PRIA, Government Policy, Made Personal

Summary

The Commission must consider making rules to help domestic agricultural producers use futures markets to manage price risk. Rules can set delivery and storage procedures, reduce cost and margin requirements, allow smaller contracts, and encourage markets to share information and help producers take part. Within 1 year after December 21, 2000, the Commission must report to the House Committee on Agriculture and the Committee on Agriculture, Nutrition, and Forestry of the Senate about what it has done and how contract markets responded.

Title 7, §6q

Agriculture, Source: USLM XML via OLRC

(a)Authority

The Commission shall consider issuing rules or orders which—

(1)prescribe procedures under which each contract market is to provide for orderly delivery, including temporary storage costs, of any agricultural commodity enumerated in section 1a(9) of this title which is the subject of a contract for purchase or sale for future delivery;

(2)increase the ease with which domestic agricultural producers may participate in contract markets, including by addressing cost and margin requirements, so as to better enable the producers to hedge price risk associated with their production;

(3)provide flexibility in the minimum quantities of such agricultural commodities that may be the subject of a contract for purchase or sale for future delivery that is traded on a contract market, to better allow domestic agricultural producers to hedge such price risk; and

(4)encourage contract markets to provide information and otherwise facilitate the participation of domestic agricultural producers in contract markets.

(b)Report

Within 1 year after December 21, 2000, the Commission shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the steps it has taken to implement this section and on the activities of contract markets pursuant to this section.

Notes & Related Subsidiaries

Editorial Notes

Codification Pub. L. 110–234 and Pub. L. 110–246 both renumbered this section as section 4q of act Sept. 21, 1922. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234. Section was formerly classified to section 6o–1 of this title.

Amendments

2010—Subsec. (a)(1). Pub. L. 111–203 substituted “section 1a(9)” for “section 1a(4)”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the later of 360 days after July 21, 2010, or, to the extent a provision of subtitle A (§§ 711–754) of title VII of Pub. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation implementing such provision of subtitle A, see section 754 of Pub. L. 111–203, set out as a note under section 1a of this title.

§6q Special Procedures to Encourage and Facilitate Bona Fide Hedging by Agricultural Producers