What is the Commodity Credit Corporation (CCC)
The Commodity Credit Corporation (CCC) is an agency of the US Department of Agriculture (USDA) which supports and protects farm and agricultural prices. The agency helps to maintain an adequate variety and volume of agricultural commodity supplies.
BREAKING DOWN Commodity Credit Corporation (CCC)
Management of the Commodity Credit Corporation (CCC) is by a Board of Directors, who act under the general supervision of the Secretary of Agriculture. The Secretary of Agriculture is an ex-officio director and chairperson of the board. In addition to the secretary, the President appoints seven members who comprise the Board. All board members and corporation officers are USDA officials.
The CCC has no operating personnel. The Farm Service Agency’s (FSA) personnel and facilities handle price support, storage, and reserve programs, as well as domestic acquisition and disposal activities.
On October 17, 1933, President Franklin Roosevelt created the Commodity Credit Corporation as part of the New Deal. It was incorporated under a Delaware charter and given initial capitalization of $3 million. The funds came from the Reconstruction Finance Corporation. On July 1, 1939, the CCC transferred to the USDA, making a and then made a federal corporation within the USDA by the Commodity Credit Corporation Charter Act on July 1, 1948.
The Federal Agriculture Improvement and Reform Act of 1996, also known as the 1996 Farm Bill, changed U.S. agricultural policy. This Act removed the link between income support payments and farm prices, among other provisions. Before that Act, the USDA made deficiency payments to producers of wheat, feed grains, cotton, and rice to make up the differences between target prices and fluctuating market prices. The 1996 Farm Bill capped spending, guaranteeing farmers a series of fixed but declining production flexibility contract payments, which allowed them choices in what they could produce on their land.
The Updated CCC Charter Act
The CCC Charter Act, as amended by the Presidential Appointment Efficiency and Streamlining Act that went into effect on August 10, 2012. This Charter Act extended support to producers through loans, purchases, payments and other operations. It also ensured access to the materials and facilities required in the production and marketing of agricultural commodities and helped to facilitate their systematic distribution.
Today, the Commodity Credit Corporation operates numerous domestic programs, including those related to income support, disaster and conservation. Foreign assistance is also a significant focus for the CCC. It extends direct credit and guarantees commodity sales to foreign countries, and sends agricultural commodities to combat hunger and malnutrition. Assisting developing countries and emerging democracies under the Food for Progress Program is also a component of the CCC’s efforts to modernize and strengthen global agriculture.