                           =         520
    LS-114.....................................         260   x  2 daily                           =         520
    LS-115.....................................          52   x  1 weekly                          =          52
    LS-117.....................................          52   x  1 weekly                          =          52
    LS-126.....................................         260   x  2 daily                           =         520
    LS-131.....................................         260   x  1 daily                           =         260
    LS-132.....................................         260   x  1 daily                           =         260
Swine:
    LS-118.....................................         260   x  1 daily                           =         260
    LS-119.....................................         260   x  2 daily                           =         520
    LS-120.....................................          52   x  1 weekly                          =          52
Lamb:
Domestic:
    LS-121.....................................         260   x  1 daily                           =         260
    LS-123.....................................          52   x  1 weekly                          =          52
    LS-124.....................................          52   x  1 weekly                          =          52
    LS-125.....................................          52   x  1 weekly                          =          52
    LS-128.....................................         260   x  1 daily                           =         260
    LS-129.....................................         260   x  1 daily                           =         260
Importer:
    LS-128.....................................          52   x  1 weekly                          =          52
----------------------------------------------------------------------------------------------------------------


[[Page 28632]]


                             II. Number of Submission Hours per Respondent per Year
----------------------------------------------------------------------------------------------------------------
                                                                   Submissions/        Hours/           Total
                               Form                                    year          submission      hours/ year
----------------------------------------------------------------------------------------------------------------
Cattle:
    LS-113.......................................................           520   x       .17     =        88.40
    LS-114.......................................................           520   x       .17     =        88.40
    LS-115.......................................................            52   x       .25     =        13.00
    LS-117.......................................................            52   x       .08     =         4.16
    LS-126.......................................................           520   x      .125     =        65.00
    LS-131.......................................................           260   x       .08     =        20.80
    LS-132.......................................................           260   x       .17     =        44.20
Swine:
    LS-118.......................................................           260   x       .25     =        65.00
    LS-119.......................................................           520   x       .17     =        88.40
    LS-120.......................................................            52   x       .25     =        13.00
Lamb:
Domestic:
    LS-121.......................................................           260   x       .34     =        88.40
    LS-123.......................................................            52   x       .25     =        13.00
    LS-124.......................................................            52   x       .25     =        13.00
    LS-125.......................................................            52   x       .08     =         4.16
    LS-128.......................................................           260   x      .167     =        43.42
    LS-129.......................................................           260   x      .167     =        43.42
Importer:
    LS-128.......................................................            52   x      .084     =         4.37
----------------------------------------------------------------------------------------------------------------


                               III. Total Submission Cost per Respondent per Year
----------------------------------------------------------------------------------------------------------------
                                                                      Total                              Total
                               Form                                   hours/          Cost/hour         dollars/
                                                                       year                               year
----------------------------------------------------------------------------------------------------------------
Cattle:
    LS-113........................................................      88.40   x         $21.33    =     $1,886
    LS-114........................................................      88.40   x          21.33    =      1,886
    LS-115........................................................      13.00   x          21.33    =        277
    LS-117........................................................       4.16   x          21.33    =         89
    LS-126........................................................      65.00   x          21.33    =      1,386
    LS-131........................................................      20.80   x          21.33    =        444
    LS-132........................................................      44.20   x          21.33    =        943
                                                                   ---------------------------------------------
        Totals....................................................     323.96   x          21.33    =      6,911
                                                                   ---------------------------------------------
Swine:
    LS-118........................................................      65.00   x          21.33    =      1,386
    LS-119........................................................      88.40   x          21.33    =      1,886
    LS-120........................................................      13.00   x          21.33    =        277
                                                                   ---------------------------------------------
        Totals....................................................     166.40   x          21.33    =      3,549
                                                                   ---------------------------------------------
Lamb:
Domestic:
    LS-121........................................................      88.40   x          21.33    =      1,886
    LS-123........................................................      13.00   x          21.33    =        277
    LS-124........................................................      13.00   x          21.33    =        277
    LS-125........................................................       4.16   x          21.33    =         89
    LS-128........................................................      43.42   x          21.33    =        926
    LS-129........................................................      43.42   x          21.33    =        926
Importer:
    LS-128........................................................       4.37   x          21.33    =         93
                                                                   ---------------------------------------------
        Totals....................................................     209.77   x          21.33    =      4,474
----------------------------------------------------------------------------------------------------------------


[[Page 28633]]


                              IV. Total Yearly Submission Cost for All Respondents
----------------------------------------------------------------------------------------------------------------
                                                                     Total
                              Form                                 dollars/         Respondents       Total cost
                                                                     year
----------------------------------------------------------------------------------------------------------------
Cattle:
    LS-113......................................................      $1,886   x             34    =     $64,124
    LS-114......................................................       1,886   x             34    =      64,124
    LS-115......................................................         277   x             34    =       9,418
    LS-117......................................................          89   x             34    =       3,026
    LS-126......................................................       1,386   x             48    =      66,528
    LS-131......................................................         444   x             22    =       9,768
    LS-132......................................................         943   x             22    =      20,746
                                                                 -----------------------------------------------
        Subtotal................................................  ..........  ..  ..............  ..     237,734
                                                                 -----------------------------------------------
Swine:
    LS-118......................................................       1,386   x             52    =      72,072
    LS-119......................................................       1,886   x             40    =      75,440
    LS-120......................................................         277   x             21    =       5,817
                                                                 -----------------------------------------------
        Subtotal................................................  ..........  ..  ..............  ..     153,329
                                                                 -----------------------------------------------
Lamb:
Domestic:
    LS-121......................................................       1,886   x              6    =      11,316
    LS-123......................................................         277   x              5    =       1,385
    LS-124......................................................         277   x              5    =       1,385
    LS-125......................................................          89   x              6    =         534
    LS-128......................................................         926   x             10    =       9,260
    LS-129......................................................         926   x              8    =       7,408
Importer:
    LS-128......................................................          93   x              6    =         558
                                                                 -----------------------------------------------
        Subtotal................................................  ..........  ..  ..............  ..      31,846
                                                                 -----------------------------------------------
            Grand total.........................................  ..........  ..  ..............  ..     422,909
----------------------------------------------------------------------------------------------------------------

    Estimated Total Annual Burden on Respondents by Species:

    Live Cattle and Boxed Beef: $362,302 including $237,734 for annual 
costs associated with electronically submitted responses (11,145 annual 
hours @ $21.33 per hour), electronic submission development and annual 
system maintenance costs of $32,256 ($672 per 48 respondents), and 
$92,304 ($1,923 per 48 respondents) for the storage and maintenance of 
electronic files that were submitted to AMS.
    Live Swine: $288,302 including $153,329 for annual costs associated 
with electronically submitted responses (7,189 annual hours @ $21.33 
per hour), electronic submission development and annual system 
maintenance costs of $34,944 ($672 per 52 respondents), and $99,996 
($1,923 per 52 respondents) for the storage and maintenance of 
electronic files that were submitted to AMS.
    Live Lambs, Boxed Lamb, and Lamb Carcasses: $73,366 including 
$57,238 for packers ($31,288 for annual costs associated with 
electronically submitted responses (1,466 annual hours @ $21.33 per 
hour), electronic submission development and annual system maintenance 
costs of $6,720 ($672 per 10 respondents), and $19,230 ($1,923 per 10 
respondents) for the storage and maintenance of electronic files that 
were submitted to AMS) and $16,128 for importers ($558 for annual costs 
associated with electronically submitted responses) (26 annual hours @ 
$21.33 per hour), electronic submission development and annual system 
maintenance costs of $4,032 ($672 per 6 respondents), and $11,538 
($1,923 per 6 respondents) for the storage and maintenance of 
electronic files that were submitted to AMS).

List of Subjects in 7 CFR Part 59

    Cattle, Hogs, Sheep, Livestock, Lamb.

