S. 1026Senate112th Congress (2011-2013)In Committee

Livestock Marketing Fairness Act

Introduced May 19, 2011

Legislative Activity

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

May 19, 2011

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SenateIntro Referral

Introduced in Senate

May 19, 2011

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S3175-3176)

May 19, 2011

SenateIntro Referral

Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

May 19, 2011

Floor Debate

8 members

What members said about S. 1026 on the floor

2 Republicans6 Democrats
Benjamin L. Cardin
Sen. Benjamin L. CardinD-MD · May 19, 2011

Mr. President, today Senator Vitter and I are introducing legislation to ensure and protect the jobs of thousands of individuals who are blind or have significant disabilities and provide important…

Mark Udall
Sen. Mark UdallD-CO · May 19, 2011

Mr. President, I rise today to discuss an important issue, energy consumption. Do each of us know how much energy we actually consume? How much does our energy use affect our pocketbooks? Consumers…

Joseph I. Lieberman
Sen. Joseph I. LiebermanD-CT · May 19, 2011

Mr. President, I rise today, with my colleague Senator McCain, to introduce legislation to ensure that we take advantage of a once-in-a-lifetime opportunity to build a coast-to-coast communications…

Michael B. Enzi
Sen. Michael B. EnziR-WY · May 19, 2011

Mr. President, I wish to speak on the introduction of the Livestock Marketing Fairness Act. I want to also acknowledge that I am joined in introducing this legislation by Senators Tim Johnson,…

John McCain
Sen. John McCainR-AZ · May 19, 2011

Mr, President, today I share the honor with Chairman Lieberman of introducing the First Responders Protection Act of 2011. This bill would provide 10 MHz of spectrum in the 700 MHz spectrum band to…

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Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · May 19, 2011

Mr. President, today I am proud to introduce the National Guard Empowerment and State-National Defense Integration Act of 2011 along with my National Guard Caucus Co-Chair, Senator Lindsey Graham.…

Ron Wyden
Sen. Ron WydenD-OR · May 19, 2011

Mr. President, today I am reintroducing legislation to authorize the Bureau of Reclamation to share in the cost of the construction of a new wastewater treatment plant for Hermiston, Oregon. The bill…

Harry Reid
Sen. Harry ReidD-NV · May 19, 2011

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

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Introduced in SenateIssued May 19, 2011

II

112th CONGRESS

1st Session

S. 1026

IN THE SENATE OF THE UNITED STATES

May 19, 2011

Mr. Enzi (for himself, Mr. Johnson of South Dakota, Mr. Grassley, and Mr. Tester) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry

A BILL

To amend the Packers and Stockyards Act, 1921, to prohibit the use of certain anti-competitive forward contracts.

1.

Short title

This Act may be cited as the Livestock Marketing Fairness Act.

2.

Purpose

The purpose of the amendments made by this Act is to prohibit the use of certain anti-competitive forward contracts—

(1)

to require a firm base price in forward contracts and marketing agreements; and

(2)

to require that forward contracts be traded in open, public markets.

3.

Limitation on use of anti-competitive forward contracts

(a)

In general

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

(1)

by striking Sec. 202. It shall be and inserting the following:

202.

Unlawful practices

(a)

In general

It shall be

;

(2)

by striking to: and inserting to—;

(3)

by redesignating subsections (a), (b), (c), (d), (e), (f), and (g) as paragraphs (1), (2), (3), (4), (5), (7), and (8), respectively, and indenting appropriately;

(4)

in paragraph (7) (as redesignated by paragraph (3)), by designating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively, and indenting appropriately;

(5)

in paragraph (8) (as redesignated by paragraph (3)), by striking subdivision (a), (b), (c), (d), or (e) and inserting paragraph (1), (2), (3), (4), (5), or (6);

(6)

in each of paragraphs (1), (2), (3), (4), (5), (7), and (8) (as redesignated by paragraph (3)), by striking the first capital letter of the first word in the paragraph and inserting the same letter in the lower case;

(7)

in each of paragraphs (1) through (5) (as redesignated by paragraph (3)), by striking or at the end;

(8)

by inserting after paragraph (5) (as redesignated by paragraph (3)) the following:

(6)

except as provided in subsection (c), 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;

(B)

is not offered for bid in an open, public manner under which—

(i)

buyers and sellers have the opportunity to participate in the bid; and

(ii)

buyers and sellers may witness bids that are made and accepted;

(C)

is based on a formula price; or

(D)

subject to subsection (b), provides for the sale of livestock in a quantity in excess of—

(i)

in the case of cattle, 40 cattle;

(ii)

in the case of swine, 30 swine; and

(iii)

in the case of other types of livestock, a comparable quantity of the type of livestock determined by the Secretary.

; and

(9)

by adding at the end the following:

(b)

Adjustments

The Secretary may adjust the maximum quantity of livestock described in subsection (a)(6)(D) to reflect advances in marketing and transportation capabilities if the adjusted quantity provides reasonable market access for all buyers and sellers.

(c)

Exemption for cooperatives

Subsection (a)(6) shall not apply to—

(1)

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—

(A)

own, feed, or control livestock; and

(B)

provide the livestock to the cooperative for slaughter;

(2)

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

(3)

a packer that owns 1 livestock processing plant.

.

(b)

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.

.