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account held by a packer on behalf of a count. Further, the contract specifies producer that accrues a running posi- how the balance in the account affects tive or negative balance as a result of producer and packer rights and obligaa pricing determination included in a

tions under the contract. contract that establishes a minimum Negotiated purchase. A purchase, comand/or maximum level of base price

monly known as a "cash” or “spot paid. Credits and/or debits for amounts

market" purchase, of swine by a packbeyond these minimum and/or max

er from a producer under which: imum levels are entered into the ac

(1) The buyer-seller interaction that count. Further, the contract specifies

results in the transaction and the how the balance in the account affects

agreement on actual base price occur producer and packer rights and obligations under the contract.

on the same day; and

(2) The swine are scheduled for delivBase price. The price paid for swine before the application of any premiums

ery to the packer not later than 14 days or discounts, expressed in dollars per

after the date on which the swine are unit.

committed to the packer. Contract. Any agreement, whether

Noncarcass merit premium or discount. written or verbal, between a packer

An increase or decrease in the price for and a producer for the purchase of

the purchase of swine made available swine for slaughter, except a nego

by an individual packer or packing tiated purchase (as defined in this sec

plant, based on any factor other than tion).

the characteristics of the carcass, if Contract type. The classification of the actual amount of the premium or contracts or risk management agree

discount is known before the purchase ments for the purchase of swine com- and delivery of the swine. mitted to a packer, by the determina- Other market formula purchase. A purtion of the base price and the presence chase of swine by a packer in which the or absence of an accrual account or pricing determination is a formula ledger (as defined in this section). The price based on any market other than contract type categories are:

the markets for swine, pork, or a pork (1) Swine or pork market formula product. The pricing determination inpurchases with a ledger,

cludes, but is not limited to: (2) Swine or pork market formula

(1) A price formula based on one or purchases without a ledger,

more futures or options contracts; (3) Other market formula purchases

(2) A price formula based on one or with a ledger,

more feedstuff markets, such as the (4) Other market formula purchases

market for corn or soybeans; or without a ledger,

(3) A base price determination using (5) Other purchase arrangements

more than one market as its base with a ledger, and

where at least one of those markets (6) Other purchase arrangements

would be defined as an “other market without a ledger. Formula price. A price determined by

formula purchase.” a mathematical formula under which

Other purchase arrangement. A purthe price established for a specified

chase of swine by a packer that is not market serves as the basis for the for

a negotiated purchase, swine or pork mula.

market formula purchase, or other Ledger. (Synonymous with "accrual

market formula purchase, and does not account,” as defined in this section.)

involve packer-owned swine. An account held by a packer on behalf

Packer. Any person engaged in the of a producer that accrues a running business of buying swine in commerce positive or negative balance as a result for purposes of slaughter, of manufacof a pricing determination included in turing or preparing meats or meat food a contract that establishes a minimum products from swine for sale or shipand/or maximum level of base price ment in commerce, or of marketing paid. Credits and/or debits for amounts meats or meat food products from beyond these minimum and/or max- swine in an unmanufactured form actimum levels are entered into the ac- ing as a wholesale broker, dealer, or

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distributor in commerce. The regulations in this part only apply to a packer purchasing at least 100,000 swine per year and slaughtering swine at a federally inspected swine processing plant that meets either of the following conditions:

(1) A swine processing plant that slaughtered an average of at least 100,000 swine per year during the immediately preceding 5 calendar years, with the average based on those periods in which the plant slaughtered swine; or

(2) Any swine processing plant that did not slaughter swine during the immediately preceding 5 calendar years that has the capacity to slaughter at least 100,000 swine per year, based on plant capacity information.

Producer. Any person engaged, either directly or through an intermediary, in the business of selling swine to a packer for slaughter (including the sale of swine from a packer to another packer).

Swine. A porcine animal raised to be a feeder pig, raised for seedstock, or raised for slaughter.

Swine or pork market formula purchase. A purchase of swine by a packer in which the pricing determination is a formula price based on a market for swine, pork, or a pork product, other than a futures contract or option contract for swine, pork, or a pork product.

GIPSA on the first business day of the month following the determination that the plant has the slaughtering capacity specified in the definition of packer in 206.1.

(c) What available contracts do I need to provide and when are they due? After the initial submission, each packer must send GIPSA an example of each new contract it makes available to a producer or producers within one business day of the contract being made available at each plant that it operates or at which it has swine slaughtered that meets the definition of packer in $ 206.1.

