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.

CACFP — Child and Adult Care Food Program.

CAFO — Concentrated animal feeding operation.

Cairns Group — An informal association of 15 agricultural exporting countries, formed in 1986 at Cairns, Australia. Members are Argentina, Australia, Brazil, Canada, Chile, Columbia, Fiji, Indonesia, Malaysia, New Zealand, Paraguay, the Philippines, South Africa, Thailand, and Uruguay. This group, during the Uruguay Round, sought removal of trade barriers and substantial reduction in subsidies affecting agricultural trade.

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.

Canadian Wheat Board (CWB) — A quasi-governmental self-financed agency, established in 1935, that markets Canadian wheat, oats, and barley on behalf of producers. Commercial grain is put into annual marketing pools by grade, with the pool period lasting 12 months and ending July 31. The CWB markets the grain to domestic and foreign buyers, with unsold grain transferred to the pool established for the next year. The overall procedure ensures a uniform per-bushel return, excluding storage costs, to all producers for each grade, regardless of the time they deliver their grain to elevators. The flow of grain from farm to terminal is closely regulated. The CWB also works to develop new markets for Canadian wheat and has authority to enter into long-term supply contracts with foreign countries.

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.

CAP — Common Agricultural Policy.

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.

CARD — Center for Agricultural and Rural Development.

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 — The supply of a farm commodity not yet used at the end of a marketing year and carried over into the next marketing year. An excessively large carryover is typically described as a surplus condition that causes prices to fall. When the carryover falls below normal, there may be concerns of a shortage contributing to price escalation.

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 forward sale — See forward contracting.

Cash grain farm — A farm where corn, grain sorghum, small grains, soybeans, or field peas and beans account for at least 50% of the value of farm 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.

CAST — Council for Agricultural Science and Technology.

CAT — Catastrophic crop insurance.

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.
 

BACK to Ag Glossary
 

CBI — Caribbean Basin Initiative.

CBT — Chicago Board of Trade.

CCC — Commodity Credit Corporation.

CCI — Cotton Council International.

CD — Conservation district.

CDC — Centers for Disease Control and Prevention.

CED — County Executive Director.

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).

CEQ — Council on Environmental Quality.

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.

CFCs — Chlorofluorocarbons.

CFO — Conservation farm option; Chief Financial Officer.

CFR — Code of Federal Regulations.

CFSCAN — Center for Food Safety and Applied Nutrition.

CFTC — Commodity Futures Trading Commission.

CGIAR — Consultative Group on International Agricultural Research; htttp://www.cgiar.org/]

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 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.
 

BACK to Ag Glossary
 

C.I.F. (or c.i.f.) — Cost, insurance, and freight.

CIPs — Commodity import programs.

CIS — Commonwealth of Independent States.

CJD — Creutzfeldt-Jakob disease (see bovine spongiform encephalopathy).

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 — 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. 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.

CLOC — Commodity letters of credit.

CMA — Chemical Manufacturers Association.

CME — Chicago Mercantile Exchange.

CMS — Conservation management system.

CNP — Child nutrition programs.

CNPP — Center for Nutrition Policy and Promotion.
 

BACK to Ag Glossary
 

CO — Conservation operations.

COAP — Cottonseed Oil Assistance Program.

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.

CoBank — National Bank for Cooperatives.

COC — County Office Committee.

COD — Chemical oxygen demand.

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.

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 grain harvester. In one operation it combines cutting, threshing, separation, cleaning, and straw dispersal.

Commission on 21^st 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.
 

BACK to Ag Glossary
 

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.

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.

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) — P.L. 99-499 (December 11, 1980) is commonly known as the Superfund law. It is the principal federal law for cleaning up hazardous waste sites to protect human health and the environment from releases of hazardous substances.

Con Act — Consolidated Farm and Rural Development Act of 1961.

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 of pesticide products that is "conditional" upon the submission of additional data. These special circumstances include a finding by the Environmental Protection Agency that a new product or use of an existing pesticide will not significantly increase the risk of unreasonable adverse effects. A product containing a new (previously unregistered) active ingredient may be conditionally registered only if the EPA finds that such conditional registration is in the public interest, that a reasonable time for conducting the additional studies has not elapsed, and the use of the pesticide for the period of conditional registration will not present an unreasonable risk.

Conjunctive use — Water management methods. Usually used to describe the practice of storing surface water in a groundwater basin in wet years and withdrawing it from the basin in dry years. Often used in discussing water supplies and water conservation.

Conservation — The management of human and natural resources to provide maximum benefits over a sustained period of time (see sustainable agriculture). In farming, conservation entails matching cropping patterns and the productive potential and physical limitations of agricultural lands to ensure long-term sustainability of profitable production. Conservation practices focus on conserving soil, water, energy, and biological resources. Contour farming, no-till farming, and integrated pest management are typical examples of conservation practices.

