,,ii #aaith ,,congress #b;d ,session ,s4 #diif ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ae1 #bjbf,mr4 ,welch 7for himself1 ,mr4 ,booker1 ,ms4 ,warren1 and ,mr4 ,sanders7 introduced the following bill2 which was read twice and referred to the ,committee on ,agriculture1 ,nutrition1 and ,forestry ,a ,,bill ,to regulate market concentration and competition in the food and agriculture industry1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,fairness for ,small-,scale ,farmers and ,ranchers ,act of #bjbf4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,findings4,sec4 #c4 ,definitions4,title ,i--,moratorium on and review of large agribusiness1 food and beverage manufacturing1 and grocery retail mergers,sec4 #aja4 ,moratorium on large agribusiness1 food and beverage manufacturing1 and grocery retail mergers4,sec4 #ajb4 ,retroactive review of large agribusiness1 food and beverage manufacturing1 and grocery retail mergers4,title ,,ii--,farm system reforms,sec4 #bja4 ,local agriculture market program4,sec4 #bjb4 ,restoration of mandatory country of origin labeling for beef and pork2 inclusion of dairy products4,sec4 #bjc4 ,definitions in ,packers and ,stockyards ,act1 #aiba4,sec4 #bjd4 ,unlawful practices4,sec4 #bje4 ,spot market purchases of livestock by packers4,sec4 #bjf4 ,investigation of live poultry dealers4,sec4 #bjg4 ,ensuring fair practices in agriculture4,sec4 #bjh4 ,award of attorney fees4,sec4 #bji4 ,review and report on fragility and national security in the food system4,sec4 #baj4 ,technical amendments4,title ,,iii--,providing resources for beginning1 retiring1 and socially disadvantaged farmers and ranchers,sec4 #cja4 ,reauthorization and increased funding for beginning1 retiring1 and socially disadvantaged farmers and ranchers4,title ,,iv--,livestock1 dairy1 and poultry supply chain infrastructure,sec4 #dja4 ,livestock1 dairy1 and poultry supply chain infrastructure grants and loans4,sec4 #djb4 ,pilot program for increased accessibility to inspection and technical assistance for eligible processing facilities4 #b4 ,findings ,congress finds the following3 7#a7 ,concentration in the food and agricultural economy1 including mergers1 acquisitions1 and other combinations and alliances among suppliers1 packers1 integrators1 other food processors1 distributors1 and retailers has been accelerating at a rapid pace since the #aihjs1 and particularly since the #bjjg through #bjji recession4 7#b7 ,the trend toward greater concentration in food and agriculture has important and far-reaching implications not only for family farmers1 but also for food chain workers1 the food we eat1 the communities we live in1 the integrity of the natural environment upon which we all depend1 and for our collective public health4 7#c7 ,the infant formula industry1 for example1 has reached an alarming level of corporate concentration with #d companies now controlling nearly #ij percent of the infant formula market4 ,a disruption in the supply of just #a infant formula producer now presents a grave risk to infant health in the ,united ,states4 7#d7 ,in the past #d decades1 the top #d largest pork packers have seized control of #gj percent of the market1 up from #cf percent4 ,over the same period1 the top #d beef packers have expanded their market share from #cb percent to #he percent4 ,the top #d flour millers have increased their market share from #dj percent to #fd percent4 ,the market share of the top #d soybean crushers has jumped from #ed percent to #gi percent1 and the top #d wet corn processors control of the market has increased from #fc percent to #hf percent4 7#e7 ,today the top #d sheep1 poultry1 and fluid milk processors now control #fb percent1 #ed percent1 and #ej percent of the market1 respectively4 7#f7 ,the top #d grain companies today control as much as #ij percent of the global grain trade4 7#g7 ,during the past #e years there has been a wave of consolidation among global seed and crop-chemical firms1 #c companies now control nearly #bc of the world's commodity crop seeds4 ,those same #c companies now also control nearly #gj percent of all agricultural chemicals and pesticides4 7#h7 ,in the ,united ,states1 the #d largest corn seed sellers accounted for #he percent of the market in #bjae1 up from #fj percent in #bjjj4 ,over the past #bj years1 the cost for an acre's worth of seeds for an average corn farmer has nearly quadrupled1 and the cost of fertilizer has more than doubled4 ,yet corn yields increased only #cf percent over that time1 and the price received for the sale of a bushel of corn increased only #ca percent4 7#i7 ,a handful of firms dominate the processing of every major commodity4 ,many of them are vertically integrated1 which means that they control successive stages of the food chain1 from inputs to production to distribution4 ,the growing number and scale of cross-border agribusiness and food mergers have put foreign firms1 often with considerable government backing1 into prominent and even dominant positions in the ,united ,states beef1 hog1 poultry1 seed1 fertilizer1 and agrichemical sectors4 7#aj7 ,growing concentration of the agricultural sector has restricted choices for farmers trying to sell their products4 ,as the bargaining power of agribusiness firms over farmers increases1 concentrated agricultural commodity markets are stacked against the farmer1 with buyers of agricultural commodities often possessing regional dominance in the form of oligopsony or monopsony relative to sellers of such commodities4 7#aa7 ,the high concentration and consolidation of buyers in agricultural markets has resulted in the thinning of both cash and future markets1 thereby allowing dominant buyers to leverage their market shares to move those markets to the detriment of family farmers and ranchers4 7#ab7 ,buyers with oligopsonistic or monopsonistic power have incentives to engage in unfair and discriminatory acts that cause farmers to receive less than a competitive price for their goods4 ,at the same time1 some ,federal courts have incorrectly required a plaintiff to show harm to competition generally1 in addition to harm to the individual farmer1 when making a determination that an unfair1 unjustly discriminatory1 deceptive1 or preferential act exists under the ,packers and ,stockyards ,act1 #aiba4 7#ac7 ,the farmer's share of every retail dollar has plummeted from #da percent in #aiej1 to less than #ae percent