Cabotage - Trade or transport in coastal waters between ports within the same country. U.S. "cabotage" legislation—notably the so-called Jones Act — is designed to support the maritime industry.
Cairns Group - An informal association of 15 agricultural exporting countries formed in 1986 at Cairns, Australia. During the Uruguay Round this group sought the removal of trade barriers and substantial reductions in subsidies affecting agricultural trade. These goals were in response to depressed commodity prices and reduced export earnings stemming from subsidy wars between the U.S. and the EU. The members account for a significant portion of the world's agricultural exports. The group includes major food exporters from both developed and developing countries: Argentina, Australia, Brazil, Canada, Chile, Colombia, Fiji, Indonesia, Malaysia, New Zealand, Paraguay, the Philippines, South Africa Thailand, and Uruguay. The Cairns Group was a strong coalition in the Uruguay Round of multilateral trade negotiations.
Call option - A contract that entitles the buyer the right, but not the obligation, to purchase an underlying futures contract at a stipulated basis or strike price at any time up to the expiration of the option. The buyer pays a premium to the seller for this contract. A call option is bought with the expectation of a rise in prices. See put option.
Campylobacteriosis - A diarrheal disease often caused by the type of bacteria known as Campylobacteria jejuni (C. jejuni) associated with poultry, raw milk, and water. There are an estimated 2.5 million cases annually in the United States with 200 to 730 deaths. Campylobacteriosis has been linked to Guillain-Barre syndrome (a disease which paralyzes limbs and breathing muscles) as well as Epstein-Barr, Cytomegalovirus, and other viruses. USDA has estimated that this disease costs the United States between $1.2 to $1.4 billion annually in medical costs, productivity losses, and residential care.
Cancellation - Refers to an action taken under Section 6(b) of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) to cancel a pesticide registration for one or more specific uses when the Environmental Protection Agency finds the use results in unreasonable adverse effects to the environment or public health when a product is used according to widespread and commonly recognized practice, or if its labeling or other material required to be submitted does not comply with FIFRA provisions.
Capper-Volstead Act - P.L. 67-146 (February 18, 1922), with a bit of exaggeration, is sometimes called the Magna Carta of Cooperation. The law was passed in response to challenges made against cooperatives using the Sherman Antitrust Act, the Clayton Antitrust Act, and the Federal Trade Commission Act. It gave "associations" of persons producing agricultural products certain exemptions from antitrust laws. The law carries the names of its sponsors, Senator Arthur Capper of Kansas and Congressman Andrew Volstead of Minnesota.
Captive supply - Products that manufacturers or processors own or contract to purchase for future delivery so as to have a predictable source of raw materials for their plants. In agriculture, the term often is used, for example, to refer to the cattle that beef packers own or contract to purchase 2 weeks or more before slaughter. Examples of such contracts include an exclusive agreement with an individual feedlot in which the price is based on market prices at time
of slaughter; or a contract in which the price is specified in advance or is based on some other formula. At issue is the effect that captive supplies have on prices paid to cattle producers.
Carbon sequestration - Retention of carbon in ways that prevent or delay its emission to the atmosphere as carbon dioxide. This may help mitigate climate change by reducing the amount in the atmosphere. Silvicultural practices that encourage rapid, long term tree growth are an example. Crop residue retention practices designed to prevent erosion and improve the productivity of soil, such as conservation tillage, also retain larger amounts of carbon compared to many traditional cultivation practices.
Carcass weight - The weight of an animal after slaughter and removal of most internal organs, head, and skin. On average, a beef carcass is about 60% of the weight of the live animal,
for hogs it is about 73%.
Carcass-by-carcass inspection - Usually refers to language in the federal Meat Inspection Act and the Poultry Products Inspection Act, respectively, that requires the Food Safety Inspection Service to inspect the carcass of each animal killed for human food, immediately after slaughter.
Carcinogen - Any substance that produces or promotes cancer. This is a key consideration in evaluating the safety of pesticides and other chemicals.
Cargo preference - The Cargo Preference Act (P.L. 83-664) requires that whenever the federal government pays for equipment, material, or commodities shipped to other countries, a minimum percentage of the gross tonnage shipped by sea must go by U.S. flag vessels. Cargo preference requirements have been an issue in U.S. international food aid and export subsidy programs.
Cargo Preference Act - P.L. 83-644 (August 26, 1954), as amended, contains permanent legislation concerning the transportation of waterborne cargoes in U.S.-flag vessels. The Act requires that 75% of the volume of U.S. agricultural commodities financed under P.L. 480 and other concessional financing arrangements be shipped on privately owned U.S.-registered vessels. Maritime interests generally support cargo preference, but proponents of P.L. 480 argue that it increases the costs of shipping U.S. commodities to poor countries and potentially reduces the volume of food aid that is provided.
