Sec. 3. Digital livestock exchange platform
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Subtitle A of the Agricultural Marketing Act of 1946 ( 7 U.S.C. 1621 et seq. ) (as amended by section 2) is amended by adding at the end the following: In this section: The term digital livestock exchange platform means a digital application or website that fulfills the purposes and activities described in subsection (d). The term eligible processor has the meaning given the term in section 210B(a). The term formula price means any price term that establishes a base from which a purchase price is calculated on the basis of a price that will not be determined or reported until a date that is after the date on which the forward price is established.
The term formula price does not include— any price term that establishes a base from which a purchase price is calculated on the basis of a futures market price; or any adjustment to the base for quality, grade, or other factors relating to the value of livestock that are readily verifiable market factors and are outside the control of the packer. The term forward contract means an oral or written contract for the purchase of livestock that provides for the delivery of the livestock to a packer at a date that is more than 7 days after the date on which the contract is entered into, without regard to whether the contract is for— a specified lot of livestock; or a specified number of livestock over a certain period of time.
The term livestock means cattle, sheep, swine, and goats, whether alive or dead. The term meat food products has the meaning given the term in section 2(a) of the Packers and Stockyards Act, 1921 ( 7 U.S.C. 182 ). The term poultry has the meaning given the term in section 4 of the Poultry Products Inspection Act ( 21 U.S.C. 453 ). The term poultry product has the meaning given the term in section 4 of the Poultry Products Inspection Act ( 21 U.S.C. 453 ). The term Secretary means the Secretary of Agriculture, acting through the Administrator of the Agricultural Marketing Service.
The Secretary shall enter into cooperative agreements with entities (including private entities, nonprofit organizations, and small businesses) to develop, as determined by the Secretary— a single digital livestock exchange platform; or multiple digital livestock exchange platforms by region. A digital livestock exchange platform shall be a market agency (as defined in section 301 of the Packers and Stockyards Act, 1921 ( 7 U.S.C. 201 ), except that livestock in paragraph
(1)of that section shall include poultry) for purposes of that Act. A digital livestock exchange platform shall— facilitate open access to online cash transfer and open bidding on forward contracts and procurement contracts between— livestock and poultry producers; livestock and poultry producers and eligible processors; livestock and poultry producers or eligible processors and institutional, private sector, and government buyers; and distributors of meat food products and poultry products to institutional, private sector, and government buyers; facilitate ease of access to— Federal procurement opportunities for eligible processors and producers of meat food products and poultry products; and subcontracting opportunities by private entities fulfilling Federal meat food products and poultry products procurement contracts; facilitate connection between producers and eligible processors offering copacking services, so that producers may fulfill governmental, retail, restaurant, or institutional contracts directly; facilitate reporting by the Secretary of regional agricultural prices while ensuring data privacy and data ownership for individual digital livestock exchange platform participants; provide open-source access for producers to a tool that allows producers to enhance the traceability of their product attributes; aim to prevent manipulation within markets subject to the Packers and Stockyards Act, 1921 ( 7 U.S.C. 191 et seq. ), and transactions across the livestock and poultry industry; and test the value of new forms of technology, including distributed ledger and smart contract technologies, in livestock and poultry market platforms and supply chains, to accomplish the objectives described in paragraphs
(1)through (6). In effectuating any sale of livestock on a digital livestock exchange platform, it shall be unlawful to use a forward contract that— does not contain a firm base price that may be equated to a fixed dollar amount on the date on which the forward contract is entered into; is not offered for bid in an open, public manner under which— buyers and sellers have the opportunity to participate in the bid; more than 1 blind bid is solicited; and buyers and sellers may witness bids that are made and accepted; is based on a formula price; or provides for the sale of livestock in a quantity in excess of 50 animals. Any participant that violates paragraph
(1)shall— be barred from participation in a digital livestock exchange platform or for consideration for any Federal meat food product or poultry product procurement contract; and forfeit any existing Federal meat food product or poultry product procurement contract for the 5-year period following the violation. A meatpacker that has a daily harvest volume that is more than 5 percent of the national daily harvest volume may not participate in a digital livestock exchange platform, including by posting subcontracting opportunities on the digital livestock exchange platform. A meatpacker that is not an eligible processor may not participate in a digital livestock exchange platform, including by posting subcontracting opportunities on the digital livestock exchange platform. The Secretary shall conduct outreach through extension services regarding the availability and use of a digital livestock exchange platform. There is authorized to be appropriated to the Secretary to carry out subsection
(b)$2,000,000, to remain available until expended. .
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