Commodity Credit Corporation
From Wikipedia, the free encyclopedia
The Commodity Credit Corporation, or CCC, is an agency of the U.S. Department of Agriculture created on October 17, 1933. President Franklin Delano Roosevelt issued Executive Order 6340 the day before, which ordered the creation of the CCC as a Delaware corporation. The corporation had an original capitalization of $3,000,000, subscribed by the Secretary of Agriculture and the Governor of the Farm Credit Administration.
The Commodity Credit Corporation (CCC) is a Government-owned and operated entity that was created to stabilize, support, and protect farm income and prices. CCC also helps maintain balanced and adequate supplies of agricultural commodities and aids in their orderly distribution.
CCC was incorporated October 17, 1933, under a Delaware charter with a capitalization of $3 million. 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). 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).
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[edit] History and charter
On July 5, 1939 the Corporation was made a part of the Department of Agriculture. The Secretary of Agriculture was granted the authority to exercise all rights of ownership of the Corporation's stock by Executive Order 8219 of 1939.
The Corporation was authorized, by its Delaware charter, to buy, sell, lend, and carry out other activities regarding agricultural commodities and products. This enabled the corporation to engage in operations for the purpose of influencing production, prices, supplies, and distribution of agricultural commodities. The Corporation is subject to specific limitations placed upon it by Congress.
[edit] 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.
The 1996 Farm Bill significantly changed U.S. agricultural policy. Earlier, USDA made deficiency payments to producers of wheat, feed grains, cotton, and rice to make up the differences between target prices and seesawing market prices. The 1996 Farm Bill capped spending for the first time, guaranteeing farmers a series of fixed but declining "production flexibility contract" payments.
[edit] 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.
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).
