| Acre |
A U.S. and English unit of area equal to 43,560 square feet, or .0405 hectares.
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| Acreage Reduction Program (ARP) |
A voluntary land retirement system in which farmers reduce their planted acreage from a historical "base acreage" level. This is generally an unpaid reduction that is often required for participation in other agricultural programs.
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| Aflatoxin |
A highly carcinogenic toxin produced by a fungus, which occurs when crops are stored under warm, humid conditions. Most commonly associated with corn, peanuts and soybeans. Shipments of grain containing high levels of aflatoxin are generally rejected.
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| Agency for International Development (AI |
U.S. government agency responsible for assistance programs in underdeveloped countries friendly to the United States. Also responsible for administration of Title II and Title III programs under PL 480 programs,
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| Agricultural Cooperative Development Int |
Non-profit organization supporting agricultural development overseas.
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| Agricultural Trade Office (ATO) |
The Agricultural Trade Act of 1978 directed the establishment of trade offices in major centers of commerce throughout the world. Agricultural trade offices work to develop, maintain and expand international markets for U.S. agricultural commodities by serving as centers for export sales promotions and contact points for importers seeking to buy farm products from the United States.
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| Animal & Plant Health Inspection Service |
USDA agency responsible for the inspection and certification of animals, plants and certain related products to meet health and/or sanitary requirements for export from or import into the United States, as prescribed by the United States and the country of destination. Also responsible for the inspection of processing facilities in the United States and in countries that export to the United States.
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| Arabidopsis |
A small weed plant possessing 70,000 kilobase pairs in its genome, with very little repetitive DNA. This makes it an ideal model for studying plant genetics.
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| Arbitrage |
The simultaneous buying and selling of the same commodity or foreign exchange in two or more markets to take advantage of price differentials.
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| Bale cubic |
The capacity of cargo spaces under deck (including hatchways) expressed in cubic feet, available for any kind of packaged cargo, whether in bale, cases, casks, etc.
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| Berth terms |
The vessel owner pays the cost of both loading and discharging. This term is used interchangeably with "gross terms".
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| Bill of lading |
A document that conveys the title to the goods; a contract by a carrier for delivery of the goods; and a receipt for the merchandise being shipped. The bill of lading may be issued as either straight (non-negotiable) or to order (negotiable).
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| Biosafety Protocol (Convention on Biolog |
The international treaty governing the conservation and use of biological resources around the world, that was signed by more than 150 countries at the 1992 United Nations Conference on Environment and Development.
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| Biotechnology |
The means or ways of manipulating life forms (organisms) to provide desirable products for man's use.
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| Biotechnology Industry Organization (BIO |
A U.S. trade association composed of companies and individuals involved in biotechnology and in services to biotechnology companies
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| Blending |
The process of drawing measured amounts of different lots from bins and mixing these parts into a uniform blend by grain assemblers and millers.
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| Bt - Bacillus thuringiensis |
A group of rod-shaped soil bacteria found all over the earht, that produce 'cry' proteins which are indigestible by - yet still 'bind' to - specific insects' gut lining receptors, so those 'cry' proteins are toxic to certain classes of insects (i.e., corn borers) but which are harmless to mammals.
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| Bu |
Abbreviation for bushels.
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| C&F |
Cost and Freight.
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| Canadian Wheat Board (CWB) |
Quasi-governmental agency that controls wheat trade in Canada.
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| Canola |
'Canada Oil' A strain of the rapeseed plant with a low level of toxic erucic acid used by Canadian breeders to produce an oil used for cooking.
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| Carryover |
The supplies of a commodity not yet sold or disposed of at the end of a marketing year.
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| Chicago Board of Trade (CBOT) |
Leading commodity exchange in the U.S.
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| Coarse grains |
Corn, sorghum, barley, rye, oats and millet.
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| Codex Alimentarius Commission |
A commission under the auspices of the Food and Agriculture Organization and the World Health Organization of the United Nations whose mission is to establish a codex alimentarus or food code which will formulate and harmonize food standards across the world.
