S. 949Senate117th Congress (2021-2023)In Committee

A bill to amend the Agricultural Marketing Act of 1946 to foster efficient markets and increase competition and transparency among packers that purchase livestock from producers.

Introduced March 24, 2021

AI-Generated Summary

Updated February 8, 2026 at 12:57 AM UTC

The bill amends the Agricultural Marketing Act of 1946 to boost competition and transparency in livestock markets. It requires larger packers—those with more than one processing plant—to report daily prices and quantities of livestock they buy and to ensure at least half of the animals they slaughter each week come from spot‑market sales with independent producers. The changes also let states impose stricter requirements if they choose.

Key Provisions

  • Redesignates an existing section and adds a new Section 260 that defines key terms such as “covered packer,” “livestock,” “nonaffiliated producer,” and “spot market sale.”
  • Requires covered packers to report each day to the Secretary the price and quantity of livestock purchased.
  • Defines a spot market sale as a transaction with a fixed base price, slaughter within 14 days, and a genuine competitive bidding opportunity for the producer.
  • Mandates that covered packers must slaughter at least 50% of their weekly livestock volume through spot market sales from nonaffiliated producers.
  • States that state or local laws may require a higher spot‑market percentage and are not overridden by this federal rule.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry. (Sponsor introductory remarks on measure: CR S1769-1770)

March 24, 2021

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SenateIntro Referral

Introduced in Senate

March 24, 2021

SenateIntro Referral

Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry. (Sponsor introductory remarks on measure: CR S1769-1770)

March 24, 2021

Floor Debate

4 members

What members said about S. 949 on the floor

1 Republican3 Democrats
Chuck Grassley
Sen. Chuck GrassleyR-IA · Mar 24, 2021

Mr. President, on another subject, over the years, the consolidation of the beef industry has threatened the livelihood of Iowa farm families and rural communities where they reside, and it isn't…

Zoe Lofgren
Rep. Zoe LofgrenD-CA-19 · Mar 10, 2021

Madam Speaker, I rise to include in the Record the following letters of support from religious organizations for H.R. 1, as amended. Faithful Democracy, December 4, 2020. Hon. Nancy Pelosi, Speaker…

Mazie K. Hirono
Sen. Mazie K. HironoD-HI · Mar 24, 2021

Mr. President, during the last year we have all experienced the impacts of the coronavirus on everyday life. The coronavirus has shuttered businesses, closed schools, cancelled events, and…

Chuck Grassley
Sen. Chuck GrassleyR-IA · Mar 24, 2021

Madam President, we hear from Democrats that they want to do things in a bipartisan way. Last year, Senator Wyden and I developed a bipartisan bill that would save the taxpayers $95 billion and…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Mar 24, 2021

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

Bill Text

Latest available legislative text

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Introduced in SenateIssued March 24, 2021

II

117th CONGRESS

1st Session

S. 949

IN THE SENATE OF THE UNITED STATES

March 24, 2021

Mr. Grassley (for himself, Mr. Tester, Mr. Hoeven, Ms. Smith, Ms. Ernst, Mr. Wyden, Mr. Rounds, Mr. Booker, and Mr. Daines) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry

A BILL

To amend the Agricultural Marketing Act of 1946 to foster efficient markets and increase competition and transparency among packers that purchase livestock from producers.

1.

Spot market purchases of livestock by packers

Chapter 5 of subtitle B of the Agricultural Marketing Act of 1946 (7 U.S.C. 1636 et seq.) is amended—

(1)

by redesignating section 260 (7 U.S.C. 1636i) as section 261; and

(2)

by inserting after section 259 the following:

260.

Spot market purchases of livestock by packers

(a)

Definitions

In this section:

(1)

Covered packer

(A)

In general

The term covered packer means a packer that is required under this subtitle to report to the Secretary each reporting day information on the price and quantity of livestock purchased by the packer.

(B)

Exclusion

The term covered packer does not include a packer that owns only 1 livestock processing plant.

(2)

Livestock

The term livestock does not include—

(A)

pork;

(B)

poultry;

(C)

a dairy-bred, dairy-bred cross, or beef animal over 30 months of age; or

(D)

a foreign-born beef animal.

(3)

Nonaffiliated producer

The term nonaffiliated producer means a producer of livestock—

(A)

that sells livestock to a covered packer; and

(B)
(i)

that has less than 1 percent equity interest in that covered packer;

(ii)

in which that covered packer has less than 1 percent equity interest;

(iii)

that has no officers, directors, employees, or owners that are officers, directors, employees, or owners of that covered packer; and

(iv)

that has no fiduciary responsibility to that covered packer.

(4)

Spot market sale

(A)

In general

The term spot market sale means a purchase and sale of livestock by a covered packer from a nonaffiliated producer—

(i)

under an agreement that specifies a firm base price that may be equated with a fixed dollar amount on the date on which the agreement is entered into;

(ii)

under which the livestock are slaughtered not more than 14 days after the date on which the agreement is entered into; and

(iii)

under which a reasonable competitive bidding opportunity exists on the date on which the agreement is entered into, as determined under subparagraph (B).

(B)

Reasonable competitive bidding opportunity

For the purposes of subparagraph (A)(iii), a reasonable competitive bidding opportunity is considered to exist if—

(i)

no written or oral agreement precludes the nonaffiliated producer from soliciting or receiving bids from other covered packers; and

(ii)

no circumstance, custom, or practice exists that—

(I)

establishes the existence of an implied contract (as determined in accordance with the Uniform Commercial Code); and

(II)

precludes the nonaffiliated producer from soliciting or receiving bids from other covered packers.

(b)

General rule

Of the quantity of livestock that is slaughtered by a covered packer during each reporting week in each plant, the covered packer shall slaughter not less than 50 percent of the quantity through spot market sales from nonaffiliated producers.

(c)

Nonpreemption

Notwithstanding section 259, this section does not preempt any requirement of a State or political subdivision of a State that requires a covered packer to purchase a greater percentage of livestock on the spot market than the percentage required under this section.

(d)

Relationship to other provisions

Nothing in this section affects the interpretation of any other provision of this Act, including section 202.

.