Swine Contract Library, 16641-16645 [2010-7382]

Agencies

• DEPARTMENT OF AGRICULTURE
• Grain Inspection, Packers and Stockyards Administration

[Federal Register Volume 75, Number 63 (Friday, April 2, 2010)]
[Rules and Regulations]
[Pages 16641-16645]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-7382]



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Rules and Regulations
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Federal Register / Vol. 75, No. 63 / Friday, April 2, 2010 / Rules 
and Regulations

[[Page 16641]]



DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

9 CFR Part 206

RIN 0580-AB06


Swine Contract Library

AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.

ACTION: Final rule.

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SUMMARY: On August 11, 2003, the Grain Inspection, Packers and 
Stockyards Administration (GIPSA) implemented new Subtitle B of Title 
II of the Packers and Stockyards Act, which was added by the Livestock 
Mandatory Reporting Act of 1999 (1999 Act) by establishing the Swine 
Contract Library (SCL). The statutory authority for the library lapsed 
on September 30, 2005. On October 5, 2006, the Livestock Mandatory 
Reporting Reauthorization Act (Reauthorization Act) reauthorized the 
1999 Act until September 30, 2010, and also amended the swine reporting 
requirements of the 1999 Act. This final rule re-establishes the 
regulatory authority for the SCL's continued operation and incorporates 
certain changes contained within the Reauthorization Act that impact 
the SCL, as well as makes other changes to enhance the SCL's overall 
effectiveness and efficiency in response to input from regulated 
entities and the public.

DATES: Effective Date: May 3, 2010.

FOR FURTHER INFORMATION CONTACT: S. Brett Offutt, Director, Policy and 
Litigation Division, P&SP, GIPSA, 1400 Independence Ave., SW., 
Washington, DC 20250, (202) 720-7363, s.brett.offutt@usda.gov.

SUPPLEMENTARY INFORMATION: 

Background

    GIPSA is responsible for the enforcement of the Packers and 
Stockyards Act of 1921, as amended and supplemented, (7 U.S.C. 181 et 
seq.) (P&S Act). Under authority delegated to GIPSA by the Secretary of 
Agriculture (Secretary) in section 407(a) of the P&S Act (7 U.S.C. 
228), we are authorized to create regulations necessary to carry out 
the provisions of the P&S Act.
    The 1999 Act (Pub. L. 106-78) amended Title II of the P&S Act to 
include Subtitle B--Swine Packer Marketing Contracts. The 1999 Act 
mandated the creation and maintenance of a library of marketing 
contracts offered by certain packers to producers for the purchase of 
swine. To implement this legislation, GIPSA established the SCL and 
promulgated SCL regulations (9 CFR Part 206) requiring that packers, as 
defined in Subtitle B of Title II of the P&S Act, file example 
marketing contracts with GIPSA along with monthly estimates of the 
number of swine to be delivered under contract. GIPSA compiles this 
information and makes summary reports available to the public.
    On October 22, 2004, the 1999 Act expired and was not reauthorized 
until December 3, 2004 (Pub. L. 108-444). Authority for the 1999 Act 
was extended, however, to September 30, 2005. The 1999 Act lapsed again 
in 2005 and was reauthorized and amended on October 5, 2006, when the 
Reauthorization Act (Pub. L. 109-296) was signed into law. The 1999 Act 
is scheduled to once again expire on September 30, 2010.
    When the 1999 Act expired in October 2004, GIPSA asked swine 
packers to continue to comply with the SCL regulations voluntarily. 
With the information submitted voluntarily by packers, GIPSA continued 
to make summary reports available to the public.