Conservation (cross) compliance — A provision originally authorized by the Food Security Act of 1985 that requires farmers who operate on highly erodible land to manage this land under an approved conservation system in order to maintain eligibility in specified federal farm programs. The FAIR Act of 1996 amended the conservation compliance provisions in several ways to provide greater planting flexibility to farmers.

Conservation districts (Soil and Water Conservation District) — A legal subdivision of a state government, with an elected governing body, which develops and implements soil and water conservation programs within a certain area, usually coinciding with county lines. The nearly 3,000 districts in the United States have varying names — soil conservation district, soil and water conservation district, natural resources district, resource conservation district, resources district, or conservation district.

Conservation easement — Acquisition of rights and interest to a property to protect identified conservation or resource values, using a reserved interest deed. Since the mid 1970s, conservation easements have been purchased to protect nearly 420,000 acres of farmland in fifteen states, primarily in the Northeast.

Conservation Farm Option Program — A provision of the FAIR Act of 1996 authorizes a pilot program for producers who receive production flexibility payments to enter into a contract to consolidate payments at rates that are equivalent to payments that would otherwise be received from the Conservation Reserve Program, Wetlands Reserve Program, and/or the Environmental Quality Incentives Program in exchange for implementing practices to protect soil, water, and wildlife.

Conservation plan — A combination of land uses and farming practices to protect and improve soil productivity and water quality, and to prevent deterioration of natural resources on all or part of a farm. Plans may be prepared by staff working in conservation districts and must meet technical standards. For some purposes, such as conservation compliance, the plan must be approved by the local conservation district. Under the 1996 FAIR Act, conservation plans for conservation compliance must be both technically and economically feasible.

Conservation practice — Any technique or measure used to protect soil and water resources for which standards and specifications for installation, operation, or maintenance have been developed. Practices approved by the Natural Resources Conservation Service are compiled at each conservation district in its field office technical guide.

Conservation Reserve Enhancement Program (CREP) — A sub program of the Conservation Reserve Program, CREP is a state-federal multi-year land retirement program developed by states and targeted to specific state and nationally significant water quality, soil erosion, and wildlife habitat problems. The CREP offers higher payments per acre to participants than the CRP, and perhaps other benefits as well. States with approved programs include Maryland, Minnesota, Illinois, New York, Oregon, Washington, and North Carolina.

Conservation Reserve Program (CRP) — A program, created in the Food Security Act of 1985, to retire from production up to 45 million acres of highly erodible and environmentally sensitive farmland. Landowners who sign contracts agree to keep retired lands in approved conserving uses for 10-15 years. In exchange, the landowner receives an annual rental payment, cost-share payments to establish permanent vegetative cover and technical assistance. The CRP reportedly has reduced erosion by up to 700 million tons per year. The FAIR Act of 1996 extends authorization to enroll land through 2002 and caps maximum CRP acreage at 36.4 million acres, its 1995 level. The Act also makes the program spending mandatory and finances it through the Commodity Credit Corporation.

Conservation Technical Assistance (CTA) — CTA has been the central activity of the Natural Resources Conservation Service since it was established in 1936. NRCS field staff help landowners and farm operators plan and implement soil and water conservation and water quality practices. The most common use of this program in recent years has been preparing and updating conservation compliance plans. In FY1993, CTA assisted 1.2 million farmers and serviced 62 million acres.

Conservation tillage — Any tillage and planting system that leaves at least 30% of the soil surface covered by residue after planting. Conservation tillage maintains a ground cover with less soil disturbance than traditional cultivation, thereby reducing soil loss and energy use while maintaining crop yields and quality. Conservation tillage techniques include minimum tillage, mulch tillage, ridge tillage, and no-till.
 

BACK to Ag Glossary
 

Conserving use acreage — Farmland diverted from crop production to an approved cultural practice that prevents erosion or other degradation. Though crops are not produced, conserving use is considered an agricultural use of the land.

Considered planted — Refers to a provision of the Agricultural Act of 1949 that was used to implement the base acreage and yield system for the 1991-95 crops, a provision that was suspended by the FAIR Act of 1996. Under previous law, crop acreage bases were, in general, calculated as a 5-year average of planted and considered planted acreage. Acreage considered planted includes acreage idled under production adjustment programs or for weather-related reasons or natural disasters; acreage devoted to conservation purposes or planted to certain other allowed commodities; and acreage USDA determines is necessary for fair and equitable treatment.

