Economic Research Service
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2008 Farm Bill Side-By-Side

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Title XI: Livestock

Cattle in a pastureEnhances electronic mandatory livestock reporting. Adds and redefines commodities covered by country-of-origin labeling. Allows some interstate sales of State-inspected meat and poultry, establishes voluntary catfish grading and inspection, and amends rules for hog and poultry production contracts. Addresses livestock disease prevention and food safety concerns, increases funding for National Sheep Industry Improvement Center, and requires manure uses study.

Provision name:

Livestock Mandatory Reporting

 
Previous Legislation 2008 Farm Bill

Livestock Mandatory Reporting Act of 1999 established a program to:

  • provide information regarding marketing of cattle, hogs (swine), lambs, boxed beef, and lamb-meat products that could be understood by producers, packers, and other market participants, including information on pricing, contracting, and supply and demand conditions
  • improve price and supply reporting by USDA
  • encourage competition in marketplace for livestock and livestock products

Statutory authority for program lapsed on Sept 30, 2005. In Oct 2006, legislation reauthorized program until Sept 30, 2010, and amended swine reporting requirements.

Directs Secretary of Agriculture to:

  • develop and implement an enhanced system of electronic publishing of Livestock Mandatory Reporting information, including charts and graphs and comparative information from prior reporting periods
  • carry out a public market-news education program

Enhanced website to be implemented within 1 year following appropriation of sufficient funds, with existing format to remain in effect for at least 2 years after Secretary determines sufficient funds have been appropriated to implement a new system.

Directs Secretary to conduct a study on effects of requiring packer processing plants to report information on wholesale pork cuts, including:

  • economic effects on producers and consumers
  • effects of a confidentiality requirement on mandatory reporting

Report due to Congress 1 year after enactment of Act.

Authorizes appropriation of funds necessary to carry out website improvements, user education, and wholesale-pork-reporting study and report.

Provision name:

Country-of-Origin Labeling

 
Previous Legislation 2008 Farm Bill

Required retailers to inform consumers of country of origin of covered commodities at final point of sale. Foodservice establishments were exempted.

Directed Secretary to issue guidelines for voluntary labeling by Sept 30, 2002, and to promulgate requirements for mandatory labeling no later than Sept 30, 2004. Public Laws 108-199 and 109-97 delayed the implementation of policy for all covered commodities except fish and shellfish until Sept 30, 2008. The (interim final) rule for fish and shellfish became effective April 4, 2005.

No change.

Covered Commodities

 
Previous Legislation 2008 Farm Bill

Included muscle cuts of beef, lamb, and pork; ground beef, ground lamb, and ground pork; farm-raised fish and shellfish; wild fish and shellfish; perishable agricultural commodities (fresh fruits and vegetables as defined by the Perishable Agricultural Commodities Act); and peanuts. Poultry not included.

Adds chicken (whole and in parts), goat meat, ginseng, pecans, and macadamia nuts.

Meat

 
Previous Legislation 2008 Farm Bill

Limited use of U.S. country-of-origin label for covered meats to items exclusively born, raised, and slaughtered in U.S.

Specifies categories for labeling meat:

  • U.S. country of origin: item from animal exclusively born, raised, and slaughtered in U.S. (or was in U.S. on or before July 15, 2008)
  • Immediate slaughter: country from which animal was imported and U.S.
  • Foreign country of origin: animal not born, raised, and slaughtered in U.S.
  • Multiple counties of origin: all countries in which animal may have been born, raised, and slaughtered
  • For ground meat: all reasonably possible countries where product may have originated

Fish

 
Previous Legislation 2008 Farm Bill

Provided new seafood labeling responsibilities to USDA, while all other seafood labeling responsibilities remained with U.S. Food and Drug Administration (FDA). Required label to distinguish between farm-raised and wild-harvest seafood products.

No change.

Requires the following for U.S. country-of-origin label:

  • farm-raised fish must be hatched, raised, harvested, and processed in U.S.
  • wild fish must be harvested and processed in U.S., in U.S. territorial waters, or on U.S.-registered vessel

Perishable Agricultural Commodities, Ginseng, Peanuts, Pecans, and Macadamia Nuts

 
Previous Legislation 2008 Farm Bill

Required containers with imported perishable agricultural commodities or peanuts be labeled with country-of-origin information when entering U.S.

Limits use of U.S. country-of-origin label to commodities exclusively produced in U.S. Designation of U.S. State, region, or locality where commodity was produced is sufficient to identify U.S. as country of origin.

Content and Placement of Labels

 
Previous Legislation 2008 Farm Bill

Required that country-of-origin information be provided to consumers by label, stamp, mark, placard, or other clear and visible sign on commodity or on package, display, holding unit, or bin containing the commodity.

No change.

Compliance and Verification

 
Previous Legislation 2008 Farm Bill

Provided for compliance audit trails and required participants in marketing chain to supply information to retailers. Retailers may have been fined up to $10,000 for willfully failing to comply.

Secretary may conduct an audit of any person that prepares, stores, handles, or distributes a covered commodity for retail sale to verify compliance. Secretary may not require records of country of origin other than those maintained in normal course of business.

