North Dakota Ag Connection - Hoeven Urges Reimbursemenr of Commodity Credit Corp.

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Hoeven Urges Reimbursemenr of Commodity Credit Corp.
North Dakota Ag Connection - 09/18/2020

Senator John Hoeven, chairman of the Senate Agriculture Appropriations Committee and a member of the Senate Agriculture Committee, Thursday led a Senate colloquy to outline the importance of supporting farmers, ranchers and rural America by fully reimbursing the Commodity Credit Corporation (CCC) as part of legislation to fund the government. The CCC, which is regularly reimbursed in annual appropriations bills, funds many farm bill programs. That includes countercyclical safety net programs such as the agriculture risk coverage (ARC) and price loss coverage (PLC) programs, as well as working land programs like the Conservation Stewardship Program and the Environmental Quality Incentives Program.

Hoeven was joined in the colloquy by Senate Agriculture Committee Chairman Pat Roberts, Senator John Thune, Senator Deb Fischer, Senator Joni Ernst, Senator Cindy Hyde Smith and Senator John Boozman.

The senators outlined the importance of CCC reimbursement and cited a letter signed by more than 40 farm groups outlining the importance of fully funding the CCC as part of a continuing resolution (CR) being negotiated by Congress. As chairman of the Senate Agriculture Appropriations Committee, Hoeven has been working to ensure that CCC reimbursement is included in a CR.

The CCC stabilizes, supports, and protects farm income and prices, assists in maintaining balanced and adequate supplies of agricultural commodities and their products, and facilitates the orderly distribution of commodities.

It was originally 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 U.S. Department of Agriculture and later reincorporated under the Commodity Credit Corporation Charter Act (62 Stat.1070; 15 U.S.C. 714) on July 1, 1948 as a Federal corporation within the USDA.

"We have about $14 billion secured in the CARES Act that is ready to go out to support our nation's farmers and ranchers," said Hoeven. "Then we need to reimburse the CCC. This is not a new thing, but something that as chairman of the Agriculture Appropriations, we work to do every year. We need to reimburse the CCC up to $30 billion, and we must get that done now in the CR so that we can continue to provide that help and support for our farmers and our ranchers. The CCC funds the key farm programs, the counter cyclical safety net, including ARC and PLC. This isn't just about good farm policy in this country, but it will benefit all Americans. We have the lowest cost, highest quality food supply in the world that benefits every single American, every single day because of our farmers and ranchers. That is how important this is."

CCC also carries out assigned foreign assistance activities, such as guaranteeing the credit sale of U.S. agricultural commodities abroad. Major emphasis is also being directed toward meeting the needs of developing nations. Agricultural commodities are supplied and exported to combat hunger and malnutrition and to encourage economic development in developing countries. In addition, under the Food for Progress Program, CCC supplies commodities to provide assistance to developing democracies.

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