Commodity Credit Corporation

Government corporation under the U.S. Department of Agriculture that finances public price supports for farm commodities. The agency gives its financial backing to bank letters of credit supporting commodity exports.

A federal agency established to stabilize and protect farm income and prices; to assist in the maintenance of balanced and sufficient supplies of useful or serviceable agricultural goods, especially articles of merchandise movable in trade; and to promote the orderly distribution of such products.

The Commodity Credit Corporation (CCC) was organized on October 17, 1933, pursuant to an executive order, as an agency of the United States. From October 17, 1933, to July 1, 1939, it was managed and operated in close affiliation with the Reconstruction Finance Corporation. On July 1, 1939, the CCC was transferred to the Department of Agriculture by a presidential reorganization plan. Adoption by Congress of the Commodity Credit Corporation Charter Act on June 29, 1948, established the CCC as an agency and instrumentality of the United States under a permanent federal charter.

The CCC is managed by a board of directors and is subject to the general supervision and direction of the secretary of agriculture, who is an ex officio director and chairperson of the board. The board consists of seven members (in addition to the secretary of agriculture) who are appointed by the president of the United States by and with the advice and consent of the Senate.

In carrying out its principal operations the CCC utilizes the personnel and facilities of the Agricultural Stabilization and Conservation Service and, in certain foreign trade operations, the Foreign Agricultural Service.

A commodity office in Kansas City, Missouri, has specific responsibilities concerned with the acquisition, handling, storage, and disposal of designated commodities and products held by the Commodity Credit Corporation.

Commodity Stabilization

Loan, purchase, and/or payment programs are administered by the CCC for wheat, corn, cotton, peanuts, rice, tobacco, milk, wool, mohair, honey, barley, oats, grain sorghums, rye, soybeans, sugarbeets, sugarcane, and crude pine gum.

The Food and Agriculture Act of 1977 (7 U.S.C.A. 1281 et seq.) authorized target prices for wheat, feed grains, rice, and upland cotton; set minimum loan rates for wheat and feed grains; and established loan levels for upland cotton and peanuts that may be adjusted according to changes in world and domestic market conditions. Government payments for the four commodities are required when the established prices for those commodities exceed the national average market prices received by farmers during the first five months of the marketing year (calendar year in which the crop is planted, in the case of cotton) or the loan rate, whichever is higher. Target prices for all crops covered are adjusted annually beyond 1978 to reflect changes in cost of production. In addition, the act provides for making disaster payments to producers who are prevented from planting feed grains, wheat, or upland cotton because of a natural disaster or conditions beyond their control or who, because of such a disaster or condition, harvest less than a specified quantity.

Commodities acquired under the stabilization program are disposed of through domestic and export sales, transfers to other government agencies, and donations for domestic and foreign welfare use. The CCC is also authorized to exchange surplus agricultural commodities acquired by the CCC for strategic and other materials and services produced abroad.

Foreign Assistance

Under Public Law 480, the Agricultural Trade Development and Assistance Act of 1954, as amended (7 U.S.C.A. 1691 et seq.), the CCC carries out other assigned activities. Major emphasis is also being directed toward meeting the needs of developing nations under the Food for Peace Act of 1966, which further amends the Agricultural Trade Development and Assistance Act of 1954. Under these statutes, agricultural commodities are procured and exported to combat hunger and malnutrition and to encourage economic development in the developing countries.

; agriculture subsidies.

See: agricultural law.

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The Commodity Credit Corporation, or CCC, is an agency of the U.S. Department of Agriculture created on October 17, 1933. President Franklin Delano Roosevelt issued Executive Order 6340 the day before, which ordered the creation of the CCC as a Delaware corporation. The corporation had an original capitalization of $3,000,000, subscribed by the Secretary of Agriculture and the Governor of the Farm Credit Administration.

The Commodity Credit Corporation (CCC) is a Government-owned and operated entity that was created to stabilize, support, and protect farm income and prices. CCC also helps maintain balanced and adequate supplies of agricultural commodities and aids in their orderly distribution.

CCC was incorporated October 17, 1933, under a Delaware charter with a capitalization of $3 million. It was initially managed and operated in close affiliation with the Reconstruction Finance Corporation, which funded its operations. On July 1, 1939, CCC was transferred to the United States Department of Agriculture (USDA). It was reincorporated on July 1, 1948, as a Federal corporation within USDA by the Commodity Credit Corporation Charter Act (62 Stat.1070; 15 U.S.C. 714).

Contents 1 History and charter 2 Basic Responsibilities 3 Organization 4 See also 5 External links

History and charter

On July 5, 1939 the Corporation was made a part of the Department of Agriculture. The Secretary of Agriculture was granted the authority to exercise all rights of ownership of the Corporation's stock by Executive Order 8219 of 1939.

The Corporation was authorized, by its Delaware charter, to buy, sell, lend, and carry out other activities regarding agricultural commodities and products. This enabled the corporation to engage in operations for the purpose of influencing production, prices, supplies, and distribution of agricultural commodities. The Corporation is subject to specific limitations placed upon it by Congress.

Basic Responsibilities

The CCC Charter Act, as amended, aids producers through loans, purchases, payments, and other operations, and makes available materials and facilities required in the production and marketing of agricultural commodities. The CCC Charter Act also authorizes the sale of agricultural commodities to other government agencies and to foreign governments and the donation of food to domestic, foreign, or international relief agencies. CCC also assists in the development of new domestic and foreign markets and marketing facilities for agricultural commodities.

The 1996 Farm Bill significantly changed U.S. agricultural policy. Earlier, USDA made deficiency payments to producers of wheat, feed grains, cotton, and rice to make up the differences between target prices and seesawing market prices. The 1996 Farm Bill capped spending for the first time, guaranteeing farmers a series of fixed but declining "production flexibility contract" payments.

Organization

CCC is managed by a Board of Directors, subject to the general supervision and direction of the Secretary of Agriculture, who is an ex-officio director and chairperson of the Board. The Board consists of seven members, in addition to the Secretary, who are appointed by the President of the United States by and with the advice and consent of the Senate. All members of the Board and Corporation officers are USDA officials. The president of the CCC is the Under Secretary for Farm and Foreign Agricultural Services, and the executive director is the Administrator of the Farm Service Agency.

CCC has no operating personnel. Its price support, storage, and reserve programs, and its domestic acquisition and disposal activities are carried out primarily through the personnel and facilities of the Farm Service Agency (FSA). Its overseas surplus disposal and commodity export credit guarantee activities are carried out by personnel of the Foreign Agricultural Service, particularly the General Sales Manager.

See also

• Ever-normal granary

External links

• USDA, Farm Service Agency, Commodity Credit Corporation
• Executive Order 6340, from the Donnelly Collection, a project of The Conservative Caucus
• General Accountability Office reports on and audits of the Commodity Credit Corporation

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