---
kind: "section"
citation: "7 U.S.C. § 229b"
title: "7"
title_heading: "Agriculture"
number: "229b"
heading: "Right to discuss terms of contract"
release: "119-102"
url: "https://uscodex.org/usc/7/229b"
units:
  - "Chapter 9 — Packers and Stockyards"
  - "Subchapter V — General Provisions"
---

# §229b. Right to discuss terms of contract

- (a) **Definitions—** In this section:
  - (1) **Producer—** The term “producer” means any [person](/usc/7/182.md?p=1) engaged in the raising and caring for [livestock](/usc/7/182.md?p=4) or [poultry](/usc/7/182.md?p=6) for slaughter.
  - (2) **Processor—** The term “processor” means any [person](/usc/7/182.md?p=1) engaged in the business of obtaining [livestock](/usc/7/182.md?p=4) or [poultry](/usc/7/182.md?p=6) for the purpose of slaughtering the [livestock](/usc/7/182.md?p=4) or [poultry](/usc/7/182.md?p=6).
- (b) **No prohibition of discussion—** Notwithstanding a provision in any [contract](/usc/7/518.md?p=4) between a [producer](#a-1) and a [processor](#a-2) for the production of [livestock](/usc/7/182.md?p=4) or [poultry](/usc/7/182.md?p=6), or in any marketing agreement between a [producer](#a-1) and a [processor](#a-2) for the sale of [livestock](/usc/7/182.md?p=4) or [poultry](/usc/7/182.md?p=6) for a term of 1 year or more, that provides that information contained in the [contract](/usc/7/518.md?p=4) is confidential, a party to the [contract](/usc/7/518.md?p=4) shall not be prohibited from discussing any terms or details of the [contract](/usc/7/518.md?p=4) with—
  - (1) a Federal or [State agency](/usc/7/2012.md?p=s);
  - (2) a legal adviser to the party;
  - (3) a lender to the party;
  - (4) an accountant hired by the party;
  - (5) an executive or manager of the party;
  - (6) a landlord of the party; or
  - (7) a member of the immediate family of the party.
- (c) **Effect on State laws—** [Subsection (b)](#b) does not—
  - (1) preempt any [State](/usc/7/1359aa.md?p=5) law that addresses confidentiality provisions in [contracts](/usc/7/518.md?p=4) for the sale or production of [livestock](/usc/7/182.md?p=4) or [poultry](/usc/7/182.md?p=6), except any provision of [State](/usc/7/1359aa.md?p=5) law that makes lawful a [contract](/usc/7/518.md?p=4) provision that prohibits a party from, or limits a party in, engaging in discussion that [subsection (b)](#b) requires to be permitted; or
  - (2) deprive any [State](/usc/7/1359aa.md?p=5) court of jurisdiction under any such [State](/usc/7/1359aa.md?p=5) law.
- (d) **Applicability—** This section applies to each [contract](/usc/7/518.md?p=4) described in [subsection (b)](#b) that is entered into, amended, renewed, or extended after May 13, 2002.

## Source credit

(Pub. L. 107–171, title X, § 10503, May 13, 2002, 116 Stat. 510.)

## Notes

### Editorial Notes

### Codification

Section was enacted as part of the Farm Security and Rural Investment Act of 2002, and not as part of the Packers and Stockyards Act, 1921, which comprises this chapter.