§ 202B.103 — Reserved

Iowa § 202B.103

• Jurisdiction: Iowa
• Title V: AGRICULTURE
• Ch. 202B: SWINE AND BEEF PROCESSORS

Text

SUBCHAPTER II
PROHIBITED ACTIVITIES AND OPERATIONS
202B.201 Prohibited operations and activities — exceptions.
1. Except as provided in subsections 2 and 3, and section 202B.202, all of the following
apply:
a. For cattle, a processor shall not own, control, or operate a cattle operation in this state.
b. For swine, a processor shall not do any of the following:
(1) (a) (i) Directly or indirectly own, control, or operate a swine operation in this state.
(ii) Finance a swine operation in this state or finance a person who directly or indirectly
contracts for the care and feeding of swine in this state.
(iii) Obtain a benefit of production associated with feeding or otherwise maintaining
swine, by directly or indirectly assuming a morbidity or mortality production risk, if the
swine are fed or otherwise maintained as part of a swine operation in this state or by a
person who contracts for the care and feeding of swine in this state.
(iv) Directly or indirectly receive the net revenue derived from a swine operation in this
state or from a person who contracts for the care and feeding of swine in this state.
(b) Forpurposesofsubparagraphdivision(a), subparagraphsubdivisions(i)and(ii), both
of the following apply:
(i) “Finance” means an action by a processor to directly or indirectly loan money or to
guarantee or otherwise act as a surety.
(ii) “Finance” or “control” does not include executing a contract for the purchase of swine
by a processor, including but not limited to a contract that contains an unsecured ledger
balance or other price risk sharing arrangement. “Finance” also does not include providing
anunsecuredopenaccountoranunsecuredloan,iftheunsecuredopenaccountorunsecured
loan is used for the purchase of feed for the swine and the outstanding amount due by the
debtor does not exceed five hundred thousand dollars. However, the outstanding amount due
to support a single swine operation shall not exceed two hundred fifty thousand dollars.
(2) Directly or indirectly contract for the care and feeding of swine in this state.
2. Subsection 1 shall not apply to a swine producer who holds a threshold interest in a
qualified processor in the manner provided in section 202B.102, if all of the following apply:
a. The swine producer’s threshold interest in the qualified processor is not more than ten
percent.
b. The swine producer is not a processor. However, this paragraph does not apply to a
swineproducerdeemedtobeaprocessorsolelybecausetheswineproducerholdsathreshold
interest in the qualified processor as otherwise allowed under this subsection or because the
§202B.201, SWINE AND BEEF PROCESSORS 4
swine producer holds an executive position in the qualified processor or owes the qualified
processor a fiduciary duty.
3. This section shall not preclude a processor from doing any of the following:
a. Contracting for the purchase of cattle or swine, provided that where the contract sets a
datefordeliverywhichismorethantwentydaysafterthemakingofthecontract, thecontract
shall do one of the following:
(1) Specify a calendar day for delivery of the cattle or swine.
(2) Specify the month for the delivery, and shall allow the farmer to set the week for the
delivery within such month and the processor to set the date for delivery within such week.
b. Carrying on legitimate research, educational, or demonstration activities.
c. Owning and operating facilities to provide normal care and feeding of cattle or swine
for a period not to exceed ten days immediately prior to slaughter, or for a longer period in
an emergency.

Legislative History

[C77, 79, 81, §172C.2]