JavaScript not enabled. This page may not render correctly.
Search FAS
Browse by Audience
Browse by Audience
Search FAS

CCC Changes DEIP Amendment Policy

WASHINGTON, Jan. 6, 1998--This release corrects an error in the last paragraph of press release PR 0002-97 issued Jan. 2 which described changes in the Commodity Credit Corporation''s (CCC) Dairy Export Incentive Program. The following is a more accurate description of the changed policy.


Notice Number DEIP-FY98-1

Christopher E. Goldthwait, general sales manager for the U.S. Department of Agriculture''s Foreign Agricultural Service and vice president of CCC announced that CCC has made certain modifications in its policy concerning amendments to DEIP agreements. In the interest of providing more flexibility to exporters in working out unforeseen problems in fulfilling exports pursuant to DEIP agreements, and thus of improving the efficiency and effectiveness of the program, Goldthwait said that henceforth CCC policy would:

1. permit exporters to amend DEIP agreements to change the buyer with no CCC review of the bonus as long as other significant terms of the agreement remain unchanged;

2. permit exporters to renegotiate lower export sales prices due to significant changes in world market conditions, and to amend DEIP agreements accordingly with no review of the bonus, provided other significant terms of the agreement remain unchanged and the renegotiated export price is reasonably in line with world prices; and

3. commit CCC to mitigating the amount by which bonuses would be reduced when agreements are amended to extend delivery periods. CCC has determined that this mitigation is warranted because, when CCC agrees to an extension of the original delivery period, exporters are normally not in a position to realize the full amount of theoretical gains from changes in U.S. market prices that may have occurred.

Goldthwait said that, with these policy changes, CCC expects that a higher proportion of amounts covered under DEIP agreements will be fully shipped and that U.S. DEIP exporters will be more competitive in the world market. For further information call (202) 720-3224.

FAS news releases are available on the Internet at and by fax polling. Callers should set their fax machines for polling and dial (202) 720-1728. For additional information, contact the FAS Information Division on (202) 720-7115.

In the event of any discrepancy between the FAS home page version of this notice and the standard FAS notice (available in hard copy and by facsimile from FAS), the standard notice shall prevail .


FAS Home | | Economic Research Service | World Agricultural Outlook Board | Plain WritingTrade Links | FOIA
Accessibility Statement | Privacy Policy | Non-Discrimination Statement | Information Quality | | White House | Site Map