0
For the reasons set forth in the preamble, Title 7, Chapter I of the 
Code of Federal Regulations is amended by revising part 59 to read as 
follows:

PART 59--LIVESTOCK MANDATORY REPORTING

Subpart A--General Provisions
Sec.
59.10 General administrative provisions.
59.20 Recordkeeping.
59.30 Definitions.
Subpart B--Cattle Reporting
59.100 Definitions.
59.101 Mandatory daily reporting for steers and heifers.
59.102 Mandatory daily reporting for cows and bulls.
59.103 Mandatory weekly reporting for steers and heifers.
59.104 Mandatory reporting of boxed beef sales.
Subpart C--Swine Reporting
59.200 Definitions.
59.201 General reporting provisions.
59.202 Mandatory daily reporting for barrows and gilts.
59.203 Mandatory daily reporting for sows and boars.
59.204 Mandatory weekly reporting for swine.
Subpart D--Lamb Reporting
59.300 Definitions.
59.301 Mandatory daily reporting for lambs.
59.302 Mandatory weekly reporting for lambs.
59.303 Mandatory reporting of lamb carcasses and boxed lamb.
Subpart E--OMB Control Number
59.400 OMB control number assigned pursuant to the Paperwork 
Reduction Act.

    Authority: 7 U.S.C. 1635-1636i.

[[Page 28634]]

Subpart A--General Provisions


Sec.  59.10  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.  59.20  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 Cattle and Swine and Sales of Boxed Beef Cuts. A 
record of a purchase of a lot of cattle or swine, or a sale of a unit 
of boxed beef cuts, by a packer shall evidence whether the purchase or 
sale occurred:
    (1) Before 10 a.m. central time;
    (2) Between 10 a.m. and 2 p.m. central time; or
    (3) After 2 p.m. central time.
    (c) Purchases of Lambs. A record of a purchase of a lot of lambs by 
a packer shall evidence whether the purchase occurred:
    (1) Before 2 p.m. central time; or
    (2) After 2 p.m. central time.
    (d) Sales of Lamb Carcasses and Sales of Boxed Lamb Cuts. A record 
of a sale by a packer of lamb carcasses and cuts, shall evidence time 
and date the sale occurred:
    (1) Before 2 p.m. central time; or
    (2) After 2 p.m. central time.

A record of sale by an importer of lamb cuts shall evidence the date 
the sale occurred.
    (e) Reporting Sales of Boxed Beef Cuts and Sales of Boxed Lamb 
Cuts.
    (1) Beef packers must report all sales of boxed beef items by the 
applicable Institutional Meat Purchase Specifications (IMPS) item 
number or the boxed beef items' cutting and trimming specifications.
    (2) Lamb packers and importers must report all sales of boxed lamb 
items by the applicable Institutional Meat Purchase Specifications 
(IMPS) item number or the boxed lamb items' cutting and trimming 
specifications.


Sec.  59.30  Definitions.

    The following definitions apply to this part.
    Act. The term ``Act'' means Subtitle B of the Agricultural 
Marketing Act of 1946, as amended; 7 U.S.C. 1635-1636h.
    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.
    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.
    Discount. The term ``discount'' means the adjustment, expressed in 
dollars per one hundred pounds, subtracted from the base price due to 
weight, quality characteristics, yield characteristics, livestock 
class, dark cutting, breed, dressing percentage, or other 
characteristic.
    Exported. The term ``exported'' means livestock or livestock 
products that are physically shipped to locations outside of the 50 
States.
    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 (e.g., F.O.B. Plant, F.O.B. Feedlot).
    Imported. The term ``imported'' means livestock that are raised to 
slaughter weight outside of the 50 States or livestock products 
produced outside of the 50 States.
    Institutional Meat Purchase Specifications. Specifications 
describing various meat cuts, meat products, and meat food products 
derived from all livestock species, commonly abbreviated ``IMPS'', and 
intended for use by any meat procuring activity. Copies of the IMPS may 
be obtained from the U.S. Department of Agriculture, Agricultural 
Marketing Service, Livestock and Seed Program located at Room 2603 
South Building, 1400 Independence Ave., SW., Washington, DC 20250. 
Phone (202) 720-4486 or Fax (202) 720-1112. Copies may also be obtained 
over the Internet at: http://www.ams.usda.gov/lsg/stand/st-pubs.htm.
    Livestock. The term ``livestock'' means cattle, swine, and lambs.
    Lot. (1) When used in reference to livestock, 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;
    (2) When used in reference to lamb carcasses, the term ``lot'' 
means a group of one or more lamb carcasses sharing

[[Page 28635]]

a similar weight range category and comprising a single transaction 
between a buyer and seller; or
    (3) When used in reference to boxed beef and lamb, the term ``lot'' 
means a group of one or more boxes of beef or lamb items sharing 
cutting and trimming specifications and comprising a single transaction 
between a buyer and 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. 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 grid purchase. The term ``negotiated grid purchase'' in 
reference to cattle means the negotiation of a base price, from which 
premiums are added and discounts are subtracted, determined by seller-
buyer interaction and agreement on a delivery day. 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. 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 beef or lamb cuts or lamb carcasses the term ``negotiated 
sale'' means a sale by a packer selling boxed beef or lamb cuts or lamb 
carcasses to a buyer of boxed beef or lamb cuts or lamb carcasses under 
which the price for the boxed beef or lamb cuts or lamb carcasses is 
determined by seller-buyer interaction and agreement on a day.
    Origin. The term ``origin'' means the State where the livestock 
were fed to slaughter weight.
    Percent lean. The term ``percent lean'' means the value equal to 
the average percentage of the carcass weight comprised of lean meat.
    Person. The term ``person'' means any individual, group of 
individuals, partnership, corporation, association, or other entity.
    Premium. The term ``premium'' means the adjustment, expressed in 
dollars per one hundred pounds, added to the base price due to weight, 
quality characteristics, yield characteristics, livestock class, and 
breed.
    Priced. The term ``priced'' means the time when the final price is 
determined either through buyer-seller interaction and agreement or as 
a result of some other price determining method.
    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.  59.100  Definitions.

    The following definitions apply to this subpart.
    Boxed Beef. The term ``boxed beef'' means those carlot-based 
portions of a beef carcass including fresh and frozen primals, 
subprimals, cuts fabricated from subprimals (excluding portion-control 
cuts such as chops and steaks similar to those portion cut items 
described in the Institutional Meat Purchase Specifications (IMPS) for 
Fresh Beef Products Series 100), thin meats (e.g. inside and outside 
skirts, pectoral meat, cap and wedge meat, and blade meat), and fresh 
and frozen ground beef, beef trimmings, and boneless processing beef.
    Branded. The term ``branded'' means boxed beef cuts produced and 
marketed under a corporate trademark (for example, products that are 
marketed on their quality, yield, or breed characteristics), or boxed 
beef cuts produced and marketed under one of USDA's Meat Grading and 
Certification Branch, Certified Beef programs.
    Carcass characteristics. The term ``carcass characteristics'' means 
the range and average carcass weight in pounds, the quality grade and 
yield grade (if applicable), and the average cattle dressing 
percentage.
    Carlot-based. The term ``carlot-based'' means any transaction 
between a buyer and a seller destined for two or less delivery stops 
consisting of one or more individual boxed beef items. When used in 
reference to cow and bull boxed beef items, the term ``carlot-based'' 
means any transaction between a buyer and seller consisting of 2,000 
pounds or more of one or more individual items.
    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.
    Established. The term ``established'', when used in connection with 
prices, means that point in time when the buyer and seller agree upon a 
net price.
    Formula marketing arrangement.
    (1) When used in reference to live cattle, 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.
    (2) 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.
    (1) When used in reference to live cattle, 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.
    (2) 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,

[[Page 28636]]

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 estimated live weight range; the average 
live weight; the estimated percentage of cattle of a USDA quality grade 
Choice or better; beef carcass classification; any premiums or 
discounts associated with weight, quality grade, yield grade, or type 
of purchase; cattle State of origin; 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 steers and heifers for slaughter:
    (1) Whether a packer provided any financing agreement or 
arrangement with regard to the steers and heifers;
    (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 steers and heifers purchased by a packer as a 
negotiated purchase that are scheduled to be delivered to the plant for 
slaughter not later than 14 days and the percentage of slaughter steers 
and heifers purchased by a packer as a negotiated purchase that are 
scheduled to be delivered to the plant for slaughter more than 14 days, 
but fewer than 30 days.
    Type of purchase. The term ``type of purchase'' with respect to 
cattle, means a negotiated purchase, negotiated grid 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.
    White cow. Cow on a ration that tends to produce white fat.


Sec.  59.101  Mandatory daily reporting for steers and heifers.

    (a) In General. The corporate officers or officially designated 
representatives of each steer and heifer packer processing plant shall 
report to the Secretary at least two times each reporting day not later 
than 10 a.m. central time and not later than 2 p.m. central time the 
following information, inclusive since the last reporting, categorized 
to clearly delineate domestic from imported market purchases as 
described in Sec.  59.10(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) The estimated 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 other characteristic expressed in dollars per 
hundredweight on a dressed basis.
    (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 weight basis; and
    (iii) The quantity of cattle delivered on a dressed weight basis.
    (3) The quantity of cattle committed to the packer (quoted in 
numbers of head) as of that day, categorized by:
    (i) The type of purchase;
    (ii) The quantity of cattle committed on a live weight basis; and
    (iii) The quantity of cattle committed on a dressed weight 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.  59.102  Mandatory daily reporting for cows and bulls.

    (a) In General. The corporate officers or officially designated 
representatives of each cow and bull packer processing plant shall 
report to the Secretary each reporting day the following information 
for each cattle type, inclusive since the last reporting, categorized 
to clearly delineate domestic from imported market purchases as 
described in Sec.  59.10(b).
    (1) The base bid price (per hundredweight) intended to be paid for 
slaughter cow and bull carcasses on that day not later than 10 a.m. 
central time categorized by:
    (i) Weight; and
    (ii) For slaughter cows, percent lean (e.g., breaker, boner, cutter 
(lean)).
    (2) The prices for cattle (per hundredweight) purchased during the 
previous day not later than 2 p.m. central time 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) The estimated weight of the cattle purchased;
    (v) The quality classification; and
    (vi) Any premiums or discounts associated with weight or quality 
expressed in dollars per hundredweight on a dressed basis.
    (3) The volume of cows and bulls slaughtered the previous day.
    (b) Publication. The Secretary shall make the information available 
to the public within one hour of the required reporting time on the 
reporting day on which the information is received from the packer.


Sec.  59.103  Mandatory weekly reporting for steers and heifers.

    (a) In General. The corporate officers or officially designated 
representatives of each steer and heifer 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 applicable to 
the prior slaughter week, categorized to clearly delineate domestic 
from imported market purchases:
    (1) The quantity of cattle purchased through a negotiated basis 
that were slaughtered;
    (2) The quantity of cattle purchased through a negotiated grid 
basis that were slaughtered;
    (3) The quantity of cattle purchased through forward contracts that 
were slaughtered;
    (4) The quantity of cattle delivered under a formula marketing 
arrangement that were slaughtered;

[[Page 28637]]

    (5) The quantity and carcass characteristics of packer-owned cattle 
that were slaughtered;
    (6) The quantity, basis level, basis level month, and delivery 
month and year for all cattle purchased through forward contracts;
    (7) The range and average of intended premiums and discounts 
(including those associated with weight, quality grade, yield grade, or 
type of cattle) that are expected to be in effect for the current 
slaughter week.
    (b) Publication. The Secretary shall make available to the public 
the information obtained under paragraph (a) of this section on the 
first reporting day of the current slaughter week by 10 a.m. central 
time.


Sec.  59.104  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 a.m. 
central time, and once by 2 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.  
59.10(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 
pounds 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 for steer and heifer beef (e.g., USDA Prime, USDA 
Choice or better, USDA Choice, USDA Select, ungraded no-roll product);
    (iv) The grade for cow beef or packer yield and/or quality sort for 
cow beef (e.g., Breakers, Boners, White Cow, Cutters (lean));
    (v) The cut of beef, referencing the most recent version of the 
Institutional Meat Purchase Specifications (IMPS), when applicable;
    (vi) The trim specification;
    (vii) The weight range of the cut;
    (viii) The product delivery period; and
    (ix) 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.  59.200  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 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.  
59.202.
    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.
    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).
    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.
    Backfat. The term ``backfat'' means the fat thickness (in inches) 
measured between the third and fourth rib from the last rib, 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.
    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 barrow or 
gilt for which no discounts are subtracted from and no premiums are 
added to the base price.
    Base price. The term ``base price'' means the price from which no 
discounts are subtracted and no premiums are added.
    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.
    Hog Class. The term ``hog class'' means, as applicable, barrows or 
gilts; sows; or boars or stags.
    Inferior swine. The term ``inferior swine'' means swine that are 
discounted in the market place due to light-weight, health, or physical 
conditions that affects their value.
    Loin depth. The term ``loin depth'' means the muscle depth (in 
inches) measured between the third and fourth ribs from the last rib, 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.
    Net price. The term ``net price'' means the total amount paid by a 
packer to a producer (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

[[Page 28638]]

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 swine 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 and a person that 
slaughtered an average of 200,000 head of sows, boars, or combination 
thereof per year during the immediately preceding 5 calendar years. 
Additionally, in the case of a swine processing plant or person 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 or person 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.
    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 base price and 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 committed. The term ``swine committed'' means swine scheduled 
and delivered to a packer within the 14-day period beginning on the 
date of an agreement to sell the swine.
    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.  59.201  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) Type of Purchase. 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 
comprising:
    (1) Packer-sold swine; and
    (2) All other swine.


Sec.  59.202  Mandatory daily reporting for barrows and gilts.

    (a) Prior Day Report. The corporate officers or officially 
designated representatives of each packer that processes barrows and 
gilts shall report to the Secretary for each business day of the packer 
not later than 7 a.m. central time on each reporting day information 
regarding all barrows and gilts purchased or priced, during the prior 
business day of the packer, and not later than 9 a.m. central time on 
each reporting day information regarding all barrows and gilts 
slaughtered, excluding inferior swine, as specified in Sec.  59.10(b):
    (1) All purchase data, reported by lot, including:
    (i) The total number of barrows and gilts purchased;
    (ii) The total number of barrows and gilts scheduled for delivery 
to a packer for slaughter;
    (iii) The base price and weight for all barrows and gilts purchased 
on a live weight basis; and
    (iv) The base price and premiums and discounts paid for carcass 
characteristics for all barrows and gilts purchased on a carcass basis 
for which a price has been established. For barrows and gilts that were 
not priced, this information shall be reported on the next prior day 
report after the price is established.
    (2) The following slaughter data for the total number of barrows 
and gilts slaughtered:
    (i) The average net price;
    (ii) The average carcass weight;
    (iii) The average sort loss;
    (iv) The average backfat;
    (v) The average loin depth;
    (vi) The average lean percentage; and
    (vii) Total quantity slaughtered.
    (3) Packer purchase commitments, which shall be equal to the number 
of barrows and gilts scheduled for delivery to a packer for slaughter 
for each of the next 14 calendar days.
    (4) The Secretary shall publish the information obtained in 
paragraph (a) of this section in a prior day report not later than 8 
a.m. central time for all barrows and gilts purchased and 10 a.m. 
central time for all barrows and gilts slaughtered on the reporting day 
on which the information is received from the packer. In addition, the 
Secretary shall publish a net price distribution for all barrows and 
gilts slaughtered on the previous day not later than 3 p.m. central 
time.

