P&SP-342 Contract Submission Cover Sheet

Rbsponse is required to identify and obtain examples of swine packer marketing contracts that are
currently available (7 U.S.C. 198aand9CFR206). Information held confidenfial (9 CFR 222).

OMB Cona’olNO.0580-0021

CONTRACT
SUBMISSION
COVER SHEET

Department of Agriculture
USDA u.s.
Grain Inspection, Packers and Stockyards Administration
Packers and Stockyards Program

Submit this form with each example contract. (See instructions for information on selection and submission of example contracts.)
Initial submission: Submit existing swine marketing contracts.
Subsequent submission: For offered, revised, expired, or withdrawn contracts, submit by the business day following offer,
revision, expiration, or withdrawal.

Identification Information
1. Packer Name
3. Federal Inspection
Number

2. Date of Submission
(mm/dd/yyyy)
5. Location: City, State

4. Plant Name

Contract Information
Swine or Pork Market Formula Purchase without a Ledger
Swine or Pork Market Formula Purchase with a Ledger
6.
Other Market Formula Purchase without a Ledger
Contract Category
IOther Market Formula Purchase with a Ledger
(choose 1)
Other Purchase Arrangement without a Ledger
Other Purchase Arrangement with a Ledger
New
7.
Replacement
Submission Type Expiration
(choose 1)
Withdrawal of Offer
No
8. Is this a Verbal Contract? Yes
9. Contract Name (New or Replacement)
10. Previously Existing Contract Name
(Replacement, Expiration, Withdrawal of Offer
Contact Information
11. Name: First

Last

12. Title

13. Phone number

14. Si~aature
According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless it
displays a valid OMB control number. The valid OMB control number for this information is 0580-0021~ The time required to
=omplete this information collection is estimated to average 15 minutes including time to review instructions, search existing data
resources, gather the data needed, complete and review the information collection.

Form P&SP-342

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or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.

Form P&SP-342

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USDA

Instructions for Providing Example Contracts,
Completing the Submission Cover Sheet (P&SP-342), and
Documenting Verbal Contracts

Submit example contracts with form P&SP-342 attached.
Do I need to provide swine contract information?
You must provide example contracts if you are a packer, as defined in 9 CFR 206.1, meeting the
conditions in either paragraph (1) or (2):
1) A packer purchasing at least 100,000 swine per year and slaughtering swine at a
federally inspected swine processing plant that meets either of the following
conditions:
a) A swine processing plant that slaughtered an average of at least 100,000 head of
swine per year during the immediately preceding five calendar years, with the
average based on those periods in which the plant slaughtered swine; or
b) Any swine processing plant or person that did not slaughter swine during the
immediately preceding five calendar years that has the capacity to slaughter at
least 100,000 swine per year, based on plant capacity information;

2) Any person purchasing an average of at least 200,000 sows, boars, or any

combination thereof, per year and slaughtering at least 200,000 so~vs, boars, or any
combination thereof at one or more federally inspected swine processing plants
during the immediately preceding five calendar years, with the average based on
those periods in which the plant slaughtered swine.

What existing or available contracts do I need to provide?
Each packer must send, and GIPSA must receive, an example of each contract it currently has
with a producer or producers or that is currently available at each plant that it operates or at
which it has swine slaughtered that meets the definition of packer in 9 CFR 206.1. This initial
submission of example contracts is due to GIPSA on the first business day of the month
following the determination that the plant has the slaughtering capacity specified in the definition
of packer in 9 CFR 206.1.
After the initial submission, each packer must send GIPSA an example of each new contract it
makes available to a producer or producers within one business day of the contract being made
available at each plant that it operates or at which it has swine slaughtered that meets the
definition of packer in 9 CFR 206.1.
As contracts are made available, revised, or expire, use the following guidelines to determine
when another submission or notification of a change is required.
Required submission of contract made available: When a contract that represents an
example contract is made available, the packer will submk it as an example contract
(for discussion purposes, Example contract A).
Potential subsequent submission due to contract changes: When a contract changes,
for example, the contract is made available, accepted, and negotiations result in a new
example contract, the packer will submit the new example contract and specify if it
replaces the previously submitted example contract or if it is an additional new
example contract (for discussion purposes, Example contract B). Example contracts
would not be continuously submitted during negotiations; one would be submitted

Insmactions P&SP-342

July 2009

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Instructions for Providing Example Contracts,
Completing the Submission Cover Sheet (P&SP-342), and
Documenting Verbal Contracts

USDA

when made available and, when necessary, another when the negotiation resulted in a
contract or when an existing contract changes.
New additional example contract example: If the packer and the producer
agree to a contract with a change, which results in a different example contract
(Example contract B) and the packer continues to make Example contract A
available to other producers, the negotiated contract will be submitted as a
new example contract (Example contract B).
Replacement example: If, however, in that scenario, the packer no longer
makes the original Example contract A available to any other producer and
Example contract A is no longer used, then the negotiated contract would be
submitted as an example contract to replace the previously submitted Example
contract A.
Notification of example contracts that have expired or that have been withdrawn:
When a previously submitted example contract no longer represents any contracts, the
packer will notify us that the example contract has expired. When a previously
submitted example contract did not result in any contracts and no longer represents
any available contracts, the packer will notify us that the example contract was
withdrawn.
What criteria do I use to select example contracts?
For purposes of distinguishing among contracts to determine ~vhich contract may be represented
by a singly example, contracts will be considered to be the same if they are identical with respect
to all of the following four example-contract criteria:
1) Base price or determination of base price. Base price is defined in 9 CFR 206.1 as "The
price paid for swine before the application of any premiums or discounts, expressed in
dollars per unit."

