External Meetings: National Council of Farmer Coops

The Chairman met with the board of the NCFC to discuss Dodd-Frank rulemaking. Specifically, the Chairman discussed the forward exclusion contained in the proposed rules concerning product definitions and the proposed definition of swap dealer. During the question and answer session, the group discussed the structure of coop transactions with members and how the coops subsequently lay off risk to swap dealers or use futures to hedge the risks. In addition, they discussed how farmers and coops are seeking to hedge risks farther out than what's available in futures markets. NCFC members were also concerned that Dodd-Frank rules might increase their costs and make it more difficult to compete with foreign producers. The group also discussed the interaction between the swap dealer definition and the status of Capper-Volstead coops specifically.