Caribbean Basin Economic Recovery Act of 1983 (CBERA) - P.L. 98-67 (August 5, 1983), Title II, authorized unilateral preferential trade and tax benefits for eligible Caribbean countries, including duty-free treatment of eligible products. This law is commonly referred to as the Caribbean Basin Initiative (CBI). Amended several times, the last substantive revisions were made in the Caribbean Basin Economic Recovery Expansion Act of 1990 (P.L. 101-382, Title II, August 20, 1990). This made trade benefits permanent (repealing the September 30, 1995 termination date).
Caribbean Basin Initiative (CBI) - A permanent program designed to increase private investment, trade, and tourism in Caribbean countries, initially created by the Caribbean Basin Economic Recovery Act of 1983 and amended several times. It gives preferential trade and tax benefits for eligible Caribbean countries, including duty-free entry of eligible products. To be eligible, an article must be a "product" of (as defined in the U.S. general rules of origin) a beneficiary country and imported directly from it, and at least 35% of its import value must have originated in one or more CBERA beneficiaries. Slightly different import value rules apply to articles entering from Puerto Rico and the Virgin Islands. The duty-free import of sugar and beef products is subject to a special eligibility requirement that a beneficiary country submit and carry out a stable food production plan ensuring that increased production of sugar and beef will not adversely affect overall food production. Preferential tariff treatment, though, does not extend to imports of: textiles and apparel subject to textile agreements, specified footwear, canned tuna, petroleum and its products, and watches and watch parts containing any material originating in countries denied most-favored-nation trade status. Special criteria apply to the duty-free import of ethanol through FY2000. Import-sensitive products, not accorded duty-free tariff treatment, are eligible to enter at lower than most-favored-nation tariff rates. These products include handbags, luggage, flat goods (such as wallets, change purses, and key and eyeglass cases), work gloves, and certain leather wearing apparel.
Carrier - An inert material added to an active ingredient in a pesticide to enhance its delivery or effectiveness.
Carrying capacity - The maximum stocking rate for livestock possible without damaging vegetation or related resources. Carrying capacity may vary from year to year on the same area, due to fluctuating forage production. Used by the government in decisions about how many livestock will be allowed on an allotment on public lands.
Carryover - Existing supplies of farm commodity not used at the end of a marketing year, and remaining to be carried over into the next year. Marketing years generally start at the beginning of a new harvest for a commodity, and extend to the same time in the following year.
Cartel - An alliance or arrangement among industrial or commercial enterprises or nations aimed at limiting competition or exercising monopoly power in a market.
Casein - The major portion of milk protein, manufactured from skim milk and used in processed foods (such as dessert toppings and coffee whiteners) and in industrial products such as glue, paint and plastics.
Cash commodity - The physical or actual commodity as distinguished from the futures contract. Sometimes called spot commodity, or actuals.
Cash grain farm - A farm on which corn, grain sorghum, small grains, soybeans, or field beans and peas account for at least 50 percent of value of products sold
Cash in lieu of commodities - Refers to cash provided to food program operators (e.g., elderly nutrition programs, child care food programs, and some school food programs) in lieu of mandated commodity assistance. Recipients may use the cash to buy whatever foods they need to operate their meal service programs.
Cash market - The market for the cash commodity (as contrasted to a futures contract), taking the form of — (1) an organized, self-regulated central market (e.g., a commodity exchange); (2) a decentralized over-the-counter market; or (3) a local organization, such as a grain elevator or meat processor, which provides a market for a small region.
Cash price - The price in the marketplace for actual cash or spot commodities to be delivered via customary market channels.
Cash settlement - A method of settling certain futures contracts or option contracts whereby the seller (or short position) pays the buyer (or long position) the cash value of the commodity traded according to a procedure specified in the contract.
Catastrophic crop insurance (CAT) - A component of the federal crop insurance program, authorized by the Federal Crop Insurance Reform Act of 1994, that compensates farmers for crop yield losses exceeding 50% of their average historical yield at a payment rate of 60% of the projected season average market price. CAT coverage requires that a farmer realize a yield loss of more than 50% and only makes payments on losses exceeding the 50-percent threshold. Producers pay no premium for CAT coverage, but except for cases of financial hardship must pay an administrative fee of $50 per crop, up to a maximum of $200 per county and $600 in total (across all counties)
for CAT protection. Under the Reform Act of 1994 producers were required to obtain coverage at the CAT (or higher) level for crops of economic significance (accounting for 10% or more of their farm’s crop production value) in order to be eligible for various other USDA program benefits. The FAIR Act of 1996 relaxed this requirement. A producer has the ability to purchase additional insurance coverage beyond CAT coverage, but must pay a premium, partially subsidized by the government, for that additional coverage.
