Page:United States Statutes at Large Volume 110 Part 1.djvu/966

 110 STAT. 942 PUBLIC LAW 104-127—APR. 4, 1996 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 100 counties, except that not more than 6 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 title; (2) volunteers to participate 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). (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. To the maximum extent practicable, the Secretary shall operate the pilot program in a budget neutral manner. (i) CONFORMING REPEAL. —The Options Pilot Program Act of 1990 (subtitle E of title XI of Public Law 101-624; 7 U.S.C. 1421 note) is repealed. 7 USC 7332. SEC. 192. RISK MANAGEMENT EDUCATION. In consultation with the Commodity Futures Trading Commission, the Secretary shall provide such education in management of the financial risks inherent in the production and marketing of agricultural commodities as the Secretary considers appropriate. As part of such educational activities, the Secretary may develop and implement programs to facilitate the participation of agricultural producers in commodity futures trading programs, forward

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