7CFR Part 59

Friday,
May 16, 2008

Part III

Department of
Agriculture
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

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

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
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:

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
Warren.Preston@usda.gov.
Information about these regulations
will be posted on the Livestock and
Grain Market News Web site: http://
www.ams.usda.gov/lsmnpubs/.
SUPPLEMENTARY INFORMATION:
SUMMARY:

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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

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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

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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

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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

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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

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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

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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.

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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

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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

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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.

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.

Requirements

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

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.

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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

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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

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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

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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

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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

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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 redesignated 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

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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 AMSapproved 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

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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

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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;

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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

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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

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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

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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.

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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

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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.

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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

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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

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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’’

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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

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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

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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

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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.

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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

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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

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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

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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.

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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.

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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

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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 intercompany trades is unclear. The only
information that will be collected and
subsequently reported by AMS will be
inter-company (that is, company-tocompany) 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

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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,

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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.

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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.

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

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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

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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

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28619

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 3year 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

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

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.
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
1 GIPSA, USDA. Packers and Stockyards
Statistical Report, 2005 Reporting Year. GIPSA SR–
01–1, February 2007.
2 Ibid.

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percent. Between 1986 and 2005, the
number of bonded packers reporting to
GIPSA declined from 691 to 312.
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

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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.

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Analysis of Benefits and Costs

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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.
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
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.
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.

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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.
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

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28621

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.
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:
5 Ward,

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(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 ................................................................................................................................................
Employee compensation cost per hour ...................................................................................................................................................

15
× $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.

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ANNUAL RECORDKEEPING COST PER RESPONDENT
Labor hours per year ...............................................................................................................................................................................
Labor cost per hour .................................................................................................................................................................................

70
× $21.33

Sub-total labor cost per year ............................................................................................................................................................
Electronic storage cost * ...................................................................................................................................................................

$1,493.10
+ $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.

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28623

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

mstockstill on PROD1PC66 with RULES2

Form
Cattle:
LS–113
LS–114
LS–115
LS–117
LS–126
LS–131
LS–132
Swine:
LS–118
LS–119
LS–120
Lamb:
Domestic:
LS–121
LS–123
LS–124
LS–125
LS–128
LS–129
Importer:
LS–128

VerDate Aug<31>2005

Total
responses

Responses

....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................

260
260
52
52
260
260
260

×
×
×
×
×
×
×

2
2
1
1
2
1
1

daily
daily
weekly
weekly
daily
daily
daily

=
=
=
=
=
=
=

520
520
52
52
520
260
260

....................................................................................................................................
....................................................................................................................................
....................................................................................................................................

260
260
52

×
×
×

1 daily
2 daily
1 weekly

=
=
=

260
520
52

....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................

260
52
52
52
260
260

×
×
×
×
×
×

1
1
1
1
1
1

daily
weekly
weekly
weekly
daily
daily

=
=
=
=
=
=

260
52
52
52
260
260

....................................................................................................................................

52

×

1 weekly

=

52

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16MYR2

28624

Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations
II. NUMBER OF SUBMISSION HOURS PER RESPONDENT PER YEAR
Submissions/
year

Form
Cattle:
LS–113
LS–114
LS–115
LS–117
LS–126
LS–131
LS–132
Swine:
LS–118
LS–119
LS–120
Lamb:
Domestic:
LS–121
LS–123
LS–124
LS–125
LS–128
LS–129
Importer:
LS–128

Total
hours/
year

Hours/
submission

..............................................................................................................................
..............................................................................................................................
..............................................................................................................................
..............................................................................................................................
..............................................................................................................................
..............................................................................................................................
..............................................................................................................................

520
520
52
52
520
260
260

×
×
×
×
×
×
×

.17
.17
.25
.08
.125
.08
.17

=
=
=
=
=
=
=

88.40
88.40
13.00
4.16
65.00
20.80
44.20

..............................................................................................................................
..............................................................................................................................
..............................................................................................................................

260
520
52

×
×
×

.25
.17
.25

=
=
=

65.00
88.40
13.00

..............................................................................................................................
..............................................................................................................................
..............................................................................................................................
..............................................................................................................................
..............................................................................................................................
..............................................................................................................................

