Farm Service Agency

Commodity Purchase and Donation

The Government-owned Commodity Credit Corporation (CCC) provides financing for farm programs, and for the purchase, storage, and disposal of commodities in federal stocks. FSA employees are the administrative agents for the CCC. One responsibility is the inventory management of the CCC's bulk and processed products.

Managing the farm products forfeited to the CCC requires cooperation with the warehousing and transportation industries and private marketing channels. With over 10,000 commercial warehouses across the country approved for CCC storage contracts, FSA commodity managers work closely with the commercial trade industry.

Under the dairy price support program, the CCC buys surplus butter, cheese, and nonfat dry milk from processors at announced prices. These purchases help maintain market prices at the legislated support level.

FSA employees work with the USDA's Food and Consumer Services to purchase and deliver processed foods for the national school lunch and domestic feeding programs.

CCC inventories are not simply held, but must move into trade channels. The FSA has a field office in Kansas City, with a staff to direct commodity operations. Plugged into telecommunication trade networks, FSA merchandisers regularly sell and swap inventories.

Beyond the marketplace, CCC commodities contribute to hunger relief for needy families in the United States and overseas. The FSA coordinates the processing of over 5 billion pounds of commodities each year. Donated for "Food for Peace" and other programs administered by voluntary organizations, these American farm products help relieve hunger around the world.

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