“REAUTHORIZING THE LIVESTOCK MANDATORY REPORTING ACT OF 1999” published by the Congressional Record on Sept. 14, 2005

“REAUTHORIZING THE LIVESTOCK MANDATORY REPORTING ACT OF 1999” published by the Congressional Record on Sept. 14, 2005

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Volume 151, No. 115 covering the 1st Session of the 109th Congress (2005 - 2006) was published by the Congressional Record.

The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.

“REAUTHORIZING THE LIVESTOCK MANDATORY REPORTING ACT OF 1999” mentioning the U.S. Dept of Agriculture was published in the House of Representatives section on pages H7875-H7877 on Sept. 14, 2005.

The publication is reproduced in full below:

REAUTHORIZING THE LIVESTOCK MANDATORY REPORTING ACT OF 1999

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

The Clerk read as follows:

H.R. 3408

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

SECTION 1. EXTENSION.

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

``SEC. 260. TERMINATION OF AUTHORITY.

``The authority provided by this subtitle terminates on September 30, 2010.''.

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

SEC. 2. DEFINITIONS.

(a) Base Market Hogs.--Section 231(4) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1635i(4)) is amended to read as follows:

``(4) Base market hog.--The term `base market hog' means a barrow or gilt for which no discounts are subtracted from and no premiums are added to the base price.''.

(b) Boars.--Section 231(5) of such Act (7 U.S.C. 1635i(5)) is amended to read as follows:

``(5) Boar.--The term `boar' means a sexually-intact male swine.''.

(c) Packer of Sows and Boars.--Section 231(12) of such Act

(7 U.S.C. 1635i(12)) is amended by--

(1) striking subparagraph (B) and inserting the following new subparagraph:

``(B) for any calendar year, the term includes only--

``(i) a swine processing plant that slaughtered an average of at least 100,000 swine per year during the immediately preceding five calendar years; and

``(ii) a person that slaughtered an average of at least 200,000 sows, boars, or any combination thereof, per year during the immediately preceding five calendar years; and''; and

(2) in subparagraph (C)--

(A) by inserting ``or person'' after ``swine processing plant'';

(B) by inserting ``or person'' after ``plant capacity of the processing plant''; and

(C) by inserting ``or person'' after ``determining whether the processing plant''.

SEC. 3. REPORTING; BARROWS AND GILTS.

Section 232(c) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1635j(c)) is amended to read as follows:

``(c) Daily Reporting; Barrows and Gilts.--

``(1) Prior day report.--

``(A) In general.--The corporate officers or officially designated representatives of each packer processing plant that processes barrows or gilts shall report to the Secretary, for each business day of the packer, such information as the Secretary determines necessary and appropriate to--

``(i) comply with the publication requirements of this section; and

``(ii) provide for the timely access to the information by producers, packers, and other market participants.

``(B) Reporting deadline and plants required to report.--A packer required to report under subparagraph (A) shall--

``(i) not later than 7:00 a.m. Central Time on each reporting day, report information regarding all barrows and gilts purchased or priced, and

``(ii) not later than 9:00 a.m. Central Time on each reporting day, report information regarding all barrows and gilts slaughtered,during the prior business day of the packer.

``(C) Information required.--The information from the prior business day of a packer required under this paragraph shall include--

``(i) all purchase data, including--

``(I) the total number of--

``(aa) barrows and gilts purchased; and

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

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

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

``(I) information concerning the net price, which shall be equal to the total amount paid by a packer to a producer

(including all premiums, less all discounts) per hundred pounds of carcass weight of barrows and gilts delivered at the plant--

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

``(bb) excluding any sum earlier paid to a producer that must later be repaid to the packer;

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

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

``(bb) the total carcass weight (in hundred pound increments) of the barrows and gilts;

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

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

``(V) the average carcass weight, which shall be equal to the quotient obtained by dividing--

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

``(bb) the number of the barrows and gilts described in item (aa),

adjusted for special slaughter situations (such as skinning or foot removal), as the Secretary determines necessary to render comparable carcass weights;

``(VI) the average sort loss, which shall be equal to the average discount (in dollars per hundred pounds carcass weight) for barrows and gilts slaughtered during the applicable reporting period, resulting from the fact that the barrows and gilts did not fall within the individual packer's established carcass weight or lot variation range;

``(VII) the average backfat, which shall be equal to the average of the backfat thickness (in inches) measured between the third and fourth from the last ribs, 7 centimeters from the carcass split (or adjusted from the individual packer's measurement to that reference point using an adjustment made by the Secretary) of the barrows and gilts slaughtered during the applicable reporting period;

``(VIII) the average lean percentage, which shall be equal to the average percentage of the carcass weight comprised of lean meat for the barrows and gilts slaughtered during the applicable reporting period, except that when a packer is required to report the average lean percentage under this subclause, the packer shall make available to the Secretary the underlying data, applicable methodology and formulae, and supporting materials used to determine the average lean percentage, which the Secretary may convert to the carcass measurements or lean percentage of the barrows and gilts of the individual packer to correlate to a common percent lean measurement; and

``(IX) the total slaughter quantity, which shall be equal to the total number of barrows and gilts slaughtered during the applicable reporting period, including all types of purchases and barrows and gilts that qualify as packer-owned swine; and

``(iii) packer purchase commitments, which shall be equal to the number of barrows and gilts scheduled for delivery to a packer for slaughter for each of the next 14 calendar days.