Cattle cycle - The approximately 10-year period in which the number of U.S. beef cattle is alternatively expanded and reduced over several consecutive years in response to perceived changes in profitability by producers. Generally, low prices occur when cattle numbers (or beef supplies) are high, precipitating several years of herd liquidation. As cattle numbers decline, prices gradually begin to rise, causing cattle producers to begin adding cattle to their herds. The
cycle is relatively long due to the long period of time it takes between the time a cow-calf operator decides to expand a cow herd to breed more beef cattle and the time those animals reach slaughter weight.
Census of Agriculture - A comprehensive set of quantitative information on the agricultural sector of the U.S. economy, broken down to the state and county levels (i.e., number of farms, land in farms, crop acreage and production, livestock numbers and production, production expenses, farm facilities and equipment, farm tenure, value of farm products sold, farm size, type of farm, among other data). The Census, conducted every 5 years, was the responsibility of the Commerce Department’s Bureau of the Census. However, the FY1997 USDA appropriations act (P.L. 104-180, August 6, 1996) transferred funding for the Census of Agriculture to USDA’s National Agricultural Statistics Service (NASS). NASS released the results of the 1997 Census in 1998.
Center for Food Safety and Applied Nutrition (CFSAN) - The agency within the Food and Drug Administration responsible for developing and overseeing enforcement of food safety and quality regulations and coordinating FDA and states’ surveillance and compliance programs, among other activities. FDA’s roughly 800 field inspectors (located administratively within FDA’s Office of Regulatory Affairs) enforce CFSAN’s food safety regulations at 53,000 processing facilities. CFSN announced that its food safety priorities for 1999 include stepping up surveillance of
imported fruits and vegetables, investigating the risk of Listeria, swiftly approving additives that can safeguard the nation’s food supply and adopting HACCP rules for manufacturers of fruit juices, seafood and shell eggs.
Center for Veterinary Medicine - An agency within the Food and Drug Administration that is responsible for assuring that all animal drugs, feeds (including pet foods), and veterinary devices are safe for animals, are properly labeled, and produce no human health hazards when used in food-producing animals.
Center pivot irrigation - A self-propelled irrigation system in which a single pipeline supported on towers rotates around a central point. These systems are typically about one-quarter mile long and serve 128 to 132 acre circular fields.
Centers for Disease Control (CDC) and Prevention - An agency within the Food and Drug Administration that monitors and investigates food borne disease outbreaks and compiles baseline data against which to measure the success of changes in food safety programs.
Central and Eastern European Countries (CEEC) - A term for the group of countries including Albania, Bulgaria, the Czech Republic, Hungary, Poland, Romania, the Slovak Republic, and the three Baltic States (Estonia, Latvia, and Lithuania).
Certificates (commodity) - Legal instruments, entitling a qualified bearer to a specific dollar value of USDA surplus commodities. Payment-in-kind (PIK) "certs" either can specify the types of commodities or be generic. Certificates were heavily used during the 1980s as a means of meeting financial obligations and simultaneously disposing of CCC-owned commodities.
Channelization - Engineering watercourses by straightening, widening, or deepening them so water will move faster. While improving drainage, this process can interfere with waste assimilation capacity, disturb fish and wildlife habitats, and aggravate flooding in other areas.
Check-off program - Usually, a reference to the generic research and commodity promotion programs for farm products that are financed by assessments applied to sales of those products by producers, importers, or others in the industry.
Chemigation - The application of a pesticide and/or fertilizer through any irrigation system. This delivery technique raises some concern that it may increase pollution.
Chemosterilant - A chemical that controls pests by preventing reproduction, thereby causing the population to collapse. This contrasts with chemicals that directly kill pests.
Child and Adult Care Food Program (CACFP) - This child nutrition program provides cash and commodity assistance to support meal service programs in child care centers, headstart facilities, outside of school programs, and family and group home day care homes for children, the elderly, and disabled. It is permanently authorized under Section 17 of the National School Lunch Act, administered by the Food and Nutrition Service, and funded annually by agricultural appropriations.
Child Nutrition Act of 1966 - P.L. 89-642 (October 11, 1966) was an anti-hunger initiative begun by the Johnson Administration as part of its "War on Poverty" and has been amended numerous times since then. It permanently authorizes the special milk program and the school breakfast program. The special supplemental nutrition program for women, infants, and children (WIC), which provides federal grant funds to states for monthly food packages and nutrition education for low-income mothers and young children, is authorized under this Act through FY2003, as is federal spending for state administrative expenses (SAE) associated with the operation of child nutrition meal service programs and the nutrition education and training (NET) program.
