Formula Marketing Arrangement [Agriculture] Law and Legal Definition

According to 7 CFR 59.100 [Title 7—Agriculture; Subtitle B -- Regulations Of The Department Of Agriculture; Chapter I -- Agricultural Marketing Service H1 (Standards, Inspections, Marketing Practices), Department Of Agriculture; Subchapter C -- Regulations And Standards Under The Agricultural Marketing Act Of 1946 And The Egg Products Inspection Act - Part 59 -- Livestock Mandatory Reporting; Subpart B -- Cattle Reporting],

(1) When used in reference to live cattle, the term "formula marketing arrangement" means the advance commitment of cattle for slaughter by any means other than through a negotiated purchase or a forward contract, using a method for calculating price in which the price is determined at a future date.

(2) When used in reference to boxed beef, the term "formula marketing arrangement" means the advance commitment of boxed beef by any means other than through a negotiated purchase or a forward contract, using a method for calculating price in which the price is determined at a future date.