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| Commodity Credit Corporation (CCC) |
U.S. government-owned and operated corporation responsible for financing major USDA programs, including price supports, domestic and foreign food assistance and export sales programs. Maintains stocks of commodities obtained through various price support programs.
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| Common Agricultural Policy (CAP) |
A set of regulations by which members of the European Union seek to merge their individual agricultural programs into a unified effort to promote regional agricultural development, fair and rising standards of living for the farm population, stable agricultural markets, increased agricultural productivity and methods of dealing with food supply security. Two principal elements of the CAP are the variable levy (an import duty amounting to the difference between EU target farm prices and the lowest available market prices of imported agricultural commodities) and export restitutions, or subsidies, to promote exports of farm goods that cannot be sold within the EU at target prices.
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| Conservation Reserve Program |
Long-range program under which farmers voluntarily contract to take cropland out of production for 10 to 15 years and devote it to conserving uses. In return, farmers receive an annual rental payment for the contract period and assistance, either in cash or payment-in-kind (PIK), for carrying out approved conservation practices on the reserve acreage.
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| Cooperator Program |
A program administered by USDA's Foreign Agricultural Service which coordinates market development programs with over 50 non-profit commodity trade associations to promote U.S. agricultural products abroad.
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| Corn rootworm |
The larva stage of the corn rootworm beetle which historically has laid its eggs on corn/maize plants. When they hatch, the larva must feed on the roots of the corn/maize plant in order to live. Some strains of Bacillus thuringiensis (B.t.) have proven to be effective against the corn rootworm, when sprayed onto them or genetically engineered into the corn/maize plant.
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| Cost and freight (CFR) |
Seller provides the cargo, covers the loading costs and charters and ocean vessel for a specific destination. Buyer pays for discharge.
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| Cost, Insurance and Freight (c.i.f.) |
Terms of sale whereby the seller's price includes the costs of the goods being sold and all transportation charges, including insurance expenses, to the named point of destination. The seller's liability for risk ends after the goods have been shipped and the buyer has obtained a bill of lading or equivalent document proving such shipment. The buyer's liability begins when the goods have arrived at the destination point.
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| Counter trade |
Any trade transaction of goods or services without the exchange of money. Forms include barter, buy-back or compensation, counter-purchase, offset requirements, swap, switch, or triangular trade, evidence or clearing accounts.
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| Crop Year |
The year in which a crop is harvested, as opposed to a marketing year, which refers to the 12-month period following harvest.
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| Cry Proteins |
A class of proteins produced by Bacillus thuringiensis (B.t.) bacteria. Cry proteins are toxic to certain categories of insects but harmless to mammals and beneficial insects.
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| Cry9C Protein |
One of the 'cry' proteins, it is a protoxin that - when eaten by European corn borer, southwestern cornborer, black cutworm, and some species of armyworm - is toxic to those insects. However, if eaten by a mammal, the cry9C is nontoxic.
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| Dead weight |
The vessel's total carrying capacity, i.e., cargo plus fuel and water and constant (crew, machinery, spare parts, etc.) Dead weight cargo capacity is what remains after deducting fuel and water, etc., as above, for total dead weight.
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| Deficiency Payment |
In the United States, a direct payment to participating producers of feed grains, wheat, rice and cotton by USDA's Commodity Credit Corporation (CCC), equal to the difference between CCC's target price and the higher of either the market price or the load rate, whichever difference is less.
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| Dockage |
A factor in the grading of grains and oilseeds, which includes waste and foreign material which can be readily removed by the use of screens, sieves and other cleaning devices. Dockage is always determined and reported on the inspection certificate. The term is also used to describe the amount of money deducted due to a deficiency in quality.
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| Economic Research Service (USDA) |
Provides a wealth of information and data on US domestic and world agricultural production and trade.
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| EEP |
The Export Enhancement Program, enacted by the U.S. Congress in 1984, to counteract unfair subsidies by the EEC; empowers the USDA to subsidize U.S. exports.
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| Emerging Markets Office (EMO) |
Provides grants for market development and promotion programs aimed at emerging markets and transition economies.