(d) What criteria do I use to select erample contracts? For purposes of distinguishing among contracts to determine which contracts may be represented by a single example, contracts will be considered to be the same if they are identical with respect to all of the following four example-contract criteria:

(1) Base price or determination of base price;

(2) Application of a ledger or accrual account (including the terms and conditions of the ledger or accrual account provision);

(3) Carcass merit premium and discount schedules (including the determination of the lean percent or other merits of the carcass that are used to determine the amount of the premiums and discounts and how those premiums and discounts are applied); and

(4) Use and amount of noncarcass merit premiums and discounts.

(e) Where and how do I send my contracts? Each packer may submit the example contracts and notifications required by this section by either of the following two methods:

(1) Electronic report. Example contracts and notifications required by this section may be submitted by electronic means. Electronic submission may be by any form of electronic transmission that has been determined to be acceptable to the Administrator. To obtain current options for acceptable methods to submit example contracts electronically, contact GIPSA through the Internet on the GIPSA Web site (http://www.usda.gov/gipsal) or at USDA GIPSA, Suite 317, 210 Walnut Street, Des Moines, IA 50309.

8 206.2 Swine contract library.

(a) Do I need to provide swine contract information? Each packer, as defined in $206.1, must provide information for each swine processing plant that it operates or at which it has swine slaughtered that has the slaughtering capacity specified in the definition of packer in 8 206.1.

(b) What existing or available contracts do I need to provide and when are they due? Each packer must send, to the Grain Inspection, Packers and Stockyards Administration (GIPSA), an example of each contract it currently has with a producer or producers or that is currently available at each plant that it operates or at which it has swine slaughtered that meets the definition of packer in 8206.1. This initial submission of example contracts is due to

(2) Printed report. Each packer that or at which it has swine slaughtered chooses to submit printed example con- that has the slaughtering capacity tracts and notifications must deliver specified in the definition of packer. the printed contracts and notifications (b) When is the monthly report due? to USDA GIPSA, Suite 317, 210 Walnut Each packer must send a separate Street, Des Moines, IA 50309.

monthly report for each plant that has (1) What information rom the swine the slaughtering capacity specified in contract library will be made available to the definition of packer in $206.1. Each the public? GIPSA will summarize the packer must deliver the report to the information it has received on contract GIPSA Regional Office in Des Moines, terms, including, but not limited to, IA, by the close of business on the 15th base price determination and the of each month, beginning at least 45 schedules of premiums or discounts. days after the initial submission of exGIPSA will make the information ample contracts. The GIPSA Regional available by region and contract type Office closes at 4:30 p.m. Central Time. as defined in $206.1, for public release If the 15th day of a month falls on a one month after the initial submission

Saturday, Sunday, or federal holiday, of contracts. Geographic regions will the monthly report is due no later than be defined in such a manner to provide

the close of the next business day folas much information as possible while

lowing the 15th. maintaining confidentiality in accord

(c) What information do I need to proance with section 251 of the Agricul

vide in the monthly report? The monthly tural Marketing Act (7 U.S.C. 1636). report that each packer files must be (g) How can I review information from

reported on Form P&SP-341, which will the swine contract library? The informa

be available on the Internet on the tion will be available on the Internet

GIPSA Web site (http://www.usda.gov/ on the GIPSA Web site

(http:// gipsa)) and at USDA GIPSA, Suite 317, www.usda.gov/gipsa)) and at USDA

210 Walnut Street, Des Moines, IA GIPSA, Suite 317, 210 Walnut Street,

50309. In the monthly report, each Des Moines, IA 50309. The information

packer must provide the following inwill be updated as GIPSA receives in

formation: formation from packers.

(1) Number of swine to be delivered (h) What do I need to do when a pre

under eristing contracts. Existing conviously submitted example contract is no

tracts are contracts the packer curlonger a valid example due to contract

rently is using for the purchase of changes, expiration, or withdrawal? Each

swine for slaughter at each plant. Each packer must submit a new example

packer must provide monthly esticontract when contract changes result

mates of the number of swine comin changes to any of the four example

mitted to be delivered under all of its contract criteria specified in paragraph

existing contracts (even if those con(d) of this section and notify GIPSA if

tracts are not currently available for the new example contract replaces the

renewal or to additional producers) in previously submitted example con

each contract type as defined in $ 206.1. tract. Each packer must notify GIPSA

(2) Available contracts. Available conwhen an example contract no longer

tracts are the contracts the packer is represents any existing or available

currently making available to procontract (expired or withdrawn). Each

ducers, or is making available for repacker must submit these example

newal to currently contracted procontracts and notifications within one

ducers, for the purchase of swine for business day of the change, expiration,

slaughter at each plant. On the monthor withdrawal.

ly report, a packer will indicate each (Approved by the Office of Management and contract type, as defined in g 206.1, that Budget under control number 0580-0021) the packer is currently making avail

able. $ 206.3 Monthly report.

