1. Spot market purchases of livestock by packers Chapter 5 of subtitle B of the Agricultural Marketing Act of 1946 ( 7 U.S.C. 1636 et seq.) is amended— (1) by redesignating section 260 ( 7 U.S.C. 1636i ) as section 261; and (2) by inserting after section 259 the following: 260. Spot market purchases of livestock by packers (a) Definitions In this section: (1) Covered packer (A) In general The term covered packer means a packer that is required under this subtitle to report to the Secretary each reporting day information on the price and quantity of livestock purchased by the packer. (B) Exclusion The term covered packer does not include a packer that owns only 1 livestock processing plant. (2) Livestock The term livestock does not include— (A) pork; (B) poultry; (C) a dairy-bred, dairy-bred cross, or beef animal over 30 months of age; or (D) a foreign-born beef animal. (3) Nonaffiliated producer The term nonaffiliated producer means a producer of livestock— (A) that sells livestock to a packer; (B) that has less than 1 percent equity interest in the packer, which packer has less than 1 percent equity interest in the producer; (C) that has no officers, directors, employees, or owners that are officers, directors, employees, or owners of the packer; (D) that has no fiduciary responsibility to the packer; and (E) in which the packer has no equity interest. (4) Spot market sale (A) In general The term spot market sale means a purchase and sale of livestock by a packer from a producer— (i) under an agreement that specifies a firm base price that may be equated with a fixed dollar amount on the date the agreement is entered into; (ii) under which the livestock are slaughtered not more than 14 days after the date on which the agreement is entered into