[[Page 28639]]

    (b) Morning Report. The corporate officers or officially designated 
representatives of each packer processing plant that processes barrows 
and gilts shall report to the Secretary not later than 10 a.m. central 
time each reporting day as described in Sec.  59.10(b):
    (1) The packer's best estimate of the total number of barrows and 
gilts, and barrows and gilts that qualify as packer-owned swine, 
expected to be purchased throughout the reporting day through each type 
of purchase;
    (2) The total number of barrows and gilts, and barrows and gilts 
that qualify as packer-owned swine, purchased up to that time of the 
reporting day through each type of purchase;
    (3) All purchase data for base market hogs purchased up to that 
time of the reporting day through negotiated purchases; and
    (4) All purchase data for 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) The Secretary shall publish the information obtained in 
paragraph (b) of this section in the morning report as soon as 
practicable, but not later than 11 a.m. central time, on each reporting 
day.
    (c) Afternoon Report. The corporate officers or officially 
designated representatives of each packer processing plant that 
processes barrows and gilts shall report to the Secretary not later 
than 2 p.m. central time each reporting day as described in Sec.  
59.10(b):
    (1) The packer's best estimate of the total number of barrows and 
gilts, and barrows and gilts that qualify as packer-owned swine 
expected to be purchased throughout the reporting day through each type 
of purchase;
    (2) The total number of barrows and gilts, and barrows and gilts 
that qualify as packer-owned swine, purchased up to that time of the 
reporting day through each type of purchase;
    (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) The Secretary shall publish the information obtained in 
paragraph (c) of this section in the afternoon report as soon as 
practicable, but not later than 3 p.m. central time, on each reporting 
day.


Sec.  59.203  Mandatory daily reporting for sows and boars.

    (a) Prior Day Report. The corporate officers or officially 
designated representatives of each packer of sows and boars shall 
report to the Secretary for each business day of the packer not later 
than 7 a.m. central time on each reporting day information regarding 
all sows and boars purchased or priced, excluding inferior swine, 
during the prior business day of the packer all purchase data, reported 
by lot, including:
    (1) The total number of sows and boars purchased divided into at 
least three weight groups as specified by the Secretary;
    (2) The average price paid by each purchase type for all sows in 
each weight class specified by the Secretary; and
    (3) The average price paid by each purchase type for all boars in 
each weight class specified by the Secretary.
    (4) The packer is required to report only the volume of sows and 
boars that qualify as packer owned swine and shall omit packer owned 
sows and boars from all average price calculations.
    (b) Publication. The Secretary shall publish the information 
obtained in paragraph (a) of this section as soon as practicable, but 
not later than 8 a.m. central time, on the reporting day on which the 
information is received from the packer.


Sec.  59.204  Mandatory weekly reporting for swine.

    (a) Weekly Noncarcass Merit Premium Report. Not later than 4 p.m. 
central time in accordance with Sec.  59.10(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.
    (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 p.m. central time, on the first reporting day of each week.

Subpart D--Lamb Reporting


Sec.  59.300  Definitions.

    The following definitions apply to this subpart.
    Boxed Lamb. The term ``boxed lamb'' means those carlot-based 
portions of a lamb carcass including fresh primals, subprimals, cuts 
fabricated from subprimals excluding portion-control cuts such as chops 
and steaks similar to those portion cut items described in the 
Institutional Meat Purchase Specifications (IMPS) for Fresh Lamb and 
Mutton Series 200, and thin meats (e.g., inside and outside skirts, 
pectoral meat, cap and wedge meat, and blade meat) not older than 14 
days from date of manufacture; fresh ground lamb, lamb trimmings, and 
boneless processing lamb not older than 7 days from date of 
manufacture; frozen primals, subprimals, cuts fabricated from 
subprimals, and thin meats not older than 180 days from date of 
manufacture; and frozen ground lamb, lamb trimmings, and boneless 
processing lamb not older than 90 days from date of manufacture.
    Branded. The term ``branded'' means boxed lamb cuts produced and 
marketed under a corporate trademark (for example, products that are 
marketed on their quality, yield, or breed characteristics), or boxed 
lamb cuts produced and marketed under one of USDA's Meat Grading and 
Certification Branch, Certified programs.
    Carcass characteristics. The term ``carcass characteristics'' means 
the range and average carcass weight in pounds, the quality grade and 
yield grade (if applicable), and the lamb average dressing percentage.
    Carlot-based. The term ``carlot-based'' means any transaction 
between a buyer and a seller destined for three or less delivery stops 
consisting of any combination of carcass weights. When used in 
reference to boxed lamb cuts the term ``carlot-based'' means any 
transaction between a buyer and seller consisting of 1,000 pounds or 
more of one or more individual boxed lamb items.
    Established. The term ``established'', when used in connection with 
prices, means that point in time when the buyer and seller agree upon a 
net price.
    Formula marketing arrangement.

[[Page 28640]]

    (1) When used in reference to live lambs, 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.
    (2) When used in reference to boxed lamb, the term ``formula 
marketing arrangement'' means the advance commitment of boxed lamb 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.
    (1) When used in reference to live lambs, 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.
    (2) When used in reference to boxed lamb, the term ``forward 
contract'' means an agreement for the sale of boxed lamb, 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 lamb meat products who takes ownership of such 
lamb meat products with the intent to sell or ship in U.S. commerce. 
For any calendar year, the term includes only those that imported an 
average of 2,500 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 2,500 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.
    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.
    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.
    Yield grade lamb carcass reporting. The term ``yield grade lamb 
carcass reporting'' means if the lot includes 80 percent or more of one 
yield grade, the lot will be considered a single yield grade lot. If 
the lot contains less than 80 percent of one yield grade, the lot will 
be considered a mixed grade lot and all yield grades comprising 10 
percent or more will be used to describe the lot.


Sec.  59.301  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 once each reporting day not later than 2 p.m. 
central time the prices for lambs (per hundredweight) established on 
that day as F.O.B. feedlot or delivered at the plant, categorized to 
clearly delineate domestic from imported market purchases as described 
in Sec.  59.10(b) and categorized by:
    (1) The type of purchase;
    (2) The class of lamb;
    (3) The quantity of lambs purchased on a live weight basis;
    (4) The quantity of lambs purchased on a dressed weight basis;
    (5) A range and average of estimated live weights of lambs 
purchased;
    (6) An estimate of the percentage of the lambs purchased that were 
of a quality grade of Choice or better;
    (7) Any premiums or discounts associated with weight, quality 
grade, yield grade, or any type of purchase;
    (8) Lamb state of origin;
    (9) The pelt type; and
    (10) The estimated lamb dressing percentage.
    (b) Publication. The Secretary shall make the information available 
to the public not less than once each reporting day.


Sec.  59.302  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 the following information applicable to the prior slaughter 
week contained in paragraphs (a)(1) through (a)(5) and (a)(7) of this 
section not later than 9 a.m. central time on the second reporting day 
of the current slaughter week, and the following information applicable 
to the prior slaughter week contained in paragraph (a)(6) of this 
section not later than 9 a.m. central time on the first reporting day 
of the current slaughter week categorized to clearly delineate domestic 
from imported market purchases:
    (1) The quantity of lambs purchased through a negotiated purchase 
that were slaughtered;
    (2) The quantity of lambs purchased through forward contracts that 
were slaughtered;
    (3) The quantity of lambs delivered under a formula marketing 
arrangement that were slaughtered;
    (4) The quantity and carcass characteristics of packer-owned lambs 
that were slaughtered;
    (5) The quantity, basis level, and delivery month for all lambs 
purchased through forward contracts;
    (6) The following information applicable to the current slaughter 
week. The range and average of intended premiums and discounts 
(including those associated with weight, quality grade, yield grade, or 
type of lamb) that are expected to be in effect for the current 
slaughter week; and
    (7) The following information for lambs purchased through a formula 
marketing arrangement and slaughtered during the prior slaughter week, 
categorized to clearly delineate domestic from imported market 
purchases:
    (i) The quantity (quoted in both numbers of head and pounds) of 
lambs;
    (ii) The weighted average price paid for a carcass, including 
applicable premiums and discounts;
    (iii) The range of premiums and discounts paid;
    (iv) The weighted average of premiums and discounts paid; and
    (v) The range of prices paid.
    (b) Publication. The Secretary shall make available to the public 
the information obtained in paragraphs (a)(1) through (a)(5) and (a)(7) 
of this section on the second reporting day of the current slaughter 
week and information obtained in paragraph (a)(6) of this section on 
the first reporting day of the current slaughter week.