Child nutrition programs - A grouping of programs funded by the federal government to support meal and milk service programs for children in schools, residential and day care facilities, family and group day care homes, and summer day camps, and for low-income pregnant and postpartum women, infants, and children under age 5 in local WIC clinics. Programs include school lunch, school breakfast, summer food service, special milk, commodity distribution, nutrition education and training program, and the special supplemental nutrition program for women, infants and children (WIC). These programs are authorized under the National School Lunch Act and the
Child Nutrition Act of 1966; are financed by annual agricultural appropriations laws; and are administered by the Food and Consumer Service of USDA. Changes to the authorizing statutes generally are made by the Agriculture Nutrition and Forestry Committee in the Senate. In the House, the Education and the Workforce Committee deals with most changes to child nutrition program authorizing statutes, although the Agriculture Committee usually is involved when proposed changes concern commodity distribution, food issues, and requirements affecting agricultural interests and
the farmers market nutrition program.
Chlorinated hydrocarbons - Also known as organochlorines, these synthetic organic compounds contain chlorine. They tend to be persistent in the environment and to biomagnify in the food chain. Chlorinated hydrocarbons that are pesticides include DDT, aldrin, dieldrin, heptachlor, chlordane, lindane, endrin, mirex, hexachloride, and toxaphene. Most chlorinated hydrocarbon pesticide uses have been canceled because of their persistence, propensity to bioaccumulate, and toxicity to nontarget species.
Chlorophenoxy herbicides - A class of pesticides that includes 2,4-D. They mimic plant hormones. Uses of some have been canceled because of concerns about adverse health effects.
Cholinesterase inhibitors - A class of chemicals that includes numerous insecticides, such as parathion or carbaryl. They inhibit an enzyme found in animals that regulates nerve impulses. Cholinesterase inhibition is associated with a variety of acute symptoms such as nausea, vomiting, blurred vision, stomach cramps, and rapid heart rate.
Chronic Hunger - Long-term hunger caused by endemic problems of availability and access, rather than by temporary emergencies.
Chronic toxicity - The capacity of a substance to cause long-term or delayed adverse health effects. For example, a cancer resulting from exposure to a carcinogen may not appear for years or decades.
Citizen suits - Refers to the provisions often found in environmental laws which authorize any citizen to bring a lawsuit to enforce the provisions of an environmental law.
Class I differential - Under federal milk marketing orders, the minimum price a processor must pay for milk used for fluid consumption (Class I milk) is the basic formula price plus the Class I differential. The Class I differential varies by about $3.00 per hundredweight (cwt.) between the Upper Midwest and Southeast Florida. The Class I differential accounts for the costs of transporting milk, the added costs of marketing milk going into fluid milk products, and the higher cost of producing Grade A milk required for fluid products.
Class I equivalency - The amount of less productive land in a water district receiving Bureau of Reclamation water (Classes 2, 3, and 4) that would be necessary to be equivalent in productive potential to Class I land. This equivalency rating is made to adjust the number of acres that may be irrigated (see acreage limitation) so that less productive lands are equivalent in productive potential to 960 acres of Class I land.
Class I land - Under reclamation law, Class I land is defined as irrigable land within a particular agricultural economic setting that is productive enough to yield the highest level of suitability for continuous, successful irrigation farming, and has the highest relative productive potential as measured in net income per acre.
Class I Railroad - Any railroad with annual gross revenues of at least $250 million (in 1991), according to the U.S. Department of Transportation. These are the largest long-distance U.S. railroad systems such as Union Pacific-Southern Pacific, Norfolk Southern, CSX, and Burlington Northern-Santa Fe, which own most of the track in the United States. Since passage of the Staggers Rail Act of 1980, aimed at deregulating the once highly-regulated industry to make it more efficient and cost-competitive, the number of Class I railroads has declined through consolidations and mergers, from more than 30, to eight in 1998. This consolidation has concerned many agricultural shippers—particularly those who lack access to nearby markets or to water transportation—fearful of higher prices due to lack of competition.
Classified pricing - The pricing system of federal milk marketing orders, under which milk processors pay into a pool for fluid grade (Grade A) milk; its value is based on how the milk ultimately is used. Milk used for fluid (Class I) consumption receives a higher price than milk for processed (Class II, Class III, Class IIIa) dairy products.
Clayton Act - A 1914 law that supplemented the Sherman Anti-Trust Act of 1890 by clarifying market activities (including those in agriculture) considered to be monopolistic or trade-restraining. The Capper-Volstead Act later exempted agricultural cooperatives from certain Clayton and Sherman Act provisions.
Clean Air Act - The primary federal law governing efforts to control air pollution. Federal legislation addressing air pollution was first adopted in 1955 (Air Pollution Control Act, P.L. 84-159) to provide research and technical assistance. Subsequent amendments, most notably the Clean Air Act Amendments of 1970 (P.L. 91-604), 1977 (P.L. 95-95), and 1990 (P.L. 101-549), strengthened the federal role. The Clean Air Act seeks to protect human health and the environment from emissions that pollute the air. The Environmental Protection Agency is required to establish minimum National Standards Ambient Air Quality Standards (NAAQS), while states are assigned primary
responsibility for developing compliance. Areas not meeting the standards (nonattainment areas) are required to implement specific control measures. There is no direct federal regulation of agriculture under the Clean Air Act. Two of the NAAQS (for particulates and ozone) could affect agriculture: particulates, because certain agricultural practices, such as prescribed burning and tilling, create airborne particles that might be targeted for control in State Implementation Plans; and ozone, because concentrations of ozone above the standard can adversely affect crop yields. Ozone is formed in the atmosphere when nitrogen oxides and volatile organic compounds (from
manufacturing, transportation, and utilities) react in the presence of sunlight (agriculture rarely if ever represents significant sources of ozone precursors).