Notice of Proposed Rulemaking and Final Action

    GIPSA published a Notice of Proposed Rulemaking in the Federal 
Register on October 26, 2009 (74 FR 54928), inviting interested parties 
to comment on the re-authorization of the SCL regulations. GIPSA 
received no comments on the proposed rule during the comment period 
that ended on December 28, 2009. Accordingly, GIPSA is publishing the 
final rule as it was proposed.
    This final rule re-establishes authority for the SCL regulations (9 
CFR Part 206) by amending the regulations' authority citation to 
include Subtitle B of Title II of the P&S Act (7 U.S.C. 198-198b). In 
addition to amending the SCL regulations to make them consistent with 
the Reauthorization Act, we are also amending the SCL regulations to 
incorporate suggestions received from the public and regulated 
entities. Specifically, we are doing the following:
    (1) Revising the definition of ``packer'' to be consistent with the 
Reauthorization Act;
    (2) Revising the definitions of several contract types;
    (3) Adding definitions of terms used in several contract types to 
describe the market price that is being paid for swine;
    (4) Adding a new requirement that an example contract submission, a 
notification of contract expiration, and a notification of a contract 
withdrawal include a standard cover sheet; and
    (5) Adding a waiver for packers that do not utilize marketing 
contracts.
    The purpose of these amendments is to make the information 
collected more uniform and more useful, while reducing the burden on 
the reporting entities.

Options Considered

    We considered asking packers to continue to voluntarily comply with 
regulations that are not enforceable and are no longer consistent with 
the authorizing legislation. Since that is not a viable option, we have 
no alternative but to revise the SCL regulations to carry out 
provisions of the P&S Act.
    In addition, we considered not waiving the requirement that packers 
that do not purchase swine under contract report information to GIPSA 
for the SCL. We also considered a waiver of longer than 1 year, but did 
not wish to provide such a blanket waiver since business conditions 
change over time. Packers with a waiver that commence purchasing swine 
under marketing contracts will now be required to begin filing 
contracts on the first business day of the following month as described 
in Sec.  206.2, and commence submitting monthly reports as required by 
Sec.  206.3 of the regulations.

[[Page 16642]]

Effects on Regulated Entities

    Under this final rule, the reporting burden for most packers will 
remain about the same or be slightly less than the reporting burden for 
the expired SCL regulations. Swine packers will have to comply with 
regulations that they have complied with in the past. We anticipate 
that 35 swine packers that operate or have swine slaughtered at 55 
plants will be required to comply with the SCL regulations. This 
represents only 8.5 percent of all federally inspected swine plants; 
the others do not meet the size and capacity definition of ``packer'' 
for the purpose of this final rule. Nearly half of the 35 swine packers 
now comply with the SCL requirements voluntarily. Three of the entities 
that will be subject to this proposed rule are new respondents, and 
their anticipated burden is under 4 hours to initiate the reporting 
process. For the 32 remaining swine packers, the expected burden is .25 
hours per packing plant to submit an example of each new or amended 
contract to GIPSA.
    The change in the definition of the term ``packer'' will require 
reporting by one additional firm. That firm otherwise does not meet the 
previous size and capacity definition of ``packer.''
    This final rule will benefit swine producers by increasing their 
knowledge about contract terms and the number of swine under contract, 
improve market transparency, and gives swine producers the ability to 
make more informed marketing decisions. GIPSA believes that market 
transparency facilitates market efficiency by reducing price 
information search costs for market participants. Availability of 
market information also contributes to considerations of equity and 
fairness in the marketplace.