today1 while the profit share for farm input1 marketing1 and processing companies has risen4 7#ad7 ,while agribusiness conglomerates are posting record earnings1 farmers are facing desperate times4 ,since #bjac1 net farm income for ,united ,states farmers has fallen by more than half and median on farm income was negative in #bjbj4 7#ae7 ,the benefits of low commodity prices are not being passed on to ,american consumers4 ,the gap between what shoppers pay for food and what farmers are paid is growing wider4 7#af7 ,the steadily rising price of food has outpaced growth in incomes for typical workers4 ,since the ,great ,recession1 the annual growth of real prices for food at the supermarket have risen nearly #c times faster than typical earnings4 7#ag7 ,there is a growing consensus that economic consolidation contributes to the widening gap in economic opportunity in the ,united ,states and bigger1 more dominant firms are more likely to deliver profits to investors than to raise wages or benefits4 ,mega-mergers in the food and agribusiness industries can lead to growing monopsony power abuse resulting in wage suppression1 along with massive layoffs as companies shutter factories and facilities1 harming working families and communities4 7#ah7 ,concentration1 low prices1 anticompetitive practices1 and other manipulations and abuses of the agricultural economy are driving small family farmers out of business4 ,farmers are going bankrupt or giving up1 and few are taking their places2 more farm families are having to rely on other jobs to stay afloat4 ,seventy-nine percent of farm household income came from off farm work in #bjbj1 up from #ec percent in #aifj4 7#ai7 #ha percent of ,america's farmed cropland is now controlled by #ae percent of farms1 and the number of farmers leaving the land will continue to increase unless and until these trends are reversed4 7#bj7 ,the decline of small family farms undermines the economies of rural communities across ,america2 it has pushed ,main ,street businesses1 from equipment suppliers to small banks1 out of business or to the brink of insolvency4 7#ba7 ,increased concentration in the agribusiness sector has a harmful effect on the environment2 corporate hog farming1 for example1 threatens the integrity of local water supplies and creates noxious odors in neighboring communities4 ,concentration also can increase the risks to food safety and limit the biodiversity of plants and animals4 7#bb7 ,the decline of family farming poses a direct threat to ,american families and family values1 by subjecting farm families to turmoil and stress4 ,farm advocates across the country are reporting an increase in farmer suicides over the past several years4 7#bc7 ,the decline of family farming causes the demise of rural communities1 as stores lose customers1 churches lose congregations1 schools and clinics become under-used1 career opportunities for young people dry up1 and local inequalities of wealth and income grow wider4 7#bd7 ,these developments are not the result of inevitable market forces4 ,its problems arise rather from policies made in ,washington1 including farm1 antitrust1 and trade policies4 7#be7 ,past congressional action to remediate market failure1 such as enacting country-of-origin labeling to provide transparency for domestic farmers1 ranchers1 and consumers regarding agricultural commodity origins1 have been overturned for key commodities by oligopolistic conglomerates that use undifferentiated imports to reduce domestic farm prices4 7#bf7 ,to restore competition in the agricultural economy1 and to increase the bargaining power and enhance economic prospects for family farmers1 the trend toward concentration must be reversed4 #c4 ,definitions ,in this ,act3 7#a7 ,agricultural input supplier ,the term agricultural input supplier means any person 7excluding agricultural cooperatives7 engaged in the business of selling1 in interstate or foreign commerce1 any product to be used as an input 7including seed1 germ plasm1 hormones1 antibiotics1 fertilizer1 and chemicals1 but excluding farm machinery7 for the production of any agricultural commodity1 except that no person shall be considered an agricultural input supplier if sales of such products are for a value less than #aj1jjj1jjj per year4 7#b7 ,broker ,the term broker means any person engaged in the business of negotiating sales and purchases of any agricultural commodity in interstate or foreign commerce for or on behalf of the vendor or the purchaser1 except that no person shall be considered a broker if the only sales of such commodities are for a value less than #aj1jjj1jjj per year4 7#c7 ,commission merchant ,the term commission merchant means any person engaged in the business of receiving in interstate or foreign commerce any agricultural commodity for sale1 on commission1 or for or on behalf of another1 except that no person shall be considered a commission merchant if the only sales of such commodities are for a value less than #aj1jjj1jjj per year4 7#d7 ,dealer ,the term dealer means any person 7excluding agricultural cooperatives7 engaged in the business of buying1 selling1 or marketing agricultural commodities in interstate or foreign commerce1 except that-- 7,a7 no person shall be considered a dealer with respect to sales or marketing of any agricultural commodity of that person's own raising2 and 7,b7 no person shall be considered a dealer if the only sales of such commodities are for a value less than #aj1jjj1jjj per year4 7#e7 ,distributor ,the term distributor means any entity engaged in the business of distributing agricultural products from producers or manufacturers to consumers1 restaurants1 or retailers4 7#f7 ,integrator ,the term integrator means an entity that contracts with farmers for grower services to raise chickens or hogs to slaughter size and weight4 ,the integrator owns the chickens or hogs1 supplies the feed1 slaughters1 and further processes the poultry or pork4 7#g7 ,processor ,the term processor means any person 7excluding agricultural cooperatives7 engaged in the business of handling1 preparing1 or manufacturing 7including slaughtering and food and beverage manufacturing7 of an agricultural commodity1 or the products of such agricultural commodity1 for sale or marketing for human consumption1 except that no person shall be considered a processor if the only sales of such products are for a value less than #aj1jjj1jjj per year4 7#h7 ,retailer ,the term retailer means any person 7excluding agricultural cooperatives1 cooperative retailers1 and cooperative distributers7 licensed as a retailer under the ,perishable ,agriculture ,commodities ,act of #aicj 7#g ,u4,s4,c4 #dii;a et seq471 except that no person shall be considered a retailer if the only sales of such products are for a value less than #aj1jjj1jjj per year4 ,i ,moratorium on and review of large agribusiness1 food and beverage manufacturing1 and grocery retail mergers #aja4 ,moratorium on large agribusiness1 food and beverage manufacturing1 and grocery retail mergers 7a7 ,in general 7#a7 ,moratorium ,until the date referred to in paragraph 7#b7 and except as provided in subsection 7b7-- 7,a7 no dealer1 processor1 commission merchant1 agricultural input supplier1 broker1 or operator of a warehouse of agricultural commodities or retailer with annual net sales or total assets of more than #bbb1jjj1jjj shall merge or acquire1 directly or indirectly1 any voting securities or assets of any other dealer1 processor1 commission merchant1 agricultural input supplier1 broker1 or operator of a warehouse of agricultural commodities or retailer with annual net sales or total assets of more than #bb1jjj1jjj2 and 7,b7 no dealer1 processor1 commission merchant1 agricultural input supplier1 broker1 or operator of a warehouse of agricultural commodities or retailer with annual net sales or total assets of more than #bb1jjj1jjj shall merge or acquire1 directly or indirectly1 any voting securities or assets of any other dealer1 processor1 commission merchant1 agricultural input supplier1 broker1 or operator of a warehouse of agricultural commodities or retailer with annual net sales or total assets of more than #bbb1jjj1jjj if the acquiring person would hold-- 7i7 #ae percent or more of the voting securities or assets of the acquired person2 or 7ii7 an aggregate total amount of the voting securities and assets of the acquired person in excess of #ba1jjj1jjj4 7#b7 ,date ,the date referred to in this paragraph is the effective date of comprehensive legislation enacted on or after the date on which the reviews referred to in section #ajb7;a7 are completed-- 7,a7 for addressing the problem of market concentration in the food and agricultural sector2 and 7,b7 that terminates the moratorium under paragraph 7#a74 7b7 ,waiver authority ,the ,attorney ,general shall have authority to waive the moratorium imposed by subsection 7a7 only under extraordinary circumstances1 such as insolvency or similar financial distress of #a of the affected parties4 7c7 ,exemptions ,the classes of transactions described in section #g;,a7c7 of the ,clayton ,act 7#ae ,u4,s4,c4 #ah;a7c77 are exempt from subsection 7a74 7d7 ,avoidance ,any transaction or other device entered into or employed for the purpose of avoiding the moratorium contained in subsection 7a7 shall be disregarded1 and the application of the moratorium shall be determined by applying subsection 7a7 to the substance of the transaction4 7e7 ,rulemaking ,the ,attorney ,general shall promulgate regulations that the ,attorney ,general determines are necessary to implement this section4 ,in making the determination under the preceding sentence1 the ,attorney ,general shall consult with the ,federal ,trade ,commission4 #ajb4 ,retroactive review of large agribusiness1 food and beverage manufacturing1 and grocery retail mergers 7a7 ,in general ,not later than #b years after the date of enactment of this ,act1 the ,attorney ,general and the ,federal ,trade ,commission shall review each merger that the ,attorney ,general and the ,federal ,trade ,commission have reviewed since ,january #a1 #bjjf1 that was subject to a premerger notification and waiting period pursuant to section #g;,a of the ,clayton ,act 7#ae ,u4,s4,c4 #ah;a7 in which a dealer1 processor1 distributor1 commission merchant1 agricultural input supplier1 broker1 or operator of a warehouse of agricultural commodities or retailer merged or acquired1 directly or indirectly1 any voting securities or assets of any other dealer1 processor1 distributor1 commission merchant1 agricultural input supplier1 broker1 or operator of a warehouse of agricultural commodities or retailer4 7b7 ,unwinding ,the ,attorney ,general and the ,federal ,trade ,commission shall consider whether to unwind a merger reviewed under subsection 7a7 to restore competition1 and may so unwind such merger1 if the ,attorney ,general or the ,federal ,trade ,commission determines that the merger brought material harm to-- 7#a7 competition nationally or in local markets2 7#b7 farmers and ranchers2 7#c7 workers2 or 7#d7 consumers4 7c7 ,investigative authority ,in conducting a review of a merger under subsection 7a71 the ,attorney ,general shall have the same power as the ,federal ,trade ,commission under section #f7;b7 of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #df7;b77 with respect to such review4 7d7 ,authorization of appropriations ,in addition to such other amounts as may be made available to the ,federal ,trade ,commission and the ,antitrust ,division of the ,department of ,justice1 there is authorized to be appropriated to carry out this section for fiscal year #bjbf and each fiscal year thereafter-- 7#a7 #ej1jjj1jjj for the ,federal ,trade ,commission2 and 7#b7 #ej1jjj1jjj for the ,antitrust ,division of the ,department of ,justice4 7e7 ,fines and penalties ,the ,federal ,trade ,commission and the ,antitrust ,division of the ,department of ,justice may use any funds from fines1 penalties1 and settlements not returned to consumers for their respective future operations4 7f7 ,additional appropriations ,to the extent there are insufficient funds from fines1 penalties1 settlements1 and fees received by the ,federal ,trade ,commission and the ,antitrust ,division of the ,department of ,justice for the costs of their respective programs1 projects1 and activities1 there are appropriated1 out of monies in the ,treasury not otherwise appropriated1 for fiscal year #bjbe and each fiscal year thereafter such sums as are necessary for the costs of such programs1 projects1 and activities4 ,,ii ,farm system reforms #bja4 ,local agriculture market program ,section #baj;,a7i77#a7 of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afbg;c7i77#a77 is amended by striking fiscal year #bjai and inserting each of fiscal years #bjbf and #bjbg1 and #ejj1jjj1jjj