Consolidated Farm and Rural Development Act of 1961 — P.L. 87-128 (August 8, 1961) authorized a major expansion of USDA lending activities, which at the time were administered by Farmers Home Administration (FmHA), but now through the Farm Service Agency. The legislation was originally enacted as the Consolidated Farmers Home Administration Act of 1961. In 1972, this title was changed to the Consolidated Farm and Rural Development Act, and is often referred to as the Con Act. The Con Act, as amended, currently serves as the authorizing statute for USDA’s agricultural and rural development lending programs. Titles in the Act include current authority for the following three major FSA farm loan programs—farm ownership, farm operating and emergency disaster loans. Major amendments to the Con Act enacted in recent years that affect current USDA farm lending programs include the following: Title VI of the Agricultural Credit Act of 1987 (P.L. 100-233, January 6, 1988) assists borrowers by requiring FSA to restructure or write down a delinquent loan if the government cost of restructuring is less than the cost of foreclosure. Title VI details the restructuring process and gives delinquent borrowers specific rights throughout the process. Title XVIII, Subtitle A of the FACT Act of 1990 contained provisions designed to curb the perceived abuses of the borrower rights provisions of the 1987 Act. The 1990 farm bill allows FSA to consider the equity in non-essential assets in determining what portion of the loan can be written down and also gives FSA the authority to deny a borrower restructuring if these non-essential assets can be liquidated to make the borrower current on the delinquent loan. The Agricultural Credit Improvement Act of 1992 (P.L. 102-554, October 28, 1992) established new USDA loan programs to assist beginning farmers and ranchers. The law established direct and guaranteed loan programs for beginning farmers and ranchers, and a program to provide 10-year loans for beginning farmers and ranchers to purchase their own farm or ranch in return for a down payment equivalent to 10% of the purchase price of the land. The law also limited the total number of years any borrower may participate in the agency’s farm ownership and operating loan programs. Title VI of the FAIR Act of 1996 directly affects eligibility for FSA loans and the servicing of its delinquent loans. It tightens the borrower rights provisions of the 1987 Act by, e.g., prohibiting any borrower who has had debt forgiven on a delinquent loan from receiving a new loan, and expedites the sale of farmland acquired by USDA through foreclosure or other forms of debt settlement.

Consumer-oriented agricultural products — One of three broad categories of agricultural products used by the Foreign Agricultural Service to report export and import data under its BICO system. (The others are bulk commodities and intermediate agricultural products. Consumer-oriented agricultural products are high value products that usually (but not always) are those ready, or easily made ready, for immediate use by consumers. Notable examples are snack foods, breakfast cereals, bakery mixes, eggs and products, dairy products, fresh or processed red meats and poultry, fresh or processed fruits, vegetables, nuts, pet foods, wine, and beer.

Consolidation — In agriculture and other economic sectors, consolidation usually is a reference to the trend from numerous smaller-sized operations toward fewer and larger ones. Consolidation can lead to higher concentration. See industrialization.

Consultative Group on International Agricultural Research (CGIAR) — An informal association of 56 public and private organizations that support 16 international agricultural research centers. All but three of the research centers are located in developing countries. The cosponsors of CGIAR are the Food and Agriculture Organization of the United Nations, the United Nations Development Programme, the United Nations Environment Programme, and the World Bank (where the CGIAR Secretariat is headquartered). CGIAR’s mission is to promote sustainable agriculture in developing countries with the goal of creating food security, alleviating poverty, and preserving natural resources.

Consumer Price Index (CPI-U) — The Bureau of Labor Statistics’ general measure of retail prices (for goods and services) paid by urban wage earners and clerical workers. Includes prices of about 400 items, including food, clothing, housing, medical care, and transportation. The CPI-U is commonly used to deflate time series data and is the most widely accepted measure of inflation.

Consumer subsidy equivalent (CSE) — A measure of the value of monetary transfers to consumers resulting from agricultural policies in a given year. If negative, it measures the implicit tax imposed on consumers by agricultural policies. The main component of the CSE is market transfers due to market price support to producers. The CSE can be measured in money terms, in money terms per unit of production, or in percentage terms. See producer subsidy equivalent (PSE).

Consumptive water use — Water removed from available supplies without return to a water resources system, e.g., water used in manufacturing, agriculture, and food preparation. Crop consumptive water use is the amount of water transpired during plant growth plus what evaporated from the soil surface and foliage in the crop area.

Continuous inspection — USDA’s meat and poultry inspection system is often called "continuous" because no animal destined for human food may be slaughtered or dressed unless an inspector is continuously present to examine each one before slaughter (antemortem inspection), and its carcass and parts after slaughter (postmortem inspection). In processing plants (as opposed to slaughter plants), inspectors need not be present at all times, but they do visit at least once daily. Thus, processing inspection is also considered to be continuous.

Contour farming — Field operations (such as plowing, planting, cultivating, and harvesting) at right angles to the natural slope to reduce soil erosion, protect soil fertility, and limit water runoff. Contour strip farming is a kind of contour farming in which row crops are planted in strips, between alternating strips of close-growing, erosion-resistant forage crops.