Executive Order 12866 and Regulatory Flexibility Act

    The Office of Management and Budget (OMB) has designated this final 
rule as not significant for the purposes of Executive Order 12866.
    We have determined that this final rule will not have a significant 
economic impact on a substantial number of small entities as defined in 
the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This final rule 
will apply to approximately 35 packers operating at 55 plants. This 
represents only 8.5 percent of all federally inspected swine plants; 
the others are too small to meet the size and capacity definition of 
the term ``packer'' for the purpose of this proposed rule. Of those 35 
packers, 18 have fewer than 500 employees and will therefore meet the 
applicable size standard for small entities in the Small Business 
Administration (SBA) regulations (13 CFR 121.201). For the North 
American Industry Classification System (NAICS) code 311611 ``Animal 
(except poultry) Slaughtering,'' the SBA size standard is 500 
employees. However, the firms to which this final rule applies are the 
largest of the firms in this industry that meet the size standard for 
small businesses. We estimate that eight of those 18 small entities 
will be eligible for an annual waiver, thus reducing the required 
reporting burden on those entities from 12 monthly reports to one 
annual waiver request. For the remaining 10 small entities that are not 
eligible for a waiver, the requirement to submit marketing contracts to 
GIPSA is estimated at .25 hours (15 minutes) per contract. The monthly 
report is estimated to average 2 hours per report when prepared and 
submitted by mail or facsimile, and 1 hour per report when prepared and 
submitted electronically, which does not represent a significant 
economic burden or impact.
    The change in the definition of the term ``packer'' will require 
reporting by one additional firm that does not otherwise meet the 
previous size and capacity definition of ``packer.''
    This final rule requires that swine packers submit certain 
information to GIPSA. It does not impose any restrictions on the form, 
timing, or location of contracts in which regulated entities may 
engage. It places no additional burden or limit on current or future 
business relationships into which affected firms may enter.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. These actions are not intended to have retroactive 
effect. This final rule will not pre-empt state or local laws, 
regulations, or policies, unless they present an irreconcilable 
conflict with this rule. In addition, the 1999 Act, as amended, does 
not restrict or modify the authority of the Secretary to administer or 
enforce the P&S Act, as amended. There are no administrative procedures 
that must be exhausted prior to any judicial challenge to the 
provisions of this rule.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.), this information collection package (0580-0021) 
was approved by OMB on March 7, 2010, and expires on March 31, 2013.

E-Government Act Compliance

    GIPSA is committed to complying with the E-Government Act, to 
promote the use of the Internet and other information technologies to 
provide increased opportunities for citizen access to Government 
information and services, and for other purposes.

List of Subjects in 9 CFR Part 206

    Swine, Reporting and recordkeeping requirements.


0
For the reasons set forth in the preamble, we are amending 9 CFR 
Chapter II as follows:
0
1. Revise Part 206 to read as follows:

PART 206--SWINE CONTRACT LIBRARY

Sec.
206.1 Definitions.
206.2 Swine contract library.
206.3 Monthly report.

    Authority:  7 U.S.C. 198-198b; 7 U.S.C. 222.


Sec.  206.1  Definitions.

    The definitions in this section apply to the regulations in this 
part. The definitions in this section do not apply to other regulations 
issued under the Packers and Stockyards Act (P&S Act) or to the P&S Act 
as a whole.
    Accrual account. (Synonymous with the term ``ledger,'' as defined 
in this section.) An account held by a packer on behalf of a producer 
that accrues a running positive or negative balance as a result of a 
pricing determination included in a contract that establishes a minimum 
and/or maximum level of base price paid. Credits and/or debits for 
amounts beyond these minimum and/or maximum levels are entered into the 
account. Further, the contract specifies how the balance in the account 
affects producer and packer rights and obligations under the contract.
    Base price. The price paid for swine before the application of any 
premiums or discounts, expressed in dollars per unit.
    Boar. A sexually-intact male swine.
    Ceiling price. The maximum market price that will be paid for 
swine. Adjustments may be made to the base price if the market price 
rises above this price.
    Contract. Any agreement, whether written or verbal, between a 
packer and a producer for the purchase of swine for slaughter, except a 
negotiated purchase (as defined in this section).
    Contract type. The classification of contracts or risk management 
agreements for the purchase of swine committed to a packer, by the 
determination of the base price and the

[[Page 16643]]

