Iowa Code 202B.201 – Prohibited operations and activities — exceptions
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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) For purposes of subparagraph division (a), subparagraph subdivisions (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 an unsecured open account or an unsecured loan, if the unsecured open account or unsecured 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.
Terms Used In Iowa Code 202B.201
- Cattle operation: means a location including but not limited to a building, lot, yard, corral, or other place where cattle for slaughter are fed or otherwise maintained. See Iowa Code 202B.102
- Contract: A legal written agreement that becomes binding when signed.
- Contract for the care and feeding of swine: means an oral or written agreement executed between a person and the owner of swine, under which the person agrees to care for and feed the owner's swine on the person's premises. See Iowa Code 202B.102
- Delivery: means the transfer of title to and possession of grain by a seller to a grain dealer or to another person in accordance with the agreement of the seller and the grain dealer. See Iowa Code 203.8
- Fiduciary: A trustee, executor, or administrator.
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- month: means a calendar month, and the word "year" and the abbreviation "A. See Iowa Code 4.1
- Person: means an individual, business association, government or governmental subdivision or agency, or any other legal entity. See Iowa Code 202B.102
- Processor: means a person who alone or in conjunction with others directly or indirectly controls the manufacturing, processing, or preparation for sale of beef or pork products, including the slaughtering of cattle or swine or the manufacturing or preparation of carcasses or goods originating from the carcasses, if the beef or pork products have a total annual wholesale value of eighty million dollars or more for the person's tax year. See Iowa Code 202B.102
- Qualified processor: means a processor of pork products if all of the following apply:a. See Iowa Code 202B.102
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
- Swine operation: means a location where swine are fed or otherwise maintained, including a building, lot, yard, or corral; and swine which are fed or otherwise maintained at the location. See Iowa Code 202B.102
- Swine producer: means a person who owns, controls, or operates a swine operation or who contracts for the care and feeding of swine. See Iowa Code 202B.102
- Threshold interest: means a direct or indirect interest in the business association, calculated as follows:
(1) For a processor of beef products, the person's threshold interest begins at ten percent. See Iowa Code 202B.102- week: means seven consecutive days. See Iowa Code 4.1
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 swine producer deemed to be a processor solely because the swine producer holds a threshold interest in the qualified processor as otherwise allowed under this subsection or because the 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 date for delivery which is more than twenty days after the making of the contract, the contract 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.