H.R. 1648: Amplifying Processing of Livestock in the United States Act

This bill, titled the "Amplifying Processing of Livestock in the United States Act" or "A-PLUS Act," aims to amend regulations related to livestock auction owners and their involvement with small meatpacking businesses. The key provisions of the bill are as follows:

Ownership and Participation in Meatpacking

The bill directs the Secretary of Agriculture to revise existing regulations regarding the involvement of market agencies (including owners of livestock auctions) in meatpacking businesses. Specifically, it allows these market agencies to:

• Have an ownership interest in small packers.
• Finance small packers.
• Participate in the management or operation of small packers.

However, this allowance is limited to small packers with defined slaughter capacities:

• For cattle and sheep, the packers must have a cumulative slaughter capacity of less than:
• 2,000 animals per day
• 700,000 animals per year
• For hogs, the packers must have a cumulative slaughter capacity of less than:
• 10,000 animals per day
• 3,000,000 animals per year

Disclosure Requirements

The bill also establishes a requirement for transparency. Market agencies that hold an ownership interest in, finance, or manage a packer must disclose this relationship to sellers of livestock. This is intended to ensure that sellers are aware of potential conflicts of interest when they engage in transactions.

Savings Clause

Additionally, the bill includes a savings clause that clarifies that the new regulations should not be interpreted as limiting the authority of the Secretary of Agriculture. The Secretary retains the power to adopt or enforce rules to protect producers, ensure competition, maintain market integrity, and prevent conflicts of interest under the Packers and Stockyards Act of 1921.

Implementation Timeline

The Secretary of Agriculture is mandated to make these regulatory revisions no later than one year after the bill's enactment.

Relevant Companies

• TSN - Tyson Foods, Inc.: A major player in the meatpacking industry that may have interests in adopting or adjusting operational strategies based on these new guidelines.
• JBSAY - JBS S.A.: As one of the largest meat producers globally, changes in ownership structure could affect partnerships and investments with smaller packers.
• BRFS - BRF S.A.: This company may be impacted by the disclosure requirements relating to potential ownership interests held by market agencies.