The U.S. Department of Agriculture (USDA) is adding “swine contractors” to the list of regulated entities subject to specific regulations issued under the Packers and Stockyards Act of 1921 (7 U.S.C. 181-229). The Act is enforced by the Grain Inspection, Packers and Stockyards Administration (GIPSA).
In 2002, Congress added swine contractors as entities regulated under the P&S Act. Specifically, the USDA is amending the regulations to clarify that swine contractors are prohibited from knowingly circulating misleading reports about market conditions or prices; that they are required to provide business information to authorized USDA personnel; and, that they are required to permit authorized USDA personnel to inspect their business records and facilities.
The amended regulations define "swine contractors" as “any person engaged in the business of obtaining swine under a swine production contract for the purpose of slaughtering the swine or selling the swine for slaughter, if (A) the swine is obtained by the person in commerce; or (B) the swine (including products from the swine) obtained by the person is sold or shipped in commerce.” (7 U.S.C. 182 (12)). Amendments to the Act also clarify that agents and USDA employees are prohibited from unauthorized disclosure of business information obtained from swine contractors.
USDA originally published the proposed rule for public comment in February, 2008. Mr. Brian Black provided comment as President of the National Pork Producers Council. Mr. Black pointed out that although NPPC was opposed to the inclusion of swine contractors as covered parties under the P&S Act in the 2002 Farm Bill, NPPC agrees with GIPSA’s position that regulations are needed to clarify the positions of swine contractors and contract growers as they relate to the Act. Mr. Black further stated that having a clear set of rules will help all parties by delineating responsibilities and limitations, and that the proposed rule appears to fairly represent the 2002 law.
The regulation becomes effective November 20, 2008 and can be viewed in its entirety online at http://edocket.access.gpo.gov/2008/E8-24945.htm.