Glossary

Acreage Allotment	Based on previous production, an individual producer's share of the national acreage needed to produce sufficient supplies of a particular crop; currently used for tobacco.
Acreage Conservation Reserve	See "SET ASIDE".
ASCS: Agriculture Stabilization & Conservation Service	A government agency whose principal responsibilities include administration of government farm programs.
Bank's Assets	The physical property: buildings and equipment, security notes, and all loans made by the bank. It's important to remember that loans are major assets of the failed banks.
Bank Liabilities	Deposits, checking and savings accounts, banks letter's of credit, capital notes, debentures.
Bonus Incentive Commodity Export Program (BICEP)	Based on the "buy one, get something free" idea, this concept was developed to offset the use of export subsidies by competing countries. For example, a nation agreeing to buy US wheat could be given additional supplies of wheat or some other government surplus commodity as a bonus. Similar plans are referred to as EXPORT ENHANCEMENT plans and EXPORT-PIC plans.
Chapter 7	A petition in US District Bankruptcy Court for the orderly liquidation of the assets of an individual or business so that the individual may then have those debts discharged.
Chapter 11	A petition in the US District Bankruptcy Court for the reorganization of the financial affairs of a business.
Chief Liquidator	The individual on-site, in charge of FDIC operations following a bank closing. The Chief Liquidator has responsibility for overseeing the sale of loans held in the bank's portfolio at the time of closing or, if the loans cannot be sold, their collection and ultimate liquidation if necessary.
Commodity Credit Corporation (CCC)	A wholly owned Federal corporation managed by the USDA. It functions as a financial institution through which all price and income support transactions take place.
Conservation Reserve	A long-term program which pays farmers to retire highly erodible lands for a certain period of time, usually ten years.
Cross-Compliance	Requires a farmer to meet qualifications for certain major farm programs before he or she can participate in another type of farm program.
Defacto Foreclosure	The freezing of a borrower's assets and denial of funds for necessary family living or farm operating expenses. Total creditor control of income.
Deficiency Judgment	A legal judgment obtained by a creditor after foreclosing or repossessing property and having that property sold at a legitimate, legal sale. The difference between what was owed to the creditor at the time of the sale (including legal fees, penalties and other charges) and what the property actually did bring is known as the deficiency judgment. The powers of this judgment are specified under state law.
Deficiency Payment	Federal program payment to participating farmers when farm prices are below the target price. Based on the difference between a target price and the higher of either the market price or the loan rate, whichever difference is less.
Farm	Any enterprise that is $1000 or more in gross sales of farm products.
Farmer-Owned Grain Reserve	Domestic reserve designed to protect against crop shortages and unusually sharp price movements. Farmers can place grain in storage in exchange for a nonrecourse loan. Interest may be waived on the loan and the government will make annual storage payments to farmers. However, farmers do not have the option of taking grain out of storage (without penalty) unless the market price reaches a specified "release price".
FCS: The Farm Credit System	A federally chartered entity that provides financing for farmers, fishermen, and cooperatives. Operations are coordinated by the Farm Credit Administration in Washington, and a board of directors chosen nationally, one from each of the 12 District Farm Credit Banks. The Governor of the FCS officially enjoys "agency status" and is required to report to Congress, but is uses no federal funds, and supposedly operates as a "farmer owned, farmer controlled, cooperative".
FDIC: Federal Deposit Insurance Corporation	Provides insurance protection to bank depositors and is responsible for the liquidation of the assets of failed financial institutions that are FDIC insured. The FDIC obtains funds through insurance premiums and its affairs are administered independently of the federal government although many of its rules and regulations are printed in the Code of Federal Regulations.
Federal Crop Insurance	A voluntary insurance program available to farmers since the 1930's. The Federal government pays to administer the program and to subsidize 30% of insurance costs.
FICB: The Federal Intermediate Credit Bank	The regional bank that administers policy and provides funds to local PCA's (Production Credit Associations) throughout its District. The FICB's are part of the Farm Credit System. There are 12 FICB's nationwide.
First Mortgage	Security for the payment of debt taken in the form of a first mortgage means that the creditor has the first, and best, security interest in the property involved. The person holding a "SECOND MORTGAGE" cannot move to foreclose, or take possession of that property without first satisfying the claims of the first mortgage holder. A second mortgage is usually given if, after borrowing against the property, there is still equity or value seen in the property.
FLB: Federal Land Bank	The long term lender for land purchases within the FCS. The FLB makes loans to farmers through local Federal Land Bank Associations (FLBA's). There are 12 FLB's nationwide. Created in 1916. The Federal Land Banks are the oldest component of the cooperatively owned FCS.
FmHA: The Farmers Home Administration	An agency of the federal government commonly known as the "lender of last resort", it makes loans to farmers for the purchase of real estate and the financing of operating expenses. Other programs include rural housing loans, soil and water conservation loans and business and industry loans.
