By Todd Kemp, Senior Vice President of Marketing and Treasurer The NGFA’s Risk Management Committee on Nov. 7 provided feedback to the CME Group on its announced plan to increase the maximum storage rates for soymeal and soyoil receipts and certificates, effective on March 19, 2020, with the expiration of the March 2020 futures contracts. In its Oct. 31 announcement, CME said it intended to: Increase the maximum storage charges for the soybean oil futures contract from 3/10ths of 1 cent per 100 pounds per day to one-half (5/10ths) of 1 cent per 100 pounds per day. Increase the ... Read More
Risk Management
CME Group announces plans to increase soymeal, soyoil storage rates
The CME Group on Oct. 31 announced plans to increase the maximum storage rates for soymeal and soyoil receipts and certificates, effective on March 19, 2020 with the expiration of the March 2020 futures contracts. Specifically, the maximum storage charges for the soybean oil futures contract would increase from 3/10ths of 1 cent per 100 pounds per day to one-half (5/10ths) of 1 cent per 100 pounds per day. Meanwhile, the maximum premium charges for the soybean meal futures contract would increase from 7 cents per ton per day to 12 cents per ton per day. The increases are designed to better ... Read More
CFTC issues updated report on agricultural block trades
The Commodity Futures Trading Commission (CFTC) issued a report Oct. 18 on agricultural block trades, following up on a July 2018 report that analyzed agricultural block trading in the grains, oilseeds, and livestock markets at the CME. The NGFA Risk Management Committee met with CFTC staff the previous day to receive a briefing on report findings. The new report, published by the CFTC’s Market Intelligence Branch of the Division of Market Oversight, includes data for the time period starting Jan. 8, 2018, when CME launched block trading to the full suite of agricultural futures and options ... Read More
NGFA urges IRS to clarify proposed rules implementing Section 199A
ARLINGTON, Oct. 18, 2018 -- The National Grain and Feed Association (NGFA) testified on Oct. 16 at an Internal Revenue Service (IRS) public hearing to recommend that the agency clarify a recently proposed rule to ensure agribusiness firms like grain elevators qualify for the 20 percent pass-through deduction under Section 199A of the tax code. Earlier this year, the NGFA and other stakeholders raised considerable concerns about how an initial version of Section 199A of the tax code – approved during the waning hours of congressional consideration of the Tax Cuts and Jobs Act of 2017 – would ... Read More
NGFA asks IRS to clarify deduction for agribusinesses in proposed rule implementing Section 199A
In a letter submitted on Oct. 1 to the Internal Revenue Service (IRS), the NGFA recommended the agency should clarify a recently proposed rule to ensure agribusiness firms like grain elevators, feed manufacturers and grain processors qualify for the pass-through deduction under Section 199A of the tax code. Read story (requires member log-in) ... Read More
CFTC extends corn/soybean storage rate review period
By Todd Kemp, Senior Vice President of Marketing and Treasurer The NGFA has been informed that the Commodity Futures Trading Commission (CFTC) and the CME Group mutually have agreed to extend the agency’s review of storage rate changes for CBOT corn and soybean futures contracts for an additional 60 days, which is allowed pursuant to CFTC regulations on rule approvals. The proposal was submitted to the CFTC by the CME Group on July 12 and would increase storage rates for both corn and soybeans from 5 cents per bushel per month to 8 cents per bushel per month, effective with the ... Read More
CFTC gets full, five-member panel
The Senate on Aug. 28 confirmed Republican Dawn DeBerry Stump and Democrat Dan Michael Berkovitz as members of the U.S. Commodity Futures Trading Commission (CFTC), bringing a full complement of commissioners to the five-member agency for the first time since 2014. Stump is a former staffer for the Senate Agriculture Committee and served as executive director of the Americas Advisory Board for the Futures Industry Association. She most recently owned and operated a consulting firm she founded, Stump Strategic. The NGFA strongly advocated for her nomination and confirmation, as she has a ... Read More
IRS publishes proposed rules to implement Section 199A
The Internal Revenue Service on Aug. 8 issued proposed regulations to implement the Section 199A tax provision allowing owners of sole proprietorships, partnerships, trusts and S corporations to deduct 20 percent of their qualified business income. The Section 199A deduction, or the deduction for qualified business income, was created by the Tax Cuts and Jobs Act of 2017 and is available for tax years beginning after Dec. 31, 2017. Eligible taxpayers can claim it for the first time on the 2018 federal income tax return they file next year. The NGFA will be reviewing the proposed rule ... Read More
Senate Ag Committee conducts CFTC confirmation hearing
By Todd Kemp, Senior Vice President of Marketing and Treasurer The Senate Agriculture Committee conducted a confirmation hearing July 24 on the nomination of Dan Berkovitz to fill the Democratic vacancy at the Commodity Futures Trading Commission (CFTC). Assuming his nomination is reported favorably by the committee, which could come as early as next week, Berkovitz will be paired with Republican nominee Dawn Stump for consideration by the full Senate. The NGFA is working with other agribusiness and producer groups to send a letter of support for both nominees to Senate ... Read More
CFTC Chairman Giancarlo answers NGFA’s questions about the future of the CFTC and important measures for agriculture
Commodity Futures Trading Commission (CFTC) Chairman Christopher Giancarlo was confirmed unanimously by the Senate in August 2017 after being nominated by President Donald Trump. Giancarlo has served as a CFTC commissioner since June 2014, after being nominated originally by President Barack Obama to fill a Republican vacancy at the agency. Giancarlo, who spoke at NGFA’s 2017 Annual Convention, has discussed removing regulatory barriers for agriculture as well as improving the efficiency of the CFTC. In an exclusive interview, he answered some of NGFA’s questions about the ... Read More
National Grain and Feed Association
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