PSP-343 Verbal Contract Optional Documentation Sheet

OMB No. 0581-0311
U.S. Department of Agriculture
Agricultural Marketing Service
Packers and Stockyards Program

VERBAL CONTRACT
OPTIONAL DOCUMENTATION SHEET

Use this optional form to document a basic set of contract terms for verbal contracts. Attach completed form or
other documentation to P&SP-342.

1. Base Price Determination

2. Application fo Ledger

3. Carcass Merit Premiums
and Discounts

4. Noncarcass Merit
Premiums and Discounts

5. Length of Agreement

6. Other Provisions

Response is optional to identify and obtain examples of verbal swine packer marketing contracts that are currently
available (7 U.S.C. 198a and 9 CFR 206). Submitted information held confidential (9 CFR 201.96).
According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not 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 0581-0311.
The time required to complete this information collection is estimated to average15 minutes inclulding time to review instructions, search
existing data resources, gather the data needed, and complete and review the information collection.
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 orientation, genetic information, political beliefs,
reprisal, or because all or part of an individual’s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.)
Persons with disabilities who require 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 file a complaint of discrimination, write to USDA, Director, Office of Civil 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.

PSD-343

Expired 08/31/2022

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OMB No. 0581-0311

Instructions for Completing Optional PSD-343
Packers may use optional form PSD-343 to document a basic set of contract terms for verbal
contracts.
Packers as defined in 9 CFR 206.1 must provide written descriptions for all terms of a verbal
contract and attach that written description to form PSD-342. This form may be used as that
written description.
A verbal contract includes purchases of swine by a packer from a producer under 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 swine are
committed to the packer
2) The terms of the purchase are not formally documented.
If you have any questions about the form or completing the form, please contact the Swine
Contract Library staff using one of the following methods.
Phone
515-323-2579

Line

Subject

1

Base Price
Determination

2

Application of Ledger

3

Carcass Merit
Premiums and
Discounts

4

Noncarcass Merit
Premiums and
Discounts
Length of Agreement
Other Provisions

5
6

PSD-343

Email
PSDSwineContractLibrary@usda
.gov

Fax
515-323-2590

Instruction
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
characteristics 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.

Expired 08/31/2022

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