NFU Offers Comments on CFTC Reauthorization to Senate Ag Committee

1 05 2013

WASHINGTON (May 1, 2013) – Today National Farmers Union (NFU) President Roger Johnson sent a letter to the U.S. Senate Committee on Agriculture, Nutrition and Forestry regarding the upcoming reauthorization of the Commodity Futures Trading Commission (CFTC).
“Farmers are at the core of our rural economy and are helping to drive our nation’s economic recovery,” said Johnson. “Another commodity price bubble or a sudden collapse would be difficult for many farmers to weather. A reauthorized and energized CFTC will help to bring stability to the levels of commodity price volatility that are so damaging to Farmers Union members.”
The letter urged the committee to consider increasing penalties for violators, investigating the ill effects of high frequency trading, limiting the role of index funds in the commodity markets, and curbing excessive speculation.
“At the time of their creation, commodity markets were designed to serve as a tool for commercial end-users and hedgers to mitigate price and uncertainty risks faced in their enterprises,” said Johnson. “The commodity markets were – and still should be – used to establish fair prices according to supply and demand fundamentals. Unfortunately, massive positions held by speculators and a culture of deregulation has distorted these markets.”
Both the Senate and House Agriculture Committees are expected to consider reauthorization of the CFTC throughout 2013.
Click here to read the letter.




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