what is an agricultural commodity



Miscellaneous Agricultural Commodities

Commodity Primary Uses * Contract Size Futures Exchange
Wheat FA, FP 5,000 bushels Chicago Board of Trade (CBOT)
Corn FA,FP, FF 5,000 bushels Chicago Board of Trade (CBOT)
Oats FA,FP 5,000 bushels Chicago Board of Trade (CBOT)
Barley FA,FP 20 metric tons Intercontinental Exchange (ICE)

Apr 26 2022

Agricultural commodities include any crop planted and produced by annual tilling of the soil, including one-trip planters, or sugarcane. Annual crops are generally considered agricultural commodities.


How to buy agriculture commodities?

 · Agricultural Commodities are crops and livestock that are raised and harvested to provide food and sometimes fuel. Commodities are traded globally and classified into six categories. Many crops fall into these categories, so let’s review. Oil Seeds Oil seeds are grown for their high oil content.

What are examples of agricultural products?

19 rows ·  · Agricultural commodities are staple crops and animals produced or raised on farms or …

How to invest in agriculture commodities?

agricultural commodity means any agricultural, horti- cultural ( excepting floricultural), viticultural, vegetable, poultry, and livestock products produced in this state, including for use …

What are raw agricultural commodities?

“Agricultural commodity”, as used in this subchapter, means wheat, cotton, flax, corn, dry beans, oats, barley, rye, tobacco, rice, peanuts, soybeans, sugar beets, sugar cane, tomatoes, grain …


What is considered an agricultural commodity?

“Agricultural commodity”, as used in this subchapter, means wheat, cotton, flax, corn, dry beans, oats, barley, rye, tobacco, rice, peanuts, soybeans, sugar beets, sugar cane, tomatoes, grain sorghum, sunflowers, raisins, oranges, sweet corn, dry peas, freezing and canning peas, forage, apples, grapes, potatoes, timber …

What are 5 agricultural commodities?

Top 10 Agricultural Commodities In CaliforniaDairy Products and Milk — $6.37 Billion. … Grapes — $6.25 Billion. … Almonds — $5.47 Billion. … Cattle and Calves — $3.19 Billion. … Pistachios — $2.62 Billion. … Strawberries — $2.34 Billion. … Lettuce — $1.81 Billion. … Floriculture — $1.22 Billion.More items…•

What are the top 5 agricultural commodities?

In 2020, the 10 largest sources of cash receipts from the sale of U.S.-produced farm commodities were (in descending order): cattle/calves, corn, soybeans, dairy products/milk, miscellaneous crops, broilers, hogs, wheat, chicken eggs, and hay.

What are the four agricultural commodities?

The four categories are foods, fuels, fibers, and raw materials. Crops and animal products are used for food, animal feed, and non-food products used by humans.

What are the top 3 commodities?

Three of the most commonly traded commodities include oil, gold, and base metals.

What foods are considered commodities?

CommoditiesCereals.Dairy.Eggs.Fish and shellfish.Fruit and vegetables.Meat.Potatoes.Poultry.More items…

What is the largest agricultural commodity?

CornList of the 20 Biggest Agricultural Products in the United StatesRankAgricultural ProductProduction in 2013 (millions of tonnes)1Corn354.02Cow’s milk (whole, fresh)91.03Soybeans89.04Wheat58.016 more rows•Nov 14, 2019

What are the top 10 commodities?

Top 10 CommoditiesCrude oil.Coffee.Natural gas.Gold.Wheat.Cotton.Corn.Sugar.More items…

What is the top commodity in the US?

Soybeans were the most exported commodity (by value) in the United States in 2015 followed by corn and other feeds and fodder. Beef was the most exported animal protein (by value) in the United States in 2015 followed by pork and chicken. Soybean exports were valued at more than $18 billion in 2015.

Is grass an agricultural commodity?

The United States Department of Agriculture includes sod in the Agricultural Census, and defines it as a horticultural commodity within the agricultural industry. Title 7, Chapter 38 of the U.S. Federal Code lists turfgrass sod in its definition of Specialty Crops.

Are eggs an agricultural commodity?

Eggs are sold as commodities. The USDA provides marketing statistics for various segments of the egg market. One measure is the historical tracking of the number of eggs cracked or broken.

What are non agri commodities?