for fiscal year #bjbh4 #bjb4 ,restoration of mandatory country of origin labeling for beef and pork2 inclusion of dairy products 7a7 ,definitions ,section #bha of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afch7 is amended-- 7#a7 by redesignating paragraphs 7#a71 7#b7 through 7#e71 7#f71 and 7#g7 as paragraphs 7#b71 7#d7 through 7#g71 7#i71 and 7#aj71 respectively2 7#b7 by inserting before paragraph 7#b7 7as so redesignated7 the following3 7#a7 ,beef ,the term beef means meat produced from cattle 7including veal74 2 7#c7 in paragraph 7#b7 7as so redesignated7-- 7,a7 in subparagraph 7,a7-- 7i7 in clause 7i71 by striking lamb and inserting beef1 lamb1 pork12 7ii7 in clause 7ii71 by striking ground lamb and inserting ground beef1 ground lamb1 ground pork12 7iii7 in clause 7x71 by striking and at the end2 7iv7 in clause 7xi71 by striking the period at the end and inserting 2 and2 and 7v7 by adding at the end the following3 7xii7 dairy products4 2 and 7,b7 in subparagraph 7,b71 by inserting 7other than clause 7xii7 of that subparagraph7 after subparagraph 7,a72 7#d7 by inserting after paragraph 7#b7 7as so redesignated7 the following3 7#c7 ,dairy product ,the term dairy product means-- 7,a7 fluid milk2 7,b7 cheese1 including cottage cheese and cream cheese2 7,c7 yogurt2 7,d7 ice cream2 7,e7 butter2 and 7,f7 any other dairy product4 2 and 7#e7 by inserting after paragraph 7#g7 7as so redesignated7 the following3 7#h7 ,pork ,the term pork means meat produced from hogs4 4 7b7 ,notice of country of origin ,section #bhb7;a7 of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afch;a7a77 is amended by adding at the end the following3 7#e7 ,designation of country of origin for dairy products 7,a7 ,in general ,a retailer of a covered commodity that is a dairy product shall designate the origin of the covered commodity as-- 7i7 each country in which or from which the #a or more dairy ingredients or dairy components of the covered commodity were produced1 originated1 or sourced2 and 7ii7 each country in which the covered commodity was processed4 7,b7 ,state1 region1 locality of the ,united ,states ,with respect to a covered commodity that is a dairy product produced exclusively in the ,united ,states1 designation by a retailer of the ,state1 region1 or locality of the ,united ,states where the covered commodity was produced shall be sufficient to identify the ,united ,states as the country of origin4 4 #bjc4 ,definitions in ,packers and ,stockyards ,act1 #aiba ,section #b7;a7 of the ,packers and ,stockyards ,act1 #aiba 7#g ,u4,s4,c4 #ahb7;a771 is amended-- 7#a7 in the matter preceding paragraph 7#a71 by striking ,when used in this ,act-- and inserting ,in this ,act32 7#b7 in paragraph 7#h71 by striking for slaughter and all that follows through of such poultry and inserting under a poultry growing arrangement1 regardless of whether the poultry is owned by that person or another person2 7#c7 in paragraph 7#i71 by striking and cares for live poultry for delivery1 in accord with another's instructions1 for slaughter and inserting or cares for live poultry in accordance with the instructions of another person2 7#d7 in each of paragraphs 7#a7 through 7#i71 by striking the semicolon at the end and inserting a period2 7#e7 in paragraph 7#aj7-- 7,a7 by striking for the purpose of either slaughtering it or selling it for slaughter by another2 and 7,b7 by striking 2 and at the end and inserting a period2 and 7#f7 by adding at the end the following3 7#ae7 ,formula price 7,a7 ,in general ,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 established4 7,b7 ,exclusion ,the term formula price does not include-- 7i7 any price term that establishes a base from which a purchase price is calculated on the basis of a futures market price2 or 7ii7 any adjustment to the base for quality1 grade1 or other factors relating to the value of livestock or livestock products that are readily verifiable market factors and are outside the control of the packer4 7#af7 ,forward contract ,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 #g days after the date on which the contract is entered into1 without regard to whether the contract is for-- 7,a7 a specified lot of livestock2 or 7,b7 a specified number of livestock over a certain period of time4 4 #bjd4 ,unlawful practices 7a7 ,in general ,section #bjb of the ,packers and ,stockyards ,act1 #aiba 7#g ,u4,s4,c4 #aib71 is amended to read as follows3 #bjb4 ,unlawful acts 7a7 ,definitions ,in this section3 7#a7 ,base price 7,a7 ,in general ,the term base price means the price established in a poultry production contract that corresponds to the stated value provided by the independent contract producer under the terms of the contract1 prior to the assessment of any performance-based premium or penalty4 7,b7 ,square footage ,the price described in subparagraph 7,a7 may be established using the price per square foot of contracted farm infrastructure or price per pound of poultry production4 7#b7 ,cooperative association of producers ,the term cooperative association of producers means a cooperative association 7as defined in section #ae7;a7 of the ,agricultural ,marketing ,act 7#ab ,u4,s4,c4 #aada;j7a777 engaged in marketing1 bargaining1 shipping1 or processing agricultural products4 7#c7 ,expected performance standard ,the term expected performance standard means1 with respect to a poultry production contract1 a standard established in the contract for the growth and health performance of live poultry under the management of an independent contract producer1 which may include expected mortality1 weight gain1 or feed conversion efficiency4 7#d7 ,independent contract producer ,the term independent contract producer means an agricultural producer that-- 7,a7 enters into a contract to manage the production of an agricultural commodity owned by a live poultry dealer or another contracting party2 and 7,b7 is not a member of a cooperative association of producers that has engaged in bargaining with the other contracting party4 7#e7 ,minimum price ,the term minimum price means a contractually guaranteed price floor within a poultry production contract below which the final price delivered to an independent contract producer may not be reduced1 including by performance-based penalties4 7#f7 ,performance-based incentive formula ,the term performance-based incentive formula means a formula designed to compare the real