``(D) Publication.--

``(i) In general.--The Secretary shall publish the information obtained under this paragraph in a prior day report--

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

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

on the reporting day on which the information is received from the packer.

``(ii) Price distributions.--The information published by the Secretary under clause (i) shall include a distribution of net prices in the range between and including the lowest net price and the highest net price reported. The publication shall include a delineation of the number of barrows and gilts at each reported price level or, at the option of the Secretary, the number of barrows and gilts within each of a series of reasonable price bands within the range of prices.

``(2) Morning report.--

``(A) In general.--The corporate officers or officially designated representatives of each packer processing plant that processes barrows or gilts shall report to the Secretary not later than 10:00 a.m. Central Time each reporting day--

``(i) the packer's best estimate of the total number of barrows and gilts, and barrows and gilts that qualify as packer-owned swine, expected to be purchased throughout the reporting day through each type of purchase;

``(ii) the total number of barrows and gilts, and barrows and gilts that qualify as packer-owned swine, purchased up to that time of the reporting day through each type of purchase;

``(iii) the base price paid for all base market hogs purchased up to that time of the reporting day through negotiated purchases; and

``(iv) the base price paid for all base market hogs purchased through each type of purchase other than negotiated purchase up to that time of the reporting day, unless such information is unavailable due to pricing that is determined on a delayed basis.

``(B) Publication.--The Secretary shall publish the information obtained under this paragraph in the morning report as soon as practicable, but not later than 11:00 a.m. Central Time, on each reporting day.

``(3) Afternoon report.--

``(A) In general.--The corporate officers or officially designated representatives of each packer processing plant that processes barrows or gilts shall report to the Secretary not later than 2:00 p.m. Central Time each reporting day--

``(i) the packer's best estimate of the total number of barrows and gilts, and barrows and gilts that qualify as packer-owned swine, expected to be purchased throughout the reporting day through each type of purchase;

``(ii) the total number of barrows and gilts, and barrows and gilts that qualify as packer-owned swine, purchased up to that time of the reporting day through each type of purchase;

``(iii) the base price paid for all base market hogs purchased up to that time of the reporting day through negotiated purchases; and

``(iv) the base price paid for all base market hogs purchased up to that time of the reporting day through each type of purchase other than negotiated purchase, unless such information is unavailable due to pricing that is determined on a delayed basis.

``(B) Publication.--The Secretary shall publish the information obtained under this paragraph in the afternoon report as soon as practicable, but not later than 3:00 p.m. Central Time, on each reporting day.''.

SEC. 4. REPORTING; SOWS AND BOARS.

Section 232 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1635j) is amended by--

(1) redesignating subsection (d) as subsection (e); and

(2) inserting after subsection (c) the following new subsection:

``(d) Daily Reporting; Sows and Boars.--

``(1) Prior day report.--The corporate officers or officially designated representatives of each packer of sows and boars shall report to the Secretary, for each business day of the packer, such information reported by hog class as the Secretary determines necessary and appropriate to--

``(A) comply with the publication requirements of this section; and

``(B) provide for the timely access to the information by producers, packers, and other market participants.

``(2) Reporting.--Not later than 9:30 a.m. Central Time, or such other time as the Secretary considers appropriate, on each reporting day, a packer required to report under paragraph (1) shall report information regarding all sows and boars purchased or priced during the prior business day of the packer.

``(3) Information required.--The information from the prior business day of a packer required under this subsection shall include all purchase data, including--

``(A) the total number of sows purchased and the total number of boars purchased, each divided into at least three reasonable and meaningful weight classes specified by the Secretary;

``(B) the number of sows that qualify as packer-owned swine;

``(C) the number of boars that qualify as packer-owned swine;

``(D) the average price paid for all sows;

``(E) the average price paid for all boars;

``(F) the average price paid for sows in each weight class specified by the Secretary under subparagraph (A);

``(G) the average price paid for boars in each weight class specified by the Secretary under subparagraph (A);

``(H) the number of sows and the number of boars for which prices are determined, by each type of purchase;

``(I) the average prices for sows and the average prices for boars for which prices are determined, by each type of purchase; and

``(J) such other information as the Secretary considers appropriate to carry out this subsection.

``(4) Price calculations without packer-owned swine.--A packer shall omit the prices of sows and boars that qualify as packer-owned swine from all average price calculations, price range calculations, and reports required by this subsection.

