Livestock Mandatory Reporting: Reauthorization of Livestock Mandatory Reporting and Revision of Swine and Lamb Reporting Requirements, 10132-10138 [2016-03956]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 81, Number 39 (Monday, February 29, 2016)]
[Proposed Rules]
[Pages 10132-10138]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-03956]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 81, No. 39 / Monday, February 29, 2016 / 
Proposed Rules

[[Page 10132]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 59

[Doc. AMS-LPS-15-0070]
RIN 0581-AD45


Livestock Mandatory Reporting: Reauthorization of Livestock 
Mandatory Reporting and Revision of Swine and Lamb Reporting 
Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: On April 2, 2001, the U.S. Department of Agriculture's (USDA) 
Agricultural Marketing Service (AMS) implemented the Livestock 
Mandatory Reporting (LMR) program as required by the Livestock 
Mandatory Reporting Act of 1999 (1999 Act). The LMR program was 
reauthorized in October 2006 and September 2010. On September 30, 2015, 
the Agriculture Reauthorizations Act of 2015 (2015 Reauthorization Act) 
reauthorized the LMR program for an additional 5 years until September 
30, 2020, and directed the Secretary of Agriculture (Secretary) to 
amend the LMR swine reporting requirements. In addition, the lamb 
industry requested revisions to the lamb reporting requirements as 
authorized through the 1999 Act. This proposed rule would incorporate 
the requested lamb reporting revisions, and would incorporate the swine 
reporting revisions contained within the 2015 Reauthorization Act under 
the Agricultural Marketing Act of 1946, USDA Livestock Mandatory 
Reporting regulations.

DATES: Comments must be received by April 29, 2016. Pursuant to the 
Paperwork Reduction Act (PRA), comments on the information collection 
burden that would result from this rule must be received by April 29, 
2016.

ADDRESSES: Comments should be submitted electronically at https://www.regulations.gov. Comments may also be sent to Michael Lynch, 
Director; Livestock, Poultry, and Grain Market News Division; 
Livestock, Poultry, and Seed Program; AMS, USDA, Room 2619-S, STOP 
0252; 1400 Independence Avenue SW., Washington, DC 20250-0251; 
telephone (202) 720-4868; fax (202) 690-3732; or email to 
Michael.Lynch@ams.usda.gov.
    Comments should reference docket number AMS-LPS-15-0070 and the 
date and page number of this issue of the Federal Register. Submitted 
comments will be available for public inspection at https://www.regulations.gov, or during regular business hours at the above 
address. Please be advised that the identity of the individuals or 
entities submitting the comments will be made public on the Internet at 
the address provided above.
    Comments that specifically pertain to the information collection 
and recordkeeping requirements of this action should also be sent to 
the Desk Officer for Agriculture, Office of Information and Regulatory 
Affairs, Office of Management and Budget, New Executive Office 
Building, 725 17th Street NW., Room 725, Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Michael Lynch, Director; Livestock, 
Poultry, and Grain Market News Division; Livestock, Poultry, and Seed 
Program; AMS, USDA, Room 2619-S, STOP 0252; 1400 Independence Avenue 
SW., Washington, DC 20250-0251; Telephone (202) 720-4868; Fax (202) 
690-3732; or email to Michael.Lynch@ams.usda.gov.

SUPPLEMENTARY INFORMATION: 

