S.Amdt. 982

SA 982. Mr. ENZI (for himself, Mr. Johnson of South Dakota, and Mr. Tester) submitted an amendment intended to be proposed by him to the bill S. 954, to reauthorize agricultural programs through 2018; which was ordered to lie on the table; as follows:

On page 1084, strikes line 20 through 22 and insert the following:

SEC. 11____. PACKERS AND POULTRY.

(a) Limitation on Use of Anti-competitive Forward Contracts.--

(1) In general.--Section 202 of the Packers and Stockyards Act, 1921 (7 U.S.C. 192), is amended--

(A) in subsection (g), by striking “or (e)” and inserting “(e), or (f)”;

(B) by redesignating subsections (f) and (g) as subsection (g) and (h), respectively;

(C) by inserting after subsection (e) the following:

“(f)(1) Except as provided in paragraph (2), use, in effectuating any sale of livestock, a forward contract that--

“(A) does not contain a firm base price that may be equated to a fixed dollar amount on the day on which the forward contract is entered into; or

“(B) is based on a formula price.

“(2) Paragraph (1) shall not apply to--

“(A) a cooperative or entity owned by a cooperative, if a majority of the ownership interest in the cooperative is held by active cooperative members that--

“(B) own, feed, or control livestock; and

“(C) provide the livestock to the cooperative for slaughter;

“(D) a packer that is not required to report to the Secretary on each reporting day (as defined in section 212 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1635a)) information on the price and quantity of livestock purchased by the packer; or

“(E) a packer that owns 1 livestock processing plant.”.

(2) Definitions.--Section 2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 182(a)) is amended by adding at the end the following:

“(15) Firm base price.--The term ‘firm base price' means a transaction using a reference price from an external source.

“(16) Formula price.--

“(A) In general.--The term ‘formula price' means any price term that establishes a base from which a purchase price is calculated on the basis of a price that will not be determined or reported until a date after the day the forward price is established.

“(B) Exclusion.--The term ‘formula price' does not include--

“(i) any price term that establishes a base from which a purchase price is calculated on the basis of a futures market price; or

“(ii) any adjustment to the base for quality, grade, or other factors relating to the value of livestock or livestock products that are readily verifiable market factors and are outside the control of the packer.

“(17) Forward contract.--The term ‘forward contract' means an oral or written contract for the purchase of livestock that provides for the delivery of the livestock to a packer at a date that is more than 7 days after the date on which the contract is entered into, without regard to whether the contract is for--

“(A) a specified lot of livestock; or

“(B) a specified number of livestock over a certain period of time.”.

(b) Poultry Business Disruption Insurance Policy and Catastrophic Disease Program.--Section 522(c) of the Federal Crop Insurance Act (7