126 U.S. GOVERNMENT MANUAL officials) to be at nutritional risk because foods for distribution through State of nutritionally related medical agencies. conditions or inadequate nutrition. Nutrition Education and Training Cash grants are made available to Under this program funds are granted to participating State health departments or the States for the development and comparable State agencies, or dissemination of nutrition information recognized Indian tribes, bands, or and materials to children and for in- groups. The State agencies distribute service training of food service and funds to the local agencies, and the teaching personnel. funds are used to provide foods for WIC recipients and to pay specified No person may be discriminated administrative and clinical costs. against—in the operation of any of the Commodity Supplemental Food Program programs administered by the Food and This program provides supplemental Nutrition Service—because of race, foods and nutrition education to low- color, sex, creed, national origin, or income infants and children; pregnant, handicap. post partum, and breastfeeding women; For further information, contact the Public and elderly persons who are vulnerable Information Officer, Food and Consumer Service, to malnutrition and reside in approved Department of Agriculture, Alexandria, VA 22302. project areas. The Department purchases Phone, 703–305–2276.

Farm and Foreign Agricultural Services

Through the Farm Service Agency (FSA), necessary staff, is employed to carry on this mission area administers farm day-to-day operations of the county commodity, crop insurance, and office. resource conservation programs for Commodity Programs The Agency farmers, and makes loans through a administers the Commodity Credit network of State and county offices. Corporation’s commodity stabilization Agency programs are directed at programs for wheat, corn, cotton (upland agricultural producers or, in the case of and extra long staple), seed cotton, loans, at those with farming experience. soybeans and minor oilseeds, peanuts, rice, tobacco, milk, wool, mohair, Farm Service Agency barley, oats, sugarbeets, sugarcane, grain The Agency administers commodity and sorghum, rye, and honey. Commodity related land use programs designed for stabilization is achieved through voluntary production adjustment, commodity loans, purchases, and resource protection, and price, market, payments to eligible producers. and farm income stabilization. For most commodities, loans and In each State, operations are payments are made directly to producers supervised by a State committee of three on the unprocessed commodity through or five members appointed by the FSA’s county offices. Some commodities Secretary. A State Executive Director, are also purchased from producers. Price appointed by the Secretary, and staff support loans, payments, and purchases carry on day-to-day operations of the also can be made available through State office. The State Director of the cooperative marketing associations. The Agricultural Extension Service is an ex price of milk is stabilized through officio member of the State committee. purchases of processed dairy products: In each of approximately 2,500 butter, American-type cheese, and nonfat agricultural counties, a county dry milk. Price stabilization programs for committee of three farmer members is tobacco and peanuts are carried out responsible for local administration. A through loans to producer associations county executive director, with other that, in turn, make program benefits DEPARTMENT OF AGRICULTURE 127 available to producers. Tobacco available Corporation-owned feed grains producers must contribute to a fund to at reduced prices to eligible producers assure that the tobacco program operates who have suffered a substantial loss of at no net cost to taxpayers, other than their normal livestock feed production administrative costs. For burley and flue- due to a natural disaster, and in some cured tobaccos, purchasers contribute instances, donations of feed grains; equally with producers. These —cost-sharing with farmers who carry contributions are in addition to budget out emergency conservation practices to deficit assessments also being paid by rehabilitate farmland damaged by natural producers and purchasers. Stabilization disaster; and of sugarbeet and sugarcane prices is —allowing haying and grazing on carried out through loans to sugar acreage diverted to conserving uses processors, who in turn make program under the commodity programs or long- benefits available to producers. term land retirement program on a Loans to producers can either be county-by-county basis, as needed, in ‘‘recourse’’ —allowing producers to the event of a natural disaster. repay their loans at principal plus Grain Reserve Program The Food, interest—or ‘‘nonrecourse.’’ Nonrecourse Agriculture, Conservation, and Trade Act loans enable the producer to forfeit or of 1990 reauthorized the Grain Reserve deliver the commodity to the Program for farmer-owned wheat, corn, Commodity Credit Corporation with grain sorghum, oats, and barley. When settlement based on the quantity and entry into the Reserve is authorized by quality of goods delivered if the market the Secretary of Agriculture, producers price falls below the loan rate. may enter into a contract extending their Loan deficiency payments are 9-month loan for an additional 27 available to producers who agree to months and receive quarterly storage forgo a nonrecourse loan. The loan rate, payments. as determined by the Commodity Credit Loans may be repaid at any time. Corporation, is higher than the market Interest may be charged when prices rate. exceed 105 percent of the target; Eligibility for commodity loans, however, storage payments cease when purchases, and payments is, in most prices exceed 95 percent of the target cases, conditional upon participation in price. acreage reduction, paid-land diversion, Dairy Refund Payment Program The payment-in-kind, allotment, or quota Dairy Refund Payment Program provides programs in effect for the particular crop. producers refunds of the reductions in Under the Food, Agriculture, the price received for milk during a Conservation, and Trade Act of 1990, calendar year. Reductions in price are payments are limited to an annual required by law for all milk produced in ceiling of $125,000 per person on the the United States and marketed total payments of upland cotton, extra commercially in calendar years 1991 to long staple cotton, wheat, rice, and feed 1995. grain programs for the 1991 through Indemnity Program The Dairy 1995 crops. Indemnity Payment Program provides The act greatly expanded flexibility for indemnity payments to dairy farmers participating farmers to shift program whose milk has been removed from the crop plantings, as well as options for commercial market because it contained oilseeds and industrial and experimental residues of chemicals or toxic crops. substances, including nuclear radiation Emergency Assistance Such programs or fallout. offered to farmers in emergency- National Security The Agency is designated areas may include any or all responsible for national security of the following: emergency preparedness plans and —furnishing cost-sharing assistance for programs relating to food production, feed purchases, purchasing fuel to burn conservation, and stabilization; food spines off prickly pear cactus, or making processing, storage, and wholesale 128 U.S. GOVERNMENT MANUAL distribution; livestock and poultry feed, and preserve the environment. Cost- seed, and the domestic distribution of sharing is provided to ranchers/farmers fertilizer; and farm equipment and repair to encourage them to carry out parts. conservation and environmental It also provides services relating to protection practices on agricultural land expansion of productive capacity, that result in long-term public benefits. materials, and facilities under the Producers who plant agricultural Defense Production Act of 1950, as commodities on highly erodible land amended (50 U.S.C. 2061); plans for without an approved conservation plan management, control, and allocation of or system, or wetland converted after water to be used for agricultural December 23, 1985, will be considered production and food processing; ineligible for USDA program benefits. In consolidates all claims for material, addition, producers who convert wetland labor, equipment, supplies, and services after December 28, 1990, will be needed to support the national security ineligible for USDA benefits until the emergency responsibilities of USDA; and wetland is restored. Other provisions of guarantees payments or makes loans, as the 1990 law are designed to discourage needed, for the continuation of food and farming practices that may have adverse agriculture activities in a national environmental impacts. security emergency. Financial management and budget For further information, contact the Public Affairs Staff, Farm Service Agency, Department of support, and financial risk assessments Agriculture, P.O. Box 2415, Washington, DC and analyses are provided by FSA for the 20013. Phone, 202–720–5237. General Sales Manager of the Foreign Agricultural Service in administering Commodity Credit Corporation Commodity Credit Corporation export credit sales and guarantee programs and The Commodity Credit Corporation was Food for Peace programs. organized October 17, 1933, pursuant to To carry out the Agricultural Foreign Executive Order 6340 of October 16, Investment Disclosure Act of 1978 (7 1933, under the laws of the State of U.S.C. 3501), the Department assigned Delaware, as an agency of the United FSA the primary responsibility of States. From October 17, 1933, to July 1, collecting information through a 1939, the Corporation was managed and reporting system involving all States and operated in close affiliation with the most counties. The agency assesses Reconstruction Finance Corporation. On penalties on late filed information and July 1, 1939, the agency was transferred refusals to file. The Administrator rules to the Department of Agriculture by the on appeals resulting from penalties President’s Reorganization Plan No. I of assessed for violations of the act. 1939 (5 U.S.C. app.). Approval of the Conservation