[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 543 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 543
To amend the Packers and Stockyards Act, 1921, to establish a cattle
contract library, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 2 (legislative day, March 1), 2021
Mrs. Fischer (for herself, Mr. Wyden, Mrs. Hyde-Smith, and Mr. Braun)
introduced the following bill; which was read twice and referred to the
Committee on Agriculture, Nutrition, and Forestry
_______________________________________________________________________
A BILL
To amend the Packers and Stockyards Act, 1921, to establish a cattle
contract library, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Cattle Market Transparency Act of
2021''.
SEC. 2. CATTLE CONTRACT LIBRARY.
(a) In General.--Title II of the Packers and Stockyards Act, 1921,
is amended by inserting after section 223 (7 U.S.C. 198b) the
following:
``Subtitle C--Cattle Contracts
``SEC. 231. DEFINITIONS.
``In this subtitle:
``(1) Base price.--The term `base price' means the price
paid for cattle delivered to a packer, before application of
any premiums or discounts, expressed in dollars per hundred
pounds of carcass weight.
``(2) Contract.--
``(A) In general.--Subject to subparagraph (B), the
term `contract' means any agreement, written or oral,
between a packer and a producer for the purchase of fed
cattle for slaughter.
``(B) Exclusion.--The term `contract' does not
include a contract for a negotiated purchase.
``(3) Fed cattle.--The term `fed cattle' means a steer or
heifer that has been finished on a ration of roughage and feed
concentrates, such as grains, protein meal, grass (forage), and
other nutrient-rich feeds, prior to slaughter.
``(4) Formula marketing arrangement.--The term `formula
marketing arrangement' means the advance commitment of cattle
for slaughter--
``(A) by any means other than through a negotiated
purchase, negotiated grid purchase, or forward
contract; and
``(B) using a method for calculating price--
``(i) under which the price is determined
at a future date;
``(ii) the basis of which is a price
established for a specified market, which may
be based on any publicly reported price,
including plant average price, regional price,
downstream price, or some other mutually
agreeable price source; and
``(iii) that may include a grid or nongrid
price.
``(5) Forward contract.--The term `forward contract'
means--
``(A) an agreement for the purchase of fed cattle,
executed in advance of slaughter, under which the base
price is established by reference to--
``(i) prices quoted on the Chicago
Mercantile Exchange; or
``(ii) other comparable publicly available
prices; or
``(B) any other contract for the purchase of fed
cattle, executed in advance of slaughter, as determined
by the Secretary.
``(6) Heifer.--The term `heifer' means a bovine female that
has not given birth to a calf.
``(7) Negotiated grid purchase.--The term `negotiated grid
purchase' means a purchase of fed cattle by a packer from a
producer under which--
``(A) the buyer-seller interaction results in a
negotiated base price, which may be adjusted by
premiums and discounts; and
``(B) the cattle are scheduled for delivery to the
packer not more than 14 days after the date on which
the agreement for purchase is made.
``(8) Negotiated purchase.--The term `negotiated purchase'
means a purchase of fed cattle (commonly known as a `cash' or
`spot market' purchase) by a packer from a producer under
which--
``(A) the buyer-seller interaction that results in
the purchase and the agreement on the actual base price
for the purchase occur on the same day; and
``(B) the cattle are scheduled for delivery to the
packer not more than 14 days after the date on which
the agreement for purchase is made.
``(9) Packer.--The term `packer' has the meaning given the
term in section 221 of the Agricultural Marketing Act of 1946
(7 U.S.C. 1635d).
``(10) Producer.--The term `producer' means a person
engaged in the business of selling cattle to a packer for
slaughter.
``(11) Steer.--The term `steer' means a bovine male
castrated before reaching sexual maturity.
``(12) Type of contract.--
``(A) In general.--The term `type of contract'
means the classification of a contract for the purchase
of cattle--
``(i) into 1 of the categories described in
subparagraph (B); and
``(ii) by determining the base price of the
cattle.
``(B) Categories.--The categories for
classification of a type of contract are the following:
``(i) Formula marketing arrangement.
``(ii) Forward contract.
``(iii) Negotiated grid purchase contract.
``SEC. 232. CATTLE CONTRACT LIBRARY.
``(a) In General.--Subject to the availability of appropriations to
carry out this section, the Secretary shall establish and maintain a
library or catalog of each type of contract offered by packers to
producers for the purchase of all or part of the production of the
producers of fed cattle (including cattle that are purchased or
committed for delivery), including any schedules of premiums or
discounts associated with the contract.
