Compiled by the Pennsylvania Farm Bureau and provided through the Pennsylvania Department of Agriculture and the United States Department of Agriculture
Last updated: Summer 2006
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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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Agricultural Acts
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.
CAFO - Concentrated animal feeding operation A CAO with greater than 300 AEUs, any agricultural operation with greater than 1,000 AEUs or an agricultural operation with a discharge to surface waters during a storm event of less than a 25-year/24-hour storm. (currently under revision by DEP)
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.
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.
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 - The dead body of an animal. Agricultural Marketing Service meat graders often grade whole carcasses for quality.
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.
Carrier —An inert material added to an active ingredient in a pesticide to enhance its delivery or effectiveness.
Carrying capacity — The maximum stocking rate for livestock possible without damaging vegetation or related resources. Carrying capacity may vary from year to year on the same area, due to fluctuating forage production. Used by the government in decisions about how many livestock will be allowed on an allotment on public lands.
Carryover - Existing supplies of a farm commodity not used at the end of a marketing year, and remaining to be carried over into the next year.
Cartel — An alliance or arrangement among industrial or commercial enterprises or nations aimed at limiting competition or exercising monopoly power in a market.
Casein — The major portion of milk protein, manufactured from skim milk and used in processed foods (such as dessert toppings and coffee whiteners) and in industrial products such as glue, paint and plastics.
Cash commodity — The physical or actual commodity as distinguished from the futures contract. Sometimes called spot commodity, or actuals.
Cash grain farm — A farm 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.
Catastrophic crop insurance (CAT) — A component of the federal crop insurance program, authorized by the Federal Crop Insurance Reform Act of 1994, that compensates farmers for crop yield losses exceeding 50% of their average historical yield at a payment rate of 60% of the projected season average market price. CAT coverage requires that a farmer realize a yield loss of more than 50% and only makes payments on losses exceeding the 50-percent threshold. Producers pay no premium for CAT coverage, but except for cases of financial hardship must pay an administrative fee of $50 per crop, up to a maximum of $200 per county and $600 in total (across all counties) for CAT protection. Under the Reform Act of 1994 producers were required to obtain coverage at the CAT (or higher) level for crops of economic significance (accounting for 10% or more of their farm’s crop production value) in order to be eligible for various other USDA program benefits. The FAIR Act of 1996 relaxed this requirement. A producer has the ability to purchase additional insurance coverage beyond CAT coverage, but must pay a premium, partially subsidized by the government, for that additional coverage.
Cattle cycle — The approximately 10-year period in which the number of U.S. beef cattle is alternatively expanded and reduced over several consecutive years in response to perceived changes in profitability by producers. Generally, low prices occur when cattle numbers (or beef supplies) are high, precipitating several years of herd liquidation. As cattle numbers decline, prices gradually begin to rise, causing cattle producers to begin adding cattle to their herds. The cycle is relatively long due to the long period of time it takes between the time a cow-calf operator decides to expand a cow herd to breed more beef cattle and the time those animals reach slaughter weight.
Census of Agriculture - A count taken by the U.S. Bureau of the Census every 5 years, (1987-1992-1997) of the number of farms, land in farms, crop acreage and production, livestock numbers and production, farm spending, farm facilities and equipment, farm tenure, value of farm products sold, farm size, type of farms, etc. Data are obtained for states and counties
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.
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.
Certified Crop Advisors - Individuals that are Pennsylvania state certified to advise agriculturalists on crop production.
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.
Checkoff Programs - Research and promotion programs authorized by state and/or Federal law and financed by assessments. The programs are paid for by specific industry members, such as producers, importers, and handlers.
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 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).
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.
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.
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 Milk - A price category in marketing milk. Class I milk is milk produced and processed for the immediate retail fluid consumer market.
Class II Milk - A price category in marketing milk. Class II includes milk used for manufacturing purposes, such as cottage cheese, fluid cream products (containing 9% or more of milk fat) yogurt, eggnog, frozen desserts, frozen dessert mixes, and bulk fluid milk or cream products sold to any commercial food processing establishment.
Class III Milk - A price category in marketing milk. Class III usually receives the lowest price. It is used for products such as hard cheese, butter, or any milk product in dry form, evaporated, or condensed milk in consumer-type package.
Class IIIA - A price category in marketing milk. Class IIIA includes all skim milk and butter fat used to produce nonfat dry milk powder.
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.
Clean and Green - A name given to Pennsylvania's Farmland and Forest Assessment Act of 1974 (Act 319).
Clean Streams Law - Legislation that regulates Pennsylvania's water quality and discharges to the waters of the Commonwealth.
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.
