Today, the Senate Agriculture Committee is holding the first of several hearings on the re-authorization of the Commodity Exchange Act.   I began this debate last December by posing 48 policy questions related to the Commodity Exchange Act, and today we are publishing the answers our Committee has received.  I am confident that these responses will gain us some insights on these issues and help lead us to consensus.

 The Roundtable this Committee held in February focused our attention on several issues related to re-authorization, and it is our intention to hold hearings on these matters throughout the summer.
 
 Compared with the other broad financial and jurisdictional questions that surround re-authorization, today’s hearing is agricultural in nature and narrow in its focus.  We will explore agricultural trade options and how these instruments might benefit producers in managing the inherent risks of farming.

 One year after the Commodity Futures Trading Commission initiated its pilot program on agricultural trade options, no one has signed up to participate.  We will hear from the CFTC on our first panel regarding the pilot program and whether additional rulemaking or legislation is necessary to fix it.  Our second panel will discuss what improvements can be made to the program in order to increase participation levels while simultaneously keeping fraud and other problems to a minimum.
 
 The Roundtable in February brought out the fact that only one-fifth of all farmers use the futures and options exchanges to hedge volatility in commodity prices.  Although these percentages improve with the size of the farming operation, I believe these figures should be higher.  Our third panel will discuss the barriers, real or perceived, that keep farmers from using risk management tools, such as agricultural trade options, and how educational efforts can be enhanced.
 
 First, the Committee will consider the nomination of Tom Erickson to be Commissioner of the Commodity Futures Trading Commission.  As we explore re-authorization of the Commodity Exchange Act, it is crucial that we have all five Commissioners in place and engaged in our re-authorization efforts.  This Committee will act in an expeditious manner to vote on this nominee and any other CFTC nominee that may come before us for confirmation.

 I would like to recognize the Erickson family in attendance today.  I understand that Tom’s wife, Nancy, is here along with their son, Patrick.  We welcome you both.