
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 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.