Sec.  59.303  Mandatory reporting of lamb carcasses and boxed lamb.

    (a) Daily Reporting of Lamb Carcass Transactions. The corporate 
officers or

[[Page 28641]]

officially designated representatives of each packer shall report to 
the Secretary each reporting day the following information on total 
carlot-based lamb carcass transactions not later than 3 p.m. central 
time in accordance with Sec.  59.10(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 and purchased; and
    (3) The following information regarding the characteristics of each 
transaction:
    (i) The type of transaction;
    (ii) The USDA quality grade of lamb;
    (iii) The USDA yield grade;
    (iv) The estimated weight range of the carcasses; and
    (v) The product delivery period.
    (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 
total domestic boxed lamb cut sales not later than 2:30 p.m. central 
time as described in Sec.  59.10(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 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 USDA quality grade of lamb;
    (iv) The cut of lamb, referencing the most recent version of the 
Institutional Meat Purchase Specifications (IMPS), when applicable;
    (v) USDA yield grade, if applicable;
    (vi) The product state of refrigeration;
    (vii) The weight range of the cut; and
    (viii) The product delivery period.
    (c) 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 a.m. central time:
    (1) The price for each lot of a boxed lamb cut sale, quoted in 
dollars per hundredweight on a F.O.B. plant basis;
    (2) The quantity for each lot of a transaction, quoted by 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 cut of lamb, referencing the most recent version of the 
Institutional Meat Purchase Specifications (IMPS), when applicable;
    (iv) The product state of refrigeration;
    (v) The weight range of the cut; and
    (vi) The product delivery period.
    (d) Publication. The Secretary shall make available to the public 
the information required to be reported in paragraphs (a) and (b) of 
this section not less frequently than once each reporting day and the 
information required to be reported in paragraph (c) of this section on 
the first reporting day of the current slaughter week.

Subpart E--OMB Control Number


Sec.  59.400  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 2, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.

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

Appendix A--Cattle Mandatory Reporting Forms

    The following 7 forms visually represent the mandatory cattle 
and boxed beef market information that is required to be reported 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
LS-117--Cattle Premiums and Discounts Weekly Report
LS-131--Cow/Bull Plant Delivered Bids (Dressed Basis)
LS-132--Live Cow/Bull Daily Purchase Report
LS-126--Boxed Beef Daily Report

Appendix B--Swine Mandatory Reporting Forms

    The following 3 forms visually represent the mandatory swine 
market information that is required to be reported electronically 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 6 forms visually represent the mandatory lamb 
market information that is required to be reported electronically to 
the Agricultural Marketing Service.

Lamb

LS-121--Live Lamb Daily Report (Current Established Prices)
LS-123--Live Lamb Weekly Report
LS-124--Live Lamb Weekly Report (Formula Purchases)
LS-125--Lamb Premiums and Discounts Report
LS-128--Boxed Lamb Report
LS-129--Lamb Carcass Report

Appendix D--Mandatory Reporting Guideline

    The following reporting guidelines may be used by persons 
required to report electronically transmitted mandatory market 
information to the Agricultural Marketing Service.
    The first 10 fields of each reporting form provide the following 
information: Identification number (plant establishment number or 
importer ID number), company name (name of parent company), plant 
street address (street address for plant), plant city (city where 
plant is located), plant state (state where plant is located), plant 
zip code (zip code where plant is located), contact name (the name 
of the corporate representative contact at the plant), phone number 
(full phone number for the plant including area code), reporting 
date (date the information was submitted (mm/dd/yyyy)), and 
reporting time, if applicable (the submission time corresponding to 
the 10 a.m. and the 2 p.m. reporting requirements). The reporting 
time requirement is only applicable to forms LS-113--Live Cattle 
Daily Report (current established prices), LS-114--Live Cattle Daily 
Report (Committed and Delivered Cattle), LS-126--Boxed Beef Daily 
Report, LS-131--Cow/Bull Plant Delivered Bids (Dressed Basis) (10 
a.m. submission only), LS-132--Live Cow/Bull Daily Purchase Report, 
and LS-119--Swine Daily Report.
    (a) Cattle Mandatory Reporting Forms. (See Appendix E for 
samples.)
    (1) LS-113--Live Cattle Daily Report (current established 
prices).
    (i) Lot identification (11). Enter code used to identify the lot 
to the packer.
    (ii) Source (12). Enter ``1'', domestic, if cattle were 
purchased inside of the 50 States, or ``2'', imported, if cattle 
were purchased outside of the 50 States.
    (iii) Purchase type code (13). Enter the code that describes the 
type of purchase.
    (iv) Class code (14). Enter the code that best describes the 
type of cattle.
    (v) Selling basis (15a-b). For 15a, enter ``1'' if cattle were 
purchased on a live basis or ``2'' if cattle were purchased on a 
dressed basis. For 15b, enter ``1'' if cattle are shipped on an FOB 
feedlot basis or ``2'' if cattle are delivered at the plant.
    (vi) Head count (16). Enter the quantity of cattle in the lot in 
number of head.
    (vii) Estimated average weight (17). Enter the estimated average 
weight of the lot in pounds.

[[Page 28642]]

