Washington, D.C. — U.S. Rep. Bob Etheridge today held a hearing to examine the recent dramatic price swings in the cost of energy and agricultural commodities that have led to North Carolinians paying higher prices for groceries and gas.
Etheridge is the Chairman of the Subcommittee on General Farm Commodities and Risk Management of the House Agriculture Committee, which has jurisdiction over the Commodity Futures Trading Commission, which regulates the trading of futures contracts for commodities.
“Recent dramatic swings in the price of energy and agricultural commodities futures have led to higher prices at the pump and the grocery store for Americans,” said Etheridge. “Today, the Subcommittee heard from all sides about the possible sources of these dramatic price increases. Steps must be taken to maintain confidence in our commodity markets and to provide more stable prices for the American farmer and consumer.”
The hearing examined whether the dramatic rises in commodity futures prices is caused by market forces or other influences, and whether or not more oversight is needed. Etheridge plans to review the CFTC’s proposals to stabilize commodity prices, and will then determine if more Congressional oversight or a legislative fix is needed.
Over the last year futures prices for crude oil have increased 82 percent. Other commodities have seen similar rises. Cotton has increased by 47 percent, corn by 66 percent, soybeans by 83 percent, wheat by 95 percent and rice by 122 percent.
Today’s hearing is only one part of Etheridge’s efforts to lower energy prices. On Tuesday, Etheridge voted to temporarily suspend deposits to the Strategic Petroleum Reserve, which could lower gas prices by five to 24 cents a gallon. On Wednesday, Etheridge voted to pass a new Farm Bill that for the first time would include an energy title to invest in renewable fuels. Both bills overwhelmingly passed the House and the Senate.