Programs The Agency’s Commodity Credit Corporation Charter conservation programs help preserve and Act on June 29, 1948 (15 U.S.C. 714), improve the wealth and promise of subsequently amended, established the America’s farmlands. Corporation, effective July 1, 1948, as an The Conservation Reserve Program agency and instrumentality of the United (CRP) targets the most fragile farmland States under a permanent Federal by encouraging farmers to stop growing charter. crops on cropland designated by soil The Corporation stabilizes, supports, conservationists and plant a permanent and protects farm income and prices, vegetative cover instead. In return, the assists in maintaining balanced and farmer receives an annual rental adequate supplies of agricultural payment. commodities and their products, and The Agricultural Conservation Program facilitates the orderly distribution of (ACP) is a joint effort by agricultural commodities. producers, Federal and State agencies, The Corporation is managed by a and other groups to restore and protect Board of Directors, subject to the general the Nation’s land and water resources supervision and direction of the DEPARTMENT OF AGRICULTURE 129

Secretary of Agriculture, who is an ex development in the developing officio Director and Chairman of the countries. In addition, the Corporation Board. The Board consists of seven supplies commodities under the Food for members (in addition to the Secretary of Progress Program to provide assistance Agriculture), who are appointed by the to developing democracies. President of the United States. The Corporation encourages U.S. The Corporation is capitalized at $100 financial institutions to provide financing million and has statutory authority to to developing countries under the Export borrow up to $30 billion from the U.S. Credit Guarantee Programs administered Treasury. It utilizes the personnel and by the Foreign Agricultural Service. facilities of the Farm Service Agency and, in certain foreign assistance For further information, contact the Public Affairs Staff, Commodity Credit Corporation, Department operations, the Foreign Agricultural of Agriculture, P.O. Box 2415, Washington, DC Service to carry out its activities. 20013. Phone, 202–720–5237. For information A commodity office in Kansas City, about Commodity Credit Corporation export MO, has specific responsibilities for the programs, contact the Information Division, Foreign Agricultural Service, Department of Agriculture. acquisition, handling, storage, and Phone, 202–720–3448. disposal of commodities and products held by the Corporation. Federal Crop Insurance Corporation Commodity Stabilization Loan, purchase, and/or payment programs of The Federal Crop Insurance Corporation the Corporation are administered by FSA (FCIC) is a Government-owned for wheat, corn, upland and extra-long corporation whose purpose is to promote staple cotton, peanuts, rice, tobacco, the national welfare by improving the milk, honey, barley, oats, grain sorghum, economic stability of agriculture through rye, soybeans and minor oilseeds, a sound system of crop insurance. sugarbeets, and sugarcane. The Corporation is responsible for Commodities acquired under the directing a widely used and actuarially stabilization program are disposed of sound crop insurance program, through domestic and export sales, providing an alternate form of coverage commodity certificate exchanges, for crops that are currently not insurable, transfers to other Government agencies, and evaluating new insurance products. and donations for domestic and foreign Federal crop insurance protects against welfare use. The Corporation also is unavoidable production losses due to authorized to exchange surplus adverse weather and other named perils. agricultural commodities it has acquired The protection does not extend to crop by the Corporation for strategic and losses resulting from neglect, poor other materials and services produced farming prices, or theft, and does not abroad. insure against financial losses resulting Foreign Assistance Under Public Law from low prices. 480, the Agricultural Trade Development The Corporation was established on and Assistance Act of 1954, as amended February 16, 1938 (7 U.S.C. 1501). On (7 U.S.C. 1691), the Corporation carries October 13, 1994, the Federal Crop out assigned foreign assistance activities, Insurance Reform Act of 1994 (7 U.S.C. such as guaranteeing the credit sale of 1501 note) significantly changed the way U.S. agricultural commodities abroad. in which government assists producers Major emphasis is also being directed suffering a major crop loss. A major toward meeting the needs of developing objective of the reform was to replace nations under the Food for Peace Act of the uncertainty of previous ad hoc 1966 (7 U.S.C. 1691), which further disaster assistance with the predictability amends the Agricultural Trade of crop insurance protection. Development and Assistance Act of Under the new insurance program, 1954. Under these authorities, producers must purchase at least the agricultural commodities are supplied catastrophic level (CAT) of crop and exported