    (viii) Average price (18). Enter the price established on that 
day for the lot in dollars per hundredweight.
    (I) For negotiated purchases, enter the price that was agreed 
upon.
    (II) For formula purchases, enter the base price when 
established (with estimated grading information if not yet known). 
Then enter the final net price with all actual grading information 
when it is known.
    (III) For forward contract purchases, enter the base price when 
established (with estimated grading information if not yet known). 
Then enter the final net price paid on the contract with actual 
grading information.
    (V) For negotiated grid purchases, enter the base price when 
established (with estimated grading information if not yet known). 
Then enter the final net price with all actual grading information.
    (ix) Percent Choice or better (19). Enter the percentage of the 
number of cattle in the lot of a quality grade of Choice or better.
    (x) Classification code (20). Enter the code which best 
describes the quality of the majority of the cattle in the lot.
    (xi) Dressing percentage (21). Enter an average dressing 
percentage for the cattle in the lot. For negotiated purchases, 
enter an estimate. For all other purchase types, enter the actual 
average dressing percentage.
    (xii) Origin (22). Enter the 2-letter postal abbreviation for 
the State in which the cattle were fed to slaughter weight. For 
imported cattle enter ``CN'' for Canada.
    (xiii) Premiums and discounts paid (23a-h). Enter the total net 
value of the adjustment for the lot (in dollars per hundredweight) 
for any premiums associated with weight, quality, yield or other 
expressed as a positive value and for any discounts associated with 
weight, quality, yield or other expressed as a negative value in 
parenthesis.
    (xiv) Terms of Trade (24a-d).
    (I) Packer financing (24a). Enter ``1'' (yes) or ``2'' (no) in 
response to: ``Did packer provide financing agreement or arrangement 
with regards to the cattle?''
    (II) Delivery location (24b). Enter ``1'' if delivery terms 
specify producer location, ``2'' if they specify packer's plant 
location.
    (III) Delivery Date (24c). Enter ``1'' if producer sets date of 
delivery for slaughter unilaterally; otherwise enter ``2'' for 
packer.
    (IV) Delivered (24d). Enter ``1'' if negotiated purchased cattle 
are to be delivered for slaughter 14 or less days from the 
committed, purchased, or priced date. Enter ``2'' if they are to be 
delivered for slaughter from 15 to 30 days from the date the cattle 
were committed, purchased, or priced.
    (2) LS-114--Live Cattle Daily Report (committed and delivered 
cattle).
    (i) Lot identification (11). Enter code used to identify the lot 
to the packer.
    (ii) Purchasing basis (12). Enter ``1'' if cattle are delivered 
or ``2'' if cattle are committed.
    (iii) Source (13). Enter ``1'', domestic, if cattle are 
purchased within the 50 States or ``2'', imported, if cattle are 
purchased outside of the 50 States.
    (iv) Purchase type code (14). Enter the code that best describes 
the type of purchase.
    (v) Class Code (15). Enter the code that best describes the type 
of cattle in the lot.
    (vi) Selling basis (16). Enter ``1'' if cattle were purchased on 
a live basis or a ``2'' if cattle were purchased on a dressed basis.
    (vii) Head count (17). Enter the quantity of cattle in the lot 
in number of head.
    (viii) Origin (18). Enter the 2-letter postal abbreviation for 
the State in which the cattle were fed to slaughter weight. For 
imported cattle, enter ``CN'' for Canada.
    (ix) Terms of Trade (19a-d). Enter when applicable, otherwise 
leave blank.
    (I) Packer financing (19a). Enter ``1'' (yes) or ``2'' (no) in 
response to: ``Did packer provide financing agreement or arrangement 
with regards to the cattle?''
    (II) Delivery location (19b). Enter ``1'' if delivery terms 
specify producer location, ``2'' if they specify packer's plant 
location.
    (III) Delivery Date (19c). Enter ``1'' if producer sets date of 
delivery for slaughter unilaterally; otherwise enter ``2'' for 
packer.
    (IV) Delivered (19d). Enter ``1'' if negotiated purchased cattle 
are to be delivered for slaughter 7 or less days from the committed, 
purchased, or priced date. Enter ``2'' if they are to be delivered 
for slaughter from 8 to 14 days from the date the cattle were 
committed, purchased, or priced.
    (3) LS-115--Live Cattle Weekly Report.
    (i) Packer-Owned lot identification (11). Enter code used to 
identify the lot of packer-owned cattle to the packer.
    (ii) Packer-Owned source (12). Enter ``1'', domestic, if packer-
owned cattle are from within the 50 States or ``2'', imported, if 
cattle are from outside of the 50 States.
    (iii) Packer-Owned head count (13). Enter the quantity of 
packer-owned cattle in the lot in number of head.
    (iv) Packer-Owned actual carcass weight range (14). Enter the 
actual average carcass weight of the lot in pounds.
    (v) Packer-Owned average dressing percentage (15). Enter the 
average dressing percentage of the lot of packer-owned cattle.
    (vi) Percentage yield grade 3 or better (16). Enter the 
percentage of packer-owned cattle in the lot of a yield grade of 3 
or better.
    (vii) Quality grade percentage (17). Enter the percentage of 
packer-owned cattle in the lot of a quality grade of Choice or 
better.
    (viii) Prior week slaughtered cattle head counts (18-25). Enter 
the total number of head of cattle slaughtered for the prior week 
that were purchased through forward contracts, the total number of 
head for cattle purchased through formula arrangements, the total 
number of head of cattle purchased through negotiated cash, and the 
total number of head purchased through negotiated grids, categorized 
by domestic or imported sources. Enter this information once per 
each week's submission.
    (ix) Forward contract purchases lot identification (26). Enter 
code used to identify forward contracted cattle to the packer.
    (x) Forward contract purchases head count (27). Enter quantity 
of forward contracted cattle in the lot in number of head.
    (xi) Forward contract purchases basis level (28). Enter the 
agreed upon adjustment to a future price to establish the final 
price of the forward contracted cattle in dollars per one hundred 
pounds.
    (xii) Forward contract purchases delivery month (29). Enter the 
delivery month of the cattle purchased through forward contracts as 
a 3-letter abbreviation.
    (xiii) Forward contract purchases delivery year (30).
    (xiv) Forward contract purchases basis level month (31). Enter 
the basis month which the contract was based off of. Use 3-letter 
abbreviation.
    (4) LS-117--Cattle Premiums and Discounts Weekly Report.
    (i) Enter the premiums and discounts (in dollars per 
hundredweight) expected to be in effect for the current slaughter 
week for each applicable category of premium and discount (11-34). 
For ``other'' categories (35-39), provide a brief description of the 
basis for the premium/discount along with the value of the premium/
discount. Enter negative values in parenthesis.
    (5) LS-131--Cow/Bull Plant Delivered Bids.
    Enter the plant delivered bids the plant expects to have in 
effect for that day in dollars per cwt. For each category.
    (6) LS-132--Live Cow/Bull Daily Purchase report.
    (i) Lot identification (11). Enter code used to identify the lot 
to the packer.
    (ii) Source (12). Enter ``1'', domestic, if cattle were 
purchased inside of the 50 States, or ``2'', imported, if cattle 
were purchased outside of the 50 States.
    (iii) Purchase type code (13). Enter the code that describes the 
type of purchase.
    (iv) Class code (14). Enter the code that best describes the 
type of cattle.
    (v) Selling basis (15a-b). For 15a, enter ``1'' if cattle were 
purchased on a live basis or ``2'' if cattle were purchased on a 
dressed basis. For 15b, enter ``1'' if cattle are shipped on an FOB 
feedlot basis or ``2'' if cattle are delivered at the plant.
    (vi) Head count (16). Enter the quantity of cattle in the lot in 
number of head.
    (vii) Estimated average weight (17). Enter the estimated average 
weight of the lot in pounds.
    (viii) Average price (18). Enter the price established on that 
day for the lot in dollars per hundredweight.
    (I) For negotiated purchases, enter the final net price that was 
paid.
    (II) For formula purchases, enter the base price when 
established (with estimated grading info if not yet known). Then 
enter the final net price with all actual grading information when 
it is known.
    (III) For forward contract purchases, enter the base price when 
established (estimated grading info if not yet known. Then enter the 
final net price paid on the contract with actual grading 
information.
    (V) For negotiated grid purchases, enter the base price when 
established (estimated grading info if not yet known). Then enter 
the final net price with all actual grading information.
    (ix) Classification code (19). Enter the code which best 
describes the quality of the majority of the cattle in the lot.
    (x) Origin (20). Enter the 2-letter postal abbreviation for the 
State in which the cattle were fed to slaughter weight. For imported 
cattle enter ``CN'' for Canada.
    (xi) Premiums and discounts paid (21a-f). Enter the total net 
value of the adjustment for

[[Page 28643]]

