AMS published an advance notice of proposed rulemaking to solicit public comment on ways to address problems in fed cattle markets arising from the way that base prices for live cattle are currently determined under most long-term contracts. The vast majority of long-term contracts are formula pricing agreements that use an external benchmark price to establish a base price in the contract when determining the price a seller will receive. The base price is not known when the contract is signed, and it fluctuates in accordance with the benchmark. Aspects of the design of formula contracts have some adverse consequences directly or in conjunction with certain trading practices for producers and the markets in which they operate, and potentially for other packers seeking to compete for fed cattle in the market.