PRIA, Government Policy, Made Personal

Summary

Defines the words used for buying, selling, and reporting about pigs and pork. It explains what kinds of animals, purchases, plants, and reports the rules cover and gives the exact tests for things like ownership, time frames, and size thresholds. Affiliate — someone who either owns 5 percent or more of a packer’s voting stock, is 5 percent or more owned by the packer, or is controlled by or shares control with the packer. Applicable reporting period — the time covered by the prior-day, morning, and afternoon reports required for reporting. Barrow — a neutered male pig. Base market hog — a barrow or gilt with no added premiums or subtracted discounts from the base price. Boar — an intact male pig. Formula price — a price set by a mathematical formula using a specified market as the base. Gilt — a young female pig that has not had piglets. Hog class — barrows/gilts, sows, or boars/stags. Negotiated formula purchase — a lot-by-lot negotiated formula where delivery is scheduled within 14 days after negotiation. Noncarcass merit premium — a known pre-sale increase to base price based on non-carcass factors. Other market formula purchase — a formula price based on a market other than swine/pork, and this can include futures or options. Other purchase arrangement — a purchase that is none of the listed purchase types and does not involve packer-owned swine. Packer — a person or plant that buys swine for slaughter or makes/markets pork products, but only includes federally inspected swine plants and generally only plants or persons that averaged at least 100,000 swine or 200,000 sows/boars (respectively) per year over the prior five calendar years; if they did not slaughter in those five years, plant capacity is considered. Packer-owned swine — swine owned by the packer (or its affiliate/subsidiary) for at least 14 days right before slaughter. Packer-sold swine — swine owned by the packer for more than 14 days right before sale for slaughter and sold to another packer. Pork — meat from a pig. Pork product — any product or byproduct made wholly or partly from pork. Purchase data — all required data (including live weight if bought live) for swine bought during the reporting period, reported by hog class, type of purchase, and packer-owned status. Slaughter data — all required data for swine slaughtered during the reporting period, reported by hog class, type of purchase, and packer-owned status. Sow — an adult female pig that has had at least one litter. Swine — any pig raised as a feeder pig, for breeding stock, or for slaughter. Swine or pork market formula purchase — a formula price based on the market for swine, pork, or a pork product (not based on futures or options). Type of purchase — one of: negotiated purchase, other market formula purchase, swine or pork market formula purchase, negotiated formula purchase, or other purchase arrangement.

Title 7, §1635i

Agriculture, Source: USLM XML via OLRC

In this part:

(1)Affiliate

The term “affiliate”, with respect to a packer, means—

(A)a person that directly or indirectly owns, controls, or holds with power to vote, 5 percent or more of the outstanding voting securities of the packer;

(B)a person 5 percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by the packer; and

(C)a person that directly or indirectly controls, or is controlled by or under common control with, the packer.

(2)Applicable reporting period

The term “applicable reporting period” means the period of time prescribed by the prior day report, the morning report, and the afternoon report, as required under section 1635j(c) of this title.

(3)Barrow

The term “barrow” means a neutered male swine.

(4)Base market hog

The term “base market hog” means a barrow or gilt for which no discounts are subtracted from and no premiums are added to the base price.

(5)Boar

The term “boar” means a sexually-intact male swine.

(6)Formula price

The term “formula price” means a price determined by a mathematical formula under which the price established for a specified market serves as the basis for the formula.

(7)Gilt

The term “gilt” means a young female swine that has not produced a litter.

(8)Hog class

The term “hog class” means, as applicable—

(A)barrows or gilts;

(B)sows; or

(C)boars or stags.

(9)Negotiated formula purchase

The term “negotiated formula purchase” means a swine or pork market formula purchase under which—

(A)the formula is determined by negotiation on a lot-by-lot basis; and

(B)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.

(10)Noncarcass merit premium

The term “noncarcass merit premium” means an increase in the base price of the swine offered by an individual packer or packing plant, based on any factor other than the characteristics of the carcass, if the actual amount of the premium is known before the sale and delivery of the swine.

(11)Other market formula purchase

(A)In general

The term “other market formula purchase” means 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.

(B)Inclusion

The term “other market formula purchase” includes a formula purchase in a case in which the price formula is based on one or more futures or options contracts.