the lot (in dollars per hundredweight) for any premiums associated 
with weight, quality, yield or other expressed as a positive value 
and for any discounts associated with weight, quality, yield or 
other expressed as a negative value in parenthesis.
    (7) LS-126--Boxed Beef Daily Report. For lots comprising 
multiple items, provide information for each item in a separate 
record identified with the same lot identification or purchase order 
number.
    (i) Lot identification or purchase order number (11). Enter code 
used to identify the lot to the packer.
    (ii) Destination (12). Enter ``1'', domestic, for product 
shipped within the 50 States; or ``2'', exported, for product 
shipped overseas; or ``3'', exported, for product shipped NAFTA 
(Canada or Mexico).
    (iii) Purchase type code (13). Enter the code corresponding to 
the sale type of the lot of boxed beef.
    (iv) Delivery period code (14). Enter the code corresponding to 
the delivery time period of the lot of boxed beef.
    (v) Refrigeration (15). Enter ``1'' if the product is sold in a 
fresh condition with an age of 14 days or less from the date of 
manufacture, ``2'' if the product is sold in a frozen condition, or 
``3'' if the product is sold in a fresh condition with an age of 
more than 14 days from the date of manufacture.
    (vi) Class code (16). Enter the code that best describes the 
class of cattle from which the boxed beef was produced.
    (vii) Classification code (17). Enter the code corresponding to 
the grade of the boxed beef.
    (viii) Beef cut (18a-b). Enter the numerical code corresponding 
to the Institutional Meat Purchase Specifications (IMPS) (3 to 4 
characters) (18a) or the internal corporate descriptor used to 
identify the product (18b). Descriptors must be entered consistently 
for all submissions.
    (ix) Trim spec code (19). Enter the code corresponding to the 
trim level of the boxed beef.
    (x) Weight (20). Enter the code corresponding to the relative 
weight of the product. Where weight is a factor, enter ``1'' to 
signify the lighter weight range, ``2'' to signify the middle weight 
range, or ``3'' to signify the heavier weight range. Where weight is 
not a factor, enter ``4'' to signify all weights or mixed.
    (xi) Total product weight (21). Enter the total weight of the 
boxed beef cut in the lot in pounds.
    (xii) Price (22). Enter the price received for each boxed beef 
cut in the lot in dollars per one hundred pounds, FOB Plant basis.
    (xiii) USDA Certified schedule code (23). Enter the code for the 
USDA Certified Program schedule, if applicable (e.g. G1, G2, etc.); 
otherwise leave blank.
    (xiv) Branded product code (24a-b). Enter the quality grade code 
(24a) and the yield grade code (24b) that best describes the brand. 
Leave blank if not applicable.
    (b) Swine Mandatory Reporting Forms. (see Appendix E for 
samples)
    (1) LS-118--Swine Prior Day Report.
    (i) Slaughtered swine lot identification (11). Enter code used 
to identify the lot of slaughtered swine to the packer.
    (ii) Slaughtered swine class code (12). Enter the code that best 
describes the type of slaughtered swine in the lot.
    (iii) Slaughtered swine purchase type code (13). Enter the code 
that describes the type of purchase for the slaughtered swine in the 
lot.
    (iv) Slaughtered swine head count (14). Enter the quantity of 
slaughtered swine in the lot in number of head.
    (v) Slaughtered swine base price (15). Enter the base price 
established on that day for the lot of slaughtered swine in dollars 
per one hundred pounds.
    (vi) Slaughtered swine average net price (16). Enter the average 
net price established on that day for the lot of slaughtered swine 
in dollars per one hundred pounds.
    (vii) Slaughtered swine average live weight (17). Enter the 
average live weight of the lot of swine in pounds if slaughtered 
swine were purchased on a live basis, otherwise leave blank.
    (viii) Slaughtered swine average carcass weight (18). Enter the 
average carcass weight of the lot of slaughtered swine in pounds.
    (ix) Slaughtered swine average sort loss (19). Enter the average 
sort loss for the lot of slaughtered swine in dollars per one 
hundred pounds.
    (x) Slaughtered swine average backfat (20). Enter the average 
backfat measurement for the lot of slaughtered swine in inches 
rounded to the nearest tenth of an inch.
    (xi) Slaughtered swine average loin depth (21). Enter the 
average loin depth measurement for the lot of slaughtered swine in 
inches rounded to the nearest tenth of an inch.
    (xii) Slaughtered swine average lean percentage (22). Enter the 
average lean percentage for the lot of slaughtered swine.
    (xiii) Purchased swine lot identification (23). Enter code used 
to identify the lot of purchased swine to the packer.
    (xiv) Purchased swine ownership code (24). Enter code which best 
describes the source of the purchased swine whether packer-owned, 
purchased from another packer, or all other swine.
    (xv) Purchased swine class code (25). Enter the code that best 
describes the type of purchased swine.
    (xvi) Purchased swine purchase type code (26). Enter the code 
that describes the type of purchase for the purchased swine.
    (xvii) Purchased swine head count (27). Enter the quantity of 
purchased swine in the lot.
    (xviii) Purchased swine average live weight (28). Enter the 
average live weight of the lot of swine in pounds if swine were 
purchased on a live basis, otherwise leave blank.
    (xix) Purchased swine base price (29). Enter the base price 
established on that day for the lot of purchased swine in dollars 
per one hundred pounds.
    (xx) Purchased swine origin (30). Enter the 2-letter postal 
abbreviation for the State in which the swine were fed to slaughter 
weight.
    (xxi) Scheduled swine (31-44). Enter the number of head of 
purchase commitment swine that were scheduled for delivery for each 
of the next 14 days. Enter the total quantity currently scheduled 
for each day at the time of reporting for each submission.
    (2) LS-119--Swine Daily Report.
    (i) Purchased swine lot identification (11). Enter code used to 
identify the lot of purchased swine to the packer.
    (ii) Purchased swine purchase type code (12). Enter the code 
that describes the type of purchase for the swine in the lot.
    (iii) Purchased swine average live weight (13). Enter the 
average live weight of the lot of swine in pounds if swine were 
purchased on a live basis, otherwise leave blank.
    (iv) Purchased swine class code (14). Enter the code that best 
describes the type of swine in the lot.
    (v) Purchased swine head count (15). Enter the quantity of swine 
in the lot in number of head.
    (vi) Purchased swine base price (16). Enter the base price 
established on that day for the lot of swine in dollars per one 
hundred pounds.
    (vii) Purchased swine origin (17). Enter the 2-letter postal 
abbreviation for the State in which the swine were fed to slaughter 
weight.
    (viii) Packer-sold swine purchases (18-25). Enter the best 
estimate of the total number of packer-sold swine expected to be 
purchased throughout the reporting day for each purchase type and 
the total number of packer-sold swine purchased up to that time of 
the reporting day for each purchase type.
    (ix) All other swine purchases (26-33). Enter the best estimate 
of the total number of all other swine expected to be purchased 
throughout the reporting day for each purchase type and the total 
number of all other swine purchased up to that time of the reporting 
day for each purchase type.
    (3) LS-120--Swine Noncarcass Merit Premium Weekly Report.
    Enter the standard noncarcass merit premiums used during the 
prior slaughter week (11-15) in dollars per hundredweight. If a 
range of standard noncarcass merit premiums was used, enter the low 
side of the range (a) and the high side of the range (b). If only 
one value was used, enter the same number in (a) and (b). If no 
value for the specified merit was used, leave blank. For ``other'' 
categories (16-20), provide a brief description of the basis for the 
premium along with the value of the premium.
    (c) Lamb Mandatory Reporting Forms. (See Appendix E for samples)
    (1) LS-121--Live Lamb Daily Report (current established prices).
    (i) Lot identification (11). Enter code used to identify the lot 
to the packer.
    (ii) Source (12). Enter ``1'', domestic, if lambs were purchased 
inside of the 50 States, or ``2'', imported, if lambs were purchased 
outside of the 50 States.
    (iii) Purchase type code (13). Enter the code that describes the 
type of purchase.
    (iv) Class code (14). Enter the code that best describes the 
type of lambs.
    (v) Selling basis (15a-b). For 15a, enter ``1'' if lambs were 
purchased on a live basis or ``2'' if lambs were purchased on a 
dressed basis. For 15b, enter ``1'' if lambs are shipped on an FOB 
feedlot basis or ``2'' if lambs are delivered at the plant.
    (vi) Head count (16). Enter the quantity of lambs in the lot in 
number of head.