260
52
52
52
260
260

×
×
×
×
×
×

.34
.25
.25
.08
.167
.167

=
=
=
=
=
=

88.40
13.00
13.00
4.16
43.42
43.42

..............................................................................................................................

52

×

.084

=

4.37

III. TOTAL SUBMISSION COST PER RESPONDENT PER YEAR
Total
hours/
year

Form
Cattle:
LS–113
LS–114
LS–115
LS–117
LS–126
LS–131
LS–132

Total
dollars/
year

Cost/
hour

........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................

88.40
88.40
13.00
4.16
65.00
20.80
44.20

×
×
×
×
×
×
×

$21.33
21.33
21.33
21.33
21.33
21.33
21.33

=
=
=
=
=
=
=

$1,886
1,886
277
89
1,386
444
943

Totals ....................................................................................................................................

323.96

×

21.33

=

6,911

Swine:
LS–118 ........................................................................................................................................
LS–119 ........................................................................................................................................
LS–120 ........................................................................................................................................

65.00
88.40
13.00

×
×
×

21.33
21.33
21.33

=
=
=

1,386
1,886
277

Totals ....................................................................................................................................

166.40

×

21.33

=

3,549

........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................

88.40
13.00
13.00
4.16
43.42
43.42

×
×
×
×
×
×

21.33
21.33
21.33
21.33
21.33
21.33

=
=
=
=
=
=

1,886
277
277
89
926
926

........................................................................................................................................

4.37

×

21.33

=

93

Totals ....................................................................................................................................

209.77

×

21.33

=

4,474

Lamb:
Domestic:
LS–121
LS–123
LS–124
LS–125
LS–128
LS–129
Importer:
LS–128

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IV. TOTAL YEARLY SUBMISSION COST FOR ALL RESPONDENTS
Total
dollars/
year

Form
Cattle:
LS–113 ..................................................................................................................................
LS–114 ..................................................................................................................................

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$1,886
1,886

E:\FR\FM\16MYR2.SGM

Total
cost

Respondents

×
×

16MYR2

34
34

=
=

$64,124
64,124

28625

Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations
IV. TOTAL YEARLY SUBMISSION COST FOR ALL RESPONDENTS—Continued
Total
dollars/
year

Form
LS–115
LS–117
LS–126
LS–131
LS–132

277
89
1,386
444
943

×
×
×
×
×

34
34
48
22
22

=
=
=
=
=

9,418
3,026
66,528
9,768
20,746

................

....

......................

....

237,734

1,386
1,886
277

×
×
×

52
40
21

=
=
=

72,072
75,440
5,817

................

....

......................

....

153,329

..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................

1,886
277
277
89
926
926

×
×
×
×
×
×

6
5
5
6
10
8

=
=
=
=
=
=

11,316
1,385
1,385
534
9,260
7,408

..................................................................................................................................

93

×

6

=

558

..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................

Subtotal ..........................................................................................................................
Swine:
LS–118 ..................................................................................................................................
LS–119 ..................................................................................................................................
LS–120 ..................................................................................................................................
Subtotal ..........................................................................................................................
Lamb:
Domestic:
LS–121
LS–123
LS–124
LS–125
LS–128
LS–129
Importer:
LS–128

Total
cost

Respondents

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
respondent
Cattle:
Startup/Maintenance ...................................................................................................
Recordkeeping ............................................................................................................
Data Submission .........................................................................................................

$672
1,923
4,953

Number of
respondents
×
×
×

48
48
48

Total cost *

=
=
=

$32,256
92,304
237,734
362,294

Average Cost per Respondent: $362,294 / 48 = $7,548
Swine:
Startup/Maintenance ...................................................................................................
Recordkeeping ............................................................................................................
Data Submission .........................................................................................................

672
1,923
2,949

×
×
×

52
52
52

=
=
=

34,944
99,996
153,329
288,269

mstockstill on PROD1PC66 with RULES2

Average Cost per Respondent: $288,269 / 52 = $5,544
Lamb:
Domestic:
Startup/Maintenance ...................................................................................................
Recordkeeping ............................................................................................................
Data Submission .........................................................................................................

