[Federal Register Volume 77, Number 210 (Tuesday, October 30, 2012)]
[Notices]
[Pages 65662-65664]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-26723]


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DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration


Request for Extension and Revision of a Currently Approved 
Information Collection

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

ACTION: Notice and request for comments.

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[[Page 65663]]

SUMMARY: In accordance with the Paperwork Reduction Act of 1995, this 
notice announces Grain Inspection, Packers and Stockyards 
Administration's intention to request that the Office of Management and 
Budget approve a 3-year extension and revision of a currently approved 
information collection in support of the reporting and recordkeeping 
requirements for the Swine Contract Library program.

DATES: Written comments must be submitted on or before December 31, 
2012.

ADDRESSES: We invite you to submit comments on this notice. You may 
submit comments by any of the following methods:
     Internet: Go to http://www.regulations.gov. Follow the 
online instructions for submitting comments.
     Mail, hand deliver, or courier to Dexter Thomas, GIPSA, 
USDA, 1400 Independence Avenue SW., Room 2530-S, Washington, DC 20250-
3604.
     Fax to (202) 690-2173.
    Instructions: All comments should refer to the date and page number 
of this issue of the Federal Register. The information collection 
package, public comments, and other documents relating to this action 
will be available for public inspection in the above office during 
regular business hours. Please call GIPSA's Management and Budget 
Services at (202) 720-7486 to arrange a viewing of these documents.

FOR FURTHER INFORMATION CONTACT: Catherine M. Grasso, Program Analyst, 
Policy and Litigation Division at (202) 720-7363 or 
[email protected].

SUPPLEMENTARY INFORMATION: The Grain Inspection, Packers and Stockyards 
Administration (GIPSA) is responsible for maintaining the Swine 
Contract Library, which is authorized by the Livestock Mandatory 
Reporting (LMR) Act of 1999, and requires that certain packers submit 
hog procurement contracts and delivery estimates to GIPSA. The Swine 
Contract Library was reauthorized by Congress on October 5, 2006 
through 2010. On September 28, 2010, the Mandatory Price Reporting Act 
of 2010 reauthorized LMR for an additional 5 years.
    Title: Swine Contract Library.
    OMB Number: 0580-0021.
    Expiration Date of Approval: March 31, 2013.
    Type of Request: Extension and revision of a currently approved 
information collection.
    Abstract: The information collection and recordkeeping requirements 
for the Swine Contract Library are essential to maintaining the 
mandatory library of swine marketing contracts and reporting the number 
of swine contracted for delivery. There are currently 30 packers that 
are required to file contracts and report certain information on 
deliveries for a total of 43 plants that they either operate or at 
which they have swine slaughtered. We expect the overall number of 
plants and packers to remain relatively constant, but the specific 
packers required to report will vary with consolidation and 
construction in the industry.
    Packers are required to report information for individual plants 
even in instances when a given packer owned or used more than one 
plant. The information collection burden estimate provided below is 
based on time and cost requirements at the plant level. Consequently, 
packers that report for more than one plant would bear a cost that 
would be a multiple of the per-plant estimates.
    We understand from discussions with packers complying with current 
reporting requirements that reporting packers have adapted pre-existing 
data and information systems to provide the required information.
    There are two types of information collections required for the 
Swine Contract Library.
    The first information collection requirement consists of submitting 
example contracts. Initially, a packer submits example contracts 
currently in effect or available for each swine processing plant that 
is subject to the regulations. Subsequently, a packer submits example 
contracts for any offered, new, or amended contracts that vary from 
previously submitted contracts in regard to the base price 
determination, the application of a ledger or accrual account, carcass 
merit premium and discount schedules (including the determination of 
the lean percent or other merits of the carcass that is used to 
determine the amount of the premiums and discounts and how those 
premiums and discounts are applied), or the use and amount of 
noncarcass merit premiums or discounts. The initial submission of 
example contracts requires more time than subsequent filings of new 
contracts or changes, as packers initially need to review all their 
contracts to identify the unique types that need to be represented by 
an example submitted to GIPSA.
    Thereafter, subsequent filings require a minimal amount of effort 
on the part of packers, as only example contracts that represent a new 
or different type need to be filed with GIPSA. P&SP-342 must accompany 
each contract submission to identify the contract, the plan for which 
the contract is valid, and the contact person.
    The required submission of contracts includes both written and 
verbal contracts. Packers have added documentation of verbal contracts 
to their existing recordkeeping systems in order to comply with this 
requirement. The optional form that is available, but not required, for 
reporting verbal contracts is used by 10 packers; 2 packers that rely 
heavily on verbal contracts use this optional form exclusively to 
document their verbal contracts. Of 1,022 contracts files on file, the 
optional verbal contract sheet was used to document 245 verbal 
contracts.
    The second information collection requirement is a monthly filing 
of summary information on form P&SP 341, Monthly Report: Estimates of 
Swine To Be Delivered Under Contract. The form for the monthly filing 
is simple and brief. For new packers required to start reporting, this 
data should be available in the packers' existing record system. 
Electronic submission is encouraged and we provide the necessary 
information on procedures to submit data to GIPSA electronically. In 
2011, 50 percent of monthly reports were submitted through the Web 
site, with the remaining 50 percent submitted by facsimile or mail.
    The estimates of time requirements used for the burden estimates 
below were developed in consultation with GIPSA personnel knowledgeable 
of the industry's recordkeeping practices. The estimates also reflect 
our experience in assembling large amount of data during the course of 
numerous investigations involving use of data collected from the 
industry. Estimates of time requirements and hourly wage costs for 
developing electronic recordkeeping and reporting systems are based on 
our experience in developing similar systems in consultation with our 
automated information systems staff.