Combine — A self-propelled grain harvester. In one operation it combines cutting, threshing, separation, cleaning, and straw dispersal.
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
Commodity Certificates - Payments issued by the Commodity Credit Corporation (CCC) in lieu of cash payments to program participants. Holders of the certificates may exchange them with the CCC for CCC-owned commodities.
Commodity Credit Corporation (CCC) A federally owned and operated corporation within the U.S. Department of Agriculture created to stabilize, support and protect agricultural prices and farm income through loans, purchases, payments, and other operations.
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 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 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 Reserve — A special reserve of up to 4 million metric tons of wheat, corn, sorghum, and rice to be used for international humanitarian purposes. This reserve created by the FAIR Act of 1996 is an expansion and replacement of the Food Security Wheat Reserve established by the Agriculture Act of 1980. The reserve is to be used to provide famine relief and other emergency relief when commodities are not available for programming under P.L. 480.
Commodity Supplemental Food Program (CSFP) — The CSFP provides funding for monthly food packages consisting of USDA commodities (juice, egg mix, and canned fruits and vegetables), and administrative funding for local agencies serving low-income pregnant and postpartum women, infants, children up to age 6, and persons 60 years of age or older. The precursor of the WIC program, the CSFP now operates in 81 project areas located in 20 states, and over one-half of the beneficiaries are elderly. CSFP is authorized through FY2002 under the Agriculture and Consumer Protection Act of 1973, as amended by the FAIR Act of 1996.
Common Agricultural Policy (CAP) — The set of legislation and practices jointly adopted by the nations of the European Union (EU) in order to provide a common, unified policy framework for agriculture. Its stated purposes are to increase farm productivity, stabilize markets, ensure a fair standard of living for farmers, guarantee regular supplies, and ensure reasonable prices for consumers. The CAP rests upon four basic principles: common import restrictions, common financing, common pricing, and common treatment of surpluses.
Common external tariff (CXT) — A tariff rate applied by a regional grouping of countries as a unit. For example, the European Community allows free trade in most agricultural commodities among member countries, but applies common external tariffs against many farm products imported from non-member or "third" countries.
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.
Compost - organic residues, or a mixture of organic residues and soil, which have been piled, moistened, and allowed to undergo biological decomposition for use as a fertilizer. The resulting product is known as humus.
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.
Concentrated Animal Operations - (CAO) Farms with more than 2000 lbs. of livestock per acre.Farms in this classification in Pennsylvania must have a written nutrient management plan.
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. 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 District - A unit of local government in Pennsylvania formed to carry out a local soil and water conservation program.
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 practices to protect and improve soil productivity and to prevent soil deterioration. A conservation plan must be approved by the local conservation district for acreage offered in the Conservation Reserve Program and most other farm programs. The plan sets forth conservation measures and maintenance that the owner or operator will carry out during the term of the contract.
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.
Conservation Reserve Program (CRP) The Conservation Reserve Program is the single largest government environmental improvement effort. It offers incentives to farmers and ranchers to plant various kinds of protective cover on suitable farm property to protect and improve air, water, soil quality and habitat for wildlife. Qualified land owners receive annual rental payments in exchange for agreeing to remove land from production.
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 helps 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 of several farming methods that provide for seed germination, plant growth and weed control yet maintain effective ground cover throughout the years and disturb the soil as little as possible. No-till is the most restrictive form of conservation tillage. Other practices include ridge-till, strip-till, and mulch-till.
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.
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.
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.
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 - The quantity of acres enrolled in a contract with the federal government.
Contract Commodity - A crop of wheat, corn, grain, sorghum, oats, barley, upland cotton, or rice.
Contract Crops- Specific crops eligible for production flexibility payments: 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 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.
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.
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 organization formed for the purpose of producing and marketing goods or products owned collectively by members who share in the benefits.
Cooperative Extension - The Cooperative Extension Service was created by joint legislation of the state and Federal government. The Federal law, the Smith-Lever Act of 1914, created the structure for each state to authorize an appropriation to each organized county. USDA's Extension Service is an active partner in Extension activities. The money was designated for the establishment of a program to support agriculture and home economics under the direction and cooperation of their Land grant college. Each county in Pennsylvania has a Cooperative Extension.
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.
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.
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.
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.
County Extension Educator - A worker who is jointly employed by the county, State Cooperative Extension Service, and the U.S. Department of Agriculture's Extension Service to implement agricultural programs. Also includes Extension home economists, 4-H or youth advisers.
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 that is grown to protect and improve soils between periods of regular crops or between trees and vines in orchards and vineyards.
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.
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 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 practice of growing different crops in succession on the same land.
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.
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.
Crop Year - Generally, the 12-month period from the beginning of harvest.
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.
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.
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.
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