What is a commodity credit company?

2 CCC, managed by the Ministry of Agriculture (USDA), provides loans and payments, issues commercial warranties and provides materials and equipment for production, storage, marketing and distribution of American agricultural products both domestic and abroad. It provides financing for various commodity programs to support Agriculture and Revenue USDA and helps in its marketing and distribution. It also authorizes the sale and gift of agricultural products to foreign government and international auxiliary agencies and other US government agencies. Most CCC programs include the provision of financial support to US manufacturers of agricultural commodities.

CCC was created in 1933 by the executive order of the then President Franklin D. Roosevelt as a result of the ghosts of the bowl that decimated the production of the agricultural farm of the US and the livelihood of farmers to "stabilize, support and protect the income and prices of agriculture". CCC provides producers of agricultural commodities that do not register commodity loans for a specified rate per onetku, and part of the production is committed as collateral. CCC payments for those who are entitled to agricultural subsidies and agricultural export programs are worthwhile in the form of commodity certificates. CCC is also entitled to transport, store, process and dispose of agricultural commodities and their products, usually by closing the owners of the private sector of commercial warehouses for storage in regional and transport terminals.

Employees of the USDA Farning Service actually perform most of the price support, storage and reserve Commodity Credit Corporation because the agency itself does not have surgical employees. In addition to this -educational marketing service USDA sometimes operates with the CCC to buy or sell agricultural commodities for domestic and foreign assistance programs. The General Sales Manager of the Foreign Agricultural Service manages the export sales and liquidation of CCC agricultural shares related to foreign food assistance programs.

Commodity Credit SocietyOst is managed by the Secretary of USDA and the seven -member board of directors appointed by the President, all of whom are USDA officials. It has an authorized capital base of $ 100 million and borrows up to $ 30 billion from the US Treasury, Private Credit Agencies and more. CCC may issue bonds and other financial obligations to support its activities, all of which are subject to the approval of the US Finance Minister, although such supervision is rarely applied. As president of CCC, the USDA Minister for Agricultural and Foreign Agricultural Services serves. The agency administrator serves as its Executive Director.

u.s. Agricultural subsidies were reduced when passing through the 1996 Farm Act, which introduced a ceiling and a solid but declining payments for the flexibility of CCC producers carried out to wheat producers, feed, cotton and rice to compensate for the difference between the negotiated goal and more unstable market prices for agricultural commodities. US farmerIn 1996, the CCC expanded its purpose to include nature and financing programs.