81_FR_10171 81 FR 10132 - Livestock Mandatory Reporting: Reauthorization of Livestock Mandatory Reporting and Revision of Swine and Lamb Reporting Requirements

81 FR 10132 - Livestock Mandatory Reporting: Reauthorization of Livestock Mandatory Reporting and Revision of Swine and Lamb Reporting Requirements

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 39 (February 29, 2016)

Page Range10132-10138
FR Document2016-03956

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.

Federal Register, Volume 81 Issue 39 (Monday, February 29, 2016)
[Federal Register Volume 81, Number 39 (Monday, February 29, 2016)]
[Proposed Rules]
[Pages 10132-10138]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-03956]


========================================================================
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.

========================================================================


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.

-----------------------------------------------------------------------

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 http://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 
[email protected].
    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 http://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 [email protected].

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.
---------------------------------------------------------------------------

    \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.thefederalregister.org/fdsys/pkg/CHRG-114hhrg94372/pdf/CHRG-114hhrg94372.pdf.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \2\ North American Industry Classification System, code 311611 
for abattoirs.
---------------------------------------------------------------------------

    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



                                                      10132

                                                      Proposed Rules                                                                                                Federal Register
                                                                                                                                                                    Vol. 81, No. 39

                                                                                                                                                                    Monday, February 29, 2016



                                                      This section of the FEDERAL REGISTER                    www.regulations.gov. Comments may                     the marketplace for livestock and
                                                      contains notices to the public of the proposed          also be sent to Michael Lynch, Director;              livestock products. The LMR regulations
                                                      issuance of rules and regulations. The                  Livestock, Poultry, and Grain Market                  (7 CFR part 59) set the requirements for
                                                      purpose of these notices is to give interested          News Division; Livestock, Poultry, and                packers or importers to submit purchase
                                                      persons an opportunity to participate in the            Seed Program; AMS, USDA, Room                         and sales information of livestock and
                                                      rule making prior to the adoption of the final
                                                                                                              2619–S, STOP 0252; 1400 Independence                  livestock products to meet this purpose.
                                                      rules.
                                                                                                              Avenue SW., Washington, DC 20250–                        The statutory authority for the
                                                                                                              0251; telephone (202) 720–4868; fax                   program lapsed on September 30, 2005.
                                                      DEPARTMENT OF AGRICULTURE                               (202) 690–3732; or email to                           In October 2006, Congress passed the
                                                                                                              Michael.Lynch@ams.usda.gov.                           Livestock Mandatory Reporting
                                                      Agricultural Marketing Service                            Comments should reference docket                    Reauthorization Act (2006
                                                                                                              number AMS–LPS–15–0070 and the                        Reauthorization Act) [Pub. L. 109–296].
                                                      7 CFR Part 59                                           date and page number of this issue of                 The 2006 Reauthorization Act re-
                                                                                                              the Federal Register. Submitted                       established the regulatory authority for
                                                      [Doc. AMS–LPS–15–0070]                                                                                        the continued operation of LMR through
                                                                                                              comments will be available for public
                                                      RIN 0581–AD45                                           inspection at http://www.regulations.                 September 30, 2010. On July 15, 2008,
                                                                                                              gov, or during regular business hours at              the LMR final rule became effective (73
                                                      Livestock Mandatory Reporting:                          the above address. Please be advised                  FR 28606, May 16, 2008).
                                                      Reauthorization of Livestock                            that the identity of the individuals or                  On September 28, 2010, Congress
                                                      Mandatory Reporting and Revision of                     entities submitting the comments will                 passed the Mandatory Price Reporting
                                                      Swine and Lamb Reporting                                be made public on the Internet at the                 Act of 2010 (2010 Reauthorization Act)
                                                      Requirements                                            address provided above.                               [Pub. L. 111–239]. The 2010
                                                                                                                Comments that specifically pertain to               Reauthorization Act reauthorized LMR
                                                      AGENCY:  Agricultural Marketing Service,
                                                                                                              the information collection and                        for an additional 5 years through
                                                      USDA.
                                                                                                              recordkeeping requirements of this                    September 30, 2015. On January 7, 2013,
                                                      ACTION: Proposed rule.
                                                                                                              action should also be sent to the Desk                the LMR final rule became effective (77
                                                      SUMMARY:   On April 2, 2001, the U.S.                   Officer for Agriculture, Office of                    FR 50561, August 22, 2012).
                                                      Department of Agriculture’s (USDA)                      Information and Regulatory Affairs,                      On September 30, 2015, the
                                                      Agricultural Marketing Service (AMS)                    Office of Management and Budget, New                  Agriculture Reauthorizations Act of
                                                      implemented the Livestock Mandatory                     Executive Office Building, 725 17th                   2015 (2015 Reauthorization Act) [Pub.
                                                      Reporting (LMR) program as required by                  Street NW., Room 725, Washington, DC                  L. 114–54] was enacted which
                                                      the Livestock Mandatory Reporting Act                   20503.                                                reauthorized the LMR program for an
                                                      of 1999 (1999 Act). The LMR program                     FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                                    additional 5 years through September
                                                      was reauthorized in October 2006 and                    Michael Lynch, Director; Livestock,                   30, 2020, and amended the reporting
                                                      September 2010. On September 30,                        Poultry, and Grain Market News                        requirements for reporting of swine
                                                      2015, the Agriculture Reauthorizations                  Division; Livestock, Poultry, and Seed                purchase types and late afternoon swine
                                                      Act of 2015 (2015 Reauthorization Act)                  Program; AMS, USDA, Room 2619–S,                      purchases. In addition, at the request of
                                                      reauthorized the LMR program for an                     STOP 0252; 1400 Independence Avenue                   the lamb industry, this proposed rule
                                                      additional 5 years until September 30,                  SW., Washington, DC 20250–0251;                       includes amended definitions for packer
                                                      2020, and directed the Secretary of                     Telephone (202) 720–4868; Fax (202)                   owned lambs and lambs committed for
                                                      Agriculture (Secretary) to amend the                    690–3732; or email to Michael.Lynch@                  delivery, and a provision for adding
                                                      LMR swine reporting requirements. In                    ams.usda.gov.                                         lamb pelts as a reporting requirement.
                                                      addition, the lamb industry requested                                                                            This proposed rule would incorporate
                                                                                                              SUPPLEMENTARY INFORMATION:                            the swine reporting revisions contained
                                                      revisions to the lamb reporting
                                                      requirements as authorized through the                  I. Background                                         within the 2015 Reauthorization Act
                                                      1999 Act. This proposed rule would                                                                            and the lamb reporting revisions as
                                                                                                                 The 1999 Act was enacted into law on               proposed by the lamb industry, under
                                                      incorporate the requested lamb                          October 22, 1999, [Pub. L. 106–78; 113
                                                      reporting revisions, and would                                                                                the USDA LMR regulations.
                                                                                                              Stat. 1188; 7 U.S.C. 1635–1636(i)] as an
                                                      incorporate the swine reporting                         amendment to the Agricultural                         II. Proposed Revisions
                                                      revisions contained within the 2015                     Marketing Act of 1946, as amended (7
                                                      Reauthorization Act under the                                                                                    Under the LMR regulations, certain
                                                                                                              U.S.C. 1621 et seq.). On April 2, 2001,               cattle, swine and lamb packers and
                                                      Agricultural Marketing Act of 1946,                     the AMS Livestock, Poultry, and Seed
                                                      USDA Livestock Mandatory Reporting                                                                            processors, and lamb importers are
                                                                                                              Program’s (LPS) Livestock, Poultry, and               required to report purchases of livestock
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS




                                                      regulations.                                            Grain Market News Division (LPGMN)                    for slaughter and sales of meat products
                                                      DATES: Comments must be received by                     implemented the LMR program as                        to AMS. This proposed rule would
                                                      April 29, 2016. Pursuant to the                         required by the 1999 Act. The purpose                 amend the LMR regulations for swine
                                                      Paperwork Reduction Act (PRA),                          was to establish a program of easily                  reporting and lamb reporting
                                                      comments on the information collection                  understood information regarding the                  requirements as described below.
                                                      burden that would result from this rule                 marketing of cattle, swine, lambs, and
                                                      must be received by April 29, 2016.                     livestock products; improve the price                 Swine
                                                      ADDRESSES: Comments should be                           and supply reporting services of the                    The swine reporting requirement
                                                      submitted electronically at http://                     USDA; and encourage competition in                    revisions within this proposed rule are


                                                 VerDate Sep<11>2014   17:29 Feb 26, 2016   Jkt 238001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\29FEP1.SGM   29FEP1


                                                                            Federal Register / Vol. 81, No. 39 / Monday, February 29, 2016 / Proposed Rules                                                     10133

                                                      authorized through the 2015                                Currently, packers are required to                 address this issue, the Livestock
                                                      Reauthorization Act. This proposed rule                 report purchase data for barrows and                  Marketing Information Center, an
                                                      would minimally increase the reporting                  gilts for a morning report not later than             independent provider of economic
                                                      burden for swine packers.                               10 a.m. central time, and an afternoon                analyses concerning the livestock
                                                         Currently, swine packers are required                report not later than 2 p.m. central time.            industry, conducted an analysis of the
                                                      to report purchase data by four types of                The information to be reported is the                 current LMR program for lamb reporting
                                                      purchase: Negotiated purchase, other                    same for the morning and afternoon                    in 2013 at the request of the American
                                                      market formula purchase, swine or pork                  reports and includes an estimate of the               Sheep Industry Association, an industry
                                                      market formula purchase, or other                       total number of barrows and gilts                     organization representing sheep
                                                      purchase arrangement. A negotiated                      purchased by each type of purchase, the               producers throughout the U.S.1 Based
                                                      purchase is a cash or spot market                       total number of barrows and gilts                     on this study, recommendations were
                                                      purchase by a packer under which the                    purchased, and the base price paid for                proposed to amend the current LMR
                                                      base price for the swine is determined                  all negotiated purchases of barrows and               regulations to improve the price and
                                                      by seller-buyer interaction and                         gilts and the base price paid for each                supply reporting services of AMS and
                                                      agreement on a delivery day; and the                    type of purchase of barrows and gilts                 better align LMR lamb reporting
                                                      swine are scheduled for delivery to the                 other than through a negotiated                       requirements with current industry
                                                      packer not more than 14 days after the                  purchase. This information must be                    marketing practices. These
                                                      date on which the swine are committed                   submitted for all covered transactions                recommendations are the basis for the
                                                      to the packer. Other market formula                     made up to within one half hour of each               lamb reporting changes as proposed by
                                                      purchase is a purchase of swine by a                    specified reporting time. Packers                     the lamb industry for this proposed rule.
                                                      packer in which the pricing mechanism                   completing transactions during the half                  Proposed revisions to the lamb
                                                      is a formula price based on any market                  hour prior to the previous reporting                  reporting requirements, subpart D of
                                                      other than the market for swine, pork,                  time report those transactions at the                 part 59, include an amended definition
                                                      or a pork product; and includes a                       next prescribed reporting time.                       under § 59.300 for the term ‘‘packer-
                                                      formula purchase in a case where the                       The 2015 Reauthorization Act                       owned lambs.’’ Currently, the term
                                                      price formula is based on one or more                   directed the Secretary to include in the              ‘‘packer-owned lambs’’ includes lambs
                                                      futures or options contracts. A swine or                morning and afternoon daily reports for               owned by a packer for at least 14 days
                                                      pork market formula purchase is a                       the following day, the purchase                       immediately before slaughter. The
                                                      purchase of swine by a packer in which                  information for any barrows and gilts                 amended definition would cover those
                                                      the pricing mechanism is a formula                      purchased or priced after the afternoon               lambs that are owned by a packer for at
                                                      price based on a market for swine, pork,                reporting time of the current reporting               least 28 days immediately before
                                                                                                              day. Under this proposed rule, the                    slaughter. Proposed revisions to the
                                                      or a pork product, other than a future or
                                                                                                              required information to be reported                   lamb reporting requirements also
                                                      option for swine, pork, or pork product.
                                                                                                              would remain the same for the morning                 include a new definition under § 59.300
                                                      Other purchase arrangement is a
                                                                                                              and afternoon reports; however, the                   for the term ‘‘lambs committed’’ and
                                                      purchase of swine by a packer that is
                                                                                                              LMR regulations for the morning report                require packers under § 59.302 to report
                                                      not a negotiated purchase, swine or pork
                                                                                                              requirements under § 59.202 would be                  quantity and delivery period for all
                                                      market formula purchase, or other
                                                                                                              amended to require packers to report                  lambs committed to be delivered to the
                                                      market formula purchase; and does not
                                                                                                              purchase data for barrows and gilts                   packer. The term ‘‘lambs committed’’
                                                      involve packer-owned swine.
                                                                                                              purchased after 1:30 p.m. central time of             means lambs intended to be delivered to
                                                         The 2015 Reauthorization Act                         the previous reporting day and up to                  a packer beginning on the date of an
                                                      amended the swine reporting                             that time of the reporting day for the                agreement to sell the lambs. In 2008 (73
                                                      requirements, subpart C of part 59, by                  total number of barrows and gilts                     FR 28606, May 16, 2008), a different
                                                      adding an additional purchase type                      purchased, and the base price paid for                definition for the term ‘‘lambs
                                                      definition for negotiated formula                       all negotiated purchases of barrows and               committed’’ was deleted in the LMR
                                                      purchases of swine, which requires                      gilts and the base price paid for each                regulations at the request of the lamb
                                                      swine packers to report swine                           type of purchase of barrows and gilts                 industry because it was not applicable
                                                      purchased on a negotiated formula basis                 other than through a negotiated                       at the time. However, since that time,
                                                      as a separate purchase type. As defined                 purchase. Under this proposed rule, the               lamb industry supply and demand
                                                      in § 59.200, the term ‘‘negotiated                      LMR regulations for the afternoon                     related issues underscored the need for
                                                      formula’’ is a swine or pork market                     reporting requirements would remain                   market participants to be more informed
                                                      formula purchase under which the                        unchanged. The inclusion of the late in               of specific types of lamb market data not
                                                      formula is determined by negotiation on                 the day swine purchase information in                 available through other USDA agencies.
                                                      a lot-by-lot basis, and swine are                       the following day’s reports would                     Therefore, packers would report ‘‘lambs
                                                      scheduled for delivery to the packer not                increase the volume of barrows and gilts              committed’’ and ‘‘packer-owned lambs’’
                                                      later than 14 days after the date on                    shown in the daily morning and                        under the updated definitions in this
                                                      which the formula is negotiated and                     afternoon purchase reports and better                 proposed rule to meet this industry
                                                      swine are committed to the packer.                      represent the daily market conditions.                request and improve transparency in the
                                                      Packers would be required to report any
                                                                                                              Lamb                                                  marketplace. These revisions would
                                                      swine purchased in this manner as a
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS




                                                                                                                                                                    minimally increase the reporting burden
                                                      negotiated formula purchase.                              Since the implementation of LMR in
                                                                                                                                                                    for lamb packers.
                                                         Adding a negotiated formula purchase                 2001 and its subsequent revisions, the
                                                      type would provide market participants                  U.S. lamb industry has become more                      1 Hearing to Review Reauthorization of the
                                                      with more specific information about                    concentrated at all levels of the                     Livestock Mandatory Reporting Act: Hearing before
                                                      the various purchase methods used in                    production system through                             the Subcommittee on Livestock and Foreign
                                                      the daily marketing of swine and a                      consolidation, impacting AMS’ ability                 Agriculture of the Committee on Agriculture, House
                                                                                                                                                                    of Representatives, 114th Cong., 1st sess. (Serial No.
                                                      better understanding of the marketplace                 to publish certain market information in              114–12). (2015). Retrieved from GPO’s Federal
                                                      concerning formulated prices and spot                   accordance with the confidentiality                   Digital System: https://www.gpo.gov/fdsys/pkg/
                                                      negotiated prices.                                      provisions of the 1999 Act. To help                   CHRG-114hhrg94372/pdf/CHRG-114hhrg94372.pdf.



                                                 VerDate Sep<11>2014   17:29 Feb 26, 2016   Jkt 238001   PO 00000   Frm 00002   Fmt 4702   Sfmt 4702   E:\FR\FM\29FEP1.SGM   29FEP1


                                                      10134                 Federal Register / Vol. 81, No. 39 / Monday, February 29, 2016 / Proposed Rules

                                                         Under this proposed rule, lamb                       III. Classification                                      Estimated Number of Small
                                                      reporting requirements would also be                                                                          Businesses. For this regulatory
                                                                                                              Executive Order 12866 and Executive
                                                      amended to require packers under                                                                              flexibility analysis, AMS utilized the
                                                                                                              Order 13563
                                                      § 59.302 to report price, volume, and                                                                         North American Industry Classification
                                                      classification descriptors for all lamb                    This proposed rule is being issued by              System (NAICS), which is the standard
                                                      pelts from lambs purchased on a                         USDA with regard to the LMR program                   used by federal statistical agencies to
                                                      negotiated purchase, formula marketing                  in conformance with Executive Orders                  classify business establishments for the
                                                      arrangement, or forward contract basis.                 12866 and 13563.                                      purpose of collecting, analyzing, and
                                                      As would be defined under this                             Executive Orders 12866 and 13563                   publishing statistical data related to the
                                                      proposed rule in § 59.300, the term                     direct agencies to assess all costs and               U.S. business economy. This analysis
                                                                                                              benefits of available regulatory                      compares the size of meat packing
                                                      ‘‘pelt’’ means the skin and attached
                                                                                                              alternatives, and, if regulation is                   companies to the NAICS standards to
                                                      wool from a sheep or lamb carcass. In
                                                                                                              necessary, to select regulatory                       determine the percentage of small
                                                      recent years, consolidation within the                                                                        businesses within the industry affected
                                                      lamb packing and pelt processing                        approaches that maximize net benefits
                                                                                                              (including potential economic,                        by this proposed rule. Under these size
                                                      industries has presented increased                                                                            standards, meat packing companies
                                                                                                              environmental, public health and safety
                                                      challenges for AMS in reporting                                                                               with 500 or less employees are
                                                                                                              effects, distributive impacts, and
                                                      consistent weekly market information                    equity). Executive Order 13563                        considered small business entities.2
                                                      on a voluntary basis for pelts marketed                 emphasizes the importance of                             This proposed rule would amend the
                                                      from the lamb packers to the pelt                       quantifying both costs and benefits, of               reporting requirements for swine
                                                      processors. Under this proposed rule,                   reducing costs, of harmonizing rules,                 packers by adding a new purchase type
                                                      packers would be required to report                     and of promoting flexibility.                         for negotiated formula purchases of
                                                      weekly prices and volumes paid to the                                                                         barrows and gilts, and including late
                                                                                                                 This action has been designated as a
                                                      producer for each specific classification                                                                     afternoon purchases of barrows and gilts
                                                                                                              ‘‘non-significant regulatory action’’
                                                      category of pelts in a given lot. This                                                                        from the previous reporting day in the
                                                                                                              under section 3(f) of Executive Order
                                                      requirement would provide lamb                                                                                morning and afternoon daily reports of
                                                                                                              12866. Accordingly, the Office of
                                                      producers more accurate information on                                                                        the current reporting day. For swine
                                                                                                              Management and Budget (OMB) has
                                                      the total value of lambs marketed for                                                                         packers, this proposed rule would apply
                                                                                                              waived the review process for this
                                                      slaughter while minimally increasing                                                                          only to federally inspected swine
                                                                                                              action.
                                                                                                                                                                    processing facilities that slaughtered an
                                                      the reporting burden for lamb packers.
                                                                                                              Regulatory Flexibility Act                            average of at least 100,000 swine per
                                                      Appendices                                                                                                    year during the immediately preceding
                                                                                                                 In General. This proposed rule has
                                                                                                                                                                    5 calendar years and a person that
                                                         The final section of this document                   been reviewed under the requirements
                                                                                                                                                                    slaughtered an average of at least
                                                      contains four appendices. These                         of the Regulatory Flexibility Act (RFA)
                                                                                                                                                                    200,000 sows, boars, or combination
                                                      appendices will not appear in the Code                  (5 U.S.C. 601–612). The purpose of RFA
                                                                                                                                                                    thereof per year during the immediately
                                                      of Federal Regulations. Appendices A                    is to consider the economic impact of a
                                                                                                                                                                    preceding 5 calendar years.
                                                                                                              rule on small business entities.
                                                      and B list the forms that would be used                                                                       Additionally, in the case of a swine
                                                                                                              Alternatives, which would accomplish
                                                      by swine and lamb packers required to                                                                         processing plant or person that did not
                                                                                                              the objectives of the rule without
                                                      report information under the LMR                                                                              slaughter swine during the immediately
                                                                                                              unduly burdening small entities or
                                                      program. Appendix C provides a                                                                                preceding 5 calendar years, it would be
                                                                                                              erecting barriers that would restrict their
                                                      description of the forms, while                                                                               considered a packer if the Secretary
                                                                                                              ability to compete in the marketplace,
                                                      appendix D contains the actual                                                                                determines the processing plant or
                                                                                                              have been evaluated. Regulatory action
                                                      reporting forms. Amendments to two                                                                            person should be considered a packer
                                                                                                              should be appropriate to the scale of the
                                                      swine reporting forms, LS–118 Swine                                                                           under this subpart after considering its
                                                                                                              businesses subject to the action. The
                                                      Prior Day Report and LS–119 Swine                                                                             capacity.
                                                                                                              collection of information is necessary                   Approximately 36 individual pork
                                                      Daily Report, were made to include the                  for the proper performance of the                     packing companies representing a total
                                                      new purchase type proposed under this                   functions of AMS concerning the                       of 55 individual plants are required to
                                                      rule, ‘‘negotiated formula purchase.’’                  mandatory reporting of livestock                      report information to AMS. Based on
                                                      Only one form for swine reporting, LS–                  information. Information is only                      the NAICS size standard for meat
                                                      119 Swine Daily Report, requires an                     available directly from those entities                packing companies with 500 or less
                                                      amendment to the description of the                     required to report under these                        employees, AMS estimates that 24 of
                                                      form to include the reporting of the late               regulations and exists nowhere else.                  these 36 pork packing companies would
                                                      afternoon purchased barrows and gilts                   Therefore, this proposed rule does not                be considered small businesses,
                                                      from the previous reporting day in the                  duplicate market information                          representing 27 individual plants that
                                                      following reporting day’s daily reports,                reasonably accessible to the USDA.                    are required to report. The figure of 55
                                                      as contained in appendix C.                                Objectives and Legal Basis. The                    plants required to report represents 8.9
                                                      Amendments to one lamb reporting                        objective of this proposed rule is to                 percent of the federally inspected swine
                                                                                                              improve the price and supply reporting
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS




                                                      form, LS–123 Lamb Weekly Report,                                                                              plants in the United States. The
                                                      were made to include the volume and                     services of the USDA in order to                      remaining 91.1 percent of swine plants,
                                                      delivery period information needed for                  encourage competition in the                          nearly all estimated to qualify as small
                                                      reporting lambs committed for delivery.                 marketplace for swine and lambs as                    business, are exempt from mandatory
                                                      In addition, a new form, LS–133 Lamb                    specifically directed by the 2015                     reporting.
                                                      Pelts Weekly Report, was created to                     Reauthorization Act and the lamb                         To implement the swine reporting
                                                                                                              industry requested revisions as                       changes in this proposed rule, AMS
                                                      facilitate the reporting of information on
                                                                                                              authorized through the 1999 Act and
                                                      lamb pelts.
                                                                                                              these regulations, as described in detail               2 North American Industry Classification System,

                                                                                                              in the background section.                            code 311611 for abattoirs.



                                                 VerDate Sep<11>2014   17:29 Feb 26, 2016   Jkt 238001   PO 00000   Frm 00003   Fmt 4702   Sfmt 4702   E:\FR\FM\29FEP1.SGM   29FEP1


                                                                            Federal Register / Vol. 81, No. 39 / Monday, February 29, 2016 / Proposed Rules                                            10135

                                                      estimated the total annual burden on                    importer is required to organize the                  small businesses by the establishment of
                                                      each swine packer to be $108 which                      information in an AMS-approved format                 slaughter, processing, and import
                                                      includes the annual share of initial                    before electronically transmitting the                capacity thresholds.
                                                      startup costs of $415. There is no annual               information to AMS. Once the required                    AMS recognizes that most of the
                                                      cost increase associated with                           information has been entered into the                 economic impact of this proposed rule
                                                      electronically submitting data or for the               AMS database, it is aggregated and                    on those small entities required to
                                                      storage and maintenance of electronic                   processed into various market reports                 report involves the manner in which
                                                      files submitted to AMS due to the                       which are released according to the                   information must be reported to the
                                                      changes in this proposed rule.                          daily and weekly time schedule set forth              Secretary. However, in developing this
                                                         For lamb reporting, this proposed rule               in the LMR regulations. As an                         proposed rule, AMS considered other
                                                      would require packers to report quantity                alternative, AMS also developed and                   means by which the objectives of this
                                                      and delivery period for all lambs                       made available web-based input forms                  proposed rule could be accomplished,
                                                      committed to be delivered to the packer                 for submitting data online as AMS                     including reporting the required
                                                      beginning on the date of an agreement                   found that some of the smaller entities               information by telephone, facsimile, and
                                                      to sell the lambs. In addition, lamb                    covered under mandatory price                         regular mail. AMS believes electronic
                                                      packers would be required to report                     reporting would benefit from such a                   submission to be the only method
                                                      price, volume, and classification                       web-based submission system.                          capable of allowing AMS to collect,
                                                      descriptors for all lamb pelts from lambs                  Each packer and importer required to               review, process, aggregate, and publish
                                                      purchased from producers. Under the                     report information to USDA under LMR                  reports while complying with the
                                                      2015 Reauthorization Act, a lamb packer                 must maintain such records as are                     specific time-frames set forth in the Act
                                                      includes any person with 50 percent or                  necessary to verify the accuracy of the               and regulation.
                                                      more ownership in a facility that                       information provided to AMS. This                        To respond to concerns of smaller
                                                      slaughtered or processed an average of                  includes information regarding price,                 operations, AMS developed a web-based
                                                      35,000 lambs during the immediately                     class, head count, weight, quality grade,             input form for submitting data online.
                                                      preceding 5 calendar years, or that did                 yield grade, and other factors necessary              Based on prior experience, AMS found
                                                      not slaughter or process an average of                  to adequately describe each transaction.              that some of the smaller entities covered
                                                      35,000 lambs during the immediately                     These records are already kept by the                 under mandatory price reporting would
                                                      preceding 5 calendar years if the                       industry. Reporting packers and                       benefit from such a web-based
                                                      Secretary determines that the processing                importers are required to maintain and                submission system. Accordingly, AMS
                                                      plant should be considered a packer                     make available the original contracts,                developed such a system for program
                                                      after considering its capacity.                         agreements, receipts, and other records               implementation.
                                                         The LMR regulations require 10 lamb                  associated with any transaction relating                 Additionally, to further assist small
                                                      packers to report information, which is                 to the purchase, sale, pricing,                       businesses, AMS may provide for an
                                                      less than 2 percent of all federally                    transportation, delivery, weighing,                   exception to electronic reporting in
                                                      inspected lamb plants. Therefore,                       slaughter, or carcass characteristics of              emergencies, such as power failures or
                                                      approximately 98 percent of lamb                        all livestock, and to maintain these                  loss of Internet accessibility, or in cases
                                                      packers are exempt from reporting                       records for a minimum of 2 years.                     when an alternative is agreeable
                                                      information by this proposed rule.                      Packers and importers are not required                between AMS and the reporting entity.
                                                      Based on the NAICS size standard for                    to report any other new or additional                    Other than these alternatives, there
                                                      meat packing companies with 500 or                      information they do not generally have                are no other practical and feasible
                                                      less employees and its knowledge of the                 available or maintain. Further, they are              alternatives to the methods of data
                                                      lamb industry, AMS estimates that all                   not required to keep any information                  transmission that are less burdensome
                                                      lamb packing companies currently                        that would prove unduly burdensome to                 to small businesses. AMS will work
                                                      required to report under LMR would be                   maintain.                                             actively with those small businesses
                                                      considered small businesses. To                            In addition, AMS has not identified                required to report and minimize the
                                                      implement the lamb reporting changes                    any relevant federal rules currently in               burden on them to the maximum extent
                                                      in this proposed rule, AMS estimated                    effect that duplicate, overlap, or conflict           practicable.
                                                      the total annual burden on each lamb                    with this rule. Professional skills
                                                      packer to be $216 which includes the                    required for recordkeeping under the                  Paperwork Reduction Act
                                                      annual share of initial startup costs of                LMR regulations are not different than                  In accordance with the Paperwork
                                                      $830. There is no annual cost increase                  those already employed by the reporting               Reduction Act of 1995 (44 U.S.C.
                                                      associated with electronically                          entities. Reporting is accomplished                   Chapter 35), we have included the
                                                      submitting data, or for the storage and                 using computers or similar electronic                 changes in reporting and recordkeeping
                                                      maintenance of electronic files                         means. This proposed rule does not                    requirements for 7 CFR part 59
                                                      submitted to AMS due to the changes in                  affect the professional skills required for           associated with this action into the
                                                      this proposed rule.                                     recordkeeping already employed by the                 program’s request for an extension of a
                                                         Projected Reporting. The LMR                         reporting entities. Reporting will be                 currently approved information
                                                      regulations require the reporting of                    accomplished using computers or                       collection for OMB 0581–0186
                                                      specific market information regarding                   similar electronic means. AMS believes                (Commodities Covered by the Livestock
                                                      the buying and selling of livestock and                 the skills needed to maintain such                    Mandatory Reporting Act of 1999).
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS




                                                      livestock products. This information is                 systems are already in place in those
                                                      reported to AMS by electronic means                     small businesses affected by this rule.               Executive Order 12988
                                                      and the adoption of this proposed rule                     Alternatives. This proposed rule                     This proposed rule has been reviewed
                                                      will not affect this requirement.                       would require swine and lamb packing                  under Executive Order 12988, Civil
                                                      Electronic reporting involves the                       plants of a certain size to report                    Justice Reform. This proposed rule is
                                                      transfer of data from a packer’s or                     information to the Secretary at                       not intended to have retroactive effect.
                                                      importer’s electronic recordkeeping                     prescribed times throughout the day and               Section 259 of the 1999 Act prohibits
                                                      system to a centrally located AMS                       week. The 1999 Act and these                          States or political subdivisions of a State
                                                      electronic database. The packer or                      regulations exempt the vast majority of               to impose any requirement that is in


                                                 VerDate Sep<11>2014   17:29 Feb 26, 2016   Jkt 238001   PO 00000   Frm 00004   Fmt 4702   Sfmt 4702   E:\FR\FM\29FEP1.SGM   29FEP1


                                                      10136                 Federal Register / Vol. 81, No. 39 / Monday, February 29, 2016 / Proposed Rules

                                                      addition to, or inconsistent with, any                  quantities of livestock or livestock                  that is not a negotiated purchase, swine
                                                      requirement of the 1999 Act with                        products.’’                                           or pork market formula purchase,
                                                      respect to the submission or reporting of                  Prior to the passage of the 1999 Act,              negotiated formula purchase, or other
                                                      information, or the publication of such                 several States enacted legislation                    market formula purchase; and does not
                                                      information, on the prices and                          mandating, to various degrees, the                    involve packer-owned swine.
                                                      quantities of livestock or livestock                    reporting of market information on                    *     *     *     *     *
                                                      products. In addition, the 1999 Act does                transactions of cattle, swine, and lambs                Type of purchase. * * *
                                                      not restrict or modify the authority of                 conducted within that particular State.                 (3) A swine or pork market formula
                                                      the Secretary to administer or enforce                  However, since the federal LMR                        purchase;
                                                      the Packers and Stockyards Act of 1921                  program was implemented on April 2,                     (4) Other purchase arrangement; and
                                                      (7 U.S.C. 181 et seq.); administer,                     2001, these State programs are no longer                (5) A negotiated formula purchase.
                                                      enforce, or collect voluntary reports                   in effect. Therefore, there are no                    *     *     *     *     *
                                                      under the 1999 Act or any other law; or                 federalism implications associated with               ■ 3. Amend § 59.202 by revising
                                                      access documentary evidence as                          this rulemaking.                                      paragraphs (b)(2) through (4) to read as
                                                      provided under Sections 9 and 10 of the                                                                       follows:
                                                                                                              Executive Order 13175
                                                      Federal Trade Commission Act (15
                                                                                                                                                                    § 59.202 Mandatory daily reporting for
                                                      U.S.C. 49, 50). There are no                              This proposed rule has been reviewed
                                                                                                                                                                    barrows and gilts.
                                                      administrative procedures that must be                  in accordance with the requirements of
                                                                                                              Executive Order 13175, Consultation                   *      *     *    *      *
                                                      exhausted prior to any judicial
                                                                                                              and Coordination with Indian Tribal                      (b) * * *
                                                      challenge to the provisions of this                                                                              (2) The total number of barrows and
                                                      proposed rule.                                          Governments. AMS has considered the
                                                                                                                                                                    gilts, and barrows and gilts that qualify
                                                                                                              potential implications of this proposed
                                                      Civil Rights Review                                                                                           as packer-owned swine, purchased
                                                                                                              rule to ensure this regulation will not
                                                                                                                                                                    since 1:30 p.m. central time of the
                                                        AMS has considered the potential                      have substantial and direct effects on
                                                                                                                                                                    previous reporting day and up to that
                                                      civil rights implications of this                       Tribal governments and will not have
                                                                                                                                                                    time of the reporting day through each
                                                      proposed rule on minorities, women, or                  significant Tribal implications.
                                                                                                                                                                    type of purchase;
                                                      persons with disabilities to ensure that                List of Subjects in 7 CFR Part 59                        (3) All purchase data for base market
                                                      no person or group shall be                                                                                   hogs purchased since 1:30 p.m. central
                                                      discriminated against on the basis of                     Cattle, Hogs, Lamb, Livestock, Sheep,
                                                                                                                                                                    time of the previous reporting day and
                                                      race, color, national origin, gender,                   Swine.
                                                                                                                                                                    up to that time of the reporting day
                                                      religion, age, disability, sexual                         For the reasons set forth in the                    through negotiated purchases;
                                                      orientation, marital or family status,                  preamble, it is proposed that title 7, part              (4) All purchase data for base market
                                                      political beliefs, parental status, or                  59 be amended as follows:                             hogs purchased through each type of
                                                      protected genetic information. This                                                                           purchase other than negotiated purchase
                                                      review included persons who are                         PART 59—LIVESTOCK MANDATORY
                                                                                                                                                                    since 1:30 p.m. central time of the
                                                      employees of the entities that are subject              REPORTING
                                                                                                                                                                    previous reporting day and up to that
                                                      to this regulation. This proposed rule                                                                        time of the reporting day, unless such
                                                                                                              ■ 1. The authority citation for 7 CFR
                                                      does not require affected entities to                                                                         information is unavailable due to
                                                                                                              part 59 continues to read as follows:
                                                      relocate or alter their operations in ways                                                                    pricing that is determined on a delayed
                                                      that could adversely affect such persons                    Authority: 7 U.S.C. 1635–1636i.                   basis. The packer shall report
                                                      or groups. Further, this proposed rule                  ■  2. Amend § 59.200 by:                              information on such purchases on the
                                                      will not deny any persons or groups the                 ■  a. Adding a definition for ‘‘Negotiated            first reporting day or scheduled
                                                      benefits of the program or subject any                  formula purchase;’’                                   reporting time on a reporting day after
                                                      persons or groups to discrimination.                    ■ b. Revising the definition of ‘‘Other               the price has been determined.
                                                      Executive Order 13132                                   purchase arrangement;’’ and                           *      *     *    *      *
                                                                                                              ■ c. Revising paragraphs (3) and (4) and              ■ 4. Amend § 59.300 by adding in
                                                         This proposed rule has been reviewed                 adding paragraph (5) in the definition of             alphabetical order a definition for
                                                      under Executive Order 13132,                            ‘‘Type of purchase.’’                                 ‘‘Lambs committed,’’ revising the
                                                      Federalism. This Order directs agencies                    The additions and revisions read as                definition for ‘‘Packer-owned lambs,’’
                                                      to construe, in regulations and                         follows:                                              and adding in alphabetical order a
                                                      otherwise, a Federal Statute to preempt                                                                       definition for ‘‘Pelt’’ to read as follows:
                                                      State law only when the statute contains                § 59.200    Definitions.
                                                      an express preemption provision. This                   *      *    *    *     *                              § 59.300    Definitions.
                                                      proposed rule is required by the 1999                      Negotiated formula purchase. The                   *     *      *   *      *
                                                      Act. Section 259 of the 1999 Act,                       term ‘‘negotiated formula purchase’’                     Lambs committed. The term ‘‘lambs
                                                      Federal Preemption states, ‘‘In order to                means a swine or pork market formula                  committed’’ means lambs that are
                                                      achieve the goals, purposes, and                        purchase under which:                                 intended to be delivered to a packer
                                                      objectives of this title on a nationwide                   (1) The formula is determined by                   beginning on the date of an agreement
                                                      basis and to avoid potentially                          negotiation on a lot-by-lot basis; and                to sell the lambs.
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS




                                                      conflicting State laws that could impede                   (2) The swine are scheduled for                    *     *      *   *      *
                                                      the goals, purposes, or objectives of this              delivery to the packer not later than 14                 Packer-owned lambs. The term
                                                      title, no State or political subdivision of             days after the date on which the formula              ‘‘packer-owned lambs’’ means lambs
                                                      a State may impose a requirement that                   is negotiated and swine are committed                 that a packer owns for at least 28 days
                                                      is in addition to, or inconsistent with,                to the packer.                                        immediately before slaughter.
                                                      any requirement of this subtitle with                   *      *    *    *     *                                 Pelt. The term ‘‘pelt’’ means the skin
                                                      respect to the submission or reporting of                  Other purchase arrangement. The                    and attached wool from a sheep or lamb
                                                      information, or the publication of such                 term ‘‘other purchase arrangement’’                   carcass.
                                                      information, on the prices and                          means a purchase of swine by a packer                 *     *      *   *      *


                                                 VerDate Sep<11>2014   17:29 Feb 26, 2016   Jkt 238001   PO 00000   Frm 00005   Fmt 4702   Sfmt 4702   E:\FR\FM\29FEP1.SGM   29FEP1


                                                                            Federal Register / Vol. 81, No. 39 / Monday, February 29, 2016 / Proposed Rules                                               10137

                                                      ■ 5. Amend § 59.302 by redesignating                    to report electronically transmitted                     (xv) Purchased swine class code (25). Enter
                                                      paragraphs (a)(6) and (7) as paragraphs                 mandatory market information to AMS.                  the code that best describes the type of
                                                      (a)(7) and (8), adding new paragraphs                      The first 10 fields of each mandatory              purchased swine.
                                                                                                              reporting form provide the following                     (xvi) Purchased swine purchase type code
                                                      (a)(6) and (9), and revising paragraph (b)                                                                    (26). Enter the code that describes the type
                                                                                                              information: Identification number (plant
                                                      to read as follows:                                     establishment ID number), company name                of purchase for the purchased swine.
                                                      § 59.302   Mandatory weekly reporting for               (name of parent company), plant street                   (xvii) Purchased swine head count (27).
                                                                                                              address (street address for plant), plant city        Enter the quantity of purchased swine in the
                                                      lambs.
                                                                                                              (city where plant is located), plant state (state     lot.
                                                        (a) * * *                                             where plant is located), plant zip code (zip             (xviii) Purchased swine average live weight
                                                        (6) The quantity (quoted in number of                 code where plant is located), contact name            (28). Enter the average live weight of the lot
                                                      head) and delivery period for all                       (the name of the corporate representative             of swine in pounds if swine were purchased
                                                      committed lambs;                                        contact at the plant), phone number (full             on a live basis, otherwise leave blank.
                                                      *      *    *      *     *                              phone number for the plant including area                (xix) Purchased swine base price (29).
                                                                                                              code), reporting date (date the information           Enter the base price established on that day
                                                        (9) The following pelt information for                                                                      for the lot of purchased swine in dollars per
                                                      lambs purchased through a negotiated                    was submitted (mm/dd/yyyy), and reporting
                                                                                                              time (the submission time corresponding to            one hundred pounds.
                                                      purchase, formula marketing                                                                                      (xx) Purchased swine origin (30). Enter the
                                                                                                              the 10 a.m. and the 2 p.m. reporting
                                                      arrangement, or forward contract:                                                                             2-letter postal abbreviation for the State in
                                                                                                              requirements, if applicable).
                                                        (i) The quantity (quoted in number of                    (a) Swine Mandatory Reporting Forms. (See
                                                                                                                                                                    which the swine were fed to slaughter
                                                      head) of pelts;                                                                                               weight.
                                                                                                              Appendix D for samples.)
                                                        (ii) The source of the pelts (packer                                                                           (xxi) Scheduled swine (31–44). Enter the
                                                                                                                 (1) LS–118—Swine Prior Day Report.
                                                      owned or producer owned lambs);                                                                               number of head of purchase commitment
                                                                                                                 (i) Slaughtered swine lot identification
                                                        (iii) The price paid to the producer;                                                                       swine that were scheduled for delivery for
                                                                                                              (11). Enter code used to identify the lot of
                                                        (iv) The length of wool (shorn or                                                                           each of the next 14 days. Enter the total
                                                                                                              slaughtered swine to the packer.
                                                                                                                                                                    quantity currently scheduled for each day at
                                                      unshorn);                                                  (ii) Slaughtered swine class code (12).
                                                                                                                                                                    the time of reporting for each submission.
                                                        (v) The pelt classification (Supreme,                 Enter the code that best describes the type of
                                                                                                                                                                       (2) LS–119—Swine Daily Report.
                                                      Premium, Standard, Fair, Mixed Class,                   slaughtered swine in the lot.
                                                                                                                                                                       (i) Purchased swine lot identification (11).
                                                      Damaged, and Puller).                                      (iii) Slaughtered swine purchase type code         Enter code used to identify the lot of
                                                        (b) Publication. The Secretary shall                  (13). Enter the code that describes the type          purchased swine to the packer.
                                                                                                              of purchase for the slaughtered swine in the
                                                      make available to the public the                                                                                 (ii) Purchased swine purchase type code
                                                                                                              lot.                                                  (12). Enter the code that describes the type
                                                      information obtained in paragraphs                         (iv) Slaughtered swine head count (14).
                                                      (a)(1) through (6) and (a)(8) of this                                                                         of purchase for the swine in the lot.
                                                                                                              Enter the quantity of slaughtered swine in the           (iii) Purchased swine average live weight
                                                      section on the second reporting day of                  lot in number of head.                                (13). Enter the average live weight of the lot
                                                      the current slaughter week and                             (v) Slaughtered swine base price (15). Enter       of swine in pounds if swine were purchased
                                                      information obtained in paragraphs                      the base price established on that day for the        on a live basis, otherwise leave blank.
                                                      (a)(7) and (9) of this section on the first             lot of slaughtered swine in dollars per one              (iv) Purchased swine class code (14). Enter
                                                      reporting day of the current slaughter                  hundred pounds.                                       the code that best describes the type of swine
                                                      week.                                                      (vi) Slaughtered swine average net price           in the lot.
                                                                                                              (16). Enter the average net price established            (v) Purchased swine head count (15). Enter
                                                        Dated: February 19, 2016.                             on that day for the lot of slaughtered swine          the quantity of swine in the lot in number of
                                                      Elanor Starmer,                                         in dollars per one hundred pounds.                    head.
                                                      Acting Administrator, Agricultural Marketing               (vii) Slaughtered swine average live weight           (vi) Purchased swine base price (16). Enter
                                                      Service.                                                (17). Enter the average live weight of the lot        the base price established on that day for the
                                                                                                              of swine in pounds if slaughtered swine were          lot of swine in dollars per one hundred
                                                        Note: The following Appendices will not               purchased on a live basis, otherwise leave            pounds.
                                                      appear in the Code of Federal Regulations.              blank.                                                   (vii) Purchased swine origin (17). Enter the
                                                                                                                 (viii) Slaughtered swine average carcass           2-letter postal abbreviation for the State in
                                                      Appendix A to Subpart C—Swine                           weight (18). Enter the average carcass weight         which the swine were fed to slaughter
                                                      Mandatory Reporting Forms                               of the lot of slaughtered swine in pounds.            weight.
                                                                                                                 (ix) Slaughtered swine average sort loss              (viii) Packer-sold swine purchases (18–25,
                                                      Swine
                                                                                                              (19). Enter the average sort loss for the lot of      34–35). Enter the best estimate of the total
                                                         The following 2 forms would be used by               slaughtered swine in dollars per one hundred          number of packer-sold swine expected to be
                                                      entities required to report electronically              pounds.                                               purchased throughout the reporting day for
                                                      transmitted mandatory market information                   (x) Slaughtered swine average backfat (20).        each purchase type and the total number of
                                                      on swine to AMS.                                        Enter the average backfat measurement for             packer-sold swine purchased since 1:30 p.m.
                                                      LS–118—Swine Prior Day Report                           the lot of slaughtered swine in inches                central of the previous reporting day up to
                                                      LS–119—Swine Daily Report                               rounded to the nearest tenth of an inch.              that time of the reporting day for each
                                                                                                                 (xi) Slaughtered swine average loin depth          purchase type.
                                                      Appendix B to Subpart D—Lamb                            (21). Enter the average loin depth                       (ix) All other swine purchases (26–33, 36–
                                                      Mandatory Reporting Forms                               measurement for the lot of slaughtered swine          37). Enter the best estimate of the total
                                                      Lamb                                                    in inches rounded to the nearest tenth of an          number of all other swine expected to be
                                                                                                              inch.                                                 purchased throughout the reporting day for
                                                         The following 2 forms would be used by
                                                                                                                 (xii) Slaughtered swine average lean               each purchase type and the total number of
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS




                                                      entities required to report electronically
                                                                                                              percentage (22). Enter the average lean               all other swine purchased since 1:30 p.m.
                                                      transmitted mandatory market information
                                                                                                              percentage for the lot of slaughtered swine.          central of the previous reporting day up to
                                                      on lambs and lamb pelts to AMS.
                                                                                                                 (xiii) Purchased swine lot identification          that time of the reporting day for each
                                                      LS–123—Live Lamb Weekly Report                          (23). Enter code used to identify the lot of          purchase type.
                                                      LS–133—Lamb Pelts Weekly Report                         purchased swine to the packer.                           (b) Lamb Mandatory Reporting Forms. (See
                                                      Appendix C—Mandatory Reporting                             (xiv) Purchased swine ownership code               Appendix D for samples.)
                                                                                                              (24). Enter code which best describes the                (1) LS–123—Live Lamb Weekly Report.
                                                      Guideline
                                                                                                              source of the purchased swine whether                    (i) Packer-Owned lot identification (11).
                                                        The following mandatory reporting form                packer-owned, purchased from another                  Enter code used to identify the lot of packer-
                                                      guidelines will be used by entities required            packer, or all other swine.                           owned lambs to the packer.



                                                 VerDate Sep<11>2014   17:29 Feb 26, 2016   Jkt 238001   PO 00000   Frm 00006   Fmt 4702   Sfmt 4702   E:\FR\FM\29FEP1.SGM   29FEP1