Clean Water Act - Refers collectively to the main federal law for protecting water quality [33 U.S.C. §§1251 to 1387]. This is the principal law governing pollution of the nation’s rivers, lakes, estuaries, and coastal waters. Originally enacted in 1948 as the Federal Water Pollution Control Act (P.L. 80-845), it was totally revised by amendments in 1972 that gave the Act its current name and shape (P.L. 92-500). The objective of the Act is the restoration and maintenance of the chemical, physical, and biological integrity of the nation’s waters. The Act is implemented by the Environmental Protection Agency in partnership with state and local governments. Programs in the Act have been primarily directed at managing point source pollution (wastes discharged from industrial facilities, sewage treatment plants, and municipal storm sewer systems). Agricultural activities have been less of a focus, but some may be affected by the Clean Water Act. The act established the NPDES system for pollution permits and the nonpoint source provisions of §§208 and 319 which deal with agricultural runoff. Large confined animal feeding operations are treated like industrial sources and are subject to permit requirements. Programs to manage nonpoint source pollution (rainfall runoff from farms, rangelands, forests, etc.) may affect agriculture. However, irrigation return flows are specifically exempt from regulation. A program in the Act that regulates discharges of dredged and fill material into wetlands (Section 404) requires permits for activities on agricultural wetlands.
Coastal Zone Management Program - P.L. 92-583 (October 27, 1972) created the Coastal Zone Management Program in 1972 to provide grants to eligible states and territories as an incentive to prepare and implement plans guiding the use of coastal lands and resources. Amendments in 1990 require participants to develop nonpoint pollution programs. These programs must specify and implement management measures to restore and protect coastal waters. For agriculture, management measures are specified for erosion, sediments, nutrients, pesticides, grazing, and animal waste. Participants must implement these management measures after they have been approved by whatever means necessary, including regulation. Federal approval of state proposals is pending.
Code of Federal Regulations (CFR) - The codification of the general and permanent rules published in the Federal Register by the Executive departments and agencies of the federal government. The Code is divided into 50 titles that represent broad areas subject to regulation. Most regulations directly related to agriculture are in title 7. Each title is divided into chapters that usually bear the name of the issuing agency, followed by subdivisions into parts covering specific regulatory areas. For example, 7 CFR 1410 are the regulations that apply to the Conservation Reserve Program.
Codex Alimentarius Commission - A joint commission of the Food and Agriculture Organization (FAO) and the World Health Organization, comprised of some 146 member countries, created in 1962 to ensure consumer food safety, establish fair practices in food trade, and promote the development of international food standards. The Commission drafts nonbinding standards for food additives, veterinary drugs, pesticide residues, and other substances that affect consumer food safety. It publishes these standards in a listing called the "Codex Alimentarius."
Coliform index - A rating of the purity of water based on a count of fecal coliform bacteria. The presence of fecal coliform bacteria, which are harmless bacteria that live in the intestines of humans and other vertebrate animals, indicates contamination by human or animal feces, and hence the potential presence of disease pathogens.
Collaborative Research Support Program (CRSP) - Created by a 1975 amendment, Title XII, to the Foreign Assistance Act of 1961, the CRSP is a long-term mechanism to encourage and support collaborative research efforts in the areas of international food and agriculture among U.S. Land Grant Universities and developing country National Agricultural Research Systems (NARS), International Agricultural Research Centers, agribusiness, private voluntary organizations (PVOs), academic institutions, private agencies, USAID, and other U.S. Federal agencies. CRSP research is intended to benefit both U.S. and host countries and to strengthen the agricultural sector of developing countries to promote economic growth.
Colonia - A substandard housing area defined in the Housing Act of 1949 as any identifiable community that: (1) is in the states of Arizona, California, New Mexico, or Texas; (2) is in an area that is within 150 miles of the border between the United States and Mexico (except for standard metropolitan statistical areas that have a population exceeding 1 million); (3) is designated by the state or county as a colonia; and (4) is determined to be a colonia based on criteria such as lack of potable water supply, lack of adequate sewage systems, and lack of decent, safe, and sanitary housing.
