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| Directions l American Farm Bureau l Farm Bureau Bank l Privacy Policy l Contact Us l Help l Site Map |
The Voice of Louisiana Agriculture
Welcome to the Louisiana Farm Bureau Federation
| Directions l American Farm Bureau l Farm Bureau Bank l Privacy Policy l Contact Us l Help l Site Map |
Welcome to the Louisiana Farm Bureau Federation
Welcome to the Louisiana Farm Bureau Federation
The Voice of Louisiana Agriculture
NEW ORLEANS – A member of the U.S. House Energy and Commerce Committee said Friday oil prices are
likely artificially inflated and that Congress has charged the nation’s top commodity futures trading entity with
“reining them in.”
Congressman Charlie Melancon, D-Napoleanville, said during an
interview with “This Week in Louisiana Agriculture” that oil should
be closer to $70 or $80 a barrel and not the record $143 oil
reached Friday. He referred to the U.S. Commodity Futures
Trading Commission when he said, “They are not doing their
job. They need to do what it has the authority to do and that’s rein
this thing back in.”
“This Week in Louisiana Agriculture” is a weekly farm news
television program produced by the Louisiana Farm Bureau
Federation. The program airs across the country and in 11
European countries. Melancon spoke to a reporter for the
program while attending the 86th annual convention of the
Farm Bureau here Friday.
Congress created the Commodity Futures Trading Commission
(CFTC) in 1974 as an independent agency to regulate commodity
futures and option markets in the U.S. According the CFTC
website, “the agency's mandate has been renewed and expanded
several times since then, most recently by the Commodity Futures
Modernization Act of 2000.”
According to Melancon, market speculators have skewed
futures trading and increased the price per barrel of oil by anywhere
from $5 to $75 per barrel. He said the CFTC must do a better job in
regulating such practices, adding that states like California and
Florida also should begin to allow offshore drilling.
“They no longer just dump stuff off the side,” Melancon said, referring to the past drilling practices of some oil
companies. “They no longer have oil spills. We had 113 oil rigs lost, I believe, during Katrina and Rita, and
not one spill.”
Melancon said Congress and the White House must join forces and help Americans get through the current
oil crisis.
“The people in Washington need to quit playing the blame game, trying to put the fault of (fuel) prices going
up on any one party or any one group,” Melancon said. “That’s the first thing that needs to happen.”
Speaking to farmers before his television interview, Melancon called on bi-partisan support for federal
programs that directly address the retail price of fuel.
Farmers attending the Farm Bureau convention said diesel has nearly doubled in price in the last 12
months. But unlike most business users of fuel, farmers cannot pass increases in fuel costs down the
distribution chain.
“Farmers don’t control the prices they get for their commodities,” said State Rep. Sam Little, R-Bastrop.
“More exploration is needed. We have got to find more ways to produce (oil). Farmers need to be able to put
equipment in the fields to produce our food and fiber. The public needs to be able to drive to and from work.
Finding new ways to produce oil would benefit everyone.”
Ronnie Anderson, president of the Louisiana Farm Bureau Federation, agreed.
“Much of our country’s future depends on what happens to our farmers today,” Anderson said. “Our nation’s
economy and its defense depend on food and fiber production. Fuel drives the country and farmers are no
different. While we need more exploration we also need to look for alternative sources of energy, and we
know agriculture can provide that too.”
likely artificially inflated and that Congress has charged the nation’s top commodity futures trading entity with
“reining them in.”
Congressman Charlie Melancon, D-Napoleanville, said during an
interview with “This Week in Louisiana Agriculture” that oil should
be closer to $70 or $80 a barrel and not the record $143 oil
reached Friday. He referred to the U.S. Commodity Futures
Trading Commission when he said, “They are not doing their
job. They need to do what it has the authority to do and that’s rein
this thing back in.”
“This Week in Louisiana Agriculture” is a weekly farm news
television program produced by the Louisiana Farm Bureau
Federation. The program airs across the country and in 11
European countries. Melancon spoke to a reporter for the
program while attending the 86th annual convention of the
Farm Bureau here Friday.
Congress created the Commodity Futures Trading Commission
(CFTC) in 1974 as an independent agency to regulate commodity
futures and option markets in the U.S. According the CFTC
website, “the agency's mandate has been renewed and expanded
several times since then, most recently by the Commodity Futures
Modernization Act of 2000.”
According to Melancon, market speculators have skewed
futures trading and increased the price per barrel of oil by anywhere
from $5 to $75 per barrel. He said the CFTC must do a better job in
regulating such practices, adding that states like California and
Florida also should begin to allow offshore drilling.
“They no longer just dump stuff off the side,” Melancon said, referring to the past drilling practices of some oil
companies. “They no longer have oil spills. We had 113 oil rigs lost, I believe, during Katrina and Rita, and
not one spill.”
Melancon said Congress and the White House must join forces and help Americans get through the current
oil crisis.
“The people in Washington need to quit playing the blame game, trying to put the fault of (fuel) prices going
up on any one party or any one group,” Melancon said. “That’s the first thing that needs to happen.”
Speaking to farmers before his television interview, Melancon called on bi-partisan support for federal
programs that directly address the retail price of fuel.
Farmers attending the Farm Bureau convention said diesel has nearly doubled in price in the last 12
months. But unlike most business users of fuel, farmers cannot pass increases in fuel costs down the
distribution chain.
“Farmers don’t control the prices they get for their commodities,” said State Rep. Sam Little, R-Bastrop.
“More exploration is needed. We have got to find more ways to produce (oil). Farmers need to be able to put
equipment in the fields to produce our food and fiber. The public needs to be able to drive to and from work.
Finding new ways to produce oil would benefit everyone.”
Ronnie Anderson, president of the Louisiana Farm Bureau Federation, agreed.
“Much of our country’s future depends on what happens to our farmers today,” Anderson said. “Our nation’s
economy and its defense depend on food and fiber production. Fuel drives the country and farmers are no
different. While we need more exploration we also need to look for alternative sources of energy, and we
know agriculture can provide that too.”
Melancon Says Oil Prices Likely 'Inflated'
By MICHAEL DANNA and AVERY DAVIDSON
FB News Staff Writers
FB News Staff Writers
| FB NEWS Photo by Michael Danna |
ENERGY ENGAGEMENT. Rep. Charlie Melancon, D-La., left, State Rep. Sam Little,
R-Bastrop, and Farm Bureau President Ronnie Anderson talk about the high cost
of diesel fuel during the 86th annual Farm Bureau convention in New Orleans.
Melancon, who sits on the House Energy and Commerce Committee, said the
price of a barrel of oil should be $80 a barrel rather $143 a barrel, based on supply
and demand. He said Congress approved a resolution instructing the Commodity
Futures Trading Commission to do "what it can to rein this back in."
R-Bastrop, and Farm Bureau President Ronnie Anderson talk about the high cost
of diesel fuel during the 86th annual Farm Bureau convention in New Orleans.
Melancon, who sits on the House Energy and Commerce Committee, said the
price of a barrel of oil should be $80 a barrel rather $143 a barrel, based on supply
and demand. He said Congress approved a resolution instructing the Commodity
Futures Trading Commission to do "what it can to rein this back in."