Gold, silver, crude oil, gasoline etc. all hold many profitable opportunities for the trend following trader. These futures are mainly traded on the large US based commodity exchanges and they are highly liquid.

What are the top 10 commodities?

Top 10 CommoditiesCrude oil.Coffee.Natural gas.Gold.Wheat.Cotton.Corn.Sugar.More items…

What are the top 5 agricultural commodities produced in Texas?

In terms of revenue generated, Texas’s top five agricultural products are beef cattle and calves, cotton, broilers (young chickens), greenhouse and nursery products, and diary products.

What are 5 of California’s top 10 commodities?

California’s Top 10 Agricultural CommoditiesDairy Products, Milk — $7.47 billion.Almonds — $5.62 billion.Grapes — 4.48 billion.Pistachios — $2.87 billion.Cattle and Calves — $2.74 billion.

What are the top 10 agricultural commodities in Georgia?

Georgia is perennially the number one state in the nation in the production of peanuts, broilers (chickens), pecans, blueberries and spring onions. We are also at or near the top when it comes to cotton, watermelon, peaches, eggs, cucumbers, sweet corn, bell peppers, tomatoes, cantaloupes, rye and cabbage.


Why is trading important in agriculture?

Trading strengthens the agricultural business. It provides a way for farmers to lock in constant prices for items on future dates. Without this option, farmers would be at risk of losing crops to vulnerabilities such as the harsh weather, disease, and natural disasters.

What is corn used for?

Corn is an agricultural commodity used to make ethanol.

Why is corn used in ethanol?

For instance, in some places, corn is a key component in ethanol, which is used as a bio-fuel in cars and trucks to cut down on the use of fossil fuels. This commondy’s primary use, however, is as feed for livestock. Demand for corn-based ethanol tends to rise when energy prices are trending higher.

What happens when rice production is curtailed?

When production is curtailed as a result, this in turn affects the farming industry, which could result in fewer agricultural jobs. Rice is an agricultural commodity. On the other hand, demand for agricultural commodities can become so strong that there may be not enough product to go around.

Is milk an agricultural commodity?

Milk is an agricultural commodity. There are many different types of agricultural commodities, including foods, milk, and grains, and various applications for each . Many are vital to the economies of both developed and underdeveloped nations. Exporters of goods like soybeans and rice depend on the revenue from these agricultural goods as …

Is corn a commodity?

This little known plugin reveals the answer. Corn is an agricultural commodity used to make ethanol. This increased demand for corn, however, can lead to problems. As mandates for the use of corn-based ethanol in bio-fuels intensifies, it puts additional stress on farmers to balance the demands of livestock and energy.

What is agricultural commodity?

Agricultural commodities are staple crops and animals produced or raised on farms or plantations.

What are the main uses of agricultural commodities?

However, some agricultural commodities have purely industrial applications. The building and furniture industries use lumber from trees, while manufacturers in several sectors use latex from the rubber tree.

What is meat commodity?

Meat commodities include (a) live animals raised for meat, hide, organs, bones, and hooves and (b) cuts of meat produced during the butchering of animals:

Why do farmers grow commodities?

Farmers grow them for (a) the high oil content in their seeds and (b) the meal that remains after the oil is extracted:

What are some examples of grain commodities?

Grain commodities often serve similar purposes. For example, corn, oats, and barley all function as food sources for livestock. Depending on price, farmers will choose one grain over the other. As a result, most grain commodities have a strong price relationship with one another.

What are cereal grains?

Cereal Grains: A Primary Food Source. Farmers grow these commodities as: Food source for humans. Food source for animals. Feedstock for fuels (in some cases) The most common grain commodities include the following: Wheat.

How many people work in agriculture?

Also, over 1.3 billion people – nearly 20% of the global population – work in farming. In some regions of the world, such as South Asia and Sub-Saharan Africa, farming employs more people than any other industry. The global impact of the agricultural industry is enormous.

What is agricultural commodity?

Agricultural commodity. definition. Agricultural commodity means any plant or part thereof, or animal, or animal product, produced by a person, including farmers, ranchers, vineyardists, plant propagators, Christmas tree growers, aquaculturists, floriculturists, orchardists, foresters, nurserymen, wood treaters not for hire, …

What is USDA food?