Colorado River Basin Salinity Control Act - P.L. 93-320 (June 24, 1974), and the laws authorizing three other conservation cost-sharing programs, were repealed in the FAIR Act of 1996 and replaced by a new cost-sharing program, the Environmental Quality Incentives Program (EQIP). Until it was replaced, the Colorado River Basin Salinity Control Program provided cost-sharing assistance to producers to install on-farm irrigation system improvements to prevent irrigation water heavily charged with salts and minerals from reentering the river. Participating farmers received up to 70% of total project costs and technical assistance. Participation was concentrated at sites where problems existed. This program was available to producers in the seven states of the Colorado River watershed. The law was administered by the Farm Service Agency until FY1996, when administration was transferred to the Natural Resources Conservation Service.
Colorado River Basin Salinity Control Program - This program was authorized in the Colorado River Basin Salinity Control Act and was repealed and replaced by the Environmental Quality Incentives Program in the FAIR Act of 1996. Administered by the Natural Resources Conservation Service, it is used to implement salinity control measures, primarily to manage irrigation water using financial and technical assistance to landowners. This program supports U.S. efforts to meet international treaty obligations for downstream water quality in Mexico.
Combine - A self-propelled machine for harvesting grain and other seed crops. In one operation, it cuts, threshes, separates, and cleans the grain and scatters the straw.
Commission on 21st Century Production Agriculture - An 11-member panel authorized by Title I-G of the FAIR Act (P.L. 104-127) to conduct a comprehensive review of the farm economy, including the impact of the 1996 law; and a follow-up review that must include recommendations for changes in federal agricultural policy. The commission submitted its initial review to Congress in May 1999; the second report is due on January 1, 2001.
Commodity Assistance Program - A title often used to refer to a variety of domestic programs receiving food in the form of USDA supplied commodities. It was formalized in FY1996 appropriations law (P.L. 104-37, October 21, 1995) for the first time to refer to the consolidation for funding purposes of three commodity donation programs that are authorized under two separate statutes: the Emergency Food Assistance Program (EFAP), Soup Kitchen-Food Bank Program, and the Commodity Supplemental Food Program (CSFP).
Commodity certificates - Payments issued by the Commodity Credit Corporation (CCC) in lieu of cash payments to participants in farm subsidy or agricultural export programs. Holders of certificates are permitted to exchange them for commodities owned by the CCC. Certificates were used not only to compensate program beneficiaries but also to reduce the large, costly, and price-depressing commodity surpluses held by the CCC during the mid-1980s.
Commodity Credit Corporation (CCC) - A wholly owned government corporation created in 1933 to stabilize, support, and protect farm income and prices (federally chartered by the Commodity Credit Corporation Charter Act of 1948 (P.L. 80-806, June 29, 1948)). The CCC, which has no staff, is essentially a financing institution for USDA’s farm price and income support commodity programs, and agricultural export subsidies. It is authorized to buy, sell, lend, make payments and engage in other activities for the purpose of increasing production, stabilizing prices, assuring
adequate supplies, and facilitating the efficient marketing of agricultural commodities. The FAIR Act of 1996 expanded the CCC mandate to include funding for several conservation programs (including the Conservation Reserve Program) and made conservation one of the purposes of the CCC. The programs funded through CCC are administered by employees of the Farm Service Agency. The CCC has the authority to borrow up to $30 billion from the U.S. Treasury to carry out its obligations. Net losses on financial operations subsequently are restored through the congressional appropriations process.
Commodity distribution - Direct donation of food products by the federal government to needy persons, schools, and institutions. Commodities are either entitlement or bonus. Bonus commodities can be received when they are available from surplus stocks purchased by the Commodity Credit Corporation under its price support program or the Agricultural Marketing Service under its surplus removal program (Section 32 of the Agricultural Adjustment Act of 1935).
Commodity Distribution Program - This program supplies authority for the Secretary of Agriculture to use agricultural surplus removal (Section 32) and Commodity Credit Corporation (CCC) funds to buy commodities for child and elderly nutrition programs. The Secretary is directed to use Section 32 funds not needed for other purposes and CCC funds (if stocks are not available) to buy commodities for donation to maintain the annually programmed level of commodity assistance for Child and Elderly Nutrition programs. The program is authorized through FY2003 under Section 14 of the National School Lunch Act (NSLA).
Commodity Distribution Reform Act and WIC Amendments of 1987 - P.L. 100-237 (January 8, 1988) established a free-standing law requiring the USDA to improve the distribution and quality of commodities donated to child nutrition programs. Also established a foodbank demonstration project making use of Section 32 agricultural surplus commodities, amended the National School Lunch Act to permit certain pilot projects receiving cash in lieu of commodities or commodity letters of credit to continue receiving them, and amended the Child Nutrition Act of 1966 to make a variety of changes to the WIC program to expand coordination with other programs, conduct studies, and convert certain food funding to use for administrative costs.
Commodity exchange - An organization operating under a set of bylaws aimed at promoting trade in one or more commodities by providing services and rules for the conduct of trade.