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672
1,923
3,129

E:\FR\FM\16MYR2.SGM

×
×
×

16MYR2

10
10
10

=
=
=

6,720
19,230
31,288

28626

Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations
TOTAL ANNUAL COST BURDEN TO RESPONDENTS—Continued
Cost per
respondent

Number of
respondents

Total cost *
57,238

Average Cost per Respondent: $57,238 / 10 = $5,724
Importer:
Startup/Maintenance ...................................................................................................
Recordkeeping ............................................................................................................
Data Submission .........................................................................................................

672
1,923
93

×
×
×

6
6
6

=
=
=

4,032
11,538
558
16,128

Average Cost per Respondent: $16,128 / 6 = $2,688
Grand total, all species .................................................................................

........................

....

........................

....

723,929

mstockstill on PROD1PC66 with RULES2

* 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

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17:23 May 15, 2008

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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

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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,

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mstockstill on PROD1PC66 with RULES2

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

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17:23 May 15, 2008

Jkt 214001

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.

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28627

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.
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
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.

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

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.
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
7 North American Industry Classification System
code 424470.

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17:23 May 15, 2008

Jkt 214001

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

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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

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

28629

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 ...............................................................................................................................................................................
Labor cost per hour .................................................................................................................................................................................

70
× $21.33

Sub-total labor cost per year ...................................................................................................................................................................
Electronic storage cost * ..........................................................................................................................................................................

$1,493.10
+ $430.00

Total Recordkeeping Cost ................................................................................................................................................................

$1,923.10

mstockstill on PROD1PC66 with RULES2

* 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

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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

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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

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

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

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17:23 May 15, 2008

Jkt 214001

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

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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.

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

Form

mstockstill on PROD1PC66 with RULES2

Cattle:
LS–113
LS–114
LS–115
LS–117
LS–126
LS–131
LS–132
Swine:
LS–118
LS–119
LS–120
Lamb:
Domestic:
LS–121
LS–123
LS–124
LS–125
LS–128
LS–129
Importer:
LS–128

VerDate Aug<31>2005

Total
responses

Responses

....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................

260
260
52
52
260
260
260

×
×
×
×
×
×
×

2
2
1
1
2
1
1

daily
daily
weekly
weekly
daily
daily
daily

=
=
=
=
=
=
=

520
520
52
52
520
260
260

....................................................................................................................................
....................................................................................................................................
....................................................................................................................................

260
260
52

×
×
×

1 daily
2 daily
1 weekly

=
=
=

260
520
52

....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................

260
52
52
52
260
260

×
×
×
×
×
×

1
1
1
1
1
1

daily
weekly
weekly
weekly
daily
daily

=
=
=
=
=
=

260
52
52
52
260
260

....................................................................................................................................

52

×

1 weekly

=

52

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Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations
II. NUMBER OF SUBMISSION HOURS PER RESPONDENT PER YEAR
Submissions/
year

Form
Cattle:
LS–113
LS–114
LS–115
LS–117
LS–126
LS–131
LS–132
Swine:
LS–118
LS–119
LS–120
Lamb:
Domestic:
LS–121
LS–123
LS–124
LS–125
LS–128
LS–129
Importer:
LS–128

Total
hours/
year

Hours/
submission

..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................

520
520
52
52
520
260
260

×
×
×
×
×
×
×

.17
.17
.25
.08
.125
.08
.17

=
=
=
=
=
=
=

88.40
88.40
13.00
4.16
65.00
20.80
44.20

..........................................................................................................................
..........................................................................................................................
..........................................................................................................................

260
520
52

×
×
×

.25
.17
.25

=
=
=

65.00
88.40
13.00

..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................

260
52
52
52
260
260

×
×
×
×
×
×

.34
.25
.25
.08
.167
.167

=
=
=
=
=
=

88.40
13.00
13.00
4.16
43.42
43.42

..........................................................................................................................

52

×

.084

=

4.37

III. TOTAL SUBMISSION COST PER RESPONDENT PER YEAR
Total
hours/
year

Form
Cattle:
LS–113
LS–114
LS–115
LS–117
LS–126
LS–131
LS–132

....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................

88.40
88.40
13.00
4.16
65.00
20.80
44.20

×
×
×
×
×
×
×

$21.33
21.33
21.33
21.33
21.33
21.33
21.33

=
=
=
=
=
=
=

$1,886
1,886
277
89
1,386
444
943

Totals ................................................................................................................................

