[Federal Register Volume 91, Number 137 (Monday, July 20, 2026)]
[Notices]
[Pages 45265-45267]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-14575]
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COMMODITY FUTURES TRADING COMMISSION
Renewal of the Agricultural Advisory Committee
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice of renewal.
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SUMMARY: The Commodity Futures Trading Commission (CFTC or Commission)
is publishing this notice to announce the renewal of the Agricultural
Advisory Committee (AAC). The Commission has determined that the
renewal of the AAC is necessary and in the public's interest.
FOR FURTHER INFORMATION CONTACT: Emma Johnston, Senior Agricultural
Advisor and AAC Designated Federal Officer, at 202-418-5172 or
[email protected].
SUPPLEMENTARY INFORMATION: In accordance with section 9(a)(2) of the
Federal Advisory Committee Act (FACA), 5 U.S.C. 1008, and 41 CFR 102-
3.65, the CFTC is announcing the AAC's renewal and providing herein the
Commission-approved public interest determination. The AAC's objectives
and scope of activities are to provide the Commission with advice and
recommendations on issues affecting agricultural producers; consumers;
processors; lenders; other major market participants, including
derivatives intermediaries, buy-side representatives, and exchanges;
regulators; and others interested in or affected by the agricultural
derivatives markets. The AAC will operate for two years from the date
of renewal unless the Commission directs that the AAC terminate on an
earlier date. A copy of the renewal charter will be posted on the
CFTC's website at www.cftc.gov.
Public Interest Determination
Pursuant to 41 CFR 102-3.60(a), to establish, renew, reestablish,
or merge a discretionary (agency discretion) advisory committee, an
agency must first consult with the General Services Administration's
Committee Management Secretariat (the Secretariat) and, as part of the
consultation, provide a written public interest determination approved
by the head of the agency to the Secretariat with a copy to the Office
of Management and Budget. In addition, pursuant to 41 CFR 102-3.35, an
agency shall follow the same consultation process and document in
writing the same determination of need before creating a subcommittee
under a discretionary committee that is not made up entirely of members
of a parent advisory committee.
Information on the following factors for the committee is provided
to the Secretariat to demonstrate that renewing the committee is in the
public interest:
1. Annual budget: The estimated annual operating cost for
supporting the AAC is $56, 227.
a. Federal personnel on a full-time equivalent (FTE) basis: .10
FTE.
b. Other Federal internal costs: $24,400.
c. Proposed payments to members: The CFTC does not compensate AAC
members for their services. However, there are government costs (salary
and
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benefits) for Federal AAC members which are estimated at $6,684.
d. Proposed number of members: Approximately 30-40.
e. Reimbursable Costs: $0.
2. If applicable, the total dollar value of grants expected to be
recommended during the fiscal year: N/A.
3. Criteria for selecting members to ensure the committee has the
necessary expertise and fairly balanced membership: The AAC members are
selected to represent a balance of viewpoints that reflect the groups
and entities potentially affected by or interested in the AAC's
recommendations and are necessary to effectively address the issues to
be considered by the AAC. Members represent a wide range of
perspectives and interests. The AAC requires members with deep
expertise and experience in the following areas: risk management and
hedging practices using futures, options, swaps, and other derivatives;
trade execution associated with such practices; and the legal and
regulatory regimes that govern hedging and risk management. Producers,
end users, exchanges, and agribusiness and industry trade associations
are among the primary sources of these forms of knowledge and
experience, and these entities should be represented by individuals who
share in this expertise and can represent their interests in a way that
helps the Commission to understand and resolve highly technical issues.
The AAC will also need to consider the intersection of these time-
tested areas of expertise with the innovations currently in front of
the Commission and derivatives industry namely digital assets,
blockchain technology, artificial intelligence, and other evolving
innovations. The Commission expects to hear from the AAC for policy
recommendations that will enhance the U.S. role as a global derivatives
leader.