``(b) Information Collection.--
``(1) In general.--To maintain the library or catalog
established under subsection (a), the Secretary shall obtain
information from each packer on each type of existing contract
of the packer by requiring a filing or other form of
information submission from each packer.
``(2) Contracted cattle numbers.--Information that shall be
submitted to the Secretary by a packer under paragraph (1)
shall include, with respect to each existing contract of a
packer--
``(A) the type of contract; and
``(B) a description of the provisions in the
contract that provide for expansion in the numbers of
fed cattle to be delivered under the contract for the
6-month and 12-month periods following the date of the
contract.
``(c) Availability of Information.--
``(1) In general.--The Secretary shall make available to
producers and other interested persons information on the types
of contracts in the library or catalog established under
subsection (a), including notice (on a real-time basis, if
practicable) of the types of contracts that are being offered
by packers to, and are open to acceptance by, producers for the
purchase of fed cattle.
``(2) Monthly report.--
``(A) In general.--Beginning 30 days after the
library or catalog is established under subsection (a),
the Secretary shall make the information obtained each
month in the library or catalog available in a monthly
report to producers and other interested persons.
``(B) Contents.--The monthly report described in
subparagraph (A) shall include--
``(i) an estimate by the Secretary of the
total number of fed cattle committed under
contracts for delivery to packers within the 6-
month and 12-month periods following the date
of the report, organized by reporting region
and type of contract; and
``(ii) an estimate by the Secretary of the
total maximum number of fed cattle that may be
delivered within the 6-month and 12-month
periods following the date of the report, based
on the provisions described in subsection
(c)(2)(B) in existing contracts, organized by
reporting region and type of contract.
``(d) Maintenance of Library or Catalog.--Information in the
library or catalog established under subsection (a) about types of
contracts that are no longer offered or in use shall be removed from
the library or catalog.
``(e) Confidentiality.--The reporting requirements for packers
under this section shall be subject to the confidentiality protections
provided under section 251 of the Agricultural Marketing Act of 1946 (7
U.S.C. 1636).
``(f) Violations.--It shall be unlawful and a violation of this Act
for any packer to willfully fail or refuse--
``(1) to provide to the Secretary accurate information
required under this section; or
``(2) to comply with any other requirement of this section.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as are necessary to carry out
this section.''.
(b) Conforming Amendment.--Section 201 of the Packers and
Stockyards Act, 1921 (7 U.S.C. 191), is amended by striking ``When used
in this Act'' and inserting ``Unless specified otherwise, in this
Act,''.
SEC. 3. CASH MARKET ACQUISITION OF CATTLE.
(a) Sense of the Senate.--It is the sense of the Senate that all
participants in the fed cattle market have a responsibility to
contribute to regionally sufficient levels of negotiated trade of fed
cattle in all cattle feeding regions in order to achieve robust price
discovery.
(b) Cash Market Acquisition of Cattle.--Title II of the Packers and
Stockyards Act, 1921 (7 U.S.C. 191 et seq.) (as amended by section 2),
is amended by adding at the end the following:
``Subtitle D--Cash Market Acquisition of Cattle
``SEC. 241. DEFINITIONS.
``In this subtitle:
``(1) Negotiated grid purchase.--The term `negotiated grid
purchase' means a purchase of fed cattle by a packer from a
producer under which--
``(A) the buyer-seller interaction results in a
negotiated base price, which may be adjusted by
premiums and discounts; and
``(B) the fed cattle are scheduled for delivery to
the packer not more than 14 days after the date on
which the agreement for purchase is made.
``(2) Negotiated purchase.--The term `negotiated purchase'
means a purchase of fed cattle (commonly known as a `cash' or
`spot market' purchase) by a packer from a producer under
which--
``(A) the buyer-seller interaction that results in
the purchase and the agreement on the actual base price
for the purchase occur on the same day; and
``(B) the fed cattle are scheduled for delivery to
the packer not more than 14 days after the date on
which the agreement for purchase is made.
``(3) Packer.--
``(A) In general.--The term `packer' has the
meaning given the term in section 221 of the
Agricultural Marketing Act of 1946 (7 U.S.C. 1635d).
``(B) Exclusion.--The term `packer' does not
include a packer that slaughters cattle at only 1
livestock processing plant.
``(4) Producer.--The term `producer' means a person engaged
in the business of selling cattle to a packer for slaughter.
``(5) Regional mandatory minimum.--The term `regional
mandatory minimum' means, for each reporting region (as
designated by the Agricultural Marketing Service), of the
number of transactions and quantity of cattle purchased for
slaughter by a packer in that region each slaughter week, the
minimum number of such transactions and the minimum percentage
of such cattle, respectively, that are required to be purchased
through negotiated purchases or negotiated grid purchases from
producers.
