Opinion ID: 760214
Heading Depth: 2
Heading Rank: 1

Heading: The CCC

Text: 3 The CCC is a government corporation created to finance federal farm programs with monies appropriated by Congress. The federal farm programs financed by the CCC are administered by the Agricultural Stabilization and Conservation Service (the ASCS), an agency of the United States Department of Agriculture. The Set Aside Program is one of the principal programs administered by ASCS. Under the Set Aside Program, a farmer can volunteer not to produce crops on a certain percentage of his land, and, in return, that farmer receives financial compensation from the CCC in the form of a deficiency payment. If enrolled in the Set Aside Program, a farmer also can participate in the Farm Stored Loan Program and receive low-interest loans from the CCC using the farmer's grain crop as collateral. 4 To participate in the Set Aside Program, and the Farm Stored Loan Program, a farmer must complete a series of applications--which, as it turns out, is the central focus of Koster's conviction. As part of the application process, each farmer must execute two forms: a contract to participate in the Set Aside Program (the Contract) and a Farm Operating Plan (the Plan). A Contract contains a basic description of a specific farm, including the acreage being farmed, the crop being grown, and the number of farmers participating and their respective percentage share of the crop--provided that the farmers sharing in the crop are persons qualified to participate in the Set Aside Program. 5 A Plan requires the farmer to describe that farmer's business, including the particular land to be farmed; whether the land is owned or leased; and if leased, how the lease is paid; the sources of capital and equipment used in the farming operation; and the portion of the labor and management personally provided or hired. On the final page of each Plan, the farmer must certify that all the information in the Plan is accurate. The certification admonishes that furnishing incorrect information will result in forfeiture of payments and the assessment of a penalty. 6 Once the farmer submits a Contract and a Plan, the ASCS reviews the documents to determine whether that farmer is eligible for the Set Aside and Farm Stored Loan programs. As part of determining whether a particular farmer is eligible, the ASCS must conclude that the farmer is actively engaged in the farming business. In making this conclusion, the ASCS relies heavily on the farmer's representations in the Contract and the Plan. If the ASCS determines that the farmer meets the requirements then the farmer is enrolled in the Set Aside Program and begins receiving deficiency payments, thus becoming eligible to apply for Farm Stored Loans. 7 Deficiency payments are capped at $50,000 per year for each farmer. If it is determined that two or more farmers are, in fact, the same farmer for purposes of the Set Aside program, those farmers are restricted to a single $50,000 deficiency payment. Additionally, the ASCS can withhold deficiency payments and apply them to delinquent debts owed by the farmer to the CCC. This process is known as a set-off.