Foreclosure	The legal action taken by a creditor as the first step in order to take possession of property that has been pledged as collateral. Technically the term is meant to apply primarily to real estate. When served with "notice of foreclosure" by a sheriff the borrower has 20 days to file an answer to court to respond to the creditor's charges. An actual sheriff's sale can occur only after this has been filed and a judgment entered by the court against the borrower.
Forfeiture	Applies to the action taken by a real estate contract holder when the buyer fails to make a payment as scheduled. The buyer is served with a "notice of forfeiture" and, if they cannot come up with the necessary payment within the specified period, (usually 30 days) the contract holder can take legal action to have the buyer evicted.
General Agreement on Tariffs and Trade (GATT)	A 1947 agreement among 23 countries (including the US) to increase international trade by reducing tariffs and other trade barriers. It provides a code of conduct and a framework for negotiations on trade liberalization and expansion. Seven trade sessions have been held - most recently in Tokyo from 1973 - 1979.
Loan Rate	The price per unit at which the government will provide commodity loans to farmers, enabling them to hold for later sale and to have price support. See NONRECOURSE LOAN.
Marketing Loan	A new twist on the loan rate concept. Would allow farmers to receive fixed rate loans, but lets them repay at either the loan rate or the average world market price.
Marketing Orders and Agreements	Designed to promote orderly marketing by limiting total sales, prorating commodity movement to market, or by imposing site and grade standards. Although authorized by legislation, usually two-thirds of a commodity's producers must approve an order before it is binding. Currently, 41 marketing orders are in effect.
Marketing Quota	Under certain programs, the quantity of a crop that will provide adequate and normal market supplies. This quantity is translated into terms of acreage needed and allotted among farms, based on previous production. Two-thirds or more of the eligible producers must approve the quota. Growers who produce more than their acreage allotments are subject to penalties on the excess and are ineligible for government price support loans. Quotas are still used for domestically consumed peanuts. A poundage limitation and acreage allotment apply to certain tobaccos.
National Farm Program Acreage	The number of harvested acres needed to meet domestic and export use and to accomplish any desired change in carryover levels. Individual farm program acreage.
Nonrecourse Loan	Price support loan made to farmers, enable them to hold their crops for later sale. Loans can be paid back with interest or a farmer can forfeit the loan collateral (the commodity) in settlement of the loan.
Paid Diversion	A commodity retirement system which pays farmers to forego production.
Parity Price	Price per unit that would be necessary for a unit today to buy the same quantity of goods (from a standard list) that the unit would have bought in the 1910 - 1914 base period at prices then prevailing.
Payment Limitation	A law limiting the amount of money any one person can receive in farm program payments each year. Currently set at $50,000, this does not include the value of loans received..
Permanent Legislation	The statutory legislation upon which many current programs are based (principally the Agriculture Adjustment Act of 1938 and the Agriculture Act of 1949). This legislation would once again become law if current amendments were allowed to lapse with no new legislation enacted.
Public Law 480	Passed by Congress in 1954 to use agricultural products in combating hunger, encourage economic growth in developing countries, expand foreign markets and support US foreign policy. Under Title I, the program makes commodities available to countries at low interest rates with long term credit. In exchange, recipient countries agree to undertake development projects like improving food production. Title II provides for food donations in cases of famine or emergency need. Title III authorizes food for development projects.
Replevin	The legal order to recover goods or chattel, personal property not real estate, used as security for a loan. A "Writ of Replevin".
Right of Redemption	Usually granted for the period of one year, under Iowa law, to an individual who has had their real estate or home sold at sheriff's sale. They have the right to live on the property and, if they come up with a sum of money equal to what was paid at the sheriff's sale, they can "redeem" it, and regain possession.
SCS: Soil Conservation Service	The government agency that oversees the funding and administration of soil conservation projects and programs in local counties throughout the United States.
Security Interest	A security interest in property is obtained by the filing of a variety of legal documents by a creditor who has a valid claim against that property. Such property can include, but not be limited to: grain, livestock, machinery, vehicles, and land. Whichever creditor files the proper documents first, in the proper order, who has the most valid claim on the property involved is said to have the "prior lien".
Self-help Repossession	The taking of chattel property - livestock, machinery, vehicles, grain, or items of personal property - without a legal writ of replevin.
Set Aside	The acreage a farmer must devote to soil conservation uses in order to be eligible for government farm program benefits. Also called ACREAGE CONSERVATION RESERVE.
Sodbuster Proposal	Designed to discourage plowing of land that has not been in production for a certain period of time (usually the last 5 or 10 years) and that would be classified as "highly erodible". Farmers who do this type of "sodbusting" would be prohibited from participating in any type of federal farm benefits related to specific commodities.
Swampbuster Proposal	Similar to the "sodbuster" proposal except that it would prohibit farmers who "artificially manipulate" wetlands to produce crops from receiving certain farm program benefits. Definitions of "wetlands" vary a great deal.
Target Prices	A minimum commodity price level determined by law for wheat, feed grains, rice and cotton. If the market price falls below the target price by an amount equal to (but not more than) the difference between the target price and the price support loan level, a deficiency payment is made to farmers. See DEFICIENCY PAYMENT.

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