Contract — Written or oral agreement spelling out the parties’ understanding of how a commodity is to be produced and/or marketed, including specifications for quantity, quality, and price. Marketing contracts are commonly used for crops, while production contracts are more prevalent in the livestock industry. Contracts contrast to cash markets. Cash markets continue to dominate the agriculture sector, accounting for almost 70% of farm commodity sales in 1997. However, contracting could likely continue to grow as a risk management tool for farmers and a coordination tool for processors. Futures contracts provide a way to manage price risk that typically do not involve actual delivery of commodities.

Contract acreage — Enrolled 1996 commodity base acreage under the FAIR Act of 1996 for wheat, feed grains, upland cotton, and rice (generally fixed for 1996 through 2002). A farmer may voluntarily choose to reduce contract acreage in subsequent years. Land leaving the CRP may be entered into a production flexibility contract if the land was previously commodity base acreage.

Contract commodity — The commodities previously eligible for deficiency payments and now eligible for production flexibility contracts under the FAIR Act of 1996: wheat, corn, sorghum, barley, oats, rice, and upland cotton.

Contract for future sale — A sales contract under which a farmer agrees to deliver products of specified quality and quantity to a buyer for a specified price within a prescribed time frame. Contract sales are a growing practice, recently accounting for 86% of poultry, more than 50% of fruits, and 43% of milk. The benefits to processors are greater uniformity and predictability resulting in lower costs of grading, processing, and packing. The benefits to farmers are more stable income from a guaranteed market and price, and possibly access to a wider range of production inputs and advanced technology.

Contract payments under AMTA — Some $36 billion in payments to be made to farmers for contract crops for fiscal years 1996-2002 under Title I of the FAIR Act of 1996, known as the Agricultural Market Transition Act (AMTA). The total amount made available for each fiscal year is specified in the Act and allocated to commodities each fiscal year using a set of percentages also specified in the Act. These percentages were based on the Congressional Budget Office’s February 1995 baseline forecast of what deficiency payments would have been if provisions in effect for the 1995 crop had been extended. For example, for fiscal 1997, the total allocation for wheat is 26.26% of total annual payments of $5.385 billion, or $1.414 billion. The annual payment rate for wheat equals total spending ($1.414 billion) divided by the sum of all individual wheat payment contract quantities for the year. As with other program commodities, an individual farm’s payment quantity equals the farm’s program payment yield multiplied by 85% of the farms wheat contract acreage. Program yields under the 1996 Act are determined in the same manner as under the 1949 Act for 1995 crops. An individual farmer’s transition payment is the payment quantity times the annual payment rate. The payment is made by September 30 of each of the fiscal years 1996 through 2002. Producers may also choose to receive 50% of the contract payment in December or January of the fiscal year. Farmers have near total planting flexibility on the contract acres (the exception being fruits and vegetables) as well as on the remainder of the farm.

Contract production — A form of vertical integration where a firm commits to purchase a commodity from a producer at a price formula set in advance of the purchase.

Contract sanctity — The concept that U.S. agricultural products already contracted to be exported should not be subject to government cancellation because of short supply, national security, and/or foreign policy reasons. The FACT Act of 1990 provides for contract sanctity by prohibiting the President from restricting the export of any agricultural commodity already under contract to be delivered within 270 days from the date the embargo is imposed, except during national emergency or war.
 

BACK to Ag Glossary
 

Conventional agriculture — Generally used to contrast common or traditional agricultural practices featuring heavy reliance on chemical and energy inputs typical of large-scale, mechanized farms to alternative agriculture or sustainable agriculture practices. Mold-board plowing to cover stubble, routine pesticide spraying, and use of synthetic fertilizers are examples of conventional practices that contrast to alternative practices such as no-till, integrated pest management, and use of animal and green manures.

Conventional tillage — Tillage operations considered standard for a specific location and crop and that tend to bury the crop residues; usually considered as a base for determining the cost effectiveness of erosion control practices. See no-till farming.

Converted wetland — Under the swampbuster program, these are wetlands that were drained or altered to improve agricultural production after December 23, 1985, the date swampbuster was enacted. On lands with this designation, no drainage maintenance and no additional drainage are allowed.

Conveyance loss — Water loss in pipes, channels, conduits, ditches by leakage or evaporation.

Cooperative — An enterprise or organization owned by and operated for the benefit of those using its services. In agriculture, such an organization is owned and used by farmers mainly to handle the off-farm part of their businesses — buying farm supplies, marketing their products, furnishing electric and telephone service, and providing business services —at cost. Essential features are democratic control, limited return on capital, and operation at cost, with distribution of financial benefits to individuals in proportion to their use of the services made available by the cooperative (called patronage refunds). In 1997, there were 3,884 farmer cooperatives in the United States. As a variation from the traditional design, so-called "new generation cooperatives" are characterized by limited membership, require substantial investment, and include delivery contracts. Producers are increasingly using this model to create their own value-added business enterprises. The Rural Business-Cooperative Service (RBS) assists in forming new cooperative businesses and improving the operations of existing cooperatives through technical assistance, research, information products. Cooperatives are afforded certain antitrust exemptions by the Capper-Volstead Act.

