Rep. Austin Scott, Chairman of the House Agriculture Committee's Subcommittee on Horticulture, Research, Biotechnology and Foreign Agriculture, held a public hearing to review the impact of enforcement activities by the U.S. Department of Labor (DOL) on specialty crop growers. Specifically, Subcommittee Members addressed growing concerns that DOL is using the "Hot Goods" provision under the Fair Labor Standards Act of 1938 (FLSA) in an arbitrary manner against producers of perishable agricultural commodities without regard for the inevitable destruction of the product and significant economic hardship inflicted on farmers and their employees.
The Ag Minute: H.R. 2682 Gives American Businesses Regulatory Certainty to Invest in Economy
Tamara Hinton, 202.225.0184
WASHINGTON – This week during The Ag Minute, guest host Rep. Austin Scott discusses the Business Risk Mitigation and Price Stabilization Act of 2011 (H.R. 2682), which he cosponsored along with a bipartisan group of lawmakers. It ensures that end-users, such as hospitals, farmer cooperatives and manufacturers, can continue using derivatives to manage business risks without being subject to costly margin requirements under the Dodd-Frank Act. H.R. 2682 ensures that regulations meant for large Wall Street firms do not overwhelm Main Street businesses.
Click here to listen to The Ag Minute. The transcript is below.
"American businesses are the backbone of our economy. With the unemployment rate still hovering around nine percent, the last thing our economy needs is the overregulation of businesses that we need creating jobs.
"Unfortunately, as a result of the Dodd-Frank Financial Reform Act, businesses across the country could be subject to costly and potentially job-destroying requirements.
"Although Dodd-Frank was meant to provide a stronger market structure for Wall Street firms, many small community banks, manufacturers, and farmer cooperatives could be caught in the wave of regulations that were never intended for them.
"These end-users use derivatives to manage risk, and Congress never intended for them to be subject to the same margin requirements as large financial firms.
"That’s why I recently joined a bipartisan group of lawmakers and introduced H.R. 2682, the Business Risk Mitigation and Price Stabilization Act of 2011.
"This bill makes certain that eligible end-users are exempt from margin requirements. It ensures American businesses have the access to the capital and regulatory certainty they need to create American jobs, compete in the global market, and keep our country moving forward."
The Ag Minute is Chairman Lucas's weekly radio address that is released from the House Agriculture Committee.