P&SP-343 Verbal Contract Optional Documentation Sheet

Responional to identify and obtain examples of verbal swine packer marketing contracts that are
currently available (7 U.S.C. 198a and 9 CFR 206). Information held confidential (9 CFR 222).

USDA

U.S. Department of Agriculture
Grain Inspection, Packers and Stockyards Administration
Packers and Stockyards Program

OMB Control NO.0580-0021

Verbal Contract
Optional Documentation Sheet

Use this optional form to document a basic set of contract termsfor verbal contracts.
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 tame required to
complete 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.

Identification Information
1. Packer Name
3. Federal
Inspection
Number

2. Date of Submission
(MM/DD/YYYY)
4. Plant Name

5. Location: City, State

6. Base Price
Determination
7. Application of
Ledger
8. Carcass Merit
Premiums and
Discounts
9. Noncarcass
Merit Premiums
and Discounts
10. Length of
Agreement
11. Other
Provisions

Form P&SP-343

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The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and
where applicable, sex, marital status, familial status, parental status, religion, sexual orientaflon, genetic information, political beliefs, reprisal, or because all or part of
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alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at (202) 720-2600 (voice
and TDD). To lile a complaint of discrimination, write to USDA, Director, Office of CiviI Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410,
or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.

Form P&SP-343

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USDA

Guidelines for Documenting Verbal Contracts
and Instructions for Completing Optional Form P&SP-343

You may use optional form P&SP-343 to document a basic set of contract terms for verbal
contracts.
What is a verbal contract?
A contract is any agreement, whether written or verbal, between a packer and a producer for the
purchase of swine for slaughter, except a negotiated purchase.
A verbal contract includes purchases of swine by a packer ~om a producer m’ader which:
1) The purchase is not a negotiated purchase. That is, the transaction
a) Results in a price to be determined at a later date, or
b) Establishes delivery dates more than 14 days after the date on which the sw’me are
committed to the packer
2) The terms of the purchase are not formally documented.
For more information on selecting example contracts, see Guidelines for Providing Example
Contracts and Instructions for Completing the Submission Cover Sheet (P&SP-342).
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 and where do I send my contracts?

Send example contracts or notification of expired or withdrawn contracts to:
Hardco~v
USDA GIPSA
210 Walnut Street, Suite 317
Des Moines, Iowa 50309
.FAX
202-720-8300

Electronic
scl.gipsa.usda.gov
Note: Under "Submit Swine Contract
Library Information ", select Swine
Contracts

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 form P&SP-342, example contracts and
P&SP form-343, (2) download, complete, and print a tillable Adobe Acrobat (PDF) version of
the forms P&SP-342 and P&SP-343 for hardcopy submission, or (3) print blank forms.
When completing the cover sheet using the tillable Adobe Acrobat tile 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) I~TF.
Documenting Verbal Contracts

July 2009

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USDA

Guidelines for Documenting Verbal Contracts
and Instructions for Completing Optional Form P&SP-343

What are the penalties for not comolvin~?
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 get 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.gipsa.usda.gov
Phone: 515-323-2579, request to speak to the Swine Contract Library staff
Email: SwineContractLibrarv@usda. gov.
Fax: 515-323-2590, attention Swine Contract Library staff
How do I complete optional form P&SP-342?
Field Name
Item
Number
1
2
3

4
5
6

7
8

9
I0
11

Description

Packer Name
Date of Submission

The name of the reporting packer.
The date that the contract is being submitted to G1PSA.
Federal Inspection
The inspection number or establishment number assi~aed to the
Number
plant by USDA’s Food Safety and Inspection Service.
When completing the form via the GIPSA web site, you may select
the federal !nspection numbers for the plant for which the report is
being submitted from the drop down lists on Item 3.
Plant Name
The name you use to identify the specific plant for which the
contract is being submitted.
Plant Location
The city and state where the plant is located.
A description of terms used to determine base price. This may
Base Price
Determination
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
Application of Ledger The terms of the ledger or accrual account. This may include the
window or target price and terms regarding application of ledger
conditions.
Carcass Merit Premiums A description of the carcass merit premiums and discounts. This
and Discounts
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.
Noncarcass Merit
Premiums and Discounts For example: $1.50 for delivery before 7:00 am.
The term or length of the verbal agreement.
Length of Agreement
A
description of any other conditions or terms.
OtherProvisions

Documenting Verbal Contracts

July 2009

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