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UNITED STATES DEPARTMENT OF AGENCY FACT SHEET October 2015 Commodity Credit Corporation

OVERVIEW the United States. Officers of CCC, directly or through officials of designated USDA agencies, The Commodity Credit Corporation (CCC) is a maintain liaison with numerous other government-owned and operated entity that was governmental and private operations. CCC created in 1933 to stabilize, support, and protect programs must be approved by the Board of farm income and . CCC was also charged Directors and/or the Secretary of Agriculture. with maintaining balanced and adequate supplies Currently, all members of the Board and all of agricultural commodities and to in the Corporation officers are USDA officials. orderly distribution of those commodities. CCC does not have any employees, using the CCC was incorporated on Oct. 17, 1933, under a employees of federal agencies in the conduct of its Delaware charter with a capitalization of operations. Domestic agricultural and income $3 million. CCC was initially managed and support programs are carried out primarily through operated in close affiliation with the Reconstruc- the personnel and facilities of the Farm Service tion Corporation, which funded its Agency (FSA). International programs are carried operations. On July 1, 1939, CCC was transferred out by the Foreign Agricultural Service (FAS) and to the United States Department of Agriculture the United States Agency for International (USDA) and was reincorporated on July 1, 1948, Development (USAID). The majority of CCC as a Federal Charted Corporation within USDA by conservation programs are implemented by the the Commodity Credit Corporation Charter Act (62 Natural and Conservation Service Stat.1070; 15 U.S.C. 714). (NRCS). Other USDA agencies also carry out CCC programs. CCC is authorized to for the The CCC Charter Act, as amended, is authorized to use of privately-owned facilities in carrying out its assist agricultural producers through loans, activities. purchases, payments, and other operations, and makes available materials and facilities required in CCC has no authority to acquire personal . the and marketing of agricultural com- CCC is prohibited from acquiring , or modities. any interest in property, except for the purpose of protecting its financial interests and for providing The CCC Charter Act also authorizes the sale of adequate storage to carry out its programs. CCC is agricultural commodities to other government authorized to rent or lease office space necessary agencies and to foreign governments and the for its . donation of food to domestic, foreign, or international relief agencies. In addition, CCC FINANCING assists in the development of new domestic and foreign markets and marketing facilities for CCC has an authorized and outstanding capital agricultural commodities. stock of $100 million that is held by the United States Department of the Treasury. Interest on CCC capital stock is paid annually to Treasury based on a rate established by Treasury for government CCC is managed by a (Board) . CCC has the authority to borrow up subject to the general supervision and direction of to $30 billion from the Treasury at any one time. the Secretary of Agriculture, who is an ex-officio These funds are used to implement the programs director and of the Board. The Board authorized under the CCC Charter Act and various consists of seven members, in addition to the other statutes, including the Agricultural Act of Secretary, who are appointed by the President of 2014 (the 2014 Farm Bill). Page 1 FACT SHEET Commodity Credit Corporation October 2015

CCC MAJOR PROGRAM ACTIVITIES assistance. Contract duration is between 10 and 15 years. CCC has invested $100 million in the Biofuels (BIP) to support the DOMESTIC AGRICULTURAL COMMODITY expansion of infrastructure for renewable PROGRAMS biofuels made from agricultural commodities. The BIP is administered through competitive grants and 2015 Programs matched by States and private contributions, creating additional markets for commodities. CCC Commodity price support operations include also funds the establishment of renewable energy marketing and managing any CCC-owned crop through the Biomass Crop Assistance which are handled primarily through Program, assisting producers with the costs of nonrecourse loans for producers of , corn, production, storage, and transportation of oilseeds, , , , , sorghum, agricultural biomass for energy and bio-based , mohair, honey, peanuts, pulse crops, and products. CCC has also invested $160 million in a . Borrowers may satisfy their obligations to partnership with the U.S. Navy and Department of a CCC nonrecourse loan by repaying the loan or Energy to accelerate the development of domestic, forfeiting the loan collateral to CCC. Marketing competitively-priced “drop-in” diesel and jet fuel assistance loans also provide interim financing to substitutes. This partnership assists the Federal producers so that commodities can be stored after Aviation Administration to build a green fleet and harvest, when prices are typically low, to be help the commercial airline move towards sold later, when price conditions are more using biofuels to power jets. favorable.