I. Background

    The 1999 Act was enacted into law on October 22, 1999, [Pub. L. 
106-78; 113 Stat. 1188; 7 U.S.C. 1635-1636(i)] as an amendment to the 
Agricultural Marketing Act of 1946, as amended (7 U.S.C. 1621 et seq.). 
On April 2, 2001, the AMS Livestock, Poultry, and Seed Program's (LPS) 
Livestock, Poultry, and Grain Market News Division (LPGMN) implemented 
the LMR program as required by the 1999 Act. The purpose was to 
establish a program of easily understood information regarding the 
marketing of cattle, swine, lambs, and livestock products; improve the 
price and supply reporting services of the USDA; and encourage 
competition in the marketplace for livestock and livestock products. 
The LMR regulations (7 CFR part 59) set the requirements for packers or 
importers to submit purchase and sales information of livestock and 
livestock products to meet this purpose.
    The statutory authority for the program lapsed on September 30, 
2005. In October 2006, Congress passed the Livestock Mandatory 
Reporting Reauthorization Act (2006 Reauthorization Act) [Pub. L. 109-
296]. The 2006 Reauthorization Act re-established the regulatory 
authority for the continued operation of LMR through September 30, 
2010. On July 15, 2008, the LMR final rule became effective (73 FR 
28606, May 16, 2008).
    On September 28, 2010, Congress passed the Mandatory Price 
Reporting Act of 2010 (2010 Reauthorization Act) [Pub. L. 111-239]. The 
2010 Reauthorization Act reauthorized LMR for an additional 5 years 
through September 30, 2015. On January 7, 2013, the LMR final rule 
became effective (77 FR 50561, August 22, 2012).
    On September 30, 2015, the Agriculture Reauthorizations Act of 2015 
(2015 Reauthorization Act) [Pub. L. 114-54] was enacted which 
reauthorized the LMR program for an additional 5 years through 
September 30, 2020, and amended the reporting requirements for 
reporting of swine purchase types and late afternoon swine purchases. 
In addition, at the request of the lamb industry, this proposed rule 
includes amended definitions for packer owned lambs and lambs committed 
for delivery, and a provision for adding lamb pelts as a reporting 
requirement.
    This proposed rule would incorporate the swine reporting revisions 
contained within the 2015 Reauthorization Act and the lamb reporting 
revisions as proposed by the lamb industry, under the USDA LMR 
regulations.

II. Proposed Revisions

    Under the LMR regulations, certain cattle, swine and lamb packers 
and processors, and lamb importers are required to report purchases of 
livestock for slaughter and sales of meat products to AMS. This 
proposed rule would amend the LMR regulations for swine reporting and 
lamb reporting requirements as described below.

Swine

    The swine reporting requirement revisions within this proposed rule 
are

[[Page 10133]]

authorized through the 2015 Reauthorization Act. This proposed rule 
would minimally increase the reporting burden for swine packers.
    Currently, swine packers are required to report purchase data by 
four types of purchase: Negotiated purchase, other market formula 
purchase, swine or pork market formula purchase, or other purchase 
arrangement. A negotiated purchase is a cash or spot market purchase by 
a packer under which the base price for the swine is determined by 
seller-buyer interaction and agreement on a delivery day; and the swine 
are scheduled for delivery to the packer not more than 14 days after 
the date on which the swine are committed to the packer. Other market 
formula purchase is 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; and includes a formula 
purchase in a case where the price formula is based on one or more 
futures or options contracts. A swine or pork market formula purchase 
is 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 pork product. Other 
purchase arrangement is 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.
    The 2015 Reauthorization Act amended the swine reporting 
requirements, subpart C of part 59, by adding an additional purchase 
type definition for negotiated formula purchases of swine, which 
requires swine packers to report swine purchased on a negotiated 
formula basis as a separate purchase type. As defined in Sec.  59.200, 
the term ``negotiated formula'' is a swine or pork market formula 
purchase under which the formula is determined by negotiation on a lot-
by-lot basis, and swine are scheduled for delivery to the packer not 
later than 14 days after the date on which the formula is negotiated 
and swine are committed to the packer. Packers would be required to 
report any swine purchased in this manner as a negotiated formula 
purchase.
    Adding a negotiated formula purchase type would provide market 
participants with more specific information about the various purchase 
methods used in the daily marketing of swine and a better understanding 
of the marketplace concerning formulated prices and spot negotiated 
prices.
    Currently, packers are required to report purchase data for barrows 
and gilts for a morning report not later than 10 a.m. central time, and 
an afternoon report not later than 2 p.m. central time. The information 
to be reported is the same for the morning and afternoon reports and 
includes an estimate of the total number of barrows and gilts purchased 
by each type of purchase, the total number of barrows and gilts 
purchased, and the base price paid for all negotiated purchases of 
barrows and gilts and the base price paid for each type of purchase of 
barrows and gilts other than through a negotiated purchase. This 
information must be submitted for all covered transactions made up to 
within one half hour of each specified reporting time. Packers 
completing transactions during the half hour prior to the previous 
reporting time report those transactions at the next prescribed 
reporting time.
    The 2015 Reauthorization Act directed the Secretary to include in 
the morning and afternoon daily reports for the following day, the 
purchase information for any barrows and gilts purchased or priced 
after the afternoon reporting time of the current reporting day. Under 
this proposed rule, the required information to be reported would 
remain the same for the morning and afternoon reports; however, the LMR 
regulations for the morning report requirements under Sec.  59.202 
would be amended to require packers to report purchase data for barrows 
and gilts purchased after 1:30 p.m. central time of the previous 
reporting day and up to that time of the reporting day for the total 
number of barrows and gilts purchased, and the base price paid for all 
negotiated purchases of barrows and gilts and the base price paid for 
each type of purchase of barrows and gilts other than through a 
negotiated purchase. Under this proposed rule, the LMR regulations for 
the afternoon reporting requirements would remain unchanged. The 
inclusion of the late in the day swine purchase information in the 
following day's reports would increase the volume of barrows and gilts 
shown in the daily morning and afternoon purchase reports and better 
represent the daily market conditions.

