Protecting America's Farmers and Ranchers

Market integrity and customer education go hand in hand for American agriculture. The CFTC traces its roots through the agricultural commodities and legislation such as the Grain Futures Act of 1922. The agency has therefore maintained since its inception in 1975 a close relationship with our nation’s farmers and ranchers. Today, the CFTC regulates dozens of agricultural derivatives contracts including the Live Cattle, Lean Hog, Cotton No. 2, and Class III Milk contracts. It is for all of these reasons that the agency’s committees of jurisdiction in Congress are the House and Senate Agriculture Committees.

“Ensuring that our agricultural sector is equipped with adequate tools to hedge risk and discover prices was—and always will be—the very cornerstone of the Commodity Exchange Act.” – CFTC Chairman Heath Tarbert

America’s farmers and ranchers use the derivatives markets to manage risk against lean times and depend on the CFTC’s market oversight to effectively hedge that risk as well as for price discovery. Ensuring the integrity of these markets allows the agricultural sector continue to do what it does best—feed America and the world. That is why the CFTC is committed to providing agricultural end users pertinent information to help protect against fraud. Below are some helpful tips and resources tailored specifically to the ag community.

Do you fit into any of these scenarios?

I’m a farmer in search of a futures broker or advisor.
This worksheet offers steps you can take and interview questions to consider during your search for a new broker or advisor. Plus, warning signs to watch out for.

I have questions about my account statement and want to make sure he account activity is legitimate.
Check trade confirmations and monthly or quarterly account statements routinely to spot mistakes or signs of possible trouble. Find out what to look for and what to do if you spot something wrong.

I'm interested in trading futures or have an existing trading account and want to make sure that I protect myself against fraud.
Criminals target experienced investors to steal their savings. They’re crafty and good at what they do. Learn how to spot the tactics fraudsters use and how to check qualifications, disciplinary histories, and registrations.

My agricultural portfolio involves commodity pools, and I’d like to learn more before I invest.
Consider the pros, cons, and managers carefully. Also be sure you receive and review all mandatory disclosures.

The above resources were created by the Office of Customer Education and Outreach. Educators, organizations, or companies are invited to share these publications with their students, members or customers. Download and share copies electronically, or visit the CFTC’s Publication Orders page to place larger orders of these and other CFTC publications.

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