National Grain and Feed Association leaders are pleased with yesterday’s Senate Ag Committee passage of a bill to reauthorize the CFTC for five years. Association President Randy Gordon says there are several components in the bill beneficial for agriculture including broadening the definition of bona fide hedging activities.
He says another beneficial component is the residual interest provision. That provision was amended to prevent hedgers from having to essentially pre-margin their accounts.
Gordon says overall the reauthorization bill strikes a good balance between Dodd Frank protections and providing regulatory relief for agriculture.
Gordon says they’re pleased the Senate Ag Committee rejected an amendment for a user fee program that would have increased costs to farmers and hedgers using the futures markets.
The House passed its version of the CFTC reauthorization last year.