Lamb

    Since the implementation of LMR in 2001 and its subsequent 
revisions, the U.S. lamb industry has become more concentrated at all 
levels of the production system through consolidation, impacting AMS' 
ability to publish certain market information in accordance with the 
confidentiality provisions of the 1999 Act. To help address this issue, 
the Livestock Marketing Information Center, an independent provider of 
economic analyses concerning the livestock industry, conducted an 
analysis of the current LMR program for lamb reporting in 2013 at the 
request of the American Sheep Industry Association, an industry 
organization representing sheep producers throughout the U.S.\1\ Based 
on this study, recommendations were proposed to amend the current LMR 
regulations to improve the price and supply reporting services of AMS 
and better align LMR lamb reporting requirements with current industry 
marketing practices. These recommendations are the basis for the lamb 
reporting changes as proposed by the lamb industry for this proposed 
rule.
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    \1\ Hearing to Review Reauthorization of the Livestock Mandatory 
Reporting Act: Hearing before the Subcommittee on Livestock and 
Foreign Agriculture of the Committee on Agriculture, House of 
Representatives, 114th Cong., 1st sess. (Serial No. 114-12). (2015). 
Retrieved from GPO's Federal Digital System: https://www.gpo.gov/fdsys/pkg/CHRG-114hhrg94372/pdf/CHRG-114hhrg94372.pdf.
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    Proposed revisions to the lamb reporting requirements, subpart D of 
part 59, include an amended definition under Sec.  59.300 for the term 
``packer-owned lambs.'' Currently, the term ``packer-owned lambs'' 
includes lambs owned by a packer for at least 14 days immediately 
before slaughter. The amended definition would cover those lambs that 
are owned by a packer for at least 28 days immediately before 
slaughter. Proposed revisions to the lamb reporting requirements also 
include a new definition under Sec.  59.300 for the term ``lambs 
committed'' and require packers under Sec.  59.302 to report quantity 
and delivery period for all lambs committed to be delivered to the 
packer. The term ``lambs committed'' means lambs intended to be 
delivered to a packer beginning on the date of an agreement to sell the 
lambs. In 2008 (73 FR 28606, May 16, 2008), a different definition for 
the term ``lambs committed'' was deleted in the LMR regulations at the 
request of the lamb industry because it was not applicable at the time. 
However, since that time, lamb industry supply and demand related 
issues underscored the need for market participants to be more informed 
of specific types of lamb market data not available through other USDA 
agencies. Therefore, packers would report ``lambs committed'' and 
``packer-owned lambs'' under the updated definitions in this proposed 
rule to meet this industry request and improve transparency in the 
marketplace. These revisions would minimally increase the reporting 
burden for lamb packers.