[[Page 28644]]

    (vii) Weight range (17a & 17b). Enter the lowest (17a) and 
highest (17b) weights for lambs in the lot in pounds.
    (viii) Estimated average weight (18). Enter the estimated 
average weight of the lot in pounds.
    (ix) Average price (19). Enter the price established on that day 
for the lot in dollars per hundredweight.
    (I) For negotiated purchases, enter the final (net) price paid.
    (II) For formula purchases, enter the net price.
    (III) For forward contract purchases, enter the final (net) 
price paid.
    (x) Percent Choice or better (20). Enter the percentage of the 
number of lambs in the lot of a quality grade of Choice or better.
    (xi) Classification code (21). Enter the code which best 
describes the quality of the majority of the lambs in the lot.
    (xii) Dressing percentage (22). Enter an average dressing 
percentage for the lambs in the lot. For negotiated purchases, enter 
an estimate. For all other purchase types, enter the actual average 
dressing percentage.
    (xiii) Origin (23). Enter the 2-letter postal abbreviation for 
the State in which the lambs were fed to slaughter weight. Enter 
``CN'' if lambs originate from Canada.
    (xiv) Pelt Code (24). Enter the code that best describes the 
type of pelt for the majority of lambs in the lot.
    (xv) Premiums and discounts paid (25a-f). Enter the total net 
value of the adjustment for the lot (in dollars per hundredweight) 
for any premiums associated with weight, quality, or yield expressed 
as a positive value and for any discounts associated with weight, 
quality, or yield expressed as a negative value in parenthesis.
    (2) LS-123--Live Lamb Weekly Report.
    (i) Packer-Owned lot identification (11). Enter code used to 
identify the lot of packer-owned lambs to the packer.
    (ii) Packer-Owned source (12). Enter ``1'', domestic, if packer-
owned lambs are from within the 50 States or ``2'', imported, if 
lambs are from outside of the 50 States.
    (iii) Packer-Owned head count (13). Enter the quantity of 
packer-owned lambs in the lot in number of head.
    (iv) Packer-Owned actual carcass weight range (14a & 14b). Enter 
the lowest (14a) and highest (14b) actual carcass weights for lambs 
in the lot in pounds.
    (v) Packer-Owned actual average carcass weight (15). Enter the 
actual average carcass weight of the lot of packer-owned lambs in 
pounds.
    (vi) Packer-Owned average dressing percentage (16). Enter the 
average dressing percentage of the lot of packer-owned lambs.
    (vii) Percentage yield grade 3 or better (17). Enter the 
percentage of packer-owned lambs in the lot of a yield grade of 3 or 
better.
    (viii) Quality grade percentage (18-). Enter the percentage of 
packer-owned lambs in the lot of a quality grade of Choice or 
better.
    (ix) Prior week slaughtered lambs head counts (19-24). Enter the 
total number of head of lambs slaughtered for the prior week that 
were purchased through forward contracts, the total number of head 
for lambs purchased through formula arrangements, and the total 
number of head of lambs purchased through negotiated cash, 
categorized by domestic or imported sources. Enter this information 
once per each week's submission.
    (x) Forward contract purchases lot identification (25). Enter 
code used to identify forward contracted lambs to the packer.
    (xi) Forward contract purchases head count (26). Enter quantity 
of forward contracted lambs in the lot in number of head.
    (xii) Forward contract purchases basis level (27). Enter the 
agreed upon adjustment to a future price to establish the final 
price of the forward contracted lambs in dollars per one hundred 
pounds.
    (xiii) Forward contract purchases delivery month (28). Enter the 
delivery month of the lambs purchased through forward contracts as a 
3-letter abbreviation.
    (3) LS-124--Live Lamb Weekly Report (formula purchases).
    (i) Lot identification (11). Enter code used to identify the lot 
to the packer.
    (ii) Source (12). Enter ``1'', domestic, if lambs are purchased 
within the 50 States or ``2'', imported, if lambs are purchased 
outside of the 50 States.
    (iii) Head count (13). Enter the quantity of lambs in the lot in 
number of head.
    (iv) Total pounds (14). Enter the total quantity of lambs in the 
lot in pounds.
    (v) Weighted average carcass price (15). Enter the average 
weighted average carcass price for the lambs in the lot in dollars 
per hundredweight.
    (vi) Range of prices paid (16a-b). Enter the lowest (16a) and 
the highest (16b) prices paid for the lambs in the lot in dollars 
per hundredweight.
    (vii) Range of premiums and discounts paid (17a-b). Enter the 
lowest (17a) and the highest (17b) premium and discount paid for the 
lot of lambs in dollars per hundredweight. Enter negative values in 
parenthesis.
    (viii) Weighted average of premiums and discounts paid (18). 
Enter the weighted average of the premiums and discounts paid for 
the lot of lambs in dollars per hundredweight. Enter negative values 
in parenthesis.
    (4) LS-125--Lamb Premiums and Discounts Weekly Report.
    Enter the premiums and discounts (in dollars per hundredweight) 
expected to be in effect for the current slaughter week for each 
applicable category of premium and discount (11-32). For ``other'' 
categories (33-37), provide a brief description of the basis for the 
premium/ discount along with the value of the premium/discount. 
Enter negative values in parenthesis.
    (5) LS-128--Boxed Lamb Daily Report. For lots comprising 
multiple items, provide information for each item in a separate 
record identified with the same lot identification or purchase order 
number.
    (i) Lot identification or purchase order number (11). Enter code 
used to identify the lot to the packer.
    (ii) Destination/Source (12). Enter ``1'', domestic, for product 
originating within the 50 States or ``2'', imported, for product 
originating from outside of the 50 States.
    (iii) Sale type code (13). Enter the code corresponding to the 
sale type of the lot of boxed lamb.
    (iv) Delivery period code (14). Enter the code corresponding to 
the delivery time period of the lot of boxed lamb.
    (v) Refrigeration (15). Enter ``1'' if the product is sold in a 
fresh condition or ``2'' if the product is sold in a frozen 
condition.
    (vi) Classification code (16). Enter the code corresponding to 
the grade of the boxed lamb, if applicable.
    (vii) Lamb cut (17a-b). Enter the numerical code corresponding 
to the Institutional Meat Purchase Specifications (IMPS) (3 to 4 
characters) (17a) or the internal corporate descriptor used to 
identify the product (17b). Descriptors must be entered consistently 
for all submissions.
    (viii) Weight (18). Enter the code corresponding to the relative 
weight of the product. Where weight is a factor, enter ``1'' to 
signify the lighter weight range, ``2'' to signify the middle weight 
range, or ``3'' to signify the heavier weight range. Where weight is 
not a factor, enter ``4'' to signify all weights or mixed.
    (ix) Total product weight (19). Enter the total weight of the 
boxed lamb cut in the lot in pounds.
    (x) Price (20). Enter the price received for each boxed lamb cut 
in the lot in dollars per one hundred pounds, FOB Plant basis.
    (xi) USDA Certified schedule code (21). Enter the code for the 
USDA Certified Program schedule, if applicable (e.g., CL, etc.); 
otherwise leave blank.
    (xii) Branded product code (22a-b). Enter the quality grade code 
(22a) and the yield grade code (22b) that best describes the brand. 
Leave blank if not applicable.
    (6) LS-129--Lamb Carcass Report. For lots comprised of distinct 
carcass weight range categories with different prices, provide 
information for each weight range in a separate record identified 
with the same lot identification or purchase order number.
    (i) Lot identification or purchase order number (11). Enter code 
used to identify the lot to the packer.
    (ii) Transaction type code (12). Enter the code corresponding to 
the transaction type of the lot of carcass lamb.
    (iii) FOB Plant Price (13). Enter the price received for the 
lamb carcasses in dollars per one hundred pounds, FOB Plant basis.
    (iv) Number of carcasses (14). Enter the total number of lamb 
carcasses in the lot.
    (v) Classification code (15). Enter the corresponding USDA 
quality grade code.
    (vi) Yield grade code (16). Enter the corresponding USDA yield 
grade code.
    (vii) Estimated carcass weight range (17a-b). Enter the lowest 
(17a) and highest (17b) weights (in pounds) that best describes the 
majority of the lamb carcasses in the lot.
    (viii) Delivery period code (18). Enter the code corresponding 
to the time period the lamb carcasses will deliver.
    (ix) Transaction basis (19). Enter ``1'' for purchased carcasses 
or ``2'' for sold carcasses.

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Appendix E--Mandatory Reporting Forms

    The cattle, swine, and lamb mandatory reporting forms follow the 
docket.
BILLING CODE 3410-02-P

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[FR Doc. E8-10185 Filed 5-15-08; 8:45 am]
BILLING CODE 3410-02-C