(12)Other purchase arrangement

The term “other purchase arrangement” means a purchase of swine by a packer that—

(A)is not a negotiated purchase, swine or pork market formula purchase, negotiated formula purchase, or other market formula purchase; and

(B)does not involve packer-owned swine.

(13)Packer

The term “packer” means any person engaged in the business of buying swine in commerce for purposes of slaughter, of manufacturing or preparing meats or meat food products from swine for sale or shipment in commerce, or of marketing meats or meat food products from swine in an unmanufactured form acting as a wholesale broker, dealer, or distributor in commerce, except that—

(A)the term includes only a swine processing plant that is federally inspected;

(B)for any calendar year, the term includes only—

(i)a swine processing plant that slaughtered an average of at least 100,000 swine per year during the immediately preceding five calendar years; and

(ii)a person that slaughtered an average of at least 200,000 sows, boars, or any combination thereof, per year during the immediately preceding five calendar years; and

(C)in the case of a swine processing plant or person that did not slaughter swine during the immediately preceding 5 calendar years, the Secretary shall consider the plant capacity of the processing plant or person in determining whether the processing plant or person should be considered a packer under this part.

(14)Packer-owned swine

The term “packer-owned swine” means swine that a packer (including a subsidiary or affiliate of the packer) owns for at least 14 days immediately before slaughter.

(15)Packer-sold swine

The term “packer-sold swine” means the swine that are—

(A)owned by a packer (including a subsidiary or affiliate of the packer) for more than 14 days immediately before sale for slaughter; and

(B)sold for slaughter to another packer.

(16)Pork

The term “pork” means the meat of a porcine animal.

(17)Pork product

The term “pork product” means a product or byproduct produced or processed in whole or in part from pork.

(18)Purchase data

The term “purchase data” means all of the applicable data, including weight (if purchased live), for all swine purchased during the applicable reporting period, regardless of the expected delivery date of the swine, reported by—

(A)hog class;

(B)type of purchase; and

(C)packer-owned swine.

(19)Slaughter data

The term “slaughter data” means all of the applicable data for all swine slaughtered by a packer during the applicable reporting period, regardless of when the price of the swine was negotiated or otherwise determined, reported by—

(A)hog class;

(B)type of purchase; and

(C)packer-owned swine.

(20)Sow

The term “sow” means an adult female swine that has produced one or more litters.

(21)Swine

The term “swine” means a porcine animal raised to be a feeder pig, raised for seedstock, or raised for slaughter.

(22)Swine or pork market formula purchase

The term “swine or pork market formula purchase” means 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 a pork product.

(23)Type of purchase

The term “type of purchase”, with respect to swine, means—

(A)a negotiated purchase;

(B)other market formula purchase;

(C)a swine or pork market formula purchase;

(D)a negotiated formula purchase; and

(E)other purchase arrangement.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2015—Pars. (9) to (12). Pub. L. 114–54, § 102(a)(1), (2), added par. (9) and redesignated former pars. (9) to (11) as (10) to (12), respectively. Former par. (12) redesignated (13). Par. (12)(A). Pub. L. 114–54, § 102(a)(3), inserted “negotiated formula purchase,” after “pork market formula purchase,”. Pars. (13) to (23). Pub. L. 114–54, § 102(a)(1), redesignated pars. (12) to (22) as (13) to (23), respectively. Par. (23)(D), (E). Pub. L. 114–54, § 102(a)(4), added subpar. (D) and redesignated former subpar. (D) as (E). 2006—Par. (4). Pub. L. 109–296, § 2(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The term ‘base market hog’ means a hog for which no discounts are subtracted from and no premiums are added to the base price.” Par. (5). Pub. L. 109–296, § 2(b), amended heading and text of par. (5) generally. Prior to amendment, text read as follows: “The term ‘bred female swine’ means any female swine, whether a sow or gilt, that has been mated or inseminated and is assumed, or has been confirmed, to be pregnant.” Par. (12)(B). Pub. L. 109–296, § 2(c)(1), added subpar. (B) and struck out former subpar. (B) which read as follows: “for any calendar year, the term includes only a swine processing plant that slaughtered an average of at least 100,000 swine per year during the immediately preceding 5 calendar years; and”. Par. (12)(C). Pub. L. 109–296, § 2(c)(2), inserted “or person” after “swine processing plant”, “plant capacity of the processing plant”, and “determining whether the processing plant”.

§1635i Definitions

Summary

Title 7, §1635i

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata