§1635d Definitions

Summary

Defines key words used in rules about buying and selling cattle. Cattle committed means cattle set to be delivered to a packer within the 7-day period starting on the date the seller and buyer agree to sell. Cattle type names the kinds bought for slaughter, including fed steers, fed heifers, fed dairy steers and heifers, cows, and bulls. Formula marketing arrangement means an advance promise to deliver cattle for slaughter by a method other than a negotiated purchase or a forward contract, where the price will be figured later. Forward contract means a pre-slaughter purchase where the base price refers to prices on the Chicago Mercantile Exchange or other similar public prices, or another forward contract the Secretary says applies. Packer means a person who buys cattle to slaughter or who processes or markets meat, but it only counts a federally inspected cattle processing plant that, for any calendar year, averaged at least 125,000 head per year over the immediately preceding 5 calendar years; if a plant did not slaughter in those 5 years, the Secretary will consider its plant capacity. Packer-owned cattle are cattle a packer owned for at least 14 days right before slaughter. Terms of trade include whether financing was provided, where delivery is to occur, whether the producer can pick the delivery date/time during the packer’s business day, and the share of negotiated purchases delivered to the plant more than 7 days but fewer than 14 days after the earlier of the commitment date or the purchase date. Type of purchase means a negotiated purchase, a formula marketing arrangement, or a forward contract.