[[Page 10134]]

    Under this proposed rule, lamb reporting requirements would also be 
amended to require packers under Sec.  59.302 to report price, volume, 
and classification descriptors for all lamb pelts from lambs purchased 
on a negotiated purchase, formula marketing arrangement, or forward 
contract basis. As would be defined under this proposed rule in Sec.  
59.300, the term ``pelt'' means the skin and attached wool from a sheep 
or lamb carcass. In recent years, consolidation within the lamb packing 
and pelt processing industries has presented increased challenges for 
AMS in reporting consistent weekly market information on a voluntary 
basis for pelts marketed from the lamb packers to the pelt processors. 
Under this proposed rule, packers would be required to report weekly 
prices and volumes paid to the producer for each specific 
classification category of pelts in a given lot. This requirement would 
provide lamb producers more accurate information on the total value of 
lambs marketed for slaughter while minimally increasing the reporting 
burden for lamb packers.

Appendices

    The final section of this document contains four appendices. These 
appendices will not appear in the Code of Federal Regulations. 
Appendices A and B list the forms that would be used by swine and lamb 
packers required to report information under the LMR program. Appendix 
C provides a description of the forms, while appendix D contains the 
actual reporting forms. Amendments to two swine reporting forms, LS-118 
Swine Prior Day Report and LS-119 Swine Daily Report, were made to 
include the new purchase type proposed under this rule, ``negotiated 
formula purchase.'' Only one form for swine reporting, LS-119 Swine 
Daily Report, requires an amendment to the description of the form to 
include the reporting of the late afternoon purchased barrows and gilts 
from the previous reporting day in the following reporting day's daily 
reports, as contained in appendix C. Amendments to one lamb reporting 
form, LS-123 Lamb Weekly Report, were made to include the volume and 
delivery period information needed for reporting lambs committed for 
delivery. In addition, a new form, LS-133 Lamb Pelts Weekly Report, was 
created to facilitate the reporting of information on lamb pelts.

III. Classification

Executive Order 12866 and Executive Order 13563

    This proposed rule is being issued by USDA with regard to the LMR 
program in conformance with Executive Orders 12866 and 13563.
    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives, and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility.
    This action has been designated as a ``non-significant regulatory 
action'' under section 3(f) of Executive Order 12866. Accordingly, the 
Office of Management and Budget (OMB) has waived the review process for 
this action.

Regulatory Flexibility Act

    In General. This proposed rule has been reviewed under the 
requirements of the Regulatory Flexibility Act (RFA) (5 U.S.C. 601-
612). The purpose of 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. Information is only available directly from those entities 
required to report under these regulations and exists nowhere else. 
Therefore, this proposed rule does not duplicate market information 
reasonably accessible to the USDA.
    Objectives and Legal Basis. The objective of this proposed rule is 
to improve the price and supply reporting services of the USDA in order 
to encourage competition in the marketplace for swine and lambs as 
specifically directed by the 2015 Reauthorization Act and the lamb 
industry requested revisions as authorized through the 1999 Act and 
these regulations, as described in detail in the background section.
    Estimated Number of Small Businesses. For this regulatory 
flexibility analysis, AMS utilized the North American Industry 
Classification System (NAICS), which is the standard used by federal 
statistical agencies to classify business establishments for the 
purpose of collecting, analyzing, and publishing statistical data 
related to the U.S. business economy. This analysis compares the size 
of meat packing companies to the NAICS standards to determine the 
percentage of small businesses within the industry affected by this 
proposed rule. Under these size standards, meat packing companies with 
500 or less employees are considered small business entities.\2\
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    \2\ North American Industry Classification System, code 311611 
for abattoirs.
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    This proposed rule would amend the reporting requirements for swine 
packers by adding a new purchase type for negotiated formula purchases 
of barrows and gilts, and including late afternoon purchases of barrows 
and gilts from the previous reporting day in the morning and afternoon 
daily reports of the current reporting day. For swine packers, this 
proposed rule would apply only to federally inspected swine processing 
facilities 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 slaughter swine during the immediately preceding 
5 calendar years, it would 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.
    Approximately 36 individual pork packing companies representing a 
total of 55 individual plants are required to report information to 
AMS. Based on the NAICS size standard for meat packing companies with 
500 or less employees, AMS estimates that 24 of these 36 pork packing 
companies would be considered small businesses, representing 27 
individual plants that are required to report. The figure of 55 plants 
required to report represents 8.9 percent of the federally inspected 
swine plants in the United States. The remaining 91.1 percent of swine 
plants, nearly all estimated to qualify as small business, are exempt 
from mandatory reporting.
    To implement the swine reporting changes in this proposed rule, AMS