Cooperative Extension System — A federal-state-local cooperative education system that provides continuing adult education based on the academic programs of the land grant colleges of agriculture and their affiliated state agricultural experiment stations. The system employs approximately 32,000 people located on land grant campuses and offices in virtually every county in the nation. About half of Extension’s education programs focus on agriculture and natural resources, one-quarter on youth development (including the vocational 4-H program), and the balance on home economics and community resource development work.

Cooperative Research and Development Agreement (CRADA) — The Federal Technology Transfer Act of 1986 allows industry to enter into research contracts with government laboratories. In exchange for this cooperation, the company involved is entitled to first rights to obtain an exclusive license to any inventions that may emerge as a result of the CRADA. USDA’s in-house research agency, the Agricultural Research Service has developed more than 800 CRADAs with industry since the law was enacted.

Cooperative State Research, Education, and Extension Service (CSREES) — The USDA agency that administers federal funds appropriated for agricultural and forestry research, extension, and education programs at eligible institutions, including the land grant colleges of agriculture in the states, selected veterinary schools, and other institutions with capabilities in the food and agricultural science arena. The agency administers formula funds to the 1862 land grant colleges under the Hatch Act of 1887, the Smith-Lever Act of 1914 and the McIntire-Stennis Act of 1962; Evans-Allen funds for research programs at the 1890 land grant colleges; the National Research Initiative (NRI) Competitive Grants program; the Special Grants program; grants for higher education; and the research portion of the Fund for Rural America.

Cooperator Program — Officially known as the Foreign Market Development Program (FMDP). One of the agricultural export promotion programs operated by the Foreign Agricultural Service. This program consists of joint government/agri-industry efforts to develop markets by acquainting potential foreign customers with U.S. farm products. Activities under this program include providing technical assistance to prospective foreign buyers, overseas food exhibits, product demonstrations and advertising aimed at foreign consumers. FAS shares the financing of these projects with the "cooperators," which are nonprofit commodity trade associations primarily composed of producer-based farm groups.

Coordinated review effort (CRE) — Food and Consumer Service reviews of the National School Lunch Program conducted in cooperation with state agencies to improve the management of the programs, evaluate meal data accuracy, and provide training and technical support to schools to help improve local program accountability.

Corn Belt — That area of the United States where corn is a principal cash crop, including Iowa, Indiana, most of Illinois, and parts of Kansas, Missouri, Nebraska, South Dakota, Minnesota, Ohio and Wisconsin.

Corn gluten — A byproduct of wet milling of corn. Corn gluten is used as a medium-protein (20-24%), medium-fiber (10%) feedstuff. The European Union is the major market for U.S. corn gluten feeds.

Corn/hog ratio — See hog/corn ratio, and feed ratio.

Corporate farm — A form of farm ownership which is a separate legal entity from the owners of the farm. Changes in the tax law in the 1970s encouraged the incorporation of farms as corporate tax rates declined while individual tax rates rose, mainly because of inflation. The 1992 Census of Agriculture reports that less than 4%, or nearly 73,000, of the 1.925 million farms in the nation were corporate farms. By contrast, more than 1.653 million (86%) were individual or family-owned operations and 186,000 (10%) were partnerships.

Cosmetic appearance — Section 1351 of the FACT Act of 1990 defines the term as "the exterior appearance of an agricultural commodity, including changes to that appearance resulting from superficial damage or other alterations that do not significantly affect yield, taste, or nutritional value." The Agricultural Marketing Service sets grades and standards for many agricultural commodities. Some consumer and environmental groups have argued that some of these standards are harmful because they encourage excessive pesticide use merely to make fruits and vegetables "attractive." Agricultural interests disagree, countering that consumers prefer blemish-free produce and that cosmetic standards are no less important than other grading factors.

Cost/benefit analysis — A quantitative and sometimes qualitative evaluation of the costs which would be incurred by some action (such as building a dam, or implementing an environmental regulation) versus the overall benefits to society of the proposed action. See risk-benefit analysis.

Cost-containment (for WIC) — Refers to statutory provisions in the Child Nutrition Act of 1966 that require state agencies to contain WIC program costs, particularly with respect to the cost of infant formula sold through the program. See competitive bidding and sole source bids.