presence or absence of an accrual account or ledger (as defined in this 
section). The contract type categories are:
    (1) Swine or pork market formula purchases with a ledger,
    (2) Swine or pork market formula purchases without a ledger,
    (3) Other market formula purchases with a ledger,
    (4) Other market formula purchases without a ledger,
    (5) Other purchase arrangements with a ledger, and
    (6) Other purchase arrangements without a ledger.
    Floor price. The minimum market price that will be paid for swine. 
Adjustments may be made to the base price if the market price falls 
below this price.
    Formula price. A price determined by a mathematical formula under 
which the price established for a specified market serves as the basis 
for the formula.
    Ledger. (Synonymous with ``accrual account,'' as defined in this 
section.) An account held by a packer on behalf of a producer that 
accrues a running positive or negative balance as a result of a pricing 
determination included in a contract that establishes a minimum and/or 
maximum level of base price paid. Credits and/or debits for amounts 
beyond these minimum and/or maximum levels are entered into the 
account. Further, the contract specifies how the balance in the account 
affects producer and packer rights and obligations under the contract.
    Negotiated purchase. A purchase, commonly known as a ``cash'' or 
``spot market'' purchase, of swine by a packer from a producer under 
which:
    (1) The buyer-seller interaction that results in the transaction 
and the agreement on actual base price occur on the same day; and
    (2) The swine are scheduled for delivery to the packer not later 
than 14 days after the date on which the swine are committed to the 
packer.
    Noncarcass merit premium or discount. An increase or decrease in 
the price for the purchase of swine made available 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 or 
discount is known before the purchase and delivery of the swine.
    Other market formula purchase. A purchase of swine by a packer in 
which the pricing determination is a formula price based on any market 
other than the markets for swine, pork, or a pork product. This 
includes a formula purchase where the price formula is based on one or 
more futures or options contracts.
    Other purchase arrangement. 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. 
This contract type includes long term contract agreements, fixed price 
contracts, cost of production formulas, and formula purchases with a 
floor, window or ceiling price.
    Packer. 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. The regulations in this part apply only to a 
packer that meets the conditions in either paragraph (1) or (2) of this 
definition:
    (1) A packer purchasing at least 100,000 swine per year and 
slaughtering swine at one or more federally inspected processing plants 
that meet either of the following conditions:
    (i) A swine processing plant that slaughtered an average of at 
least 100,000 head of swine per year during the immediately preceding 5 
calendar years, with the average based on those periods in which the 
plant slaughtered swine; or
    (ii) A 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.
    (2) Any packer purchasing an average of at least 200,000 sows, 
boars, or any combination thereof, per year and slaughtering at least 
200,000 sows, boars, or any combination thereof at one or more 
federally inspected processing plants during the immediately preceding 
5 calendar years, with the average based on those periods in which the 
plant slaughtered swine.
    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).
    Sow. An adult female swine that has produced one or more litters.
    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 mechanism is a formula price based on a 
market for swine, pork, or pork product, other than any formula 
purchase with a floor, window or ceiling price, or a futures or option 
contract for swine, pork, or a pork product.
    Window price. The range of market prices that will be paid for 
swine. Adjustments may be made to the base price if the market prices 
fall outside this range. The window price contains both the floor and 
ceiling prices.


Sec.  206.2  Swine contract library.

    (a) Do I need to provide swine contract information? Each packer, 
as defined in Sec.  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, alone or in combination with other 
plants, specified in the definition of packer in Sec.  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 Sec.  206.1. 
This initial submission of example contracts is due to GIPSA on the 
first business day of the month following the determination that the 
plant has the slaughtering capacity, alone or in combination with other 
plants, specified in the definition of packer in Sec.  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 1 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 Sec.  206.1.
    (d) What criteria do I use to select example 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

[[Page 16644]]

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, notifications required by this section, and Form 
P&SP 342, Contract Submission Cover Sheet, 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 (https://www.gipsa.usda.gov) or at USDA GIPSA, Suite 317, 210 
Walnut Street, Des Moines, Iowa 50309.
    (2) Printed report. Each packer that chooses to submit printed 
example contracts and notifications must deliver the printed contracts 
and notifications to USDA GIPSA, Suite 317, 210 Walnut Street, Des 
Moines, Iowa 50309.
    (f) What information from the swine contract library will be made 
available to the public? GIPSA will summarize the information it has 
received on contract terms, including, but not limited to, base price 
determination and the schedules of premiums or discounts. GIPSA will 
make the information available by region and contract type, as defined 
in Sec.  206.1, for public release 1 month after the initial submission 
of contracts. 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).
    (g) How can I review information from the swine contract library? 
The information will be available on the Internet on the GIPSA Web site 
(https://www.gipsa.usda.gov) and at USDA GIPSA, Suite 317, 210 Walnut 
Street, Des Moines, Iowa 50309. The information will be updated as 
GIPSA receives information from packers.
    (h) What do I need to do when a previously submitted example 
contract is no longer a valid example due to contract changes, 
expiration, or withdrawal? Each packer must submit a new example 
contract when contract changes result in changes to any of the four 
example-contract criteria specified in paragraph (d) of this section 
and notify GIPSA if the new example contract replaces the previously 
submitted example contract. Each packer must notify GIPSA when an 
example contract no longer represents any existing or available 
contract (expired or withdrawn). Each packer must submit these example 
contracts and notifications within 1 business day of the change, 
expiration, or withdrawal.


