A storable commodity is a type of commodity that can be kept in storage for extended periods without significant loss in quality or excessive storage costs. The Secretary determines its storable status based on normal trading practices and its ability to be stored under price-support programs. This ensures that the commodity can be sold later without compromising the effectiveness of these programs.
This term is primarily used in agricultural law and trade regulations. Storable commodities often relate to government price-support programs designed to stabilize market prices for essential goods. Individuals and businesses involved in agriculture, trading, or commodity investment may encounter this term frequently. Users can manage related legal forms and agreements through resources like US Legal Forms, which provide templates drafted by legal professionals.
Here are a couple of examples of abatement:
For instance, grains such as wheat and corn are often classified as storable commodities because they can be stored for months without significant spoilage. (hypothetical example)
One of the key statutes governing storable commodities is found in the United States Code, specifically 7 USCS § 1428, which outlines the criteria for determining which commodities can be classified as storable under federal price-support programs.
| Term | Definition | Difference |
|---|---|---|
| Storable Commodity | A commodity that can be stored without significant deterioration. | Focuses on storage capability and cost-effectiveness. |
| Non-Storable Commodity | A commodity that cannot be stored without significant loss or cost. | Often perishable or subject to rapid depreciation. |
| Price-Support Program | A government initiative to stabilize prices of certain commodities. | Related but focuses on pricing rather than storage. |
If you are involved in the trading or storage of commodities, ensure you understand whether your commodities qualify as storable. You can explore US Legal Forms for templates related to commodity contracts and storage agreements. If your situation is complex, consider consulting a legal professional for tailored advice.
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Common storable commodities include grains like wheat and corn, as well as certain oils and beans.