Cost, insurance, and freight (C.I.F.) — In general, c.i.f. means that the seller’s price includes the cost of the goods, the marine insurance, and all transportation charges to the named point of destination. Similar terms include C.&F., cost and freight; C.F.I., cost, freight, and insurance; C.I.F. & C., cost, insurance, freight, and commission; C.I.F.C. & I., cost, insurance, freight, commission, and interest; and C.I.F.I. & E., cost, insurance, freight, interest, and exchange. C.A.F. is the French form of C.I.F.

Cost of production — The average unit cost (including purchased inputs and other expenses) of producing an agricultural commodity. The Agricultural and Consumer Protection Act of 1973 requires USDA to make annual estimates of the average cost of producing selected commodities. These cost of production estimates have been used by Congress in considering farm policy options.
 

BACK to Ag Glossary
 

Cotton competitiveness provisions — Provisions added by the Food, Agriculture, Conservation, and Trade Act of 1990 to the cotton program designed to keep U.S. cotton price competitive in domestic and export markets. Sometimes referred to as the "three-step competitiveness" provisions. Step 1 is the discretionary authority for USDA to reduce the adjusted world price (used in the cotton marketing assistance loan program) when world prices are declining to near the adjusted world price, but U.S. prices are higher than world prices. Though rarely used, the Step 1 adjustment is intended to make marketing loans more effective in keeping U.S. cotton globally competitive. Step 2 payments, sometimes referred to as the "user marketing certificate program," are made to U.S. cotton users and exporters when U.S. prices are higher than world prices. Step 2 payments are intended to bridge price gap and keep U.S. cotton competitive. Step 3 mandates the opening of a "special import quota" when the differential between the higher U.S. price for cotton and the lower price for foreign cotton extends for a specified length of time. Its purpose is to allow imports to enter, acting to lower U.S. prices to bring them more in line with world prices. Step 3 quotas were in effect in April-May 1995, from late October 1995 through early May 1997, and were triggered in late February 1999. A step 3 quota cannot be established if a limited global quota for upland cotton is in effect, which operates differently and is triggered when other price conditions are met.

Cottonseed Oil Assistance Program (COAP) — Along with the Sunflower Oil Assistance Program (SOAP), COAP was one of two programs under which bonuses were awarded to exporters to assist in exports of U.S. vegetable oil to targeted markets. Funds for the programs were authorized to be made available under Section 32 of the Agricultural Adjustment Act of 1935. The provision in the Disaster Assistance Act of 1988 that authorized the COAP to begin in fiscal year 1989 expired at the end of fiscal year 1995. However, the USDA appropriations act for FY1996 (P.L. 104-37, October 21, 1995) provided authority to operate the program in fiscal year 1996. COAP was not reauthorized by the FAIR Act of 1996, although export subsidies for cottonseed oil can be financed under the Export Enhancement Program (EEP).

Countertrade — A trade transaction of goods and services without the exchange of money. Forms of countertrade include barter, buy-back or compensation, counter-purchase, offset requirements, swap, or triangular trade.

Countervailing duty — A charge levied on an imported article to offset the unfair price advantage it holds due to a subsidy paid to producers or exporters by the government of the exporting country. Section 303 of the Tariff Act of 1930, as amended, provides for an assessment equal to the amount of the subsidy, in addition to other duties and fees normally paid on the imported article. Countervailing duties are permitted under Article 6 of the GATT.

Country-of-origin labeling — Under Section 304 of the Tariff Act of 1930, as amended, most products entering the United States must be clearly marked so that the "ultimate purchaser" can identify the country of origin. Imported meat products are subject to this requirement: imported carcasses and parts of carcasses must be labeled, and individual retail (consumer-ready) packages also must be labeled. Imported carcasses or parts generally go to U.S. plants for further processing. The labeling policy considers these plants as the "ultimate purchasers." Therefore, any products these plants make from the imported meat (for example, ground beef patties made in the United States from beef that originated in Canada or elsewhere) do not have to bear country-of-origin labels. A number of other agricultural articles are exempt from the basic country-of-origin labeling requirements: eggs, livestock and other animals, live or dead; and other "natural products" such as fruits, vegetables, nuts and berries. (However, the outermost containers used to bring these articles into the United States must indicate the country of origin.) There is an interest among U.S. farmers to require more extensive labeling of agricultural products (especially meats and produce). At issue are whether consumers would be more likely to buy the U.S. alternative if such labeling is more prevalent and whether foreign countries might view such a change as a nontariff trade barrier.

County committees — Panels of three to five farmers, elected by other farmers, to oversee the local operation of commodity programs, credit, and other programs of the Farm Service Agency. County committees, established by the Soil Conservation and Domestic Allotment Act of 1935, are so named because they have overseen USDA field offices for farmers that once existed in most rural farm counties throughout the United States. Today, the committees often oversee activities in multi-county areas, due to USDA reorganization and consolidation of its field office structure into a network of about 2,500 field service centers. The committees are responsible for hiring and supervising the County Executive Director (CED), who manages the day-to-day activities of the field service center and its employees. The director and most county office staff legally are employees of the farmer-elected committees rather than the federal government, although their salaries come from federal funds.