(1) Contract Submission Cover Sheet (Form P&SP-342)

    Estimate of Burden: Reporting burden for submission of contracts is 
estimated to include 4 hours per plant for an initial review of all 
contracts to categorize them into types and identify unique examples, 
plus an additional 0.25 hours per unique contract identified during the 
initial review to submit an example of that contract. After the initial 
filing, the reporting burden is estimated to include 0.25 hours per 
plant to submit an example of each new or amended contract.

[[Page 65664]]

    Respondents: Packers required to report information for the Swine 
Contract Library.
    Estimated Number of Respondents: 30 packers (total of 43 plants).
    Estimated Number of Responses per Plant: Number of responses per 
plant varies. Some plants would have no contracts, while other could 
have up to 80 contracts. We receive an average of six example contracts 
per plant per year for offered contracts and for amended existing or 
available contracts.
    Estimated Total Annual Burden on Respondents: Initial filing: 5.5 
total hours for the initial filing of examples of existing contracts by 
all plants newly subject to the regulations combined. Based on changes 
in the industry, we anticipate one new plant to become subject to the 
regulations each year. Calculated as follows: 4 hours per plant for 
initial review x 1 new plant = 4 hours for initial review; 0.25 hours 
per contract x 6 example contracts per plant x 1 new plant = 1.5 hours; 
4 hours + 1.5 hours = 5.5 total hours.
    Thereafter, 64.5 total hours annually for all subsequent filing of 
examples for offered contracts and for amended existing or available 
contracts by all plants combines, based on an average of 6 offered or 
amended existing or available contracts annually. Calculated as 
follows: 0.25 hours per contract x 6 example contracts per plant x 43 
plants = 64.5 hours.
    Total Cost: Initial filing $138 for all plants combined. Calculated 
as follows: 5.5 hours x $25 per hour = $138.
    Thereafter, $1,613 annually for all plants combined for submission 
of subsequent filings. Calculated as follows: 64.5 hours x $25 per hour 
= $1,613.

(2) Monthly Report: Estimate of Swine To Be Delivered Under Contract 
(Form P&SP-341)

    Estimate of Burden: The reporting burden for compiling data, 
completing and submitting the form is estimated to average 2 hours per 
manually prepared and submitted (by mail or facsimile) report and 1 
hour per electronically prepared and submitted report. There would be 
an estimated additional one-time set up burden of 1 hour at a cost of 
$60 per plant for a packer that chose to create a spreadsheet or 
database for recordkeeping and preparation of monthly estimates. There 
would be an estimated additional 2 hour burden at a cost of $60 per 
hour or $120 per plant for a packer to develop procedures to extract 
and format the required information and to develop an interface between 
the packer's electronic recordkeeping system and GIPSA's system. The 
hourly rate for the development of electronic tools is assumed to be 
high due to the need to use personnel with specialized computer skills.
    Respondents: Packers required to report information for the Swine 
Contract Library.
    Estimated Number of Respondents: 30 packers (total of 43 plants).
    Estimated Number of Responses per Plant: 12 (1 per month for 12 
months).
    Estimated Total Annual Burden on Respondents: 1,032 hours for all 
plants combined provided all plants used manual compiling, preparation, 
and submission. Calculated as follows: 2 hours per response x 43 plants 
x 12 responses per plant = 1,032.
    516 hours for all plants combined provided all plants use 
electronic compiling, preparation, and submission. Calculated as 
follows: 1 hour per response x 43 plants x 12 responses per plant = 516 
hours.
    Total Cost: $25,800 annually for all plants combined provided all 
use manual submission. Calculated as follows: 1,032 x $25 per hour = 
$25,800.
    $12,900 annually for all plants combined provided all were to 
completely utilize electronic preparation and submission. Calculated as 
follows: 516 hours x $25 per hour = $12,900.
    Additional $180 one-time set-up cost provided all plants newly 
subject to the Regulations were to completely utilize electronic 
systems for preparation and submission.
    Calculated as follows: 1 hour build spreadsheet/database + 2 hours 
develop electronic interface = 3 hours. 3 hours total development x $60 
per hour x 1 new plant = $180.
    The Paperwork Reduction Act also requires GIPSA to measure the 
recordkeeping burden. Under the Packers and Stockyards Act and its 
existing regulations, each packer is required to maintain and make 
available upon request any records necessary to verify information on 
all transactions between the packer and producers from whom the packer 
obtains swine for slaughter. Records that packers are required to 
maintain under existing regulations would meet the requirements for 
verifying the accuracy of information required to be reported for the 
Swine Contract Library. These records include original contracts, 
agreements, receipts, schedules, and other records associated with any 
transaction related to the purchase, pricing, and delivery of swine for 
slaughter under the terms of marketing contracts. Additional annual 
costs of maintaining records would be nominal since packers are 
required to store and maintain such records as a matter of normal 
business practice and in conformity with existing regulations.
    As required by the Paperwork Reduction Act (44 U.S.C. 
3506(c)(2)(A)) and its implementing regulations (5 CFR 1320.8(d)(1)), 
we specifically request comment to:
    (a) Evaluate the proposed collection of information is necessary 
for the proper performance of the functions of the agency, including 
whether the information will have practical utility;
    (b) Evaluate the accuracy of the agency's estimate of the burden of 
the proposed collection of information, including the validity of the 
methodology and assumptions used;
    (c) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (d) Minimize the burden on the collection of information on those 
who are to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology.
    All responses to this notice will be summarized and included in the 
request for the Office of Management and Budget approval. All comments 
will also become a matter of public record.

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

Larry Mitchell,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 2012-26723 Filed 10-29-12; 8:45 am]
BILLING CODE 3410-EN-P