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<br />USDA United States
<br />~ Department of
<br />_ Agriculture
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<br />Background
<br />
<br />The Commodity Credit Corporation
<br />(CCC) is a Government-owned and
<br />operated entity which was created to
<br />stabilize, support, and protect farm
<br />income and prices, CCC also helps
<br />maintain balanced and adequate
<br />supplies of agricultural commodities
<br />and helps in their orderly distribution.
<br />
<br />CCC was incorporated October t7,
<br />1933, under a Delaware charter with a
<br />capitalization of $3 million, It was
<br />initially managed and operated in close
<br />affiliation with the Reconstruction
<br />Finance Corporation, which funded its
<br />operations. On July 1, 1939, CCC
<br />was transferred to the United States
<br />Department of Agriculture (USDA) by
<br />the President's Reorganization Plan I.
<br />It was reincorporated on July I, 1948,
<br />as a Federal corporation within USDA
<br />by the Commodity Credit Corporation
<br />Charter Act (62 Slat. 1070; 15 U,S,C.
<br />714),
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<br />Basic Responsibilities
<br />
<br />The CCC Charter Act, as amended,
<br />aids producers through loans,
<br />purchases, payments, and other
<br />operations, and makes available
<br />materials and facilities required in the
<br />production and marketing of
<br />agricultural commodities. Farmers
<br />who have participated in the wheat,
<br />feed grains, colton, and rice programs
<br />in anyone of the past 5 years can
<br />enter into 7 -year production flexibility
<br />contracts for 1996-2002 whereby
<br />producers may receive government
<br />payments largely independent of farm
<br />prices and specific crop production, in
<br />contrast to the past when deficiency
<br />payments were dependent on farm
<br />prices and the production of specific
<br />crops.
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<br />
<br />Background Information
<br />
<br />Commodity
<br />Credit Corporation
<br />
<br />The CCC Charter Act also authorizes
<br />the saie of agricultural commodities to
<br />other government agencies and to
<br />foreign govemments, and food
<br />donations to domestic, foreign, or
<br />international relief agencies. CCC also
<br />assists in the development of new
<br />domestic and foreign markets and
<br />marketing facilities for agriculturai
<br />commodities,
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<br />Organization
<br />
<br />CCC is managed by a Board of
<br />Directors, subject to the general
<br />supervision and direction of the
<br />Secretary of Agriculture, who is an ex
<br />officio director and chairperson of the
<br />Board, The Board consists of seven
<br />members, in addition to the Secretary,
<br />who are appointed by the President of
<br />the United States by and with the
<br />advice and consent of the Senate, The
<br />members of the Board and the
<br />Corporation's officers all are officials of
<br />USDA.
<br />
<br />CCC has no operating personnel. Its
<br />price support, storage, and reserve
<br />prograrns, and its domestic acquisition
<br />and disposal activities for price-
<br />supported commodities, are carried out
<br />primarily through the personnel and
<br />facilities of the Farrn Service Agency
<br />(FSA).
<br />
<br />Other USDA Agencies
<br />
<br />CCC also uses the services of other
<br />USDA agencies to carry out its
<br />authorities and responsibilities. The
<br />Agricultural Marketing Service (AMS)
<br />occasionally uses CCC authority to
<br />acquire various commodities for
<br />domestic and foreign food assistance
<br />programs, Export sales (except for
<br />tobacco and peanuts) and foreign
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<br />August 1996
<br />
<br />assistance disposal of CCC-controlled
<br />stocks are administered through the
<br />General Sales Manager of the Foreign
<br />Agricultural Service (FAS),
<br />
<br />Officers of CCC, directly or through
<br />officials of designated USDA agencies,
<br />maintain liaison with numerous other
<br />governmental and private trade
<br />operations, CCC's commodity
<br />programs must be approved by the
<br />Board of Directors and/or the Secretary
<br />of Agriculture.
<br />
<br />Financing
<br />
<br />CCC has an authorized capital stock of
<br />$100 million held by the United States,
<br />with the authority to have outstanding
<br />borrowings of up to $30 billion at any
<br />one time, Public Law 95-279,
<br />approved May 15, 1978, increased the
<br />statutory borrowing authority to $25
<br />billion from $20 billion, to the extent
<br />provided in appropriation acts. The
<br />Fiscal Year 1982 Supplemental
<br />Appropriation Act, P.L 97-257,
<br />increased the availability to $25 billion.
<br />The Fiscal Year 1988 Appropriation
<br />Act, P.L 100-202, increased the
<br />statutory borrowing authority to $30
<br />billion,
<br />
<br />Funds are borrowed from the Treasury
<br />and may also be borrowed from private
<br />lending agencies and others, CCC
<br />reserves a sufficient amount of its
<br />borrowing authority to purchase at any
<br />time all notes and other obligations
<br />evidencing loans made by such
<br />agencies and others, All bonds, notes,
<br />debentures, and similar obligations
<br />issued by the Corporation are subject
<br />to approval by the Secretary of the
<br />Treasury, Reservation of borrowing
<br />authority for these purposes has not
<br />been required for many years,
<br />
<br />continues ..
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