Handling Commodity Credit Corporation Loans

dc.contributor.author Harl, Neil
dc.contributor.author Harl, Neil
dc.contributor.department Iowa State University Digital Repository
dc.date 2018-02-18T00:10:46.000
dc.date.accessioned 2020-06-29T22:55:33Z
dc.date.available 2020-06-29T22:55:33Z
dc.date.embargo 2016-10-24
dc.date.issued 1991-07-05
dc.description.abstract <p>In recent years, the relatively high rates of participation of farmers in federal farm programs have assured widespread utilization of Commodity Credit Corporation loan programs. CCC loans have, in the case of feed grains, wheat and some other commodities, involved nonrecourse loans as part of the price and income support feature of farm programs. Commodity loans from the Commodity Credit Corporation are nonrecourse loans to the extent the debtor may pay off the loan with a sufficient amount of an eligible commodity having a price support value equal to the outstanding value of the loan. If the loan plus interest is not paid, the commodity may be forfeited to CCC as full payment for the loan. Yet CCC loans are a peculiar kind of nonrecourse loan. If insufficient commodity of acceptable quality is transferred, the debtor is still personally liable for any deficiency.</p> <p>The Congress, in an effort to provide a measure of flexibility in income tax planning for farmers on the cash method of accounting, provided many years ago for special treatment for CCC loans. It is assumed that CCC loans are to be treated as loans; but if a taxpayer elects, commodity value equal to a CCC loan may be reported as income.</p>
dc.identifier archive/lib.dr.iastate.edu/aglawdigest/vol2/iss13/1/
dc.identifier.articleid 1091
dc.identifier.contextkey 9302157
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath aglawdigest/vol2/iss13/1
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/3416
dc.source.bitstream archive/lib.dr.iastate.edu/aglawdigest/vol2/iss13/1/AgLawDigest_v02n13_01.pdf|||Fri Jan 14 17:35:54 UTC 2022
dc.subject.disciplines Agricultural and Resource Economics
dc.subject.disciplines Agricultural Economics
dc.subject.disciplines Agriculture Law
dc.subject.disciplines Public Economics
dc.title Handling Commodity Credit Corporation Loans
dc.type article
dc.type.genre article
dspace.entity.type Publication
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relation.isJournalIssueOfPublication e0fd1c2e-d49a-429c-93ee-9e42426177a6
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