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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