Retailer or person supplying retailer has 30 days to comply. If retailer/person willfully fails to comply, Secretary may fine retailer/person $1,000 for each violation.

Provision name:

Meat, Poultry, and Catfish Inspection

 

State-Inspected Meat and Poultry

 
Previous Legislation 2008 Farm Bill

No similar provision.

Amends Federal Meat Inspection Act (FMIA) and Poultry Products Inspection Act (PPIA) to create an option for State-inspected plants with 25 employees or less to ship in interstate commerce. Does not replace existing State inspection programs. Establishments currently under Federal inspection are not eligible. Secretary may allow establishments with more than 25 but less than 35 employees to transition to Federal inspection 3 years after final regulations are issued.

Plants selected by Secretary to ship in interstate commerce using this program must follow FMIA and PPIA in same manner as federally inspected establishments.

Requires Secretary to reimburse States for not less than 60% of eligible costs related to inspection of selected establishments.

Requires Secretary to issue final regulations for this program not later than 18 months after enactment.

State Coordinator

 
Previous Legislation 2008 Farm Bill

No similar provision.

Directs Secretary to designate Federal employee as State coordinator for each State agency that has a State inspection program. State coordinator will oversee training and inspection activities of designated personnel of the State agency, and will:

  • visit selected establishments to ensure they are operating in manner consistent with FMIA and PPIA
  • submit quarterly reports describing status of each selected State establishment in regard to compliance with FMIA and PPIA
  • suspend inspection if an establishment is in violation of FMIA or PPIA

Technical Assistance

 
Previous Legislation 2008 Farm Bill

No similar provision.

Directs Secretary to establish within USDA's Food Safety Inspection Service (FSIS) a technical assistance division to coordinate 1) outreach, education, and training of very small and certain small establishments, and 2) grants to State agencies to provide outreach, technical assistance, education, and training of very small and certain small establishments.

Secretary may provide grants to appropriate State agencies to help establishments covered by intrastate inspection under FMIA Title III to transition to this new program.

Audits

 
Previous Legislation 2008 Farm Bill

No similar provision.

Requires USDA Inspector General to conduct an audit no later than 2 years after final regulations are issued, and no less than every 3 years thereafter, of activities taken by Secretary under this section to determine compliance with the law.

Requires Government Accountability Office to conduct an audit 3-5 years after enactment to evaluate implementation of this program and determine number of establishments selected by Secretary.

Catfish Grading and Inspection

 
Previous Legislation 2008 Farm Bill

No similar provision.

Establishes within USDA a voluntary fee-based grading program for catfish. Additional species of farm-raised fish or shellfish may be added to grading program through a petition process to Secretary.

Amends FMIA such that catfish are subject to examination and inspection by USDA's FSIS when processed for use as human food. In its inspections, FSIS must take into account conditions under which catfish are raised and transported to processing establishment.

Requires Secretary to submit to Congress an estimate of costs of implementing program no later than 30 days after enactment. Secretary, in consultation with FDA Commissioner, required to issue final regulations no later than 18 months after enactment.

Provision name:

Hog and Poultry Production Contracts

 
Previous Legislation 2008 Farm Bill

No similar provision.

Amends Packers and Stockyard Act to:

  • allow poultry or swine growers to cancel growing or production contracts for up to 3 days after signing, or any date specified in contract or growing arrangement; contract must disclose method and deadline for cancellation
  • specify that growing or production contracts must contain conspicuous statement that additional large capital investments may be required of grower during term of contract
  • places dispute resolution in Federal judicial district in which principal part of production occurs; allows parties to production contracts to specify what State law will govern contract, unless forbidden by the State in which principal part of production takes place
  • gives growers ability to decline arbitration prior to entering contract; parties may agree to arbitration when dispute arises if both parties agree in writing; any limitation of grower's freedom to choose whether or not to pursue arbitration is violation of the Act; requires Secretary to establish criteria to determine whether arbitration process in contract provides meaningful opportunity for growers to participate fully in arbitration

Requires Secretary to issue regulations within 2 years with respect to Packers and Stockyards Act to establish criteria for determining:

  • whether an undue or unreasonable preference or advantage has occurred in violation of the Act
  • whether live poultry dealer has provided reasonable notice to growers of any suspension of delivery of birds under poultry-growing arrangement
  • whether required additional capital investments over life of contract constitute violation of the Act
  • whether live poultry dealer or swine contractor has provided reasonable time period for grower to remedy breach of contract that could lead to termination of contract
Provision name:

Livestock Health and Diseases

 

Animal Health Protection

 
Previous Legislation 2008 Farm Bill

No similar provision.

Directs Secretary to compensate industry participants and cooperating State agencies for 100% of eligible costs in conducting livestock pest or disease detection, control, or eradication measures relating to control of low-pathogenic diseases.

Gave Secretary authority to prohibit or restrict import or export of any animal or related material, if necessary, to prevent spread of any livestock pest or disease within or from U.S. Secretary could also take measures to detect, control, or eradicate any pest or disease of livestock.

Gave Secretary authority to hold, seize, treat, or destroy any animal, as well as to limit interstate livestock movement. Required Secretary to compensate owners based on fair market value of destroyed animals and related material.