to combat hunger and insurance of economic significance to malnutrition and to encourage economic participate in USDA price support and 130 U.S. GOVERNMENT MANUAL production adjustment programs, certain maximum of 90 percent. The Agency USDA farm loans, and the Conservation also has the responsibility of approving Reserve Program. The coverage provides all loan guarantees and providing per-acre return similar to the coverage monitoring and oversight of lender under most previous ad hoc disaster activities. programs. It is fully subsidized by the For those unable to qualify for a loan Federal Government apart from a guarantee from a commercial lender, nominal processing fee paid by the FSA also makes direct loans. These loans producer. In order to give producers are made and serviced by an FSA more service options, CAT coverage may official, who provides credit counseling be obtained from either commercial and supervision to direct borrowers by insurance agents or local USDA offices. assessing and evaluating all aspects of Producers may purchase additional the farming operation. insurance coverage providing greater The Agency administers several types protection. This additional coverage is of loans which, unlike the commodity only available through commercial loans, can only be approved for those insurance companies and agents. The who have repayment ability. In addition, Corporation provides additional money these loans must be fully secured and and policy incentives to participate at are not ‘‘nonrecourse.’’ These include higher levels of coverage. farm ownership loans, farm ownership For crops that are not yet insurable, a downpayment loans, farm operating provision of the Crop Insurance Act loans, emergency loss loans, and rural establishes a Noninsured Crop Disaster youth loans. Assistance Program (NAP). In the event The Agency’s mission is to provide of a catastrophic crop loss, NAP supervised credit, which includes provides benefits that are similar to those identifying each individual borrower’s provided by catastrophic crop insurance. specific strengths and weaknesses in Payments are triggered when area losses farm production and management, and for the crop exceed 35 percent, and then providing information on individual crop losses exceed 50 percent alternatives and other options to address of the expected yield. Producers do not the weaknesses and achieve maximum have to participate in the NAP program productivity. Supervised credit makes the in order to be eligible for other USDA difference between success and failure farm programs or loans. The NAP for many farm credit customers. program is administered through local To help borrowers retain ownership of USDA offices. their farms, FSA provides certain loan servicing benefits to those whose Farm Loans accounts are delinquent due to circumstances beyond their control. The Farm Service Agency has direct and Such benefits include: guaranteed loan programs to help —reamortization, restructuring, and/or farmers who are temporarily unable to deferral of loans; obtain private commercial credit. In —rescheduling at the limited resource many cases, these are beginning farmers (lower interest) rate; who have insufficient net worth to —acceptance of conservation qualify for commercial credit. In other easements on environmentally sensitive cases, these are farmers who have land in exchange for writedown of debt; suffered financial setbacks from natural and disasters, or who have limited resources —writing down the debt to its net with which to establish and maintain recovery value. profitable farming operations. If none of these options results in a Farmers who qualify obtain their credit feasible farming operation, customers are needs through the use of loan offered the opportunity to purchase their guarantees, where a local agricultural debt at its net recovery value. If this is lender makes and services the loan, and not possible, other options include the FSA guarantees the loan up to a following: DEPARTMENT OF AGRICULTURE 131

—conveyance of the property to FSA analyses of supply and demand and then leasing it back with an option conditions, commercial trade to purchase; relationships, and market opportunities. —debt settlement based on ability to They report on more than 100 farm pay (under which the collateral securing commodities, weather, economic factors, the loan may be retained if its market and related subjects that affect value is paid); and agriculture and agricultural trade. —in extreme cases, where a successful At the Foreign Agricultural Service in operation cannot be developed, FSA Washington, DC, agricultural economists helps the borrower to retain the and marketing specialists analyze these homestead and up to 10 acres of land. and other reports. These analyses are If not leased or purchased by their supplemented by accumulated former owners, farms that come into FSA background information and by the Crop ownership are sold at market value, with Condition Assessment system, which a preference to beginning and minority analyzes Landsat satellite weather and farmers. Beginning farmers must have other data. been in