[[Page 10135]]

estimated the total annual burden on each swine packer to be $108 which 
includes the annual share of initial startup costs of $415. There is no 
annual cost increase associated with electronically submitting data or 
for the storage and maintenance of electronic files submitted to AMS 
due to the changes in this proposed rule.
    For lamb reporting, this proposed rule would require packers to 
report quantity and delivery period for all lambs committed to be 
delivered to the packer beginning on the date of an agreement to sell 
the lambs. In addition, lamb packers would be required to report price, 
volume, and classification descriptors for all lamb pelts from lambs 
purchased from producers. Under the 2015 Reauthorization Act, a lamb 
packer includes any person with 50 percent or more ownership in a 
facility that slaughtered or processed an average of 35,000 lambs 
during the immediately preceding 5 calendar years, or that did not 
slaughter or process an average of 35,000 lambs during the immediately 
preceding 5 calendar years if the Secretary determines that the 
processing plant should be considered a packer after considering its 
capacity.
    The LMR regulations require 10 lamb packers to report information, 
which is less than 2 percent of all federally inspected lamb plants. 
Therefore, approximately 98 percent of lamb packers are exempt from 
reporting information by this proposed rule. Based on the NAICS size 
standard for meat packing companies with 500 or less employees and its 
knowledge of the lamb industry, AMS estimates that all lamb packing 
companies currently required to report under LMR would be considered 
small businesses. To implement the lamb reporting changes in this 
proposed rule, AMS estimated the total annual burden on each lamb 
packer to be $216 which includes the annual share of initial startup 
costs of $830. There is no annual cost increase associated with 
electronically submitting data, or for the storage and maintenance of 
electronic files submitted to AMS due to the changes in this proposed 
rule.
    Projected Reporting. The LMR regulations require the reporting of 
specific market information regarding the buying and selling of 
livestock and livestock products. This information is reported to AMS 
by electronic means and the adoption of this proposed rule will not 
affect this requirement. 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. Once the required 
information has been entered into the AMS database, it is aggregated 
and processed into various market reports which are released according 
to the daily and weekly time schedule set forth in the LMR regulations. 
As an alternative, AMS also developed and made available web-based 
input forms for submitting data online as AMS found that some of the 
smaller entities covered under mandatory price reporting would benefit 
from such a web-based submission system.
    Each packer and importer required to report information to USDA 
under LMR 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 to maintain and 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, and to maintain these records for a minimum of 2 years. 
Packers and importers are not required to report any other new or 
additional information they do not generally have available or 
maintain. Further, they are not required to keep any information that 
would prove unduly burdensome to maintain.
    In addition, AMS has not identified any relevant federal rules 
currently in effect that duplicate, overlap, or conflict with this 
rule. Professional skills required for recordkeeping under the LMR 
regulations are not different than those already employed by the 
reporting entities. Reporting is accomplished using computers or 
similar electronic means. This proposed rule does not affect the 
professional skills required for recordkeeping 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 proposed rule would require swine and lamb 
packing plants of a certain size to report information to the Secretary 
at prescribed times throughout the day and week. The 1999 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 of the economic impact of this proposed 
rule on those small entities required to report involves the manner in 
which information must be reported to the Secretary. However, in 
developing this proposed rule, AMS considered other means by which the 
objectives of this proposed rule could be accomplished, including 
reporting the required information by telephone, facsimile, and regular 
mail. 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 and regulation.
    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 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 between 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 and minimize the burden on them to the 
maximum extent practicable.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), we have included the changes in reporting and 
recordkeeping requirements for 7 CFR part 59 associated with this 
action into the program's request for an extension of a currently 
approved information collection for OMB 0581-0186 (Commodities Covered 
by the Livestock Mandatory Reporting Act of 1999).