323.96

×

21.33

=

6,911

Swine:
LS–118 ....................................................................................................................................
LS–119 ....................................................................................................................................
LS–120 ....................................................................................................................................

65.00
88.40
13.00

×
×
×

21.33
21.33
21.33

=
=
=

1,386
1,886
277

Totals ................................................................................................................................

166.40

×

21.33

=

3,549

....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................

88.40
13.00
13.00
4.16
43.42
43.42

×
×
×
×
×
×

21.33
21.33
21.33
21.33
21.33
21.33

=
=
=
=
=
=

1,886
277
277
89
926
926

....................................................................................................................................

4.37

×

21.33

=

93

Totals ................................................................................................................................

209.77

×

21.33

=

4,474

Lamb:
Domestic:
LS–121
LS–123
LS–124
LS–125
LS–128
LS–129
Importer:
LS–128

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Total
dollars/
year

Cost/hour

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Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and Regulations
IV. TOTAL YEARLY SUBMISSION COST FOR ALL RESPONDENTS
Total
dollars/
year

Form
Cattle:
LS–113
LS–114
LS–115
LS–117
LS–126
LS–131
LS–132

................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................

$1,886
1,886
277
89
1,386
444
943

Subtotal ........................................................................................................................

..................

Swine:
LS–118 ................................................................................................................................
LS–119 ................................................................................................................................
LS–120 ................................................................................................................................
Subtotal ........................................................................................................................

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Lamb:
Domestic:
LS–121
LS–123
LS–124
LS–125
LS–128
LS–129
Importer:
LS–128

1,386
1,886
277
..................

Respondents

Total cost

×
×
×
×
×
×
×

34
34
34
34
48
22
22

=
=
=
=
=
=
=

$64,124
64,124
9,418
3,026
66,528
9,768
20,746

....

......................

....

237,734

×
×
×

52
40
21

=
=
=

72,072
75,440
5,817

....

......................

....

153,329

................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................

1,886
277
277
89
926
926

×
×
×
×
×
×

6
5
5
6
10
8

=
=
=
=
=
=

11,316
1,385
1,385
534
9,260
7,408

................................................................................................................................

93

×

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

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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.
■ 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.

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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.

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Subpart A—General Provisions

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§ 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

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this Part, except in emergencies or in
cases when an alternative method is
agreeable to the entity required to report
and AMS.
§ 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.
§ 59.30

Definitions.

The following definitions apply to
this part.

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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

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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

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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
§ 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 portioncontrol 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

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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,

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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

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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.
§ 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 § 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.

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§ 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
§ 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.
§ 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;

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(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.

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§ 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
§ 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.

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Subpart C—Swine Reporting
§ 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
§ 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

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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

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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 ‘‘packersold swine’’ means the swine that are
owned by a packer (including a

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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 14day 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.
§ 59.201

General reporting provisions.

(a) Packer-Owned Swine. Information
required under this section for packerowned swine shall include quantity and
carcass characteristics, but not price.
(b) Type of Purchase. If information
regarding the type of purchase is

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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.
§ 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 § 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.

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(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 § 59.10(b):
(1) The packer’s best estimate of the
total number of barrows and gilts, and
barrows and gilts that qualify as packerowned 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 § 59.10(b):
(1) The packer’s best estimate of the
total number of barrows and gilts, and
barrows and gilts that qualify as packerowned 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

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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.

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.

§ 59.203 Mandatory daily reporting for
sows and boars.

Subpart D—Lamb Reporting

(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.

§ 59.300

§ 59.204
swine.

Mandatory weekly reporting for

(a) Weekly Noncarcass Merit Premium
Report. Not later than 4 p.m. central
time in accordance with § 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

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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.

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(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

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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.

(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 § 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.

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.

§ 59.302
lambs.

§ 59.303 Mandatory reporting of lamb
carcasses and boxed lamb.

§ 59.301
Lambs.

Mandatory Daily Reporting for

Mandatory weekly reporting for

(a) In General. The corporate officers
or officially designated representatives

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

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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
§ 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 § 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:

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(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
§ 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

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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.

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(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.

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(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 packerowned 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

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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 3letter 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

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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.

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(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.

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(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.

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(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 packerowned 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

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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.

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(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.

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

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