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| Ethanol |
Ethyl alcohol fermented from any number of different biomass feedstocks.
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| Euro |
Monetary unit that became the official currency of eleven Member States of the European Union on January 1, 1999. On January 1, 2001, Greece joined the Euro zone which now includes 12 Member States.
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| European Union |
A regional organization created in 1958 providing for the gradual elimination of customs duties and other intraregional trade barriers, a common external tariff against other countries and gradual adoption of other integrating measures, including a Common Agricultural Policy and guarantees of free movement of labor and capital. Formerly called the European Community (EC), the organization became the European Union in January, 1994. Since 1967, common institutions, the EU Commission, the EU Council, the European Parliament and the Court of Justice, have served members of the EU. On January 1, 1999 the EU launched a single European currency called the euro, which most member countries have adopted. With 15 members (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, UK), the Union plans to expand membership in coming years, including Southern and Eastern European Countries.
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| Export Enhancement Program (EEP) |
Program in which the U.S. government issues payments-in-kind certificates to U.S. exporters who agree to lower the prices of U.S. grain products to buyers in designated countries where U.S. farm products have lost market share as a result of unfair trading practices of other exporting countries.
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| Farmer-Owned Grain Reserve |
Program designed to provide protection against wheat and feed grain production shortfalls and to provide a buffer against unusually sharp price movements. Farmers place their grain in storage and receive an extended nonrecourse loan for 3-5 years. Interest on the loan may be waived, and farmers may receive annual storage without penalty unless the market price reaches a specified release level. When the release price is reached, farmers may elect to remove their grain from the reserve but are not required to do so. However, at that point the storage and interest incentives may be reduced or eliminated.
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| Federal Crop Insurance |
A voluntary risk management tool, available to farmers since the 1930's that protects them from the economic effects of unavoidable adverse natural events. Congress appropriates administrative costs, and 30 per cent of the insurance costs are federally subsidized.
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| Federal Grain Inspection Services (FGIS) |
A service and regulatory agency of the USDA, responsible for the establishment of official U.S. standards for grain, oilseeds, rice and pulses, administration of these standards for official inspection personnel and regulation and certification of the weighing of grain. All grain exported from the United States must be officially inspected and weighed by FGIS.
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| Federal Register |
Daily publication that compiles every regulation, or change in regulation, proposed and enacted upon by any branch of the U.S. government.
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| Feed grains |
Also know as coarse grains. This category includes corn, sorghum, barley, oats, rye and millet.
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| Feed wheat |
Although wheat traditionally is used as food for human consumptions, large amounts of wheat are fed to livestock and poultry, especially in years when prices of lower quality wheat are competitive with those of coarse grains.
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| Food and Drug Administration (FDA) |
The federal agency charged with approving all pharmaceutical and food ingredient products sold within the U.S.
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| Foreign Agricultural Service (FAS) |
The USDA agency responsible for facilitating exports of U.S. agricultural goods. Maintains a global network of agricultural officers as well as a Washington-based staff to analyze and disseminate information on world agriculture and trade, develop and expand export markets and represent the agricultural trade policy interests of U.S. producers in multilateral forums. Also administers USDA's export credit and concessional sales programs.
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| Foreign Market Development Program (FMD) |
Market development programs funded by congressional appropriation to the USDA's Foreign Agricultural Service. The original source of U.S. government funding for cooperator programs.
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| Free on board (FOB) |
The seller's price only includes the cost of the grain up to and including delivery of the goods at the end of the loading spout to an ocean going vessel provided by the buyer at the named port of shipment.
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| Fumigation |
Application of a pesticide or chemical to a cargo in order to rid the cargo of insects. The most common type of fumigant is phosphine gas, which is applied, in several different methods, to grain while in the elevator or vessel or barge. A firm licensed by the government should handle fumigant, which can be toxic.