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This proposed 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

[[Page 10136]]

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 proposed 
rule.

Civil Rights Review

    AMS has considered the potential civil rights implications of this 
proposed 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 proposed rule does not require affected entities 
to relocate or alter their operations in ways that could adversely 
affect such persons or groups. Further, this proposed rule will not 
deny any persons or groups the benefits of the program or subject any 
persons or groups to discrimination.

Executive Order 13132

    This proposed 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 proposed 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 federal LMR 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.

Executive Order 13175

    This proposed rule has been reviewed in accordance with the 
requirements of Executive Order 13175, Consultation and Coordination 
with Indian Tribal Governments. AMS has considered the potential 
implications of this proposed rule to ensure this regulation will not 
have substantial and direct effects on Tribal governments and will not 
have significant Tribal implications.

List of Subjects in 7 CFR Part 59

    Cattle, Hogs, Lamb, Livestock, Sheep, Swine.

    For the reasons set forth in the preamble, it is proposed that 
title 7, part 59 be amended as follows:

PART 59--LIVESTOCK MANDATORY REPORTING

0
1. The authority citation for 7 CFR part 59 continues to read as 
follows:

    Authority:  7 U.S.C. 1635-1636i.

0
2. Amend Sec.  59.200 by:
0
a. Adding a definition for ``Negotiated formula purchase;''
0
b. Revising the definition of ``Other purchase arrangement;'' and
0
c. Revising paragraphs (3) and (4) and adding paragraph (5) in the 
definition of ``Type of purchase.''
    The additions and revisions read as follows:


Sec.  59.200  Definitions.

* * * * *
    Negotiated formula purchase. The term ``negotiated formula 
purchase'' means a swine or pork market formula purchase under which:
    (1) The formula is determined by negotiation on a lot-by-lot basis; 
and
    (2) The swine are scheduled for delivery to the packer not later 
than 14 days after the date on which the formula is negotiated and 
swine are committed to the packer.
* * * * *
    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, negotiated formula 
purchase, or other market formula purchase; and does not involve 
packer-owned swine.
* * * * *
    Type of purchase. * * *
    (3) A swine or pork market formula purchase;
    (4) Other purchase arrangement; and
    (5) A negotiated formula purchase.
* * * * *
0
3. Amend Sec.  59.202 by revising paragraphs (b)(2) through (4) to read 
as follows:


Sec.  59.202  Mandatory daily reporting for barrows and gilts.

* * * * *
    (b) * * *
    (2) The total number of barrows and gilts, and barrows and gilts 
that qualify as packer-owned swine, purchased since 1:30 p.m. central 
time of the previous reporting day and up to that time of the reporting 
day through each type of purchase;
    (3) All purchase data for base market hogs purchased since 1:30 
p.m. central time of the previous reporting day and up to that time of 
the reporting day through negotiated purchases;
    (4) All purchase data for base market hogs purchased through each 
type of purchase other than negotiated purchase since 1:30 p.m. central 
time of the previous reporting day and 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.
* * * * *
0
4. Amend Sec.  59.300 by adding in alphabetical order a definition for 
``Lambs committed,'' revising the definition for ``Packer-owned 
lambs,'' and adding in alphabetical order a definition for ``Pelt'' to 
read as follows:


Sec.  59.300  Definitions.

* * * * *
    Lambs committed. The term ``lambs committed'' means lambs that are 
intended to be delivered to a packer beginning on the date of an 
agreement to sell the lambs.
* * * * *
    Packer-owned lambs. The term ``packer-owned lambs'' means lambs 
that a packer owns for at least 28 days immediately before slaughter.
    Pelt. The term ``pelt'' means the skin and attached wool from a 
sheep or lamb carcass.
* * * * *

[[Page 10137]]

0
5. Amend Sec.  59.302 by redesignating paragraphs (a)(6) and (7) as 
paragraphs (a)(7) and (8), adding new paragraphs (a)(6) and (9), and 
revising paragraph (b) to read as follows:


Sec.  59.302  Mandatory weekly reporting for lambs.

