Commodity Credit Corporation

The Commodity Credit Corporation (CCC) is a wholly owned United States government corporation that was created in 1933 to "stabilize, support, and protect farm income and prices" (federally chartered by the CCC Charter Act of 1948 (P.L. 80-806)). The CCC is authorized to buy, sell, lend, make payments, and engage in other activities for the purpose of increasing production, stabilizing prices, assuring adequate supplies, and facilitating the efficient marketing of agricultural commodities.[1]

The CCC is essentially a financing institution for the USDA's farm price and income support commodity programs, commodity export credit guarantees, and agricultural export subsidies. The programs funded through CCC are administered by employees of the Farm Service Agency, the Agricultural Marketing Service, and the Foreign Agricultural Service.

The CCC has the authority to borrow up to $30 billion from the US Treasury to carry out its obligations. Net losses from its operations subsequently are restored by the Congressional appropriations process. It issues payments in the form of commodity certificates.

History and charter

The CCC was incorporated on October 17, 1933, under a Delaware charter pursuant to Executive Order 6340 issued the previous day by President Franklin Delano Roosevelt. It had a capitalization of $3 million subscribed by the secretary of agriculture and the governor of the Farm Credit Administration.

It was initially managed and operated in close affiliation with the Reconstruction Finance Corporation, which funded its operations. On July 1, 1939, the CCC was transferred to the United States Department of Agriculture (USDA). The Secretary of Agriculture was granted the authority to exercise all rights of ownership of the corporation by Executive Order 8219 of 1939.

It was reincorporated on July 1, 1948, as a federal corporation within the USDA by the Commodity Credit Corporation Charter Act (62 Stat.1070; 15 U.S.C. 714).[2][3]

During the 1948 presidential election campaign, Harry Truman criticized Republicans in the 80th Congress for supporting revisions to the CCC that were unpopular with farmers.[1]

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 CCC funds many programs that fall under multiple agencies within the USDA. Each CCC funded program helps achieve parts of both the CCC mission and the strategic plan of the agency under which the program falls. The CCC mission and strategic goals are achieved through the successful implementation of the following key programs areas:

Organization

A board of directors manages the CCC 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. The President of the United States, with the advice and consent of the Senate, appoints the board members to office. The members of the Board and the Corporation officers are officials of USDA. The CCC officers, directly or through officials of designated USDA agencies, maintain liaison with numerous other governmental and private trade operations.

The CCC has no actual employees; it carries out the majority of its programs through the personnel and facilities of the Farm Service Agency (FSA), Agricultural Marketing Service (AMS), Natural Resources Conservation Service (NRCS), Foreign Agricultural Service (FAS), and the United States Agency for International Development (USAID). Most of the CCC programs are delivered through an extensive nationwide network of FSA field offices, including approximately 2,100 USDA Service Centers and 51 state offices (including Puerto Rico). This network enables the CCC to maintain a close relationship with customers, successfully addressing their needs and continually improving program delivery. The FSA implements CCC funded programs for income support, disaster assistance, conservation, and international food procurement.

Though FSA provides the staff for the CCC, several CCC funded programs fall under purview of the FAS or the NRCS. The FAS has primary responsibility for USDA international activities - market development, trade agreements and negotiations, and the collection and analysis of statistics and market information. It also administers the USDA export credit guarantee and food aid programs and helps increase income and food availability in developing nations by mobilizing expertise for agriculturally led economic growth.

The NRCS provides leadership in a partnership effort to help American private landowners and managers conserve their soil, water, and other natural resources. It also provides financial assistance for many conservation activities. CCC reaches out to all segments of the agricultural community, including underserved and socially disadvantaged farmers and ranchers to ensure that CCC programs and services are accessible to everyone.

See also

• Ever-normal granary
• Generic certificates
• Market Access Program
• Quality Samples Program
• Technical Assistance for Specialty Crops

Further reading

• Executive Order 6340, from the Donnelly Collection, a project of The Conservative Caucus
• Government Accountability Office reports on and audits of the Commodity Credit Corporation
• CRS Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws
• CRS Report for Congress: The Commodity Credit Corporation: In Brief

External links

• Commodity Credit Corporation in the Federal Register