                                                      10138                 Federal Register / Vol. 81, No. 39 / Monday, February 29, 2016 / Proposed Rules

                                                         (ii) Packer-Owned source (12). Enter ‘‘1’’,            (vi) Classification (16). Enter the                 have produced a minimum average,
                                                      domestic, if packer-owned lambs are from                classification code that describes the                annual amount of 50,000 pounds of
                                                      within the 50 States or ‘‘2’’, imported, if             classification category for the pelts in the lot.     inshell pecans between August 1, 2011
                                                      lambs are from outside of the 50 States.
                                                                                                              Appendix D—Mandatory Reporting                        and July 31, 2015, or must own a
                                                         (iii) Packer-Owned head count (13). Enter
                                                      the quantity of packer-owned lambs in the lot           Forms                                                 minimum of 30 pecan acres.
                                                      in number of head.                                                                                            ADDRESSES: Marketing Order and
                                                                                                                The swine and lamb mandatory forms
                                                         (iv) Packer-Owned actual carcass weight              follow the docket.                                    Agreement Division, Specialty Crops
                                                      range (14a 14b). Enter the lowest (14a) and                                                                   Program, AMS, USDA, 1400
                                                      highest (14b) actual carcass weights for lambs          [FR Doc. 2016–03956 Filed 2–26–16; 8:45 am]
                                                                                                                                                                    Independence Avenue SW., Stop 0237,
                                                      in the lot in pounds.                                   BILLING CODE 3410–02–P
                                                                                                                                                                    Washington, DC 20250–0237.
                                                         (v) Packer-Owned actual average carcass
                                                      weight (15). Enter the actual average carcass                                                                 FOR FURTHER INFORMATION CONTACT:
                                                      weight of the lot of packer-owned lambs in              DEPARTMENT OF AGRICULTURE                             Melissa Schmaedick, Senior Marketing
                                                      pounds.                                                                                                       Specialist; Telephone: (202) 557–4783,
                                                         (vi) Packer-Owned average dressing                   Agricultural Marketing Service                        Fax: (435) 259–1502, or Michelle
                                                      percentage (16). Enter the average dressing                                                                   Sharrow, Rulemaking Branch Chief;
                                                      percentage of the lot of packer-owned lambs.                                                                  Telephone: (202) 720–2491, Fax: (202)
                                                                                                              7 CFR Part 986
                                                         (vii) Percentage yield grade 3 or better (17).                                                             720–8938, or Email:
                                                      Enter the percentage of packer-owned lambs              [Docket No. AO–FV–15–0139; AMS–FV–15–
                                                      in the lot of a yield grade of 3 or better.                                                                   Melissa.Schmaedick@ams.usda.gov or
                                                                                                              0023; FV15–986–1]
                                                         (viii) Quality grade percentage (18). Enter                                                                Michelle.Sharrow@ams.usda.gov.
                                                      the percentage of packer-owned lambs in the             Pecans Grown in the States of                            Small businesses may request
                                                      lot of a quality grade of Choice or better.             Alabama, Arkansas, Arizona,                           information on this proceeding by
                                                         (ix) Prior week slaughtered lambs head               California, Florida, Georgia, Kansas,                 contacting Antoinette Carter, Marketing
                                                      counts (19–24). Enter the total number of               Louisiana, Missouri, Mississippi, North               Order and Agreement Division,
                                                      head of lambs slaughtered for the prior week                                                                  Specialty Crops Program, AMS, USDA,
                                                      that were purchased through forward
                                                                                                              Carolina, New Mexico, Oklahoma,
                                                                                                              South Carolina, and Texas; Secretary’s                1400 Independence Avenue SW., Stop
                                                      contracts, the total number of head for lambs                                                                 0237, Washington, DC 20250–0237;
                                                      purchased through formula arrangements,                 Decision and Referendum Order on
                                                      and the total number of head of lambs                   Proposed Marketing Agreement and                      Telephone: (202) 720–2491, Fax: (202)
                                                      purchased through negotiated cash,                      Order No. 986                                         720–8938, or Email: Antoinette.Carter@
                                                      categorized by domestic or imported sources.                                                                  ams.usda.gov.
                                                      Enter this information once per each week’s             AGENCY:  Agricultural Marketing Service,              SUPPLEMENTARY INFORMATION: Prior
                                                      submission.                                             USDA.                                                 documents in this proceeding: Notice of
                                                         (x) Forward contract purchases lot                   ACTION: Proposed rule and referendum                  Hearing issued on June 26, 2015, and
                                                      identification (25). Enter code used to                 order.                                                published in the July 2, 2015, issue of
                                                      identify forward contracted lambs to the
                                                                                                                                                                    the Federal Register (80 FR 38021);
                                                      packer.                                                 SUMMARY:    This Secretary’s Decision
                                                         (xi) Forward contract purchases head count                                                                 Recommended Decision and
                                                                                                              proposes the issuance of a marketing                  Opportunity to File Written Exceptions
                                                      (26). Enter quantity of forward contracted              agreement and order (order) under the
                                                      lambs in the lot in number of head.                                                                           issued on October 20, 2015, and
                                                                                                              Agricultural Marketing Agreement Act                  published in the October 28, 2015, issue
                                                         (xii) Forward contract purchases basis level
                                                      (27). Enter the agreed upon adjustment to a             of 1937 to cover pecans grown in the                  of the Federal Register (80 FR 66372).
                                                      future price to establish the final price of the        states of Alabama, Arkansas, Arizona,                    This administrative action is governed
                                                      forward contracted lambs in dollars per one             California, Florida, Georgia, Kansas,                 by the provisions of sections 556 and
                                                      hundred pounds.                                         Louisiana, Missouri, Mississippi, North               557 of title 5 of the United States Code
                                                         (xiii) Forward contract purchases delivery           Carolina, New Mexico, Oklahoma,                       and, therefore, is excluded from the
                                                      month (28). Enter the delivery month of the             South Carolina, and Texas, and provides
                                                      lambs purchased through forward contracts
                                                                                                                                                                    requirements of Executive Order 12866,
                                                                                                              growers with the opportunity to vote in               13563, and 13175. Notice of this
                                                      as a 3-letter abbreviation.                             a referendum to determine if they favor
                                                         (xiv) Committed lambs (29). Enter quantity                                                                 rulemaking action was provided to
                                                                                                              its establishment. The proposed order                 tribal governments through USDA’s
                                                      of lambs committed to be delivered to the
                                                      packer in number of head.                               would provide authority to collect                    Office of Tribal Relations; no comments
                                                         (xv) Committed delivery month (30). Enter            industry data and to conduct research                 have been received.
                                                      the delivery month of the lambs committed               and promotion activities. In addition,
                                                      for delivery to the packer as a 3-letter                the order would provide authority for                 Preliminary Statement
                                                      abbreviation.                                           the industry to recommend grade,                         This Secretary’s Decision is issued
                                                         (xvi) Committed delivery year (31). Enter            quality and size regulation, as well as               pursuant to the provisions of the
                                                      the delivery year of the lambs committed for            pack and container regulation, subject to             Agricultural Marketing Agreement Act
                                                      delivery to the packer as a 4-digit number.             approval by the Department of
                                                         (2) LS–133—Lamb Pelts Weekly Report.                                                                       of 1937, as amended (7 U.S.C. 601–674),
                                                                                                              Agriculture (USDA). The program                       hereinafter referred to as the ‘‘Act,’’ and
                                                         (i) Lot identification (11). Enter code used
                                                      to identify the lot of pelts.                           would be financed by assessments on                   the applicable rules of practice and
                                                         (ii) Source (12). Enter ‘‘1’’, packer owned,         pecan handlers and would be locally                   procedure governing the formulation of
                                                      if the pelts were from packer owned lambs               administered, under USDA oversight, by                marketing agreements and orders (7 CFR
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS




                                                      or ‘‘2’’, producer owned, if the pelts are from         a Council of seventeen growers and                    part 900). The proposed marketing order
                                                      producer owned lambs.                                   shellers (handlers) nominated by the                  is authorized under section 8(c) of the
                                                         (iii) Length of Wool (13). Enter ‘‘1’’,              industry and appointed by USDA.                       Act.
                                                      unshorn. Enter ‘‘2’’, shorn.
                                                                                                              DATES: The referendum will be                            The proposed marketing agreement
                                                         (iv) Price (14). Enter the price per piece
                                                      paid by the packer for each classification              conducted from March 9 through March                  and order are based on the record of a
                                                      category of pelts in the lot.                           30, 2016. Ballot materials will be sent to            public hearing held July 20 through July
                                                         (v) Volume (15). Enter the quantity in               all known pecan growers in the                        21, 2015, in Las Cruces, New Mexico;
                                                      number of pieces or pelts in each                       proposed fifteen-state production area.               July 23 through July 24, 2015, in Dallas,
                                                      classification category of the lot.                     To be eligible to vote, a grower must                 Texas; and, July 27 through July 29,


                                                 VerDate Sep<11>2014   17:29 Feb 26, 2016   Jkt 238001   PO 00000   Frm 00007   Fmt 4702   Sfmt 4702   E:\FR\FM\29FEP1.SGM   29FEP1



Document Created: 2016-02-27 02:05:19
Document Modified: 2016-02-27 02:05:19
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments 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.
ContactMichael 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 [email protected]
FR Citation81 FR 10132 
RIN Number0581-AD45
CFR AssociatedCattle; Hogs; Lamb; Livestock; Sheep and Swine

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR