PRODUCTION CONTRACTS.

SEC. 11005. PRODUCTION CONTRACTS. Title II of the Packers and Stockyards Act, 1921 (7 U.S.C. 198 et seq.) is amended by adding at the end the following:“SEC. 208. PRODUCTION CONTRACTS.“(a) Right of Contract Producers to Cancel Production Contracts.—“(1) In general.—A poultry grower or swine production contract grower may cancel a poultry growing arrangement or swine production contract by mailing a cancellation notice to the live poultry dealer or swine contractor not later than the later of—“(A) the date that is 3 business days after the date on which the poultry growing arrangement or swine production contract is executed; or“(B) any cancellation date specified in the poultry growing arrangement or swine production contract.“(2) Disclosure.—A poultry growing arrangement or swine production contract shall clearly disclose—122 STAT. 1357“(A) the right of the poultry grower or swine production contract grower to cancel the poultry growing arrangement or swine production contract;“(B) the method by which the poultry grower or swine production contract grower may cancel the poultry growing arrangement or swine production contract; and“(C) the deadline for canceling the poultry growing arrangement or swine production contract.“(b) Required Disclosure of Additional Capital Investments in Production Contracts.—“(1) In general.—A poultry growing arrangement or swine production contract shall contain on the first page a statement identified as ‘Additional Capital Investments Disclosure Statement’, which shall conspicuously state that additional large capital investments may be required of the poultry grower or swine production contract grower during the term of the poultry growing arrangement or swine production contract.“(2) Application.—Paragraph (1) shall apply to any poultry growing arrangement or swine production contract entered into, amended, altered, modified, renewed, or extended after the date of the enactment of this section. “SEC. 209. CHOICE OF LAW AND VENUE.“(a) Location of Forum.—The forum for resolving any dispute among the parties to a poultry growing arrangement or swine production or marketing contract that arises out of the arrangement or contract shall be located in the Federal judicial district in which the principle part of the performance takes place under the arrangement or contract.“(b) Choice of Law.—A poultry growing arrangement or swine production or marketing contract may specify which State’s law is to apply to issues governed by State law in any dispute arising out of the arrangement or contract, except to the extent that doing so is prohibited by the law of the State in which the principal part of the performance takes place under the arrangement or contract. “SEC. 210. ARBITRATION.“(a) In General.—Any livestock or poultry contract that contains a provision requiring the use of arbitration to resolve any controversy that may arise under the contract shall contain a provision that allows a producer or grower, prior to entering the contract to decline to be bound by the arbitration provision.“(b) Disclosure.—Any livestock or poultry contract that contains a provision requiring the use of arbitration shall contain terms that conspicuously disclose the right of the contract producer or grower, prior to entering the contract, to decline the requirement to use arbitration to resolve any controversy that may arise under the livestock or poultry contract.“(c) Dispute Resolution.—Any contract producer or grower that declines a requirement of arbitration pursuant to subsection (b) has the right, to nonetheless seek to resolve any controversy that may arise under the livestock or poultry contract, if, after the controversy arises, both parties consent in writing to use arbitration to settle the controversy.“(d) Application.—Subsections (a) (b) and (c) shall apply to any contract entered into, amended, altered, modified, renewed, 122 STAT. 1358 or extended after the date of the enactment of the Food, Conservation, and Energy Act of 2008 .“(e) Unlawful Practice.—Any action by or on behalf of a packer, swine contractor, or live poultry dealer that violates this section (including any action that has the intent or effect of limiting the ability of a producer or grower to freely make a choice described in subsection (b)) is an unlawful practice under this Act.“(f) Regulations.—The Secretary shall promulgate regulations to—“(1) carry out this section; and“(2) establish criteria that the Secretary will consider in determining whether the arbitration process provided in a contract provides a meaningful opportunity for the grower or producer to participate fully in the arbitration process.” .