CONGRESSWOMAN ELISE STEFANIK
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.
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.
A CBO cost estimate is currently unavailable.
For questions or further information contact the GOP Conference at 5-5107.