    (a) * * *
    (6) The quantity (quoted in number of head) and delivery period for 
all committed lambs;
* * * * *
    (9) The following pelt information for lambs purchased through a 
negotiated purchase, formula marketing arrangement, or forward 
contract:
    (i) The quantity (quoted in number of head) of pelts;
    (ii) The source of the pelts (packer owned or producer owned 
lambs);
    (iii) The price paid to the producer;
    (iv) The length of wool (shorn or unshorn);
    (v) The pelt classification (Supreme, Premium, Standard, Fair, 
Mixed Class, Damaged, and Puller).
    (b) Publication. The Secretary shall make available to the public 
the information obtained in paragraphs (a)(1) through (6) and (a)(8) of 
this section on the second reporting day of the current slaughter week 
and information obtained in paragraphs (a)(7) and (9) of this section 
on the first reporting day of the current slaughter week.

    Dated: February 19, 2016.
Elanor Starmer,
Acting Administrator, Agricultural Marketing Service.

    Note:  The following Appendices will not appear in the Code of 
Federal Regulations.

Appendix A to Subpart C--Swine Mandatory Reporting Forms

Swine

    The following 2 forms would be used by entities required to 
report electronically transmitted mandatory market information on 
swine to AMS.

LS-118--Swine Prior Day Report
LS-119--Swine Daily Report

Appendix B to Subpart D--Lamb Mandatory Reporting Forms

Lamb

    The following 2 forms would be used by entities required to 
report electronically transmitted mandatory market information on 
lambs and lamb pelts to AMS.

LS-123--Live Lamb Weekly Report
LS-133--Lamb Pelts Weekly Report

Appendix C--Mandatory Reporting Guideline

    The following mandatory reporting form guidelines will be used 
by entities required to report electronically transmitted mandatory 
market information to AMS.
    The first 10 fields of each mandatory reporting form provide the 
following information: Identification number (plant establishment 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 
(the submission time corresponding to the 10 a.m. and the 2 p.m. 
reporting requirements, if applicable).
    (a) Swine Mandatory Reporting Forms. (See Appendix D 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.
    (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.
    (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, 34-35). 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 since 1:30 p.m. central of 
the previous reporting day up to that time of the reporting day for 
each purchase type.
    (ix) All other swine purchases (26-33, 36-37). 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 since 1:30 p.m. central of 
the previous reporting day up to that time of the reporting day for 
each purchase type.
    (b) Lamb Mandatory Reporting Forms. (See Appendix D for samples.)
    (1) LS-123--Live Lamb Weekly Report.
    (i) Packer-Owned lot identification (11). Enter code used to 
identify the lot of packer-owned lambs to the packer.

[[Page 10138]]

    (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 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.
    (xiv) Committed lambs (29). Enter quantity of lambs committed to be 
delivered to the packer in number of head.
    (xv) Committed delivery month (30). Enter the delivery month of the 
lambs committed for delivery to the packer as a 3-letter abbreviation.
    (xvi) Committed delivery year (31). Enter the delivery year of the 
lambs committed for delivery to the packer as a 4-digit number.
    (2) LS-133--Lamb Pelts Weekly Report.
    (i) Lot identification (11). Enter code used to identify the lot of 
pelts.
    (ii) Source (12). Enter ``1'', packer owned, if the pelts were from 
packer owned lambs or ``2'', producer owned, if the pelts are from 
producer owned lambs.
    (iii) Length of Wool (13). Enter ``1'', unshorn. Enter ``2'', 
shorn.
    (iv) Price (14). Enter the price per piece paid by the packer for 
each classification category of pelts in the lot.
    (v) Volume (15). Enter the quantity in number of pieces or pelts in 
each classification category of the lot.
    (vi) Classification (16). Enter the classification code that 
describes the classification category for the pelts in the lot.

Appendix D--Mandatory Reporting Forms

    The swine and lamb mandatory forms follow the docket.

[FR Doc. 2016-03956 Filed 2-26-16; 8:45 am]
 BILLING CODE 3410-02-P