County Executive Director (CED) — The supervisor hired by the Farm Service Agency county committee to manage the day-to day activities of a field service center (formerly called the county office).

County loan rate — Nonrecourse loan rates vary from county to county to account for transportation cost differences to the nearest terminal elevator. The weighted average for all county loan rates — the actual loan levels received by farmers — in the United States must equal the national average loan rate, established by USDA according to limits set by Congress.

County office — Usually refers to the local office of the Farm Service Agency, where farmers go to conduct business associated with federal farm commodity and credit programs, and some conservation programs. As a result of reorganization in 1994, local offices are increasingly shared with other USDA agencies having local representatives, such as the Natural Resources Conservation Service. Offices shared by several agencies are called field service centers.

County payments — Forest Service payments of 25% of gross revenues from each national forest to the states for use on road and school programs in the counties where the national forests are located. Technically known as Payments to States, because the states determine which road and school programs can be funded, but the payments are allocated to the counties based on the national forest acreage in each county. Commonly confused with Payments in lieu of taxes.

Cover crop — A close-growing crop, planted primarily as a rotation between regularly planted crops, or between trees and vines in orchards and vineyards, to protect soil from erosion and improve it between periods of regular crops.

Cow-calf operator — A ranch or farm where cows are raised and bred mainly to produce calves usually destined for the beef market. The cows produce a calf crop each year, and the operation keeps some heifer calves from each calf crop for breeding herd replacements. The rest of the calf crop is sold between the ages of 6 and 12 months along with old or nonproductive cows and bulls. Such calves often are sold to producers who raise them as feeder cattle.

CP — Contracting party.

CPI — Consumer Price Index.

CRADA — Cooperative Research and Development Agreement.

CRBSC — Colorado River Basin Salinity Control Program.

CRC — Crop Revenue Coverage (see revenue insurance).

CRES — Conservation Reporting and Evaluation System.

Creutzfeldt-Jacob Disease (CJD) — A sporadic and rare, but fatal human disease that usually strikes people over 65. It occurs worldwide at an estimated annual rate of one case per million population. About 10-15% of CJD cases are inherited. A small number of cases occurred as the result of various medical treatments or procedures which inadvertently transferred the CJD agent. In March 1996, the British government announced a possible link between bovine spongiform encephalopathy (BSE) and CJD. The announcement was prompted by the discovery of several atypical cases of CJD in Great Britain.

Critical control point — An operation (practice, procedure, process, or location) at or by which preventive or control measures can be exercised that will eliminate, prevent, or minimize one or more hazards. Critical control points are fundamental to Hazard Analysis and Critical Control Point (HACCP) systems, which are now being adopted by the food industry to prevent health hazards in the food supply.

Critical habitat — Under the Endangered Species Act, critical habitat is an area essential to the conservation of a listed species, though the area need not actually be occupied by the species at the time it is designated. Critical habitat must be designated for all threatened and endangered species under the Act (with certain specified exceptions). The areas may be federal or nonfederal land, but only the federal government is required to protect it. A federal agency with whom a landowner is dealing must ensure that its actions (which may include giving a loan, increasing irrigation flows, etc.) do not adversely modify these areas.

Crop acreage base — A crop-specific measure equal to the average number of acres planted (or considered planted) to a particular program crop for the previous five years. The sum of the crop acreage bases for all program crops on a farm may not exceed the farm acreage. The acreage base was used in determining the number of acres a farmer, under an acreage reduction program, had to remove from normal crop production and devote to conserving uses in order to be eligible for USDA price and income supports. The FAIR Act of 1996 suspends the base acreage provisions of the permanent law.

Crop insurance — Insurance that protects farmers from crop losses due to natural hazards. Hail and fire insurance are offered through private companies without federal subsidy. A subsidized multiperil federal insurance program, administered by the Risk Management Agency, also is available to most farmers. The program is authorized by the Federal Crop Insurance Act (which is actually title V of the Agricultural Adjustment Act of 1938), as amended. Federal crop insurance is available for about 60 different crops, although not all insurable crops are covered in every county. With the amendments to the Federal Crop Insurance Act made by the Federal Crop Insurance Reform Act of 1994, USDA is authorized to offer basically "free" catastrophic (CAT) coverage to producers who grow an insurable crop. Farmers must sign a waiver foregoing any federal disaster assistance if they decline CAT coverage. For an additional premium, farmers can buy additional coverage beyond the CAT level. Crops for which insurance is not available are protected under the Noninsured Assistance Program (NAP). Federal crop insurance is sold and serviced through private insurance companies. A portion of the premium is subsidized by the federal government, as well as the administrative and operating expenses of the private companies. The Federal Crop Insurance Corporation reinsures the companies by absorbing the losses of the program when indemnities exceed total premiums. Several revenue insurance products are available on major crops as a form of additional coverage.

