7 U.S.C. § 6q — Special procedures to encourage and facilitate bona fide hedging by agricultural producers

submitted 104 years ago by Pub. L. 106-554 to r/title-7-AGRICULTURE · 212 words · no verdicts yet

in plain englishAI-generated · not legal advice

The Commission may issue rules to help farmers use futures markets to hedge price risk — covering orderly delivery of crops, easier market access, flexible minimum contract sizes, and better information from contract markets. Within a year of December 21, 2000, the Commission had to report to Congress on its progress.

(a) Authority The Commission was to consider rules or orders that: (1) set up procedures so each contract market provides orderly delivery — including temporary storage costs — for agricultural commodities listed in section 1a(9) that are sold under a future-delivery contract; (2) make it easier for domestic farmers to trade on contract markets, including by addressing costs and margin requirements, so they can better hedge their price risk; (3) allow flexible minimum contract sizes for those agricultural commodities, to help farmers hedge that risk; and (4) push contract markets to share information and otherwise help farmers participate. (b) Report Within one year of December 21, 2000, the Commission had to report to the House Agriculture Committee and the Senate Agriculture, Nutrition, and Forestry Committee on what steps it took under this section and what contract markets had done in response.

the actual law source: uscode.house.gov ↗public domain

(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.

Source credit: (Sept. 21, 1922, ch. 369, § 4q, formerly § 4p, as added Pub. L. 106–554, § 1(a)(5) [title I, § 121], Dec. 21, 2000, 114 Stat. 2763, 2763A–404; renumbered § 4q, Pub. L. 110–234, title XIII, § 13105(d), May 22, 2008, 122 Stat. 1434, and Pub. L. 110–246, § 4(a), title XIII, § 13105(d), June 18, 2008, 122 Stat. 1664, 2196; Pub. L. 111–203, title VII, § 721(e)(3), July 21, 2010, 124 Stat. 1671.)

history & why it existsrecord from the source credit

1922Enacted · Pub. L. 106-554 · 114 Stat. 2763, 2763
2008Amended · Pub. L. 110-234 · 122 Stat. 1434
2010Amended · Pub. L. 111-203 · 124 Stat. 1671

A history note hasn’t been published yet. The record shows enactment by Pub. L. 106-554 on 1922-09-21.

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