7 U.S.C. § 197a: Production contracts

Summary

A poultry grower or swine production contract grower can cancel their growing contract by mailing a cancellation notice to the live poultry dealer or swine contractor. The notice must be mailed no later than the later of: 3 business days after the contract is signed, or any cancellation date written in the contract. The contract must clearly state the grower’s right to cancel, how to cancel, and the cancellation deadline. The first page of the contract must include a clear "Additional Capital Investments Disclosure Statement" saying that large extra capital investments may be required during the contract. This applies to contracts made, changed, renewed, or extended after the date this section was enacted.

Title 7, §197a

Agriculture, Source: USLM XML via OLRC

(a)Right of contract producers to cancel production contracts

(1)In general

A poultry grower or swine production contract grower may cancel a poultry growing arrangement or swine production contract by mailing a cancellation notice to the live poultry dealer or swine contractor not later than the later of— (A)

(B)any cancellation date specified in the poultry growing arrangement or swine production contract.

(2)Disclosure

A poultry growing arrangement or swine production contract shall clearly disclose—

(A)the right of the poultry grower or swine production contract grower to cancel the poultry growing arrangement or swine production contract;

(B)the method by which the poultry grower or swine production contract grower may cancel the poultry growing arrangement or swine production contract; and

(C)the deadline for canceling the poultry growing arrangement or swine production contract.

(b)Required disclosure of additional capital investments in production contracts

(1)In general

A poultry growing arrangement or swine production contract shall contain on the first page a statement identified as “Additional Capital Investments Disclosure Statement”, which shall conspicuously state that additional large capital investments may be required of the poultry grower or swine production contract grower during the term of the poultry growing arrangement or swine production contract.

(2)Application

Paragraph (1) shall apply to any poultry growing arrangement or swine production contract entered into, amended, altered, modified, renewed, or extended after the date of the enactment of this section.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The date of the enactment of this section, referred to in subsec. (b)(2), is the date of enactment of Pub. L. 110–246, which was approved June 18, 2008. Codification Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246. section 11005 of Pub. L. 110–246, which directed amendment of title II of the Packers and Stockyards Act, 1921, by adding sections 208 to 210 at the end, was executed by adding the sections at the end of this part, which is subtitle A of title II of the Act, to reflect the probable intent of Congress.

Statutory Notes and Related Subsidiaries

Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of this title.

§197a Production Contracts