performance of live poultry being managed by an independent contract producer relative to an expected performance standard4 7#g7 ,poultry production contract ,the term poultry production contract means an oral or written contract established between a live poultry dealer and an independent contract producer in which the independent contract producer provides the land1 farm infrastructure1 or management labor of the independent contract producer to house and raise live poultry owned by the live poultry dealer4 7b7 ,general rule ,it shall be unlawful for any packer or swine contractor with respect to livestock1 meats1 meat food products1 or livestock products in unmanufactured form1 or for any live poultry dealer with respect to live poultry1 to do any of the following3 7#a7 ,engage in or use any unfair1 unjustly discriminatory1 or deceptive practice or device4 7#b7 ,make or give any undue or unreasonable preference or advantage to any particular person or locality in any respect1 or subject any particular person or locality to any undue or unreasonable prejudice or disadvantage in any respect4 7#c7 ,sell or otherwise transfer to or for any other packer1 swine contractor1 or any live poultry dealer1 or buy or otherwise receive from or for any other packer1 swine contractor1 or any live poultry dealer1 any article for the purpose or with the effect of apportioning the supply between any such persons1 if such apportionment has the tendency or effect of restraining commerce or of creating a monopoly4 7#d7 ,sell or otherwise transfer to or for any other person1 or buy or otherwise receive from or for any other person1 any article for the purpose or with the effect of manipulating or controlling prices1 or of creating a monopoly in the acquisition of1 buying1 selling1 or dealing in1 any article1 or of restraining commerce4 7#e7 ,engage in any course of business or do any act for the purpose or with the effect or manipulating or controlling prices1 or of creating a monopoly in the acquisition of1 buying1 selling1 or dealing in1 any article1 or of restraining commerce4 7#f7 ,conspire1 combine1 agree1 or arrange with any other person-- 7,a7 to apportion territory for carrying on business2 7,b7 to apportion purchases or sales of any article2 or 7,c7 to manipulate or control prices4 7#g7 ,use1 in effectuating any sale of livestock1 a forward contract that-- 7,a7 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 into2 7,b7 is not offered for bid in an open1 public manner under which-- 7i7 buyers and sellers have the opportunity to participate in the bid2 7ii7 more than #a blind bid is solicited2 and 7iii7 buyers and sellers may witness bids that are made and accepted2 7,c7 is based on a formula price2 or 7,d7 provides for the sale of livestock in a quantity in excess of-- 7i7 in the case of cattle1 #dj cattle2 7ii7 in the case of swine1 #cj swine2 and 7iii7 in the case of another type of livestock1 a comparable quantity of that type of livestock1 as determined by the ,secretary4 7#h7 ,own or feed livestock directly1 through a subsidiary1 or through an arrangement that gives a packer operational1 managerial1 or supervisory control over the livestock1 or over the farming operation that produces the livestock1 to such an extent that the producer of the livestock is not materially participating in the management of the operation with respect to the production of the livestock1 except that this paragraph shall not apply to-- 7,a7 an arrangement entered into not more than #g business days before slaughter of the livestock by a packer1 a person acting through the packer1 or a person that directly or indirectly controls1 or is controlled by or under common control with1 the packer2 7,b7 a cooperative or entity owned by a cooperative1 if a majority of the ownership interest in the cooperative is held by active cooperative members that-- 7i7 own1 feed1 or control the livestock2 and 7ii7 provide the livestock to the cooperative for slaughter2 7,c7 a packer that is not required to report to the ,secretary on each reporting day 7as defined in section #bab of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afce;a77 information on the price and quantity of livestock purchased by the packer2 or 7,d7 a packer that owns only #a livestock processing plant4 7#i7 ,take any action that adversely affects or is likely to adversely affect competition1 regardless of whether there is a business justification for the action4 7#aj7 ,conspire1 combine1 agree1 or arrange with any other person to do1 or aid or abet the doing of1 any act made unlawful by paragraphs 7#a7 through 7#i74 7c7 ,unfair1 discriminatory1 and deceptive practices and devices ,acts by a packer1 swine contractor1 or live poultry dealer that violate subsection 7b77#a7 include the following3 7#a7 ,refusal to provide1 on the request of a livestock producer1 swine production contract grower1 or poultry grower with which the packer1 swine contractor1 or live poultry dealer has a marketing or delivery contract1 the relevant statistical information and data used to determine the compensation paid to the livestock producer1 swine production contract grower1 or poultry grower1 as applicable1 under the contract1 including-- 7,a7 feed conversion rates by house1 lot1 or pen2 7,b7 feed analysis2 7,c7 breeder history2 7,d7 quality grade2 7,e7 yield grade2 and 7,f7 delivery volume for any certified branding program 7such as programs for ,angus beef or certified grassfed or ,berkshire pork74 7#b7 ,conduct or action that limits or attempts to limit by contract the legal rights and remedies of a livestock producer1 swine production contract grower1 or poultry grower1 including the right-- 7,a7 to a trial by jury1 unless the livestock producer1 swine production contract grower1 or poultry grower1 as applicable1 is voluntarily bound by an arbitration provision in a contract2 7,b7 to pursue all damages available under applicable law2 and 7,c7 to seek an award of attorneys' fees1 if available under applicable law4 7#c7 ,termination of a poultry growing arrangement or swine production contract with no basis other than an allegation that the poultry grower or swine production contract grower failed to comply with an applicable law1 rule1 or regulation4 7#d7 ,a representation1 omission1 or practice that is likely to mislead a livestock producer1 swine production contract grower1 or poultry grower regarding a material condition