``(5) Reporting exception: public auction purchases.--The information required to be reported under this subsection shall not include purchases of sows or boars made by agents of the reporting packer at a public auction at which the title of the sows and boars is transferred directly from the producer to such packer.

``(6) Publication.--The Secretary shall publish the information obtained under this paragraph in a prior day report not later than 11:00 a.m. Central Time on the reporting day on which the information is received from the packer.

``(7) Electronic submission of information.--The Secretary of Agriculture shall provide for the electronic submission of any information required to be reported under this subsection through an Internet website or equivalent electronic means maintained by the Department of Agriculture.''.

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Virginia (Mr. Goodlatte) and the gentleman from Minnesota (Mr. Peterson) each will control 20 minutes.

=========================== NOTE ===========================

September 14, 2005--On Page H7876 the following appeared: The gentleman from Virginia (Mr. GOODLATTE) and the gentleman from Virginia (Mr. Peterson) each will control 20 minutes.

The online version should be corrected to read: The gentleman from Virginia (Mr. GOODLATTE) and the gentleman form Minnesota

(Mr. Peterson) each will control 20 minutes.

========================= END NOTE =========================

The Chair recognizes the gentleman from Virginia (Mr. Goodlatte).

Mr. GOODLATTE. Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise today in support of H.R. 3408, a bill to reauthorize the Livestock Mandatory Reporting Act of 1999.

Mr. Speaker, when the Congress considered this legislation in 1999, its intent was to improve the livestock market news reporting system so that farmers and ranchers, particularly those that rely on cash market sales, could enjoy improved market transparency and better price discovery.

In particular, the Act provided the USDA with the authority to collect and disseminate information that can be readily understood by livestock producers, packers, and other participants, including information with respect to pricing, contract for purchase, and supply and demand conditions for livestock, livestock production, and livestock products.

The legislation enacted in 1999 was the product of extensive discussion between livestock producers and packers. We relied on this process partly because it was such a technical issue, but mostly we wanted to avoid the situation where segments of the industry were divided against each other. After considerable give and take, the final product was agreed on by all participants.

As the time for reauthorization neared, producers and packers engaged again in a dialogue to develop a consensus proposal for reauthorization. H.R. 3408 is the product of this hard work. The coalition that supports this consensus legislation included the National Pork Producers Council, the American Meat Institute, the National Cattlemen's Beef Association, the Chicago Mercantile Exchange, the American Sheep Industry Association, and the American Farm Bureau Federation.

This package, as it appears before us today, is a carefully crafted document. All of these organizations have agreed that they will oppose it ``if any amendment is adopted that does not have the prior agreement'' of the coalition.

Mandatory price reporting expires at the end of September, and this bill reauthorizes it for 5 years with minor changes representing the consensus of our constituents.

Mr. Speaker, I would like to thank my colleague, the ranking member, the gentleman from Minnesota (Mr. Peterson) for working with us on this legislation. I urge my colleagues to support the bill.

Mr. Speaker, I reserve the balance of my time.

Mr. PETERSON of Minnesota. Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I thank the chairman for his leadership on this issue. Policy is always best when we can work together in a bipartisan manner to craft legislation which we have done on this piece of legislation and we have legislation that addresses the needs of his stakeholders. I think we have accomplished that today with the reauthorization of the mandatory price reporting law.

I think it should be noted that when this was first put together and considered back in 1999, it was somewhat controversial and there were some groups that were opposed to it. And to show you kind of what has happened this time, the groups that were concerned back then support this law and support this reauthorization.

Originally, it was balanced to address the concerns of the livestock producers with price transparency, and mandatory price reporting I think has served the industry well. Mandatory price reporting is a necessary tool to ensure that our producers have a transparent market atmosphere. As the structure of our livestock production systems continue to change, it is necessary to preserve the safety net that guarantees our producers are receiving fair prices for their livestock.

The legislation we consider today improves the quality and quantity of information, making the process more accurate and more efficient. The 5-year reauthorization is important and should be completed as soon as possible. It is important that we complete this task so we can avoid the gap in reporting that occurred last year.

I am pleased to support this bill with the gentleman from Virginia

(Mr. Goodlatte) and I urge its passage.

Mr. Speaker, I have no further requests for time, and I yield back the balance of my time.

Mr. GOODLATTE. Mr. Speaker, I have no further requests for time, and I yield back the balance of my time.

The SPEAKER pro tempore. The question is on the motion offered by the gentleman from Virginia (Mr. Goodlatte) that the House suspend the rules and pass the bill, H.R. 3408, as amended.

The question was taken; and (two-thirds having voted in favor thereof) the rules were suspended and the bill, as amended, was passed.

A motion to reconsider was laid on the table.

____________________

SOURCE: Congressional Record Vol. 151, No. 115

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