2)

3)

Application of a ledger or accrual account (including the terms and conditions of the
ledger or accrual account provision). A ledger and an accrual account are each defined in
9 CFR 206.1 as "An account held by a packer on behalf of a producer that accrues a
running positive or negative balance as a result of a pricing determination included in a
contract that establishes a minimum and/or maximum level of base price paid. Credits
and/or debits for amounts beyond these minimum and/or maximum levels are entered
into the account. Further, the contract specifies how the balance in the account affects
producer and packer rights and obligations under the contract."
Carcass merit premium and discount schedules (including the determination of the lean
percent or other merits of the carcass that are used to determine the amount of the
premiums and discounts and how those premiums and discounts are applied).

4) Use and amount ofnoncarcass merit premiums and discounts. A noncarcass merit

premium or discount is defined in 9 CFR 206.1 as "An increase or decrease in the price
for the purchase of s~vine offered by an individual packer or packing plant, based on any
factor other than the characteristics of the carcass, if the actual amount of the premium or
discount is known before the purchase and delivery of the swine."

Instructions P&SP-342

July 2009

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USDA

Instructions for Providing Example Contracts,
Completing the Submission Cover Sheet (P&SP-342), and
Documenting Verbal Contracts

How and where do I send my contracts?
Send example contracts or notification of expired or withdrawn contracts to:
Hardcoov
USDA GIPSA
210 Walnut Street, Suite 317
Des Moines, Iowa 50309

Electronic
scl.gipsa.usda.gov
Note: Under "Submit Swine Contract Library
Information ", select Swine Contracts"
FAX
202-720-8300

The electronic submission processes requires secured access to the website listed above. See
Web User Guide: Example Contracts for information on obtaining access to the secure
submission site.
The web site can be used to (1) complete and submit the form P&SP-342, P&SP-343, and
example contracts, (2) download, complete, and print a tillable Adobe Acrobat (PDF) version of
the form P&SP-342 or P&SP-343 for hardcopy submission, or (3) print a blank forms.
When completing the cover sheet using the tillable Adobe Acrobat file or on the GIPSA web
site, press the tab key to move between fields, or click in the desired field.
Web User Guide: Example Contracts contains additional information for using the web interface
to submit contracts.
Use one of the following formats for electronically submitted example contracts and
attachments: (1) Microsoft Word Document, (2) ASCII text, or (3) RTF.
What are the penalties for not complying?
As specified in section 222(e) of the P&S Act, to willfully fail or refuse to provide accurate
information constitutes a violation of the P&S Act. Section 203 of the P&S Act sets forth the
procedures that the Secretary is authorized to follow whenever there is reason to believe that any
packer has violated or is violating a provision of Title II of the P&S Act. Section 203 of the P&S
Act also specifies the sanction that may be assessed if the Secretary determines that a violation
has occurred.
How can I Ret additional information?
If you have questions or need further assistance, please contact the Midwestern Regional office
using one of the following methods.
Swine Contract Library Web Site: http://scl.~ipsa.usda.gov
Phone: 515-323-2579, request to speak to the Swine Contract Library staff
Email: [email protected].
Fax: 515-323-2590, attention Swine Contract Library staff

Inslxuctions P&SP-342

July 2009

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Instructions for Providing Example Contracts,
Completing the Submission Cover Sheet (P&SP-342), and
Documenting Verbal Contracts

USDA

How do I complete the P&SP-342?
Identification Information
Items 1-6
NOTE." Items 1-5 will be prefilled when completing the cover sheet via the GIPSA web site.
Item
Field Name
Description

Number
1
2
3

Packer Name
Date of Submission
Federal Inspection
Number

4

Plant Name

5

Plant Location

The name Of the reporting packer.
The date that the contract is being submitted to GIPSA.
The inspection number or establishment number assigned to the
plant by USDA’s Food Safety and Inspection Service.
When completing the form via the GIPSA web site, you may
select the federal inspection numbers for the plant for which the
report is being submitted from the drop down lists on Item 3.
The name you use to identify the specific plant for which the
contract is being submitted.
The city and state where the plant is located.

Contract Information
Items 6-10

6

Contract Category
(Choose 1)

Swine or Pork Market Formula Purchase without a Ledger.
Purchases based on the markets for swine, pork, or pork products and do not
reference an account which tracks differences from minimum or maximum
levels.
Swine or Pork Market Formula Purchase with a Ledger.
Purchases based on the markets for swine, pork, or pork products and
reference an account which tracks differences from minimum or maximum
levels.
Other Market Formula Purchase without a Ledger. Purchases
based on the markets other than those for swine, pork, or pork products and
do not reference an account which tracks differences from minimum or
maximum levels.
Other Market Formula Purchase with a Ledger. Purchases
based on the markets other than those for swine, pork, or pork products and
reference an account which tracks differences from minimum or maximum
levels.
Other Purchase Arrangement without a Ledger. Purchases
that are not negotiated purchases, swine or pork market formula purchases,
or other market formula purchases, do uot involve packer-owned swine and
do not reference an account which tracks differences f~om minimum or
maximum levels.
Other Purchase Arrangement with a Ledger. Purchases that are
not negotiated purchases, swine or pork market formula purchases, or other
market formula purchases, do not involve packer-owned swine and do
reference an account which tracks differences from minimum or maximum
levels.

See definitions in 9 CFR 206.1

Contract Submission Guidelines

July 2009

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Instructions for Providing Example Contracts,
Completing the Submission Cover Sheet (P&SP-342), and
Documenting Verbal Contracts

USDA
7

Submission Type
(Choose 1)

New indicates the example contract was not previously
available or was previously submitted but one of the four
example-contract criteria has been modified and the previously
submitted example contract remains existing or available. You
can show the contract name in item 9.
Replacement indicates the example contract ~.vas previously
submitted but one of the four example-contract criteria has been
modified and the previously submitted example contract is no
longer offered. Show the name of the new contract in item 9
and the name of the contract being replaced in item 10.
Expired notifies GIPSA that a previously submitted contract no
longer exists. Show the name of the expired contract in item
10.
Withdrawal of Offer notifies GIPSA that a previously
submitted example contract is no longer being offered. Show
the name of the withdrawn contract in item 10.

8

Verbal contract?

9

Contract Name

10

Existing Contract
Name

Contact Information
Items 11-14
11
NalTle
12
13

Title

14

Signature

Phone

Contract Submission Guidelines

Yes indicates this example contract represents an agreement for
the purchase of swine for slaughter for which the parties did not
execute a document to signify the existence of the agreement.
NO indicates this example contract represents an executed
document.
A name (unique identifier) to use to refer to the example
contract. This is used to ease of communications between the
plant and GIPSA personnel.
The Contract Name of the previously submitted contract for
Replacements, Expirations, or Withdrawals of Offer. Item 9,
Contract Name is used for names Of contracts currently being
submitted.

The name ~vho can be contacted if necessary to obtain
clarification or correction of information submitted
The title of the person identified in item 11.
The phone number at which the person identified in item 11 can
be reached.
Signature of person identified in item 11.
When completing the form via the GIPSA web site, an
electronic signature will be used. See .Web User Guide:
Example Contracts for further details.

July 2009

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USDA

Instructions for Providing Example Contracts,

Comp~oting
the Submission Cover Sheet (P&SP-342), and
Documenting Verbal Contracts

How do I document verbal contracts?
You must provide written descriptions for all terms of a verbal contract and attach that written
description to form P&SP-342. See Guidelines for Providing Example Contracts and
Instructions for Completing the Submission Cover Sheet (P&SP-342) for more information on
completing the Submission Cover Sheet.
You may use optional form P&SP-343 to capture a basic set of contract terms.
How do I complete optional form P&SP-342?
Item
Number
1
2
3

Field Name

Description

Packer Name
Date of Submission
Federal Inspection
Number

The name of the reporting packer.
The date that the contract is being submitted to GIPSA.
The inspection number or establishment number assigned to the
plant by USDA’s Food Safety and Inspection Service.

4

Plant Name

5
6

Plant Location
Base Price
Determination

7

Application of
Ledger

8

Carcass Merit
Premiums and
Discounts

9

Noncarcass Merit
Premiums and
Discounts
Length of
Agreement
Other Provisions

10
11

Contract Submission Guidelines

When completing the form via the GIPSA web site, you may
select the federal inspection numbers for the plant for which the
report is being submitted from the drop down lists on Item 3.
The name you use to identify the specific plant for which the
contract is being submitted.
The city and state where the plant is located.
A description of terms used to determine base price. This may
include a complete description of any reports used and
adjustments made to the reported price. For example: AMS
National Daily Direct Hogs Morning, Base Market Hog, plus
$1.00
The terms of the ledger or accrual account. This may include
the window or target price and terms regarding application of
ledger conditions.
A description of the carcass merit premiums and discounts.
This may include the determination of lean percent or other
merits of the carcass that are used to determine the amount of
the premiums and discounts and how those premiums and
discounts are applied.
A description of any noncarcass merit premiums and discounts
used. For example: $1.50 for delivery before 7:00 am.
The term or length of the verbal agreement.
A description of any other conditions or terms.

July 2009

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