Commodity Credit Corporation

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UNITED STATES DEPARTMENT OF AGRICULTURE

FARM SERVICE AGENCY FACT SHEET February 2016

Commodity Certificate Exchange (CCE)

BACKGROUND

The Consolidated Appropriations Act of 2016, 

enacted in December 2015, authorized the 

Commodity Credit Corporation (CCC) to issue 

commodity certificates to agricultural producers 

that can be exchanged for marketing assistance 

loan (MAL) collateral beginning with the 2015 

crop year.

MARKETING ASSISTANCE LOANS

MALs are available to agricultural producers from 

the U.S. Department of Agriculture’s (USDA) 

Farm Service Agency (FSA) beginning upon 

harvest or shearing. The MAL provides interim 

financing at harvest time for producers to meet 

cash flow needs without having to sell their 

commodities when market prices are at harvest 

time lows, thus allowing the producer to delay the 

sale of the commodity until more favorable market 

conditions emerge. Allowing producers to delay 

and store commodities at harvest (or at shearing in 

the case of wool and mohair) also provides for a 

more orderly marketing of commodities throughout 

the marketing year.

MALs for commodities are considered 

“nonrecourse” because the loan can be redeemed 

by repayment, or by delivering the agricultural 

commodity that was pledged as collateral to the 

CCC, administered by FSA, as full payment for the 

loan upon maturity. MAL repayment provisions 

specify that, under certain circumstances, 

producers may repay at less than the loan rate 

(principal) plus accrued interest and other charges.

PURPOSE AND AVAILABILITY OF 

CERTIFICATES

Commodity certificates:

• allow producers with outstanding MALs to 

purchase certificates and then exchange the 

certificate for their outstanding loan collateral 

rather than forfeit that loan collateral to CCC at 

loan maturity;

• are available to the loan holders to use in 

exchanging MAL commodities pledged as 

collateral to CCC for a nonrecourse

 commodity loan;

• are available to loan holders with outstanding 

nonrecourse MALs made for wheat, upland 

cotton, rice, feed grains, pulse crops (dry peas, 

lentils, large and small chickpeas), peanuts, 

wool, soybeans and designated minor oilseeds; 

and

• are intended to minimize the potential 

costs of delivery and storage of agricultural 

commodities by the CCC that were pledged as 

collateral and forfeited as full payment for the 

loan.

COMMODITY CERTIFICATE EXCHANGE 

RATE

The CCE rate will be the Adjusted World Price 

(AWP) for upland cotton or rice, the National 

Posted Price (NPP) for peanuts, or the Posted 

County Price (PCP) for other commodities, as 

applicable, in effect on the date the certificate is 

purchased. Certificate exchanges will be available 

when an exchange rate is less than the applicable 

loan rate for the applicable loan.

ELIGIBLE PRODUCERS (LOAN 

HOLDERS)

Producers (loan holders) eligible for commodity 

certificates must:

• have an outstanding nonrecourse MAL that has 

not reached maturity;

• immediately exchange a commodity 

certificate for their outstanding nonrecourse 

MAL collateral right after its purchase;

• submit a signed “Acknowledgement of 

Commodity Certificate Purchase,” form 

CCC-694-2 in the applicable FSA county 

office on the day of the redemption; and
FACT SHEET

Commodity Certificate Exchange (CCE) February 2016

• have submitted a “Farm Operating Plan for an 

Individual,” form CCC-902 and “Member’s 

Information,” form CCC-901, if applicable.

Commodity certificates cannot be exchanged for 

outstanding loan commodities covered under a 

“Request to Lock-In a Repayment Rate 

(CCC-697)” form.

LIMITATIONS AND EXPIRATION

Commodity certificates:

• can only be purchased for immediate exchange 

of outstanding loan collateral;

• cannot be used as payment for other CCC 

obligations;

• cannot be exchanged for CCC-owned 

inventory; and

• expire immediately upon exchange for 

outstanding loan collateral.

FOR ADDITIONAL INFORMATION

This fact sheet is for informational purposes only; 

other restrictions or details may apply. To learn 

more about commodity certificates, visit 

www.fsa.usda.gov/pricesupport or contact your 

local FSA office. To find your local FSA office, 

visit http://offices.usda.gov.

_________________________________________

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, 

the USDA, its Agencies, offices, and employees, and institutions 

participating in or administering USDA programs are prohibited 

from discriminating based on race, color, national origin, religion, 

sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income 

derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program 

or activity conducted or funded by USDA (not all bases apply to 

all programs). Remedies and complaint filing deadlines vary by 

program or incident.

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, 

audiotape, American Sign Language, etc.) should contact the 

responsible Agency or USDA’s TARGET Center at (202) 720-2600 

(voice and TTY) or contact USDA through the Federal Relay 

Service at (800) 877-8339. Additionally, program information may 

be made available in languages other than English.

To file a program discrimination complaint, complete the USDA 

Program Discrimination Complaint Form, AD-3027, found online 

at http://www.ascr.usda.gov/complaint_filing_cust.html and at any 

USDA office or write a letter addressed to USDA and provide in 

the letter all of the information requested in the form. To request 

a copy of the complaint form, call (866) 632-9992. Submit your 

completed form or letter to USDA by:

1) mail: U.S. Department of Agriculture Office of the Assistant

 Secretary for Civil Rights 1400 Independence Avenue, SW

 Washington, D.C. 20250-9410;

2) fax: (202) 690-7442; or

3) email: program.intake@usda.gov.

USDA is an equal opportunity provider, employer, and lender.

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