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| Futures Contract |
An agreement between two people, one who sells and agrees to deliver, and one who buys and agrees to receive, a certain kind, quality and quantity of products to be delivered during a specified delivery month at a specified price. Contracts are traded in organized markets called commodity futures exchanges. Futures contracts are used primarily to transfer financial risk from those seeking to reduce the risk of price change to those seeking to profit from the risk. Little grain is delivered as a result of futures market transactions; however, the pricing trends established through the open trading of futures contracts are directly reflected in world prices.
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| Futures Market |
Any commodity exchange that trades in futures contracts.
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| Gene |
A natural unit of the hereditary material, which is the physical basis for the transmission of the characteristics of living organisms from one generation to another.
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| General Agreement on Tariffs and Trade ( |
An agreement negotiated in 1947 among 23 countries, including the United States, to increase international trade by reducing tariffs and other trade barriers. The multilateral agreement provides a code of conduct for international commerce. GATT also provides a framework for periodic multilateral negotiations on trade liberalization and expansion. (see WTO)
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| Generalized System of Preferences (GSP) |
A framework under which developed countries give preferential tariff treatment of manufactured goods imported from certain developing countries. It is one element in a coordinated effort of the industrial trading nations to bring developing countries more fully into the international trading system.
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| Genetic Engineering |
Scientific alteration of the structure of genetic material in a living organism. It involves the production and use of recombinant DNA and has been employed to create bacteria that synthesize insulin and other human proteins.
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| Genetically Engineered Microbial Pestici |
One or more microbes that have been genetically engineered in such a way as to cause them to be effective in combating pest(s) that attack crops or livestock.
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| Genetically modified organism (GMO) |
Any organism, animal or plant, which is modified by the laboratory insertion of a gene(s) of another organism(s).
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| Germination |
Growth or sprout of a seed.
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| Grain cubic |
The capacity of a vessel, measured in cubic feet available for cargo shipped in bulk which is free to flow between the frames and beams.
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| Gross Domestic Product (GDP) |
A measure of the market value of goods and services produced by the labor and property of a nation. Unlike gross national product, GDP excludes receipts from that nation's business operations in foreign countries, as well as the share of reinvested earnings in foreign affiliates of domestic corporations.
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| Gross National Product (GNP) |
A measure of the market value of goods and services produced by the labor and property of a nation. Includes receipts from that nation's business operations in foreign countries, as well as the share of reinvested earnings in foreign affiliates of domestic corporations.
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| Gross register tonnage (GRT) |
A measurement of internal capacity obtained by multiplying the length, breadth, and height in feet. One register ton equals 100 cubic feet. Gross tonnage comprises all spaces below the tonnage deck and the enclosed spaces above the tonnage deck, less exempted spaces.
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| GSM-102 |
Export promotion program administered by the office of the General Sales Manager, FAS. Under GSM-102, CCC guarantees private commercial loans for U.S. commodity export against commercial and political risk for up to three years at prevailing interest rates.
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| GSM-103 |
Export promotion program similar to GSM-102, but for longer term. Under GSM-103, the loan guarantee is 3-10 years.
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| GSM-5 |
Direct government loan program for agricultural commodity exports. CCC is the lender for periods up to 3 years.
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| Handy vessel |
Is a type of ocean vessel with cargo capacities between 20,000 to 40,000 metric tons (0.8-1.5 million bushels). The handy-sized vessels are used to service shallow water ports that have lower draft restrictions and for lower volume trade routes.
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| Hectare |
A metric unit of area equal to 10,000 square meters, or 2,471 acres.
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| Hedging |
Taking a position in a futures market opposite to one's position in the cash market (i.e., as a buyer or seller) in order to minimize price risk. One hedges by buying or selling a futures contract as a temporary substitute for a cash transaction that will occur later (such as the eventual sale of one's crop).
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| High oil corn (HOC) |
Corn varieties that contain a higher oil content than typical yellow feed corn.
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| Import Quota |
Is a set volume of grain or other products that can be imported into a country. Once the quota amount has been reached, an import tariff may be applied to additional imports or imports may be restricted above the quota amount.
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| Import Tariff |
Is a tax paid on imports. The tax may be calculated as a percent of the imported product value or as a fixed amount per unit ($/metric ton).
