7 U.S.C. § 7331 — Options pilot program

(a) Pilot Programs Authorized. Until December 31, 2002, the Secretary^* of Agriculture may conduct a pilot program for one or more agricultural commodities supported under this chapter to determine whether futures and options contracts can give producers reasonable protection from financial risks inherent in producing and marketing those commodities, including price, yield, and income fluctuations. The pilot is an alternative to related Agriculture Department^* programs.

(b) Distribution. For each commodity, the Secretary may operate the pilot in no more than 300 counties, with no more than 25 in any one State^*. For a commodity, the pilot may operate in a county during no more than three calendar years from 1996 through 2002.

(c) Eligible Participants. The Secretary may contract^* with a producer^* who: (1) is eligible for a production-flexibility contract, marketing-assistance loan, or other assistance under this chapter; (2) volunteers during a year when the producer’s county is included; (3) operates a farm in a selected county; and (4) meets other eligibility requirements set by the Secretary.

(d) Notice to Producers. The Secretary must tell each participant: (1) participation is voluntary; and (2) the United States, Commodity Credit Corporation, Federal Crop Insurance Corporation, Department of Agriculture, and other Federal agencies are not authorized to guarantee that participation will leave the participant financially better or worse off than not participating.

(e) Contracts. Each contract must state the pilot’s participation terms and conditions and the notice required by subsection (d).

(f) Eligible Markets. Futures and options trades must occur on commodity futures and options markets designated as contract markets under the Commodity Exchange Act (7 U.S.C. 1 et seq.).

(g) Recordkeeping. A participating producer must compile, maintain, and submit, or authorize the compilation, maintenance, and submission of, the documentation required by the pilot’s regulations.

(h) Use of Commodity Credit Corporation. The Secretary must fund and operate the pilot through the Commodity Credit Corporation. To the maximum extent practicable, Commodity Credit Corporation funds used may not exceed $9,000,000 for fiscal year 2001, $15,000,000 for fiscal year 2002, and $2,000,000 for fiscal year 2003. To the maximum extent practicable, the Secretary must operate the pilot in a budget-neutral manner.