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DEPARTMENT OF AGRICULTURE (USDA)

The U.S. Department of Agriculture is a federal department that is responsible for agriculture, farming, natural resources, marketing and regulatory programs pertaining to food and environment and rural development. The USDA helps ensure open markets for U.S. agricultural products and provides food aid to needy people overseas and is a research leader in everything from human nutrition to new crop technologies that allow us to grow more food and fiber using less water and pesticides. The USDA uses a proprietary electronic record submission and signature program to submit forms directly to the USDA.

Information on regulations regarding electronic signatures in commodities trading can be found on Commodity Futures Trading Commission (CFTC) page. The USDA is regulated by CFR's 5, 7 and 9. The Farm Service Agency (FSA) is regulated by 7 CFR Chapters VII, XVIII.

Grain
Standards and Warehouse Improvement
Act of 2000 (Farm Bill HR 4788)

The 2000 Act, enacted on November 9, 2000, revises the United States Warehouse Act (USWA) of 1916. The USWA, originally enacted in 1916, authorized the Secretary to
license warehouse operators who stored agricultural products and
persons to sample, weigh, inspect and grade agricultural products.

The 2000 Act updates
Federal warehouse licensing operations, authorizes electronic warehouse
receipts (EWR) for all commodities, and authorizes the Secretary of
Agriculture (Secretary) to establish regulations for voluntary systems
for other electronic documents (OED) related to sales and transfers of
agricultural products.

7 CFR Section 735.300 (available online) provides the general warehouse requirements
applicable to all warehouse receipts, whether paper or electronic, for
any agricultural product. Requirements specific to EWR's are found in
7 CFR Sec. 735.303.

Section 11(e)(4) of the 2000 Act provides that ``an electronic receipt issued or other electronic document transferred, in accordance with this Act shall not be denied legal effect, validity, or enforceability on the ground that the information is generated, sent, received, or stored by electronic or similar means.''

 

Agricultural Credit Insurance Fund Direct Loans

USDA's Farm Service Agency (FSA) provides direct loans to family farmers who may not qualify for agricultural credit through other commercial institutions. The Agency has also developed and is in the process of implementing a new electronic lending tool called Farm Business Plan. It will allow for electronic sharing of financial information, electronic signatures, and electronic loan approval.

2002 Annual Report
of the Grain Inspection,
Packers and Stockyards
Administration (Online)

The Farm Bill amended the section of the Food Security Act of 1985 that provides financial protection for purchasers of farm products covered by liens by relaxing some signature requirements, clarifying terms to make them consistent with terms in the Uniform Commercial Code, and facilitating electronic filing of lenders’ security interests. These are technical modifications that will improve the operation of the
program.

2004 Livestock Price Reinsurance Agreement (Online)

“Records” means original documents, including original signed documents that may have been
recorded, copied, or reproduced in the original form by any photographic, photostatic, microfilm,
microcard, miniature photographic, optical disk, electronic imaging, electronic data processing, or
electronically transmitted facsimile technology: Provided, That any signature, including electronic
signatures as approved by FCIC, contained on the original is preserved.

The Housing Foreclosure, Repossession, And Default Notices Exception To The E-Sign Act

The following information was contained in the November 12, 2002 Federal Register. It discussed the laws regarding exceptions to the E-SIGN Act of 2000 and was complied by the U.S. Department of Commerce.

The Farm Credit Administration (FCA) of the USDA has created new rules and amended others to remove regulatory barriers to electronic commerce for Farm Credit System institutions and their customers. 67 Fed. Reg. 16627, 16628 (2002); see also 12 C.F.R. § 609.910. FCA recognized the ESIGN exception for residential default, foreclosure, and eviction notices and concluded that some of its system institutions cannot use electronic notification to deliver some of the notices required under part 614 of the rules. See id. at 16632. These rules provide that a lender "shall provide written notice to the borrower that the loan may be suitable for restructuring" not later than 45 days before the lender begins foreclosure proceedings. See 12 C.F.R. §§ 614.4516, 614.4519.