§ 7331. — Options pilot program.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC7331]
TITLE 7--AGRICULTURE
CHAPTER 100--AGRICULTURAL MARKET TRANSITION
SUBCHAPTER VIII--MISCELLANEOUS COMMODITY PROVISIONS
Sec. 7331. Options pilot program
(a) Pilot programs authorized
Until December 31, 2002, the Secretary of Agriculture may conduct a
pilot program for 1 or more agricultural commodities supported under
this chapter to ascertain whether futures and options contracts can
provide producers with reasonable protection from the financial risks of
fluctuations in price, yield, and income inherent in the production and
marketing of the commodities. The pilot program shall be an alternative
to other related programs of the Department of Agriculture.
(b) Distribution of pilot program
For each agricultural commodity included in the pilot program, the
Secretary may operate the pilot program in not more than 300 counties,
except that not more than 25 of the counties may be located in any 1
State. The pilot program for a commodity shall not be operated in any
county for more than 3 of the 1996 through 2002 calendar years.
(c) Eligible participants
In operating the pilot program, the Secretary may enter into
contract with a producer who--
(1) is eligible for a production flexibility contract, a
marketing assistance loan, or other assistance under this chapter;
(2) volunteers to participate in the pilot program during any
calendar year in which a county in which the farm of the producer is
located is included in the pilot program;
(3) operates a farm located in a county selected for the pilot
program; and
(4) meets such other eligibility requirements as the Secretary
may establish.
(d) Notice to producers
The Secretary shall provide notice to each producer participating in
the pilot program that--
(1) the participation of the producer is voluntary; and
(2) neither the United States, the Commodity Credit Corporation,
the Federal Crop Insurance Corporation, the Department of
Agriculture, nor any other Federal agency is authorized to guarantee
that participants in the pilot program will be better or worse off
financially as a result of participation in the pilot program than
the producer would have been if the producer had not participated in
the pilot program.
(e) Contracts
The Secretary shall set forth in each contract under the pilot
program the terms and conditions for participation in the pilot program
and the notice required by subsection (d) of this section.
(f) Eligible markets
Trades for futures and options contracts under the pilot program
shall be carried out 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 producer participating in the pilot program shall compile,
maintain, and submit (or authorize the compilation, maintenance, and
submission) of such documentation as the regulations governing the pilot
program require.
(h) Use of Commodity Credit Corporation
The Secretary shall fund and operate the pilot program through the
Commodity Credit Corporation, except that the amount of Commodity Credit
Corporation funds used to carry out this section shall not exceed, to
the maximum extent practicable, $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 shall operate the pilot
program in a budget neutral manner.
(Pub. L. 104-127, title I, Sec. 191, Apr. 4, 1996, 110 Stat. 941; Pub.
L. 106-224, title I, Sec. 134, June 20, 2000, 114 Stat. 388.)
References in Text
For definition of ``this chapter'', referred to in subsecs. (a) and
(c)(1), see note set out under section 7201 of this title.
The Commodity Exchange Act, referred to in subsec. (f), is act Sept.
21, 1922, ch. 369, 42 Stat. 998, as amended, which is classified
generally to chapter 1 (Sec. 1 et seq.) of this title. For complete
classification of this Act to the Code, see section 1 of this title and
Tables.
Codification
Section is comprised of section 191 of Pub. L. 104-127. Subsec. (i)
of section 191 of Pub. L. 104-127 repealed provisions set out as a note
under section 1421 of this title.
Amendments
2000--Subsec. (b). Pub. L. 106-224, Sec. 134(1), substituted ``300
counties, except that not more than 25'' for ``100 counties, except that
not more than 6'' in first sentence.
Subsec. (c)(2). Pub. L. 106-224, Sec. 134(2), inserted before
semicolon at end ``during any calendar year in which a county in which
the farm of the producer is located is included in the pilot program''.
Subsec. (h). Pub. L. 106-224, Sec. 134(3), inserted before period at
end of first sentence ``, except that the amount of Commodity Credit
Corporation funds used to carry out this section shall not exceed, to
the maximum extent practicable, $9,000,000 for fiscal year 2001,
$15,000,000 for fiscal year 2002, and $2,000,000 for fiscal year 2003''.
Effective Date of 2000 Amendment
Amendment by Pub. L. 106-224 effective Oct. 1, 2000, see section
171(b)(1)(A) of Pub. L. 106-224, set out as a note under section 1501 of
this title.
