Ag Groups Convey CFTC Reauthorization Support
The NCC was among a group of 33 organizations which sent a letter to House Agriculture Committee members and other Congressional Members in support of the Commodity End-User Relief Act (H.R. 2289) that the House was expected to consider the week of June 8.
June 8, 2015
Dear Member of the House of Representatives:
The undersigned organizations represent a very broad cross-section of U.S. production agriculture and agribusiness. We urge you to cast an affirmative vote on H.R. 2289, the "Commodity End-User Relief Act," when it moves to the floor for consideration.
This legislation contains a number of important provisions for agricultural and agribusiness hedgers who use futures and swaps to manage their business and production risks. Some, but certainly not all, of the bill's important provisions include:
- Sections 101-103 – Codify important customer protections to help prevent another MF Global situation.
- Section 104 – Provides a permanent solution to the residual interest problem that would have put more customer funds at risk – and potentially driven farmers, ranchers and small hedgers out of futures markets – by forcing pre-margining of their hedge accounts.
- Section 308 – Relief from burdensome and technologically infeasible recordkeeping requirements in commodity markets.
- Section 310 – Requires the CFTC to conduct a study and issue a rule before reducing the de minimis threshold for swap dealer registration in order to make sure that doing so would not harm market liquidity and end-user access to markets.
- Section 313 – Confirms the intent of Dodd-Frank that anticipatory hedging is considered bona fide hedging activity.
Thank you in advance for your support of this bill that is so important to U.S. farmers, ranchers, hedgers and futures customers.
Agribusiness Association of Iowa
Agribusiness Council of Indiana/Indiana Grain and Feed Association
American Cotton Shippers Association
American Farm Bureau Federation
American Feed Industry Association
American Soybean Association
Commodity Markets Council
Grain and Feed Association of Illinois
Kansas Grain and Feed Association
Michigan Agri-Business Association
Michigan Bean Shippers Association
Minnesota Grain and Feed Association
Missouri Agribusiness Association
National Cattlemen’s Beef Association
National Corn Growers Association
National Cotton Council
National Council of Farmer Cooperatives
National Grain and Feed Association
National Pork Producers Council
Nebraska Grain and Feed Association
North American Export Grain Association
North Dakota Grain Dealers Association
Northeast Agribusiness and Feed Alliance
Ohio AgriBusiness Association
Oklahoma Grain and Feed Association
Pacific Northwest Grain and Feed Association
Rocky Mountain Agribusiness Association
Southeast Minnesota Grain and Feed Dealers Association
South Dakota Grain and Feed Association
Tennessee Feed and Grain Association
Texas Grain and Feed Association
USA Rice Federation
Wisconsin Agri-Business Association