Crop reports — Reports compiled by the National Agricultural Statistics Service (NASS) on various commodities that are released throughout the year. Information in the reports includes estimates on planted acreage, yield, and expected production, as well as comparison of production from previous years.

Crop residue — That portion of a plant, such as a corn stalk, left in the field after harvest. Crop residues are measured for farmers who use conservation tillage to implement their conservation plans to meet conservation compliance requirements. These farmers are required to maintain a minimum level of crop residue to be in compliance. Under revisions to the conservation compliance program in the FAIR Act of 1996, farmers are allowed to use third parties, certified by USDA, to measure levels of crop residue.

Crop Revenue Coverage (CRC) — A form of revenue insurance that protects a producer’s revenue for an insurable crop whenever low prices, low yields, or a combination of both causes revenue to fall below a guaranteed level selected by the producer. It differs from other revenue insurance programs by allowing producers to use the higher of the planting price or the market price in determining a target level of revenue.

Crop rotation — The growing of different crops, in recurring succession, on the same land in contrast to monoculture cropping. Rotation usually is done to replenish soil fertility and to reduce pest populations in order to increase the potential for high levels of production in future years.

Crop scouting — Precise assessments of pest pressure (typically insects) and crop performance to evaluate economic risk from pest infestations and the potential effectiveness of pest control interventions. Scouting is usually sold as a commercial service to farmers.

Crop share rent — In contrast to cash rent, the tenant farmer pays the landlord a share of the crop. This arrangement puts the landlord, like the tenant operator, at risk from variation in yields and prices. For the farm operator, crop share rent is a mechanism for sharing risks with the landlord. In relation to commodity programs for supporting prices and farm incomes, cash rent landlords do not have a beneficial interest in the commodity and are not eligible for some benefits compared to crop share landlords that do have a beneficial interest in the crop.

Crop year — The year in which a crop is produced. This contrasts with the marketing year, which is the 12-month marketing period that begins with harvest.

Cropland — Land used primarily for the production of row crops, close-growing crops, and fruit and nut crops. It includes cultivated and noncultivated acreage, but not land enrolled in the Conservation Reserve Program. Approximately 382 million acres of cropland, including 50 million acres of irrigated land, was in use in the United States during the most recent national resources inventory, conducted in 1992. Cropland is 30% of all non-federal rural lands. In 1996, the value of production from cropland was about $108 billion.
 

BACK to Ag Glossary
 

Cross compliance — A no longer used requirement that a farmer who participates in a price support program for one crop must also participate in price support programs for other crops grown on the same farm. See conservation compliance.

CRP — Conservation Reserve Program.

Crush spread — In the soybean futures market, the simultaneous purchase of soybean futures and the sale of soybean meal and soybean oil futures to establish a processing margin. See gross processing margin.

CSCE — Coffee, Sugar, and Cocoa Exchange.

CSE — Consumer subsidy equivalent.

CSFP — Commodity Supplemental Food Program.

CSPI — Center for Science in the Public Interest.

CSREES — Cooperative State Research, Education, and Extension Service.

CSRS — Cooperative State Research Service (see Cooperative State Research, Education, and Extension Service).

CU — Consumers’ Union.

Cultural methods — Practices used to enhance crop and livestock health and prevent weed, pest or disease problems without the use of chemical substances; examples include the selection of appropriate varieties and planting sites; selection of appropriate breeds of livestock; providing livestock facilities designed to meet requirements of species or type of livestock; proper timing and density of plantings; irrigation; and extending a growing season by manipulating the microclimate with green houses, cold frames, or wind breaks.

Custom feeders — Producers who provide the service of feeding animals (e.g., cattle, hogs) they do not own, in return for a fee paid by someone else (such as a packer) who does own the animals. Custom feeding potentially provides packers with more control over supplies and prices of animals. Custom feeding is a form of vertical integration.

Customs union — An agreement between two or more countries to remove trade barriers between each other and to establish common tariff and nontariff policies with respect to other countries. The European Community (EC) of the European Union (EU) is the best know customs union.

CVD — Countervailing duty.

CVM — Center for Veterinary Medicine.

CWA — Clean Water Act (Federal Water Pollution Control Act).

CWB — Canadian Wheat Board.

cwt. — Hundredweight, or one hundred pounds.

CXT — Common external tariff.

CY — Crop year; calendar year.

CYFAR — Children, Youth and Families at Risk Program.

CZMA — Coastal Zone Management Act (see Coastal Zone Management Program).

BACK to Ag Glossary