Agricultural commodity or “ USDA Food ” means a product grown, processed, and otherwise prepared for sale or distribution exclusively in the United States except with respect to minor ingredients (See AGAR 470.103 (b)).

Can non-domestic ingredients be used as a product?

Ingredients from nondomestic sources will be allowed to be utilized as a United States product if such ingredients are not otherwise: (1) produced in the United States; and (2) commercially available in the United States at fair and reasonable prices from domestic sources. See clause 4A52.225-1, U.S. Origin Product.

Where does the term agricultural commodity appear?

The term agricultural commodity appears in the Commission’s regulations in multiple places, the most relevant of which are the rules for swaps and options.

Why is the definition of agricultural commodity necessary?

The definition of agricultural commodity will also be necessary in order to provide context for certain rulemakings under the Dodd-Frank Act. For example, if the Commission proceeds with an agricultural swaps rulemaking, the definition will identify the scope of commodities that will be subject to it. [ 34] .

Who must offer a commodity option?

Under § 32.4, the option must be offered to a producer, processor, or commercial user of, or a merchant handling, the commodity, who enters into the commodity option transaction solely for purposes related to its business as such. However, § 32.4 does not include any net worth requirement.

What is agricultural trade option?

In either case (whether transacted pursuant to the ATOM registration scheme or accomplished via the ATO exemption at § 32.13 (g)), the phrase “agricultural trade option” refers specifically to an off-exchange option on an enumerated agricultural commodity.

What is the authority of the Commission on commodity options?

The Commission maintains plenary authority over commodity options pursuant to CEA § 4c (b). It has used that authority to, among other things, issue Part 32 of the Commission’s regulations, which includes a general ban on off-exchange options. [ 30] However, Part 32 allows for off-exchange option transactions under certain conditions, including allowing off-exchange options on agricultural commodities in two instances. [ 31]

What is a 723 C?

Section 723 (c) (3) (A) of the Dodd-Frank Act, which is a free-standing provision that does not amend the CEA, contains a general rule that, except as provided in § 723 (c) (3) (B), “no person shall offer to enter into, enter into, or confirm the execution of, any swap in an agricultural commodity (as defined by the [CFTC]).” Section 723 (c) (3) (B) provides that a swap in an agricultural commodity may be permitted pursuant to the Commission’s exemptive authority under CEA § 4 (c), “or any rule, regulation, or order issued thereunder (including any rule, regulation, or order in effect as of the date of enactment of this Act) by the [CFTC] to allow swaps under such terms and conditions as the Commission shall prescribe.”

What is an exempt commodity?

The Committee notes that the term “exempt commodity” means a commodity other than an “excluded commodity” or an “agricultural commodity.” For purposes of this definition, the Committee intends “agricultural commodity” to include all agricultural commodities, whether or not such agricultural commodities are specifically enumerated in the definition of “commodity” in section 1a [4] of the CEA. [ 19]

What is the exception for agricultural commodities?

The 395.1 (k) (1) “Agricultural commodity” exception applies to all portions of a round-trip involving agricultural commodities that occur within the 150 air-mile radius of the source, regardless of whether the CMV is loaded or empty, or whether the destination is outside the 150 air-mile radius.

When a driver loads some of an agricultural commodity at a “source” and then loads more of that commodity at

Guidance: When a driver loads some of an agricultural commodity at a “source” and then loads more of that commodity at additional stops, the first place where the commodity was loaded is the measuring point for the 150 air-mile radius.

What is source in agriculture?

Although an agricultural commodity may have several “sources”, the “source” excludes the point at which the commodity is processed to such an extent that it is no longer in its original form or does not otherwise meet the definition of an agricultural commodity in 49 CFR 395.2.

How far can you transport agricultural commodities?

The 395.1 (k) (1) “Agricultural commodity” exception is available to a driver transporting agricultural commodities for a distance up to 150 air-miles from the source, regardless of the distance between the source and final destination or place of delivery. However, upon crossing the 150 air-mile point, the driver is subject to …

Can you drive on duty on a non-agricultural trip?

Guidance : Yes, provided that the trip does not involve transporting any non-agricultural cargo and the sole purpose of the trip is to make a pick-up or delivery of agricultural commodities , as defined in § 395.2. In that case, driving and on-duty time are not limited, nor do other requirements of 49 CFR part 395 apply.

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