the business less than 10 years To improve access for U.S. farm and meet certain other requirements products abroad, FAS international trade concerning land ownership and policy specialists coordinate and direct management ability. USDA’s responsibilities in international The eventual goal of FSA’s farm credit trade agreement programs and programs is to graduate its customers to negotiations. They maintain an ongoing commercial credit. Once a farmer is able effort to reduce foreign trade barriers and to obtain credit from the commercial practices that discourage the export of lending sector, the Agency’s mission of U.S. farm products. providing temporary, supervised credit is To follow foreign governmental successfully completed. actions that affect the market for U.S. agricultural commodities, FAS relies on For further information, contact the Manager, its agricultural counselors and attache´s. Federal Crop Insurance Corporation, Department of In Washington, a staff of international Agriculture, Washington, DC 20250. Phone, 202– 254–8460. trade specialists analyzes the trade policies and practices of foreign Foreign Agricultural Service governments to ensure conduct in conformance with international treaty The Foreign Agricultural Service (FAS) obligations. During international has primary responsibility for USDA’s negotiations, FAS provides staff and overseas market information, access, and support for U.S. agricultural development programs. It also representation. administers USDA’s export assistance The Service has a continuing market and foreign food assistance programs. development program to create, service, The Service carries out its tasks through and expand commercial export markets its network of agricultural counselors, for U.S. agricultural products. It carries attache´s, and trade officers stationed out programs with nonprofit commodity overseas and its U.S.-based team of groups called Cooperators, trade analysts, marketing specialists, associations, and State agriculture negotiators, and other professionals. departments and their regional The Foreign Agricultural Service associations. It manages market maintains a worldwide agricultural opportunity referral services and intelligence and reporting system organizes trade fairs and sales teams. through its attache´ service. This service The Service’s Office of the General consists of a team of professional Sales Manager also oversees agricultural agriculturalists posted in more than 75 functions under the Public Law 480 countries around the world. They Food for Peace Program, title I (7 U.S.C. represent the Department of Agriculture 1701); section 416(b) of the Agricultural and provide information and data on Act of 1949 (7 U.S.C. 1431); the foreign government agricultural policies, Commodity Credit Corporation’s (CCC) 132 U.S. GOVERNMENT MANUAL

Export Credit Guarantee Programs; negotiated on a case-by-case basis and several other export assistance programs; on a cash or credit basis. The only and direct sales of Corporation-owned criteria for financing direct sales are a 3- surplus commodities. year maximum credit plan and the The Commodity Credit Corporation arrangement of suitable payment terms. Export Credit Guarantee (GSM-102) and Another program authorized by the the Intermediate Export Credit Guarantee Food, Agriculture, Conservation, and (GSM-103) Programs encourage the Trade Act of 1990 is the Market development or expansion of overseas Promotion Program, formerly known as markets for U.S. agricultural Targeted Export Assistance (TEA). The commodities by providing guarantees on Market Promotion Program provides private financing of U.S. exports to assistance in the form of cash or foreign buyers purchasing on credit commodities to trade promotion terms. organizations to help fund their market The foreign buyer contracts for the development activities overseas, purchase of U.S. commodities on a particularly in those markets where the deferred-payment basis of 3 years or less United States encounters unfair trade under GSM–102, or between 3 and 10 practices by foreign competitors or years under GSM–103. The foreign importers. buyer’s bank issues a letter of credit to The Service helps other USDA guarantee payment to the U.S. exporter agencies, U.S. universities, and others or an assignee U.S. lending institution. enhance America’s agricultural To receive the payment guarantee, the competitiveness globally; and increases exporter registers the sale with CCC prior income and food availability in to export and pays a guarantee fee. The developing nations by mobilizing payment guarantee is implemented only expertise for agriculturally led economic if the foreign bank fails to pay the growth. exporter or the assignee U.S. lending The Service’s programs enhance U.S. institution. agriculture’s competitiveness by The Corporation considers coverage providing U.S. agriculturalists and on sales of any U.S. agricultural scientists with linkages to world commodity that has the potential of resources. These linkages often produce expanding U.S. export markets. A U.S. new germplasm and technologies that exporter, private foreign