Increases fines for violations of the Animal Health Protection Act (AHPA). Expands subpoena authorities of Secretary under APHA to include physical evidence.

Trichinae Certification Program

 
Previous Legislation 2008 Farm Bill

No similar provision.

Directs Secretary to establish a voluntary trichinae certification program, funding is authorized to be appropriated. Requires final regulations to be issued no later than 90 days after enactment.

National Aquatic Animal Health Plan

 
Previous Legislation 2008 Farm Bill

No similar provision.

Secretary may enter into a cooperative agreement with a State, Indian tribe, or other appropriate entity to carry out a project under a national aquatic animal health plan for purpose of detecting, controlling, or eradicating diseases of aquaculture species and promoting species-specific best management practices.

Secretary may use other authorities of AHPA, including operations to detect, control, and eradicate pests and diseases and authority to pay claims arising out of destruction of any animal, article, or means of conveyance.

Authorizes annual appropriations of such sums as necessary for FY 2008-12.

Pseudorabies Eradication Program

 
Previous Legislation 2008 Farm Bill

No similar provision.

Sense of Congress that:

  • pseudorabies eradication is high priority that should be carried out under authorities of AHPA
  • feral hogs pose threat to domestic hog population and entire livestock industry
  • U.S. commercial swine herd should be kept free of pseudorabies so as to maintain pork export markets
  • swine surveillance system will assist hog industry in eradicating pseudorabies

Cattle Fever Tick Eradication Program

 
Previous Legislation 2008 Farm Bill

No similar provision.

Sense of Congress that:

  • cattle fever tick and southern cattle tick transmit babesiosis, a severe disease of cattle
  • national plan for eradicating cattle fever tick should be a high priority for Secretary
Provision name:

Miscellaneous

 

Food Safety Improvements

 
Previous Legislation 2008 Farm Bill

No similar provision.

Amends FMIA and PPIA to require meat and poultry plants to:

  • immediately notify Secretary if an establishment believes or has reason to believe that an adulterated or misbranded meat/poultry or meat/poultry food product has entered commerce
  • prepare and maintain, in writing, plan for recall of all meat/poultry or meat/poultry food products produced and shipped by establishment
  • document each reassessment of plant's hazard analysis and critical-control-point plans
  • upon request, make their recall plans and reassessment documents available to USDA inspectors for review

Reporting Violations of Packers and Stockyards Act

 
Previous Legislation 2008 Farm Bill

No similar provision.

Requires Secretary to submit an annual report to Congress on investigations into possible violations of Packers and Stockyards Act. Report to contain:

  • number of investigations for livestock and poultry, by enforcement area (financial, trade, or competitive practices)
  • length of time investigations are pending with USDA's Grain Inspection, Packers, and Stockyards Administration; Office of General Counsel; and U.S. Department of Justice

Reporting requirement expires with expiration of this Act.

National Sheep Industry Improvement Center

 
Previous Legislation 2008 Farm Bill

Center established in Consolidated Farm and Rural Development Act.

Eliminates requirement that Center privatize its revolving fund.

Provides new mandatory funding—from Commodity Credit Corporation—of $1 million for FY 2008, to be available until expended.

Authorizes annual appropriations of $10 million for FY 2008-12.

Association of Producers

 
Previous Legislation 2008 Farm Bill

Agricultural Fair Practices Act of 1967 defined "Association of Producers" as any association of producers of agricultural products engaged in marketing, bargaining, shipping, or processing.

"Handler" defined as any person engaged in business of:

  • acquiring agricultural products from producers or associations of producers for processing or sale
  • grading, packaging, handling, storing, or processing agricultural products received from producers or associations of producers
  • negotiating written or oral contracts or other arrangements with, or on behalf of, producers or association of producers with respect to production or marketing of agricultural product
  • acting as an agent or broker for a handler

Redefines, for purposes of Agricultural Fair Practices Act:

  • "Association of Producers" includes all organizations exclusively composed of agricultural producers
  • "Handler" does not include a person, other than a packer, that provides custom feeding services to producers

Study on Bioenergy Operations

 
Previous Legislation 2008 Farm Bill

No similar provision.

Directs Secretary to conduct a study to evaluate role of animal manure as fertilizer and potential additional uses. Study to evaluate:

  • extent to which animal manure is used as fertilizer in agricultural operations, by type and size of operations
  • potential impact on consumers and agricultural operations resulting from limits on use of animal manure as fertilizer
  • effects on agriculture production due to increased competition for animal manure from bioenergy producers, including as feedstock or replacement for fossil fuels

Report due to Congress 1 year after enactment.

Provision name:

Livestock-Related Provisions in Other Titles

 

Wool Loan Deficiency Payments. See Title I, Marketing Assistance Loans and Loan Deficiency Payments (LDPs) for wool.

 

Dairy Provisions. See Title I, Dairy.

 

Conservation Reserve Program (CRP) Grazing. See Title II, Conservation Reserve Program.

 
For more information, contact: Kenneth Mathews or Keithly Jones

Web administration: webadmin@ers.usda.gov

Updated date: August 20, 2008