4. List of all other Federal advisory committees of the agency: In
addition to the AAC, the CFTC has one statutory committee that Congress
has exempted from the FACA and two discretionary FACA committees:
(a) Energy and Environmental Markets Advisory Committee (statutory)
(b) Global Markets Advisory Committee (discretionary)
(c) Innovation Advisory Committee (discretionary)
5. Justification that the information or advice provided by the
Federal advisory committee or subcommittee is not available from
another Federal advisory committee, another Federal Government source,
or any other more cost-effective and less burdensome source: The
Commission is the Federal regulator of agricultural derivatives markets
and the AAC is the most efficient and thorough means of obtaining
advice on issues directly impacting those affected by the regulation of
these markets, as well as indirectly affected by the market's price
discovery function. Further, changes to agricultural market structure
are ongoing and the issues arising from this change can only be
addressed by an advisory committee comprised of representatives from
agricultural and agriculture-related organizations--they cannot be
properly addressed by the CFTC, or by ad hoc roundtables, public
hearings, or other means of public engagement all of which are better
suited to responding to specific, time-limited events and idiosyncratic
concerns rather than ongoing, long-term issues. The nature of current
market innovations such as digital assets, blockchain technologies, and
artificial intelligence and their impact on price discovery emphasizes
the importance of the Commission's engagement with agricultural
derivatives practitioners. Through this engagement, the Commission
endeavors to proactively formulate thoughtful policy that enables these
innovations and technologies to solidify the preeminence of the U.S.
derivatives markets. The AAC is the most cost-effective way to access
input and information, particularly since the Commission does not
compensate members and does not provide for members' travel expenses
and accommodation for meetings.
6. If the consultation is a committee renewal, a summary of the
previous accomplishments of the committee and the reasons it needs to
continue: Historically, the AAC has served as a forum in which
representatives of major agricultural and agriculture-related interests
have provided the CFTC with their varying perspectives on agriculture-
related issues within the agency's jurisdiction and where issues of
mutual interest to the Commission and representatives can be aired. For
example, in 2010, the AAC contributed to changes in business practices
that addressed a significant pricing problem in the wheat futures
market. In 2021, the AAC also made recommendations related to efficient
and effective oversight of changes to agricultural futures contracts
with open interest.
Additionally, at the April 2019 AAC meeting, the Committee heard
from participants and exchange operators on ``Cash Market Innovations''
and ``The Evolution of Electronic Trading in Agricultural Markets.''
\1\ At that time, there were significant evolutionary change in the
industry that had particular impact to the agricultural sector and the
forum for the meeting was Overland Park, Kansas, which enabled market
users and producers to attend. As currently constructed, the current
AAC expects to continue this integral outreach effort.
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\1\ https://www.cftc.gov/PressRoom/Events/opaeventaac041119.
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The Commission has determined that it is necessary to obtain advice
on issues directly impacting those affected by the regulation of these
markets, as well as indirectly affected by the market's price discovery
function. The AAC provides a forum to facilitate interaction with and
communications between the Commission and the diverse agricultural and
agriculture-related organizations represented on the AAC.
7. Explanation of why the committee/subcommittee is essential to
the conduct of agency business: The AAC was created in 1985 to advise
the Commission on issues involving the trading of agricultural
commodity derivatives and facilitate communications between the CFTC,
the agricultural community, and agriculture-related organizations. As
derivatives markets continuously evolve, it remains imperative that the
Commission protect the price discovery and risk management functions
provided by agricultural markets. Specifically, as the supply and
demand for agricultural products is constantly fluctuating, the
resultant changes in market structure have implications for the CFTC's
mission of ensuring the integrity of the derivatives markets for
agricultural products.
In order for the CFTC to carry out its mission, it must understand
how market participants and the public--including agricultural
producers; consumers; processors; lenders; other major market
participants, including derivatives intermediaries, buy-side
representatives, and exchanges; regulators; and others interested in or
who are affected by these evolving markets--are impacted by exogenous
factors such as changes in market structure or endogenous factors such
as changes to the regulatory environment. Accordingly, the AAC is
essential to the conduct of CFTC business because the committee
provides advice on developments in the structure of the agricultural
markets and the effects that such changes may have on producers, end
users, and the public. The AAC also provides advice on appropriate
regulatory responses to evolving market structure that supports
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the Commission's mission of ensuring the integrity of the price
discovery and risk management functions of derivatives markets.
At the December 2022 meeting,\2\ the AAC heard from agricultural
leaders on ``Domestic and International Shipping, Freight, and Storage
Impacts on the Grain Trade.'' This presentation serves as an example of
the intersection of CFTC policy, U.S. grain and oilseed markets, and
international commerce and how the AAC serves as a true advisor to the
Commission on practical matters that are at the core of the
agricultural community.
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\2\ https://www.cftc.gov/PressRoom/Events/opaeventacc120722.
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In conclusion, this public interest determination documents that
renewing the committee is in the public interest, essential to the
conduct of agency business, and that the information to be obtained is
not already available through another advisory committee or source
within the Federal Government.
Dated: July 16, 2026.
Christopher Kirkpatrick,
Secretary of the Commission.
[FR Doc. 2026-14575 Filed 7-17-26; 8:45 am]
BILLING CODE 6351-01-P