or term in a contract or business transaction4 7d7 ,undue or unreasonable preferences1 advantages1 prejudices1 and disadvantages 7#a7 ,in general ,acts by a packer1 swine contractor1 or live poultry dealer that violate subsection 7b77#b7 include the following3 7,a7 ,the execution1 termination1 extension1 or renewal of a contract or agreement that materially disadvantages a livestock producer1 swine production contract grower1 or poultry grower unless the packer1 swine contractor1 or live poultry dealer can show1 by a preponderance of the evidence1 that the acts were predominantly motivated by-- 7i7 compliance with applicable regulations2 7ii7 a distinct and materially disadvantageous change to the financial relationship with the livestock producer1 swine production contract grower1 or poultry grower2 or 7iii7 the termination of operations in the geographic region by the packer1 swine contractor1 or live poultry dealer4 7,b7 ,the failure to meet the requirements described in paragraph 7#b74 7,c7 ,in the case of a poultry production contract that contains a performance-based incentive formula1 the failure to meet the requirements described in paragraph 7#c74 7#b7 ,payment by square footage ,the requirements described in this paragraph are as follows3 7,a7 ,subject to subparagraph 7,b71 a live poultry dealer shall structure any poultry production contract in a manner that provides for payment by the square footage of the barn or facility space in which the live birds that are subject to the contract are reared and raised4 7,b7 ,in lieu of providing for payment by the square footage of the barn or facility space in which the live birds that are subject to the contract are reared and raised1 a live poultry dealer may meet the requirement specified in subparagraph 7,a7 if the dealer includes in the poultry production contract an alternative base price provision that was obtained through negotiations with a cooperative association of producers representing the individual independent contract producer4 7#c7 ,use of performance-based incentive formula ,the requirements described in this paragraph are as follows3 7,a7 ,the poultry production contract shall guarantee a minimum price4 7,b7 ,the expected performance standard in the poultry production contract shall be based on at least a #f-month rolling performance average of all producers in the complex of the independent contract producer4 7,c7 ,the performance-based incentive formula shall not assess a premium or penalty percentage that exceeds the percentage difference between the performance of the independent contract producer and the expected performance average4 7,d7 ,the expected performance standard in the poultry production contract shall be mathematically adjusted to account for expected performance with respect to expected mortality1 weight1 or feed conversion efficiency1 with differences relative to-- 7i7 layer flock age and health2 7ii7 predelivery health issues2 7iii7 flock breed2 7iv7 flock pick-up age2 7v7 feed type2 7vi7 feed disruption of #f hours or more2 and 7vii7 medical care protocols 7such as an antibiotic-free protocol74 7,e7 ,the poultry production contract shall include a procedure for settling payment outside of the performance-based payment formula1 through a performance average of at least the last #e flocks of the independent contract producer1 in the case of the independent contract producer bringing an appeal related to input quality or provision issues4 7e7 ,harm to competition not required ,in determining whether an act1 device1 or conduct is a violation under paragraph 7#a7 or 7#b7 of subsection 7b71 a finding that the act1 device1 or conduct adversely affected or is likely to adversely affect competition is not required4 4 7b7 ,effective date 7#a7 ,in general ,subject to paragraph 7#b71 paragraph 7#h7 of section #bjb7;b7 of the ,packers and ,stockyards ,act1 #aiba 7#g ,u4,s4,c4 #aib7 7as designated by subsection 7a771 shall take effect on the date of enactment of this ,act4 7#b7 ,transition rules ,in the case of a packer that1 on the date of enactment of this ,act1 owns1 feeds1 or controls livestock intended for slaughter in violation of paragraph 7#h7 of section #bjb7;b7 of the ,packers and ,stockyards ,act1 #aiba 7#g ,u4,s4,c4 #aib7 7as designated by subsection 7a771 that paragraph shall take effect-- 7,a7 in the case of a packer of swine1 beginning on the date that is #ah months after the date of enactment of this ,act2 and 7,b7 in the case of a packer of any other type of livestock1 beginning not later than #ahj days after the date of enactment of this ,act1 as determined by the ,secretary4 #bje4 ,spot market purchases of livestock by packers ,the ,packers and ,stockyards ,act1 #aiba1 is amended by inserting after section #bjb 7#g ,u4,s4,c4 #aib7 the following3 #bjb;,a4 ,spot market purchases of livestock by packers 7a7 ,definitions ,in this section3 7#a7 ,covered packer 7,a7 ,in general ,the term covered packer means a packer that is required under subtitle ,b of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afce et seq47 to report to the ,secretary each reporting day 7as defined in section #bab of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afce;a77 information on the price and quantity of livestock purchased by the packer4 7,b7 ,exclusion ,the term #8covered packer' does not include a packer that owns only #a livestock processing plant4 7#b7 ,nonaffiliated producer ,the term #8nonaffiliated producer' means a producer of livestock-- 7,a7 that sells livestock to a packer2 7,b7 that has less than #a percent equity interest in the packer2 7,c7 that has no officers1 directors1 employees1 or owners that are officers1 directors1 employees1 or owners of the packer2 7,d7 that has no fiduciary responsibility to the packer2 and 7,e7 in which the packer has no equity interest4 7#c7 ,spot market sale 7,a7 ,in general ,the term spot market sale means a purchase and sale of livestock by a packer from a producer-- 7i7 under an agreement that specifies a firm base price that may be equated with a fixed dollar amount on the date the agreement is entered into2 7ii7 under which the livestock are slaughtered not more than #g days after the date on which the agreement is entered into2 and 7iii7 under circumstances in which a reasonable competitive bidding opportunity exists on the date on which the agreement is entered into4 7,b7 ,reasonable competitive bidding opportunity ,for the purposes of subparagraph 7,a77iii71 a reasonable competitive bidding opportunity shall be considered to exist if-- 7i7 no written or oral agreement precludes the producer from soliciting or receiving bids from other packers2 and 7ii7 no circumstance1 custom1 or practice exists that-- 7,i7 establishes the existence of an implied contract 7as determined in accordance with the ,uniform ,commercial ,code72 and 7,,ii7 precludes the producer from soliciting or receiving bids from other packers4 7b7 ,general rule ,of the quantity of livestock that is slaughtered by a covered packer during each reporting day 7as defined in section #bab of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afce;a77 in each plant1 the covered packer shall slaughter not less than the applicable percentage specified in subsection 7c7 of the quantity through spot market sales from nonaffiliated producers4 7c7 ,applicable percentages 7#a7 ,in general ,except as provided in paragraph 7#b71 the applicable percentage shall be #ej percent4 7#b7 ,exceptions ,in the case of a covered packer that reported to the ,secretary in the #bjbj annual report that more than #fj percent of the livestock of the covered packer were committed procurement livestock1 the applicable percentage shall be the greater of-- 7,a7 the difference between the percentage of committed procurement livestock so reported and #ajj percent2 and 7,b7 7i7 during calendar year #bjbf1 #bj percent2 7ii7 during each of calendar years #bjbg and #bjbh1 #cj percent2 and 7iii7 during calendar year #bjbi and each calendar year thereafter1 #ej percent4 7d7 ,nonpreemption ,this section does not preempt any requirement of a ,state or political subdivision of a ,state that requires a covered packer to purchase on the spot market a greater percentage of the livestock purchased by the covered packer than is required under this section4 4 #bjf4 ,investigation of live poultry dealers 7a7 ,administrative enforcement authority over live poultry dealers ,sections #bjc1 #bjd1 and #bje of the ,packers and ,stockyards ,act1 #aiba 7#g ,u4,s4,c4 #aic1 #aid1 #aie71 are amended by inserting 1 live poultry dealer1 after packer each place it appears4 7b7 ,authority ,to request temporary injunction or restraining order ,section #djh of the ,packers and ,stockyards ,act1 #aiba 7#g ,u4,s4,c4 #bbh;a71 is amended by inserting or poultry care after on account of poultry4 7c7 ,violations by live poultry dealers ,section #daa of the ,packers and ,stockyards ,act1 #aiba 7#g ,u4,s4,c4 #bbh;b-#b71 is amended-- 7#a7 in subsection 7a71 in the first sentence1 by striking any provision of section #bjg or section #daj of2 and 7#b7 in subsection 7b71 in the first sentence1 by striking any provisions of section #bjg or section #daj and inserting any provision4 #bjg4 ,ensuring fair practices in agriculture ,not later than #cj days after the date of the enactment of this ,act1 the ,secretary of ,agriculture shall implement1 without amendment1 the final rule titled ,unfair ,practices and ,undue ,preferences in ,violation of the ,packers and ,stockyards ,act 7#ha ,fed4 ,reg4 #ibgjc2 ,december #bj1 #bjaf74 #bjh4 ,award of attorney fees ,section #bjd of the ,packers and ,stockyards ,act1 #aiba 7#g ,u4,s4,c4 #aid71 is amended by adding at the end the following3 7i7 ,attorney's fee ,the court shall award a reasonable attorney's fee as part of the costs to a prevailing plaintiff in a civil action under this section4 4 #bji4 ,review and report on fragility and national security in the food system 7a7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall-- 7#a7 conduct a review of the fragility of the food system in the ,united ,states with respect to meat1 poultry1 and dairy2 and 7#b7 submit to ,congress a report containing the results of such review4 7b7 ,requirements ,the report under subsection 7a7 shall include information on1 and an analysis of-- 7#a7 the reach of corporate consolidation and corporate control of the meat1 poultry1 and dairy supply chain1 including animal feed1 inputs for animal feed1 processing1 and distribution2 7#b7 the effects of corporate consolidation and corporate control of the meat1 poultry1 and dairy supply chain on-- 7,a7 consumers1 farmers1 rural communities1 and meat1 poultry1 and dairy processing workers2 7,b7 greenhouse gas emissions1 climate change1 and costs borne by communities to adapt to climate change2 7,c7 water quality1 soil quality1 air quality1 and biodiversity2 and 7,d7 politics and political lobbying2 7#c7 7,a7 the extent to which ,department of ,agriculture rules and regulations designed for large covered establishments are applied to small- and medium-sized covered establishments2 and 7,b7 the need for the ,secretary of ,agriculture to adapt rules and regulations to benefit small- and medium-sized covered establishments2 7#d7 the effects of the ,,covid-#ai pandemic on meat1 poultry1 and dairy exports2 meat1 poultry1 and dairy cold storage inventories2 processing rates of meat1 poultry1 and dairy2 and the net profits earned by owners of covered establishments2 7#e7 the effect of the ,,covid-#ai pandemic on meat1 poultry1 and dairy prices paid-- 7,a7 to farmers2 and 7,b7 by consumers2 7#f7 ,federal support for the corporations that control the largest percentage of the meat1 poultry1 and dairy industry through contracts1 procurement1 subsidies1 and other mechanisms2 7#g7 the risk of disruption caused by corporate consolidation among covered establishments1 including an analysis of food supply chain issues resulting from the ,,covid-#ai pandemic2 and 7#h7 the extent to which breaking up the meat packing oligopoly and the dairy processing oligopoly would increase food system resiliency for the next pandemic4 7c7 ,covered establishment defined ,in this section1 the term covered establishment means-- 7#a7 an establishment that is subject to inspection under the ,federal ,meat ,inspection ,act 7#ba ,u4,s4,c4 #fja et seq472 7#b7 an establishment that is subject to inspection under the ,poultry ,products ,inspection ,act 7#ba ,u4,s4,c4 #dea et seq472 and 7#c7 an establishment-- 7,a7 that is a dairy operation 7as defined in section #adja of the ,agricultural ,act of #bjad 7#g ,u4,s4,c4 #ijea772 or 7,b7 that processes dairy4 #baj4 ,technical amendments 7a7 ,section #bjc of the ,packers and ,stockyards ,act1 #aiba 7#g ,u4,s4,c4 #aic71 is amended-- 7#a7 in subsection 7a71 in the first sentence-- 