|
<br />Background Information
<br />Commodity Credil Corporalion
<br />
<br />C.',)
<br />l-'.
<br />~)
<br />00
<br />
<br />reasonable carrying charges,
<br />Commodities in danger of loss or
<br />waste through deterioration or
<br />spoilage are exempted from the
<br />minimum price restriction, as are
<br />wool, peanuts and oilseeds, under
<br />certain conditions, eee sales of
<br />nonstorable commodities such as
<br />dairy products are also exempt from
<br />the minimum pricing requirements,
<br />but sales are made at prices
<br />moderately above the current support
<br />level for unrestricted domestic use,
<br />
<br />For further information on the sale of
<br />eee.owned commodities, contact:
<br />Warehouse and Inventory Division,
<br />Farm Service Agency, Stop 0553,
<br />P.O, Box 2415, Washington, DC
<br />20013-2415,
<br />
<br />Domestic Food Assistance
<br />Programs
<br />
<br />In certain circumstances, eee Is
<br />authorized to donate food com-
<br />modities acquired through price-
<br />support programs or from purchases
<br />in the commercial marketplace to the
<br />Bureau of Indian Affairs, and Federal,
<br />State, and private agencies. The
<br />commodities are used in the United
<br />States for school lunch programs,
<br />summer camps for children, and the
<br />assistance of needy persons. They
<br />are also used in charitable institu-
<br />tions, including hospitals, to the
<br />extent needy persons are served, In
<br />most instances, arrangements are
<br />made to process the commodities
<br />into food,
<br />
<br />eee also provides surplus dairy
<br />products to the armed services and to
<br />veterans' hospitals without charge,
<br />except for the cost of packaging,
<br />eee also donates food acquired
<br />through support programs to Federal
<br />penal and correctional institutions and
<br />State correctional institutions for
<br />minors, except where service is
<br />provided on a concessional basis,
<br />eee makes available to the
<br />
<br />Secretary of the Interior grain
<br />acquired through support operations
<br />to be used as feed for migratory
<br />waterfowl for the purpose of
<br />preventing crop damage. The
<br />Secretary of the Interior may also
<br />requisition eee-owned grain for
<br />feeding starving migratory birds, and
<br />any State may requisition eee-
<br />owned grain upon the finding of the
<br />Secretary of the Interior that resident
<br />game birds and other resident wildlife
<br />are threatened with starvation,
<br />
<br />ecc makes available farm com-
<br />modities or products in areas of acute
<br />economic distress, and in connection
<br />with certain major disasters, as
<br />determined by the President of the
<br />United States,
<br />
<br />Export Programs
<br />
<br />eec promotes the export of U.S,
<br />agricultural commodities and
<br />products through sales, payments,
<br />direct credits and the conduct of other
<br />activities related to the exportation of
<br />commodities. Currently, eec uses
<br />credit guarantees and export bonus
<br />payments to promote exports.
<br />
<br />CCC Export Credit Guarantee
<br />Programs
<br />
<br />eee administers two export credit
<br />guarantee programs - the Export
<br />Guarantee Program (GSM-102) and
<br />the Intermediate Export Credit
<br />Guarantee Program (GSM-103),
<br />They were established to insure
<br />financing for sales of U.S, agricuitural
<br />commodities overseas,
<br />
<br />GSM-102 provides coverage for
<br />financing with repayment terms from
<br />90 days to 3 years. GSM-103
<br />provides coverage on credit on terms
<br />longer than 3 but less than 10 years,
<br />Currently, maximum terms under
<br />GSM-103 do not exceed 7 years, The
<br />1996 Farm Bill establishes annual
<br />combined program levels for GSM.
<br />102 and GSM-103 of $5.5 billion,
<br />
<br />These two programs allow foreign
<br />buyers to purchase U.S, agricultural
<br />commodities from private U,S.
<br />exporters with U,S. banks providing
<br />financing to the importers' banks on
<br />commercial terms, Under both GSM-
<br />102 and GSM-103, ece guarantees,
<br />but does not finance, the export of the
<br />commodities. ece typically insures
<br />up to 98 percent of the principal and a
<br />portion of the interest Both guar.
<br />antee programs provide variable
<br />interest coverage that is based on a
<br />percentage of the average investment
<br />rate of the 52-week Treasury Bill.
<br />
<br />GSM-102 and GSM.103 operate in
<br />countries where credit is necessary to
<br />increase or maintain U.S, exports,
<br />and private financial institutions may
<br />be unwilling to provide financing
<br />without eec's guarantee,
<br />
<br />The 1996 Farm Bill also authorizes a
<br />Supplier Credit Guarantee Program.
<br />Under this program, cce guarantees
<br />a portion of the payments due from a
<br />private importer under short-term
<br />financing (up to 180 days) that
<br />exporters have extended directly to
<br />importers for the purchase of U,S,
<br />agricultural products.
<br />
<br />Export Enhancement Program
<br />
<br />The Export Enhancement Program
<br />(EEP) helps products produced by
<br />U.S, farmers meet the competition
<br />from other exporting countries that
<br />subsidize farm products, especially
<br />the European Union, Under the
<br />program, USDA pays cash to U,S.
<br />exporters as a bonus, allowing them
<br />to sell U,S. agricultural products in
<br />targeted countries at prices below
<br />those the exporter pays to acquire
<br />them,
<br />
<br />Dairy Export Incentive Program
<br />
<br />The Dairy Export Incentive Program
<br />(DEIP) helps exporters of U,S, dairy
<br />products meet prevailing world prices
<br />for some dairy products and
<br />
<br />continues ...
<br />
|