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| INCOTERMS |
International Contract Terminology - International Chamber of Commerce's standard commercial terms for definition of delivery and ownership of goods in international trade. Thirteen contract terms specific to auto, ship, and airfreight.
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| International Monetary Fund (IMF) |
Established in 1946 to act as the banker of last resort for countries experiencing foreign exchange deficiencies and to monitor currency exchange relationships among nations.
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| IP - Identity Preserved (IP) |
Process by which a product quality is segregated from producer to consumer, to assure the exact specifications needed.
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| Liners |
Liners are vessels sailing on regularly advertised schedules between named ports. They deal for the most part in the carriage of general cargo although some do carry small parcels of bulk grain. Elevator tariffs frequently give preference in berth assignment to liners if they are not loading more grain than one-half of their summer dead weight. Some liners belong to shipping conferences which are comprised of owners operating vessels in specific geographical areas. Conferences set rates and publish tariffs which apply to all members and merchants shipping on those lines.
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| Market Promotion Program (MPP) |
A program authorized by the U.S. Congress to fund export promotion for U.S. agricultural commodities and value-added products. Originally authorized for the 1990 Farm Bill, MPP finances both generic and branded promotion and complements traditional market development programs funded by FMD.
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| Mbu |
Million bushels
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| Mmt |
Million metric tons
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| Most-Favored Nation (MFN) Status |
A commitment that a country will extend to another country the lowest tariff rates it applies to any third country. A country is under no obligation to extend MFN status to another country, unless they are both contracting parties to the GATT, or unless MFN status is specified in an agreement between them.
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| Mt - Metric ton |
International weigh measure in grain trade.
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| National Corn Growers Association (NCGA) |
Domestic counterpart of USGC. Located in St. Louis, MO.
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| North American Export Grain Association |
Trade association of the export grain trade - traders, elevators, shippers, etc.
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| North American Free Trade Agreement (NAF |
Agreement signed between the United States, Canada and Mexico to reduce internal and external trade barriers and promote trade.
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| Nutraceuticals |
Either a food or portion of food that possesses medical or health benefits.
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| Panamax |
A type of ocean vessel with cargo capacities between 40,000 and 65,000 mt (1.5-2.5 million bushels). Ships in this size range are called Panamax vessels because they are the larges vessels capable of transiting the Panama Canal, where vessel size and draft are limited. Panamax vessels handle the bulk of the grains shipments from the U.S. Gulf and Pacific Northwest ports to Asia.
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| Pollination |
Fertilization which occurs by transferring pollen from the pollen-bearing organ (the anther) to the stick tip of a flower pistil.
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| Polylactic acid (PLA) |
Product of special process using corn. Can be used in a number of industrial products.
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| Public Law 480 (PL 480) |
The Agricultural Trade Development and Assistance Act of 1954. This U.S. law established the Food for Peace of PL 480 program. Titles I and III of the program provide for concessional sales of U.S. agricultural products, for which USDA's Commodity Credit Corporation provides long-term financing (20-30 years) at low interest rates. Title II of the program allows for grants or donations of U.S. agricultural commodities on a government-to-government basis, through international relief agencies or through private voluntary organizations.
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| Quality Samples Program (QSP) |
- USDA program that funds the export of product samples overseas.
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| Sanitary phyto-sanitary standards (SPS) |
Standards that countries apply to imported and exported (as well as domestically produced) food and feed products.
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| Section 201 |
A provision of the U.S. Trade Act of 1974, as amended, which empowers the President to raise import duties or impose import restrictions on goods entering the United States, which injure or threaten to injure domestic industries producing like goods. As the U.S. analog to Article XIX of the GATT, this provision is intended to provide relief from injurious competition when temporary protection will enable the domestic industry to make adjustments to meet this competition.
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| Section 22 |
A provision of the U.S. Agricultural Adjustment Act of 1933, as amended, that authorizes the imposition of quotas or fees on imports of commodities when these measures are necessary to prevent imports for interfering with the operation of U.S. support programs on the products involved.
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