Sec.  206.3  Monthly report.

    (a) Do I need to provide monthly reports? Each packer, as defined 
in Sec.  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, alone or in combination with other plants, 
specified in the definition of packer.
    (b) When is the monthly report due? Each packer must send a 
separate monthly report for each plant that has the slaughtering 
capacity, alone or in combination with other plants specified in the 
definition of packer in Sec.  206.1. Each packer must deliver the 
report to the GIPSA Regional Office in Des Moines, Iowa, by the close 
of business on the 15th of each month, beginning at least 45 days after 
the initial submission of example contracts. If the 15th day of a month 
falls on a Saturday, Sunday, or federal holiday, the monthly report is 
due no later than the close of the next business day following the 
15th.
    (c) What information do I need to provide in the monthly report? 
The monthly report that each packer files must be reported on Form 
P&SP-341, which will be available on the Internet on the GIPSA Web site 
(https://www.gipsa.usda.gov) and at USDA GIPSA, Suite 317, 210 Walnut 
Street, Des Moines, Iowa 50309. In the monthly report, each packer must 
provide the following information:
    (1) Number of swine to be delivered under existing contracts. 
Existing contracts are contracts the packer currently is using for the 
purchase of swine for slaughter at each plant. Each packer must provide 
monthly estimates of the number of swine committed to be delivered 
under all of its existing contracts (even if those contracts are not 
currently available for renewal or to additional producers) in each 
contract type as defined in Sec.  206.1.
    (2) Available contracts. Available contracts are the contracts the 
packer is currently making available to producers, or is making 
available for renewal to currently contracted producers, for the 
purchase of swine for slaughter at each plant. On the monthly report, a 
packer will indicate each contract type, as defined in Sec.  206.1, 
that the packer is currently making available.
    (3) Estimates of committed swine. Each packer must provide an 
estimate of the total number of swine committed under existing 
contracts for delivery to 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 Sec.  
206.1.
    (4) Expansion 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) Maximum 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 Sec.  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 reported 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 must 
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

[[Page 16645]]

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 (https://www.gipsa.usda.gov) or at USDA GIPSA, 
Suite 317, 210 Walnut Street, Des Moines, Iowa 50309.
    (2) Printed report. Each packer may deliver its printed monthly 
report to USDA GIPSA, Suite 317, 210 Walnut Street, Des Moines, Iowa 
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 first business day of each 
month. The monthly reports will be available on the Internet on the 
GIPSA Web site (https://www.gipsa.usda.gov) and at USDA GIPSA, Suite 
317, 210 Walnut Street, Des Moines, Iowa 50309.
    (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.
    (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.
    (h) Where and how do I file a waiver request? The waiver request 
must be submitted in writing and include a statement that the packer 
does not procure swine using marketing agreements. The packer must send 
the waiver request to the GIPSA Regional Office in Des Moines, Iowa. If 
the waiver request is approved, GIPSA will inform the packer in writing 
that it has been granted a waiver for 12 months following the date of 
receipt of the waiver request unless the status of the packer changes 
during that year. The packer will be notified to submit the information 
required in this part if it begins using marketing agreements during 
the waiver period or if GIPSA determines that the packer utilizes 
marketing agreements.

J. Dudley Butler,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 2010-7382 Filed 4-1-10; 8:45 am]
BILLING CODE 3410-KD-P