buyer, or can be vital to improving our current foreign government may submit requests agricultural base and producing new and that may result in authorized guarantee alternative products. They also foster coverage. relationships and understandings that Several export assistance programs are result in trade opportunities and designed to counter or offset the adverse strengthened strategic and political ties. effects from competitors’ unfair trade The Service is a link between the practices on U.S. agriculture. These technical expertise of the U.S. programs include the Export agricultural community and Third World Enhancement Program (EEP) and the nations. By sharing agricultural Dairy Export Incentive Program (DEIP). knowledge with less-developed nations, Under EEP, USDA provides the United States provides tools to help Corporation-owned commodities or cash build stable economies and a more as export bonuses to make U.S. prosperous world. In the process, less- commodities more competitive in the developed nations overcome the barriers world marketplace. The DEIP and EEP of hunger and poverty and gain the programs are similar, but DEIP is economic means to buy needed goods restricted to dairy products. and services in the world marketplace. The Foreign Agricultural Service is The Service also manages programs to also responsible for sales of Corporation- exchange visits, germplasm, and owned surplus commodities to private technologies between U.S. and trade, foreign government, and nonprofit international scientists; supports organizations. Direct sales may be collaborative research projects of mutual DEPARTMENT OF AGRICULTURE 133 interest to the United States and other These activities serve the needs of nations; taps the U.S. agricultural other USDA agencies, the Agency for community to provide technical International Development, other public assistance and professional development and private institutions, foreign nations, and training programs to assist economic development banks, and the U.S. development in lower income nations; university and agricultural communities. serves as U.S. liaison with international For further information, contact the Information organizations; and organizes overseas Division, Foreign Agricultural Service, Deparment of Agriculture, Washington, DC 20250–1000. trade and investment missions. Phone, 202–720–7115.

Research, Education, and Economics

This mission area’s main focus is to quality environment and natural resource create, apply, and transfer knowledge base. and technology to provide affordable All administrative and management food and fiber, ensure foods safety and responsibilities of the four Research, nutrition, and support rural development Education, and Economic agencies— and natural resource needs of people by Agricultural Research Service (ARS), conducting integrated national and Cooperative State Research, Education, international research, information, and Extension Service (CSREES), education, and statistical programs and Economic Research Service (ERS), and services that are in the national interest. National Agricultural Statistics Service (NASS)—are administered by the ARS Agricultural Research Service Administrative and Financial Management Unit headquartered in The Agricultural Research Service (ARS) Washington, DC. provides access to agricultural Research activities are carried out at information and develops new 104 domestic locations (including Puerto knowledge and technology needed to Rico) and 3 overseas locations. Much of solve technical agricultural problems of this research is conducted in cooperation broad scope and high national priority. with partners in State universities and The goal is to ensure adequate experiment stations, other Federal availability of high quality, safe food, agencies, and private organizations. A and other agricultural products—to meet national program staff, headquartered in the nutritional needs of the American Beltsville, MD, is the focal point in the consumer, sustain a viable and overall planning and coordination of competitive food and agricultural ARS’ research programs. Day-to-day economy, enhance the quality of life and management of the respective programs economic opportunity for rural citizens for specific field locations is assigned to and society as a whole, and maintain a eight area offices. Area OfficesÐAgricultural Research Service

Office Address

BELTSVILLE AREAÐBeltsville Agricultural Research Center, National Arboretum, Bldg. 003, Beltsville Agricultural Re- Washington, DC search Ctr. W., Beltsville, MD 20705 MIDSOUTH AREAÐAlabama, Kentucky, Louisiana, Mississippi, Tennessee P.O. Box 225, Stoneville, MS 38776 MIDWEST AREAÐIllinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio, 1815 N. University St., Peoria, IL Wisconsin 61804 NORTHERN PLAINS AREAÐColorado, Kansas, Montana, Nebraska, North Da- Suite 150, 1201 Oakridge Rd., Fort kota, South Dakota, Utah, Wyoming Collins, CO 80525±5562 NORTH ATLANTIC AREAÐConnecticut, Delaware, Maine, Maryland, Massachu- 600 E. Mermaid Ln., Philadelphia, PA setts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, 19118 Vermont, West Virginia