7,a7 by striking he shall cause and inserting the ,secretary shall cause2 7,b7 by striking his charges and inserting the charges2 and 7,c7 by striking evidence introduced against him and inserting evidence introduced against the packer1 live poultry dealer1 or swine contractor2 7#b7 in subsection 7b71 in the first sentence1 by striking he shall make a report in writing in which he shall state his findings and inserting the ,secretary shall make a report in writing in which the ,secretary shall state the findings of the ,secretary2 and 7#c7 in subsection 7c71 by striking he and inserting the ,secretary4 7b7 ,section #bjd of the ,packers and ,stockyards ,act1 #aiba 7#g ,u4,s4,c4 #aid71 is amended-- 7#a7 in subsection 7a71 by striking he has his and inserting the packer1 live poultry dealer1 or swine contractor has its2 7#b7 in subsection 7c71 by striking his officers1 directors1 agents1 and employees and inserting the officers1 directors1 agents1 and employees of the packer1 live poultry dealer1 or swine packer2 7#c7 in subsection 7f71 in the second sentence-- 7,a7 by striking his findings and inserting the findings of the ,secretary2 and 7,b7 by striking he and inserting the ,secretary2 and 7#d7 in subsection 7g71 by striking his officers1 directors1 agents1 and employees and inserting the officers1 directors1 agents1 and employees of the packer1 live poultry dealer1 or swine packer4 ,,iii ,providing resources for beginning1 retiring1 and socially disadvantaged farmers and ranchers #cja4 ,reauthorization and increased funding for beginning1 retiring1 and socially disadvantaged farmers and ranchers 7a7 ,mandatory funding ,section #beja7l77#a7 of the ,food1 ,agriculture1 ,conservation1 and ,trade ,act of #aiij 7#g ,u4,s4,c4 #bbgi7l77#a77 is amended-- 7#a7 in subparagraph 7,c71 by striking and2 7#b7 in subparagraph 7,d71 by striking fiscal year #bjbc and each fiscal year thereafter4 and inserting for each of fiscal years #bjbc through #bjbe2 and2 and 7#c7 by adding at the end the following3 7,e7 #ajj1jjj1jjj for each of fiscal years #bjbf through #bjcj4 4 7b7 ,authorization of appropriations ,section #beja7l77#b7 of the ,food1 ,agriculture1 ,conservation1 and ,trade ,act of #aiij 7#g ,u4,s4,c4 #bbgi7l77#b77 is amended by striking #ej1jjj1jjj for each of fiscal years #bjai through #bjbc and inserting #ajj1jjj1jjj for each of fiscal years #bjbf through #bjcj4 ,,iv ,livestock1 dairy1 and poultry supply chain infrastructure #dja4 ,livestock1 dairy1 and poultry supply chain infrastructure grants and loans ,the ,consolidated ,farm and ,rural ,development ,act is amended by inserting after section #cgd 7#g ,u4,s4,c4 #bjjh;i7 the following3 #cge4 ,livestock1 dairy1 and poultry supply chain infrastructure 7a7 ,in general ,the ,secretary is authorized to provide grants or make or insure loans under any of the programs authorized by this ,act1 the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afba et seq471 or the ,rural ,electrification ,act of #aicf 7#g ,u4,s4,c4 #ija et seq471 as the ,secretary determines to be appropriate1 to assist farmers and rural businesses and cooperatives to maintain or increase the production1 aggregation1 processing1 distribution1 and marketing of value-added1 niche1 or regionally marketed meat1 dairy1 and poultry products4 7b7 ,priority ,in implementing subsection 7a71 the ,secretary shall give priority to grants or loans that will help increase or enhance the availability and geographic distribution of small processing facilities4 7c7 ,small processing facility defined ,in this section1 the term small processing facility means-- 7#a7 a selected establishment 7as defined in section #eja7;a7 of the ,federal ,meat ,inspection ,act 7#ba ,u4,s4,c4 #fhc7;a7772 7#b7 a selected establishment 7as defined in section #ca7;a7 of the ,poultry ,products ,inspection ,act 7#ba ,u4,s4,c4 #dgb7;a7772 and 7#c7 an establishment that-- 7,a7 specializes in processing milk1 cream1 or dairy products2 and 7,b7 processes fewer than #ajj1jjj pounds of milk1 cream1 or dairy products per day4 4 #djb4 ,pilot program for increased accessibility to inspection and technical assistance for eligible processing facilities 7a7 ,in general ,the ,secretary shall carry out a #e-year pilot program within the ,food ,safety and ,inspection ,service-- 7#a7 to expand the availability of processing inspectors1 technical assistance1 and onsite inspection for eligible processing facilities1 including no-cost overtime inspections2 and 7#b7 to identify and train part-time inspectors and technical assistance providers4 7b7 ,professional experience ,the ,secretary shall determine the appropriate professional experience of inspectors and providers described in subsection 7a77#b71 which shall include individuals with expertise in veterinary medicine1 public health1 food service management1 and animal science1 as applicable4 7c7 ,definitions ,in this section3 7#a7 ,eligible processing facility ,the term eligible processing facility means-- 7,a7 an eligible facility described in section #gfd of division ,n of the ,consolidated ,appropriations ,act1 #bjba 7#ba ,u4,s4,c4 #dgc71 that has a labor peace agreement in place2 and 7,b7 a dairy processing facility that has a labor peace agreement in place4 7#b7 ,labor peace agreement ,the term labor peace agreement means an agreement-- 7,a7 between an employer and a labor organization that represents1 or is actively seeking to represent1 the employees of the employer2 and 7,b7 under which such employer and labor organization agree that-- 7i7 the employer-- 7,i7 will not hinder any effort of an employee to join a labor organization2 and 7,,ii7 will not take any action that directly or indirectly indicates or implies any opposition to an employee joining a labor organization2 7ii7 the labor organization agrees to refrain from picketing1 work stoppages1 or boycotts against the employer2 7iii7 the employer provides the labor organization with employee contact information1 and facilitates or permits labor organization access to employees at the workplace1 including facilitating or permitting the labor organization to meet with employees to discuss joining the labor organization2 and 7iv7 the employer shall1 upon the request of the labor organization1 recognize the labor organization as the bargaining representative of the employees if a majority of the employees choose the labor organization as their bargaining representative4