Sec. 8. Cash market acquisition of cattle
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It is the sense of the House of Representatives that— all participants in the fed cattle market have a responsibility to contribute to regionally sufficient levels of negotiated trade of fed cattle in all cattle feeding regions in order to achieve robust price discovery; and the Department of Agriculture should examine existing academic literature regarding minimum levels of cash transactions necessary to achieve robust price discovery and enhance cattle producer leverage in the marketplace in each of the cattle marketing regions.
Chapter 5 of subtitle B of the Agricultural Marketing Act of 1946 ( 7 U.S.C. 1636 et seq. ) is amended— by redesignating sections 259 and 260 as sections 260 and 261, respectively; and by inserting after section 258 the following: In this section, the term packer has the meaning given the term in section 221. In this section, the term packer does not include a packer that slaughters cattle at only 1 livestock processing plant. Not later than 2 years after the date of enactment of the Cattle Price Discovery and Transparency Act of 2021 , the Secretary, in consultation with the Chief Economist, shall establish— regional mandatory minimums for the purpose of enhancing price discovery, transparency, and cattle producer leverage for cattle market participants; and methods for establishing those regional mandatory minimums, which shall be publicly available.
A packer shall, with respect to a packer processing plant, purchase by negotiated purchase or negotiated grid purchase the percentage of cattle required by the regional mandatory minimum established for the region in which the packer processing plant is located. In carrying out subsection (b), the Secretary shall make all proposed regional mandatory minimums and proposed methods for establishing those minimums subject to a notice and comment period. Regional mandatory minimums established for each reporting region under subsection (b)(1) shall be applicable for not more than a 24-month period.
In carrying out subsection
(b)for each reporting region, the Secretary, in consultation with the Chief Economist, shall consider the following factors: The number of packers in the reporting region. The availability of cattle in the reporting region. Pre-existing contractual arrangements of packers in the reporting region. The number of pricing transactions (pens of cattle sold) in the reporting region. Subject to paragraph (2), the initial regional mandatory minimums established for each reporting region under subsection (b)(1) shall be not less than the average percentage of negotiated purchases and negotiated grid purchases in that region from the preceding 18 months. No initial regional mandatory minimum established for a reporting region under paragraph
(1)shall exceed 300 percent of the lowest initial regional mandatory minimum established under that paragraph for a region that has publicly reported a majority of weekly market information during the previous 18 months. On establishing regional mandatory minimums under subsection (b)(1), the Secretary— shall review the regional mandatory minimums not less frequently than once every 2 years; and shall, in consultation with the Chief Economist— maintain existing regional mandatory minimums; or modify the regional mandatory minimums after— consulting with representatives of the United States cattle and beef industry; and making the proposed modification subject to a notice and comment period. On establishing regional mandatory minimums under subsection (b)(1), the Secretary shall— regularly monitor compliance by packers with those regional mandatory minimums; and enforce this section in accordance with section 203 of the Packers and Stockyards Act, 1921 ( 7 U.S.C. 193 ). Not later than 2 years after establishing regional mandatory minimums under subsection (b)(1), the Secretary, in consultation with the Chief Economist, shall conduct a quantifiable, data-driven cost-benefit analysis regarding the operation and effect of those regional mandatory minimums. This section shall apply only with respect to the reporting regions designated by the Agricultural Marketing Service. .
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