Commodity Credit Corporation
Encyclopedia
The Commodity Credit Corporation (CCC) is a wholly owned government corporation 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.
The CCC, which has no staff, is essentially a financing institution for 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
and the Foreign Agricultural Service
. The CCC has the authority to borrow up to $30 billion from the U.S. Treasury to carry out its obligations. Net losses from its operations subsequently are restored through the congressional appropriations process. It issues payments in the form of Commodity Certificates
.
.
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). The Secretary of Agriculture was granted the authority to exercise all rights of ownership of the Corporation's by Executive Order 8219 of 1939.
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).
The 1996 farm bill (P.L. 104-127) expanded the CCC mandate to include funding for several conservation programs (including the Conservation Reserve Program) and made conservation one of the purposes of the CCC.
.
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.
The CCC, which has no staff, is essentially a financing institution for 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
Farm Service Agency
The Farm Service Agency is the USDA agency into which were merged several predecessor agencies, including the Agricultural Stabilization and Conservation Service . The ASCS was, as the FSA is now, primarily tasked with the implementation of farm conservation and regulation laws around the country...
and the Foreign Agricultural Service
Foreign Agricultural Service
The Foreign Agricultural Service is the foreign affairs agency with primary responsibility for the United States Department of Agriculture's overseas programs—market development, international trade agreements and negotiations, and the collection of statistics and market information...
. The CCC has the authority to borrow up to $30 billion from the U.S. Treasury to carry out its obligations. Net losses from its operations subsequently are restored through the congressional appropriations process. It issues payments in the form of Commodity Certificates
Commodity certificate
Commodity certificates are payments issued by the Commodity Credit Corporation in lieu of cash payments to participants in farm subsidy or agricultural export programs. Holders of certificates are permitted to exchange them for commodities owned by the CCC...
.
History and charter
CCC was incorporated 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 AdministrationFarm Credit Administration
The Farm Credit Administration is an independent agency of the Executive Branch of the United States Government. It regulates and examines the banks, associations, and related entities of the Farm Credit System, a network of borrower-owned financial institutions that provide credit to farmers,...
.
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
United States Department of Agriculture
The United States Department of Agriculture is the United States federal executive department responsible for developing and executing U.S. federal government policy on farming, agriculture, and food...
(USDA). The Secretary of Agriculture was granted the authority to exercise all rights of ownership of the Corporation's by Executive Order 8219 of 1939.
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).
The 1996 farm bill (P.L. 104-127) expanded the CCC mandate to include funding for several conservation programs (including the Conservation Reserve Program) and made conservation one of the purposes of the CCC.
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.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 AgencyFarm Service Agency
The Farm Service Agency is the USDA agency into which were merged several predecessor agencies, including the Agricultural Stabilization and Conservation Service . The ASCS was, as the FSA is now, primarily tasked with the implementation of farm conservation and regulation laws around the country...
.
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
Farm Service Agency
The Farm Service Agency is the USDA agency into which were merged several predecessor agencies, including the Agricultural Stabilization and Conservation Service . The ASCS was, as the FSA is now, primarily tasked with the implementation of farm conservation and regulation laws around the country...
(FSA). Its overseas surplus disposal and commodity export credit guarantee activities are carried out by personnel of the Foreign Agricultural Service
Foreign Agricultural Service
The Foreign Agricultural Service is the foreign affairs agency with primary responsibility for the United States Department of Agriculture's overseas programs—market development, international trade agreements and negotiations, and the collection of statistics and market information...
, particularly the General Sales Manager.
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
- CRS Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition - Order Code 97-905, a document in the public domain.