Commodity Exchange Authority - A former regulatory agency of USDA established to administer the Commodity Exchange Act prior to 1975; the predecessor of the Commodity Futures Trading Commission.
Commodity Futures Trading Commission (CFTC) - The independent federal regulatory agency established by the Commodity Futures Trading Commission Act of 1974 to administer the Commodity Exchange Act. It regulates trading on the futures exchanges in the United States. The CFTC also regulates the activities of numerous commodity exchange members, public brokerage houses, commodity trading advisors, and commodity pool operators.
Commodity Futures Trading Commission (CFTC) Act of 1974 - P.L. 93-463 (October 23, 1974) created the Commodity Futures Trading Commission, to replace the U.S. Department of Agriculture’s Commodity Exchange Authority, as the independent federal agency responsible for regulating the futures trading industry. The Act made extensive changes in the basic authority of Commodity Exchange Act of 1936, which itself had made extensive changes in the original Grain Futures Act of 1923.
Commodity Import Programs (CIPs) - The U.S. Agency for International Development uses a small portion of U.S. foreign aid funds to make grants and loans to countries judged important to U.S. foreign policy objectives. These CIPs, by making dollars available, help these countries finance purchases of U.S. commodities (including agricultural commodities) or other inputs needed to meet their development objectives and also provide balance-of-payments support to countries with very limited foreign exchange.
Commodity letters of credit (CLOC) - Food instruments issued in lieu of commodities to certain designated schools participating in the National School Lunch Program. These letters of credit specify the types of foods that schools must buy, which are the same types of foods being donated to other schools by USDA under the commodity distribution program.
Commodity loan rates - Price per unit (pound, bushel, bale, or hundredweight) at which the CCC provides nonrecourse loans to farmers to enable them to hold program crops for later sale. Commodity loans under the FAIR Act of 1996 are recourse for sugar in years that imports are below 1.5 million short tons, and will become recourse for dairy in 2000.
Commodity programs - This term is usually meant to include the commodity price and income support programs administered by the Farm Service Agency and financed by the Commodity Credit Corporation. The commodities now receiving support are: (1) those included in the production flexibility contract payments program, specifically wheat, feed grains, cotton, and rice; (2) those eligible for nonrecourse marketing assistance loans, soybeans and minor oilseeds; (3) those under marketing quota limits, peanuts and tobacco; (4) sugar and milk. A broader term that includes these programs and others is farm programs.
Commodity promotion programs - Programs that advertise and promote an agricultural commodity or product without reference to the specific farmer, brand name, or manufacturer. Producers can and do organize voluntary commodity promotion programs, but most are operated under the authority of either federal or state laws, frequently with the objective of requiring that all members of the industry participate. At the federal level, the programs are authorized by law, implemented by industry groups (after USDA review, rulemaking and approval), and financed by assessments (also called check-offs) of industry members such as producers, importers, and/or handlers. In the past, Congress enacted separate laws permitting producers of specifically-designated commodities to create such programs. The FAIR Act of 1996 also gives USDA general authority to create programs for any commodity at the request of a group of producers. In early 1999, 12 federal promotion programs were fully operational: beef, cotton, dairy products, eggs, fluid milk, honey, mushrooms, popcorn, pork, potatoes, soybeans, and watermelon. In addition to the federally authorized programs, there are between 300 and 350 state-legislated promotion programs covering about 80 farm commodities. Nine out of ten U.S. farmers contribute to one or more of these efforts, which, collectively, raise and spend hundreds of millions of dollars annually.
Commodity Supplemental Food Program (CSFP) - The CSFP provides funding for monthly food packages consisting of USDA commodities (juice, egg mix, and canned fruits and vegetables), and administrative funding for local agencies serving low-income pregnant and postpartum women, infants, children up to age 6, and persons 60 years of age or older. The precursor of the WIC program, the CSFP now operates in 81 project areas located in 20 states, and over one-half of the beneficiaries are elderly. CSFP is authorized through FY2002 under the Agriculture and Consumer Protection Act of 1973, as amended by the FAIR Act of 1996.
Common Agricultural Policy (CAP) - The set of legislation and practices jointly adopted by the nations of the European Union (EU) in order to provide a common, unified policy framework for agriculture. Its stated purposes are to increase farm productivity, stabilize markets, ensure a fair standard of living for farmers, guarantee regular supplies, and ensure reasonable prices for consumers. The CAP rests upon four basic principles: common import restrictions, common financing, common pricing, and common treatment of surpluses.
Common external tariff (CXT) - A tariff rate applied by a regional grouping of countries as a unit. For example, the European Community allows free trade in most agricultural commodities among member countries, but applies common external tariffs against many farm products imported from non-member or "third" countries.
Commonwealth of Independent States (CIS) - A formal association of states comprising the republics formed out of the former Soviet Union, with the exception of Estonia, Latvia and Lithuania. Included are Armenia, Azerbaijan, Belarus, Georgia, Kazakstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.
