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Tuesday, August 30, 2016

White House Seeks Commodity Credit Corporation Funding Replenishment

The USDA entity tasked with helping farmers weather unstable agricultural commodity prices will run out of money soon, unless the government moves up its reimbursement as part of an end-of-year funding bill.
Contained in a list of requested additions, known as anomalies, to a continuing resolution (CR) to fund the government into Fiscal year 2017, the Obama administration said that the Commodity Credit Corporation (CCC) would exceed its $30 billion borrowing limit during the period of the CR. The fund is always replenished by an annual reimbursement.
The request calls for the CR to accelerate reimbursement of the CCC so that it can continue to operate past Oct. 1, 2016, when the majority of its first-quarter Fiscal Year 2017 payments are due. The CCC would typically receive reimbursement after it submits its financial statement for reimbursement in early November.
"Without the anomaly, CCC would have to stop making payments as soon as the borrowing ceiling is reached, posing a serious risk for the farmers and ranchers supported by these programs," the document said.