(3) Estimates of committed swine. Each (a) Do I need to provide monthly re- packer must provide an estimate of the ports? Each packer, as defined in $206.1, total number of swine committed must provide information for each under existing contracts for delivery to swine processing plant that it operates each plant for slaughter within each of

the following 12 calendar months beginning with the 1st of the month immediately following the due date of the report. The estimate of total swine committed will be reported by contract type as defined in $206.1.

(4) Erpansion clauses. Any conditions or circumstances specified by clauses in any existing contracts that could result in an increase in the estimates specified in paragraph (c)(3) of this section. Each packer will identify the expansion clauses in the monthly report by listing a code for the following conditions:

(i) Clauses that allow for a range of the number of swine to be delivered;

(ii) Clauses that require a greater number of swine to be delivered as the contract continues;

(iii) Other clauses that provide for expansion in the numbers of swine to be delivered.

(5) Marimum estimates of swine. The packer's estimate of the maximum total number of swine that potentially could be delivered to each plant within each of the following 12 calendar months, if any or all of the types of expansion clauses identified in accordance with the requirement in paragraph (c)(4) of this section are executed. The estimate of maximum potential deliveries must be reported for all existing contracts by contract type as defined in $206.1.

(d) What if a contract does not specify the number of swine committed? To meet the requirements of paragraphs (c)(3) and (c)(5) of this section, the packer must estimate expected and potential deliveries based on the best information available to the packer. Such information might include, for example, the producer's current and projected swine inventories and planned production.

(e) When do I change previously reported estimates? Regardless of any estimates for a given future month that may have been previously reported, current estimates of deliveries ported as required by paragraphs (c)(3) and (c)(5) of this section must be based on the most accurate information available at the time each report is prepared.

(f) Where and how do I send my monthly report? Each packer may submit

monthly reports required by this section by either of the following two methods:

(1) Electronic report. Information reported under this section may be reported by electronic means, to the maximum extent practicable. Electronic submission may be by any form of electronic transmission that has been determined to be acceptable to the Administrator. To obtain current options for acceptable methods to submit information electronically, contact GIPSA through the Internet on the GIPSA Web site (http:// www.usda.gov/gipsa)) or at USDA GIPSA, Suite 317, 210 Walnut Street, Des Moines, IA 50309.

(2) Printed report. Each packer may deliver its printed monthly report to USDA GIPSA, Suite 317, 210 Walnut Street, Des Moines, IA 50309.

(g) What information from monthly reports will be made available to the public and when and how will the information be made available to the public?

(1) Availability. GIPSA will provide a monthly report of estimated deliveries by contract types as reported by packers in accordance with this section, for public release on the 1st business day of each month. The monthly reports will be available on the Internet on the GIPSA Web site (http://www.usda.gov/ gipsa/) and at USDA GIPSA, Suite 317, 210 Walnut Street, Des Moines, IA 50309, during normal business hours of 7 a.m. to 4:30 p.m. Central Time, Monday through Friday.

(2) Regions. Information in the report will be aggregated and reported by geographic regions. Geographic regions will be defined in such a manner to provide as much information as possible while maintaining confidentiality in accordance with section 251 of the Agricultural Marketing Act (7 U.S.C. 1636) and may be modified from time to time.

(3) Reported information. The monthly report will provide the following information:

(i) The existing contract types for each geographic region.

(ii) The contract types currently being made available to additional producers or available for renewal to currently contracted producers in each geographic region.

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(iii) The sum of packers' reported estimates of the total number of swine committed by contract for delivery during the next 6 and 12 months beginning with the month the report is published. The report will indicate the number of swine committed by geographic reporting region and by contract type.

(iv) The types of conditions or circumstances as reported by packers that could result in expansion in the numbers of swine to be delivered under the terms of expansion clauses in the

contracts at any time during the following 12 calendar months.

(v) The sum of packers' reported estimates of the maximum total number of swine that potentially could be delivered during each of the next 6 and 12 months if all expansion clauses in current contracts are executed. The report will indicate the sum of estimated maximum potential deliveries by geographic reporting region and by contract type. (Approved by the Office of Management and Budget under control number 0580-0021)

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