The House Agriculture Committee yesterday passed Rep. Abigail Spanberger’s (D-Va.) bipartisan legislation to protect agribusinesses in the wake of commodity broker bankruptcies, according to a press release. Currently, judges determine which assets are included in bankruptcy proceedings — but the case-by-case nature of these proceedings can leave agribusinesses uncertain about their financial futures. Rep. Spanberger’s legislation would bring clarity to this often overcomplicated agribusiness finance system, which is regulated by the Commodity Futures Trading Commission (CFTC). The bill would allow futures customers to have a predetermined idea as to which commodity broker assets will be used to cover the costs of equity claims during bankruptcy proceedings. Spanberger’s legislation is included in H.R. 4895, which reauthorizes the CFTC. The bill now awaits a vote on the House floor. Read more.
Click here to read the full bill text.
