H.R. 5810, To Amend the United States Cotton Futures Act to Exclude Certain Cotton Futures Contracts from Coverage under such Act

H.R. 5810

To Amend the United States Cotton Futures Act to Exclude Certain Cotton Futures Contracts from Coverage under such Act

Committee
Agriculture

Date
December 10, 2014 (113th Congress, 2nd Session)

Staff Contact
Communications

Floor Situation

On Wednesday, December 10, 2014, the House will consider the H.R. 5810, a bill to Amend the United States Cotton Futures Act to Exclude Certain Cotton Futures Contracts from Coverage under such Act, under a suspension of the rules.  H.R. 5810 was introduced on December 8, 2014 by Rep. Lynn Westmoreland (R-GA) and referred to the Committee on Agriculture.

Bill Summary

The Cotton Futures Act of 1916 does not permit a cotton futures contract to be traded on a U.S.-based futures exchange unless it is classed by a USDA inspector.  H.R. 5810 amends current law to remove this requirement for contracts that are tendered in a foreign jurisdiction with foreign produced cotton.

It makes no changes to the delivery, classing, or any other aspect of the benchmark US #2 Cotton Contract.  All domestically produced cotton will still be classed by USDA inspectors.  This legislation will allow for the creation of a new global cotton contract and will enable cotton merchants and others to hedge the risks associated with the global cotton trade.

Cost

A CBO cost estimate is currently unavailable.

Additional Information

For questions or further information contact the GOP Conference at 5-5107.