``(6) Slaughter week.--The term `slaughter week' has the
meaning given the term `current slaughter week' in section 212
of the Agricultural Marketing Act of 1946 (7 U.S.C. 1635a).
``SEC. 242. REGIONAL MANDATORY MINIMUMS.
``(a) In General.--Not later than 2 years after the date of
enactment of this subtitle, the Secretary, in consultation with the
Chief Economist, shall establish--
``(1) regional mandatory minimums for the purpose of
enhancing price discovery and transparency for cattle market
participants; and
``(2) methods for establishing those regional mandatory
minimums, which shall be publicly available.
``(b) Public Input.--In carrying out subsection (a), the Secretary
shall make all proposed regional mandatory minimums and proposed
methods for establishing those minimums subject to a notice and comment
period.
``(c) Duration.--Regional mandatory minimums established for each
reporting region under subsection (a)(1)--
``(1) may be weekly or on another periodic basis, as
determined by the Secretary; and
``(2) shall be applicable for not more than a 24-month
period.
``(d) Considerations.--In carrying out subsection (a) for each
reporting region, the Secretary, in consultation with the Chief
Economist, shall consider the following factors:
``(1) The number of packers in the reporting region.
``(2) The availability of cattle in the reporting region.
``(3) Pre-existing contractual arrangements of packers in
the reporting region.
``(4) The number of pricing transactions (pens of cattle
sold) in the reporting region.
``(e) Initial Requirement.--The initial regional mandatory minimums
established for each reporting region under subsection (a)(1) shall be
not less than the average percentage of negotiated purchases and
negotiated grid purchases in that region from the 3 previous calendar
years.
``(f) Biannual Review.--On establishing regional mandatory minimums
under subsection (a)(1), the Secretary--
``(1) shall review the regional mandatory minimums not less
frequently than once every 2 years; and
``(2) may, in consultation with the Chief Economist, modify
the regional mandatory minimums after--
``(A) making the proposed modification subject to a
notice and comment period; and
``(B) consulting with representatives of the United
States cattle and beef industry.
``(g) Enforcement.--On establishing regional mandatory minimums
under subsection (a)(1), the Secretary shall--
``(1) regularly monitor compliance by packers with those
regional mandatory minimums; and
``(2) enforce this section in accordance with section 203.
``(h) Cost-Benefit Analysis.--Not later than 3 years after
establishing regional mandatory minimums under subsection (a)(1), the
Secretary, in consultation with the Chief Economist, shall conduct a
quantifiable, data-driven cost-benefit analysis regarding the operation
and effect of those regional mandatory minimums.''.
SEC. 4. 14-DAY CATTLE SLAUGHTER.
(a) Definition of Cattle Committed.--Section 221(1) of the
Agricultural Marketing Act of 1946 (7 U.S.C. 1635d(1)) is amended by
striking ``7-day'' and inserting ``14-day''.
(b) Mandatory Reporting for Live Cattle.--Section 222(c) of the
Agricultural Marketing Act of 1946 (7 U.S.C. 1635e(c)) is amended--
(1) in paragraph (1)--
(A) by striking subparagraphs (B) and (C); and
(B) by redesignating subparagraph (D) as
subparagraph (B);
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) Prior day reporting.--
``(A) In general.--The corporate officers or
officially designated representatives of each packer
processing plant shall report to the Secretary, for
each business day of the packer processing plant, not
later than 10:00 a.m. Central Time on each reporting
day, the information from the prior business day
described in subparagraph (B).
``(B) Information required.--The information
required under subparagraph (A) shall be, with respect
to the prior business day, the number of cattle,
organized by cattle type, scheduled for delivery to a
packer processing plant for slaughter for each of the
next 14 calendar days.''.
SEC. 5. PUBLIC AVAILABILITY OF INFORMATION.
Section 251(a) of the Agricultural Marketing Act of 1946 (7 U.S.C.
1636(a)) is amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and indenting
appropriately;
(2) in the matter preceding subparagraph (A) (as so
redesignated), by striking ``The Secretary shall make available
to the public information'' and inserting the following:
``(1) In general.--The Secretary shall make available to
the public all information''; and
(3) by adding at the end the following:
``(2) Effect.--Nothing in this section permits the
Secretary, or any officer or employee of the Secretary, to
withhold from the public the information, statistics, and
documents described in paragraph (1).''.
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