NRCS administers several CCC conservation International Programs programs. These programs use incentive and cost-share payments and NRCS personnel The USAID Office of Food for Peace (FFP) technical assistance to enhance the quality of the implements the Food for Peace Program. environment. The programs reduce, control, and Approximately $1.5 billion are appropriated prevent soil erosion; restore wetlands; protect and annually for this program, which CCC acquires improve the quality of wetland areas; establish, commodities and the transportation of the restore and enhance fish, waterfowl and wildlife commodities to international destinations. habitats; increase sediment trapping efficiencies; Commodities are provided to private voluntary and improve air quality. These programs also and international organizations, provide for the purchase of conservation primarily the United Nations World Food Program directly from agricultural landowners or through a for use in emergency and development food cooperating entity. assistance activities. These activities include direct general food distribution, food for work, food for The Conservation Reserve Program (CRP), training and supplementary feeding to reduce administered by FSA, assists producers to improve suffering and save lives while improving food conservation. CRP is a federally-funded voluntary security. program that with agricultural producers so that environmentally sensitive CCC is authorized to promote the export of U.S. agricultural land is not farmed or ranched, but agricultural commodities through , payments, instead used for conservation benefits. CRP export credits and other related activities. participants establish long-term, resource- Currently, the major CCC export programs are the conserving plant species, such as approved grasses Export Credit Guarantee Program (GSM-102) and or trees (known as “covers”) to control soil the Facility Guarantee Program (FGP). The USDA erosion, improve water quality and develop Foreign Agricultural Service (FAS) administers wildlife habitat. In return, FSA provides the GSM-102 program on behalf of the CCC; the participants with rental payments and cost-share program makes it possible for foreign buyers to purchase U.S. agricultural commodities from

Page 2 FACT SHEET Commodity Credit Corporation October 2015 private U.S. exporters. U.S. provide FAS’s Emerging Markets Program (EMP) is a CCC financing to approve importers’ foreign banks on market access program that provides funding for commercial terms. The banks finance the export of technical assistance activities intended to promote the commodities and CCC guarantees repayment exports of U.S. agricultural commodities and to the U.S. banks. GSM-102 operates mainly in products to emerging markets in all geographic countries where credit is necessary to increase or regions consistent with U.S. foreign policy. maintain U.S. exports and where private financial The EMP is a generic program and its institutions may be unwilling to provide financing may be used to support exports of U.S. agricultural without CCC’s guarantee. commodities and products only through generic activities. Projects that endorse or promote branded Under FAS’s Facility Guarantee Program (FGP), products are not eligible for the program. Funding CCC extends credit guarantees to U.S. banks for is provided through three channels: (1) the financing export sales of U.S. capital and Central Fund which is the principal means of services to improve agriculture-related facilities funding, made available through a public in emerging markets, such as storage, processing announcement; (2) the Technical Issues Resolution and handling facilities. Sales of capital goods and Fund (TIRF) to address technical barriers to those services must be linked to projects that primarily issues that are time sensitive and are strategic areas benefit U.S. agricultural exports. of longer term interest; and (3) the Quick Response Marketing Fund (QRMF) to assist with short-term The USDA Market Access Program (MAP) uses time-sensitive marketing opportunities. CCC funds to aid in the development, expansion, and maintenance of foreign markets for U.S. MORE INFORMATION agricultural commodities and products. The MAP forms a partnership between CCC and non- For more information about CCC or FSA U.S. agricultural trade associations, non-profit U.S. programs, visit online at www.fsa.usda.gov/ccc agricultural , non-profit state-regional or www.fsa.usda.gov or contact us at: trade groups and small U.S. to share the costs of overseas marketing and promotional USDA/FSA activities, such as trade shows, market research, Commodity Credit Corporation Office consumer promotions, technical assistance, trade 1400 Independence Avenue SW servicing and seminars to educate overseas Stop 0599 customers. Washington, D.C. 20250-0599 (202) 720–0402 or (202) 720-4019 The FAS’s Foreign Market Development (FMD) Program also known as the Cooperator Program The U.S. Department of Agriculture (USDA) prohibits discrimination uses CCC funds to create, expand and maintain against its customers, employees, and applicants for employment on the bases of race, color, national origin, long-term export markets for U.S. agricultural age, disability, sex, gender identity, re¬ligion, reprisal, products. The program fosters a cost-sharing trade and where applicable, political beliefs, marital status, promotion partnership between USDA and U.S. familial or parental status, sexual orien¬tation, or all or agricultural producers and processors who are part of an individual’s income is derived from any public represented by nonprofit commodity or trade assistance program, or protected genetic information associations called Cooperators. On behalf of CCC, in employment or in any program or activity conducted FAS enters into with those eligible or funded by the Department. (Not all prohibited bases nonprofit U.S. trade organizations that have the will apply to all programs and/or em¬ployment ac- broadest producer representation of the tivities.) Persons with disabilities, who wish to file a commodity being promoted. Under these program complaint, write to the address below or if you require alternative means of communication for pro- partnerships, USDA and the Cooperators pool their gram information (e.g., Braille, large print, au¬diotape, technical and financial resources to conduct etc.) please contact USDA’s TARGET Center at (202) overseas market development. 720-2600 (voice and TDD). Individuals who are deaf, hard of hearing, or have speech disabilities and wish to file either an EEO or program complaint, please contact

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USDA through the Federal Relay Service at (800) 877- 8339 or (800) 845-6136 (in Spanish).

If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Dis¬crimination Complaint Form, found online at http://www.ascr.usda.gov/complaint_filing_cust.html, or at any USDA office, or call (866) 632-9992 to request the form. You may also write a letter containing all of the information requested in the form. Send your com- pleted complaint form or letter by mail to U.S. Depart- ment of Agriculture, Director, Office of Adjudication, 1400 Inde-pendence Avenue, S.W., Washington, D.C. 20250-9410, by fax (202) 690-7442 or email at pro- [email protected].

USDA is an equal opportunity provider and employer.

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