Community Development Corporation (CDC) - Tax-exempt, non-profit organizations whose primary mission is the economic and social revitalization of distressed urban and rural areas. A CDC is a community-based organization carrying out its activities within a geographically defined area. CDCs may support or undertake such activities as housing development and rehabilitation, job training and counseling, and business development activities.
Community Facilities Program (CFP) - Administered by the Rural Housing Service of USDA, the CFP provides grants, loans, and loan guarantees to local governments, federally recognized native tribes, and nonprofit organizations. Funds are used to construct, expand, or rehabilitate such community facilities as hospitals, clinics, nursing homes, ambulatory care centers, police and fire stations, rescue and fire vehicles, communication centers, telecommunications, distant learning and telemedicine, child and adult care centers, jails, courthouses, airports, and schools.
Community food projects - A program administered by the Cooperative State Research, Education and Extension Service providing one-time matching grants to private non-profit entities to establish and carry out multi-purpose projects designed to increase food security on a local, community-based level. Project objectives are to meet the needs of low-income people by increasing their access to fresher, more nutritious food supplies; to increase the self-reliance of communities in providing for their own food needs; and to promote comprehensive responses to local food, farm, and nutrition issues. Congress has provided from $1 million to $2.5 million annually for the program in recent years, which USDA has used to make grants ranging from $10,000 to $250,000 each.
Community Food Security - The availability within a community of adequate food market, with sufficient quality and quantity of food, and the financial and physical ability of the people in that community to acquire the available food.
Comparative Advantage - Refers to the economic theory that in international trade it is more advantageous for a country to devote its resources not to all lines of production in which it may have superiority (least cost production), but to those in which its relative superiority is greatest. Two countries may find trade mutually profitable even if one of the countries could produce all goods at lower cost than the other.
Competitive advantage - A situation in which one country, region, or producer can produce a particular commodity more cheaply than another country, region or producer.
Competitive bidding (for WIC) - With respect to the WIC program, refers to the method for containing program costs, particularly for infant formula contained in food packages; requires state WIC agencies to solicit bids to infant formula companies for the sale of their product. This is recommended but not required for other products sold through the program.
Competitive foods (in meal service) - Foods that may be regulated for sale in competition with the school lunch and breakfast programs under provisions of the National School Lunch Act.
Competitive imports - A term used by the Economic Research Service in its reporting of agricultural trade statistics to describe imports that are similar to and therefore competitive (in contrast to non-competitive) with those produced in the United States. Examples are beef, wheat, cotton, and sugar.
Complimentary imports - Agricultural import items not produced in appreciable commercial volume in the United States, such as bananas, coffee, rubber, cocoa, tea, spices and cordage fiber.
Composting - The controlled biological decomposition of organic material, such as sewage sludge, animal manures, or crop residues, in the presence of air to form a humus-like material. Controlled methods of composting include mechanical mixing and aerating, ventilating the materials by dropping them through a vertical series of aerated chambers, or placing the compost in piles out in the open air and mixing it or turning it periodically.
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
- Also known as Superfund [42 U.S.C. §§9601 to 9675], is the federal law which authorized EPA to require the cleanup of sites contaminated by past disposal of hazardous waste.
Concentrated animal feeding operation (CAFO) - Generally, a facility where large numbers of farm animals are confined, fed, and raised, such as dairy and beef cattle feedlots, hog production facilities, and closed poultry houses. The Environmental Protection Agency has developed a specific regulatory definition of CAFO for the purposes of enforcing the Clean Water Act. The Act requires individual places that are potential sources of water pollution to obtain point source discharge permits that specify the allowable levels of effluent from each of these places. The regulations define "animal feeding operations" as those confining livestock or poultry for 45 days or more in a 12-month period in a facility that has no vegetative ground cover. Such places are further considered "concentrated," and therefore required to have an EPA permit, if they reach certain size limits or meet other criteria specified in the EPA regulations. Those size limits are 700 mature dairy cattle, 1,000 beef cattle, 100,000 chickens, 55,000 turkeys, 2,500 swine, or 10,000 sheep.
Concentration (economic) - A measure of the degree to which a few large firms dominate total sales, production, or capacity within an industry or market. The concern is that the more concentrated an industry, the greater the likelihood of price and market manipulation. For example, meat packer concentration has long been a concern of cattle producers. It is common to express concentration as a ratio, by stating the share (%) held by the top 4, 8, or 12 firms.
Concessional (export) sale - A sale in which a foreign buyer is allowed loan payment terms that are more favorable than those obtainable in the commercial market. Under P.L. 480, the concessional provisions (compared to the commercial market) may include a lengthy credit period, a grace period before repayment begins, and a low interest.
Conditional registration - Under special circumstances, the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) permits registration o