Swine Contract Library

Instructions for Completing Optional Form P&SP-343
Packers may use optional form P&SP-343 to document a basic set of contract terms for verbal
contracts.
Packers as defined in 9 CFR 206.1 must provide written descriptions for all terms of a verbal
contract and attach that written description to form P&SP-342. This form may be used as that
written description.
A verbal contract includes purchases of swine by a packer from a producer under which:
1) The purchase is not a negotiated purchase. That is, the transaction
a) Results in a price to be determined at a later date, or
b) Establishes delivery dates more than 14 days after the date on which the swine are
committed to the packer
2) The terms of the purchase are not formally documented.
If you have any questions about the form or completing the form, please contact the Midwestern
Regional office using one of the following methods.
Phone:
515-323-2579
request to speak to the Swine
Contract Library staff

Line

Base Price
Determination

2

Application of Ledger

3

Carcass Merit
Premiums and
Discounts

4

Noncarcass Merit
Premiums and
Discounts
Length of Agreement
Other Provisions

P&SP-343-i

SwineContractLibrary@usda.gov

Subject

1

5
6

Email:

Fax:
515-323-2590
attention Swine Contract
Library staff

Instruction
A description of terms used to determine base price. This may
include a complete description of any reports used and adjustments
made to the reported price. For example: AMS National Daily
Direct Hogs Morning, Base Market Hog, plus $1.00
The terms of the ledger or accrual account. This may include the
window or target price and terms regarding application of ledger
conditions.
A description of the carcass merit premiums and discounts. This
may include the determination of lean percent or other
characteristics of the carcass that are used to determine the amount
of the premiums and discounts and how those premiums and
discounts are applied.
A description of any noncarcass merit premiums and discounts
used. For example: $1.50 for delivery before 7:00 am.
The term or length of the verbal agreement.
A description of any other conditions or terms.

Expires 7/31/2016

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