Definitions in Packers and Stockyards Act, 1921

Section 2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 182(a)), is amended— (1) in the matter preceding paragraph (1), by striking When used in this Act— and inserting In this Act:; (2) in paragraph (8), by striking for slaughter and all that follows through of such poultry and inserting under a poultry growing arrangement, regardless of whether the poultry is owned by that person or another person; (3) in paragraph (9), by striking and cares for live poultry for delivery, in accord with another’s instructions, for slaughter and inserting or cares for live poultry in accordance with the instructions of another person; (4) in each of paragraphs (1) through (9), by striking the semicolon at the end and inserting a period; (5) in paragraph (10)— (A) by striking for the purpose of either slaughtering it or selling it for slaughter by another; and (B) by striking; and at the end and inserting a period; and (6) by adding at the end the following: (15) Formula price (A) 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 established. (B) Exclusion The term formula price does not include— (i) any price term that establishes a base from which a purchase price is calculated on the basis of a futures market price; or (ii) any adjustment to the base for quality, grade, 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 packer. (16) 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 7 days after the date on which the contract is entered into, without regard to whether the contract is for— (A) a specified lot of livestock; or (B) a specified number of livestock over a certain period of time..