Richard G. Lugar, United States Senator for Richard G. Lugar, United States Senator for Indiana
Richard G. Lugar, United States Senator for Indiana
Home > Senator Lugar's Farm Bill > Agriculture: A Glossary of Terms, Programs, and Laws

Agriculture: A Glossary of Terms, Programs, and Laws

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LAA — Local administrative area.
Lagoon — For purposes of livestock waste management, a lagoon is designed to store manure while it is decomposing. The Natural Resources Conservation Service (NRCS) has developed specifications and provides technical assistance for the proper construction of such lagoons. Lagoons are the most widely used technology to manage manure among cattle and hog producers, and are used by Concentrated Animal Feeding Operations (CAFOs) to meet EPA standards for point source pollution prevention. However, they often generate health and waste management concerns, especially associated with concentrated odors.
Lamb Meat Adjustment Assistance Program — A 4-year program initiated in 1999-2000 to help producers deal with import competition and help stabilize the lamb market. Through 2002, the USDA-administered program provided some $50 million in incentive payments to help producers increase the supply of domestic lamb meat.
Land capability (classification) — The quality of soil resources for agricultural use is commonly expressed as land capability classes and subclasses, which show, in a general way, the suitability of soils for most kinds of field crops. Soils are grouped according to their limitations when they are used to grow field crops, the risk of damage when they are used, and the way they respond to treatment. Capability classes, the broadest groups, are designated by Roman numerals I through VIII, with I being the best soils and VIII being the poorest.
Land evaluation and site assessment system (LESA) — A technique that can be used at the local level to determine the quality of land or agricultural uses and to assess sites or areas of land for their agricultural viability. It was first used in the early 1980s.
Land grant colleges of agriculture — The Morrill Act of 1862 (7 U.S.C. 301 et seq.) granted federal land to states to sell, and instructed each state to use the proceeds to endow a college to teach agriculture and the mechanical arts. States not having any federal land within their borders were given land in scrip, permitting them to sell federal land located in other (usually western) states for revenue to establish an agricultural college. The original schools are called the 1862 Institutions. Subsequently, the Morrill Act of 1890 (7 U.S.C. 321 et seq.) created the black colleges of agriculture, called the 1890 Institutions. The Equity in Educational Land-Grant Status Act of 1994 (P.L. 103-382, Sec. 531-535) gave land grant status to more than 25 Native American colleges, called the 1994 Institutions.
Land grant university — The term used to identify a public university in each state that was originally established as a land grant college of agriculture pursuant to the Morrill Act of 1862 (7 U.S.C. 301 et seq.). In most states the original agricultural colleges grew over time into full-fledged public universities by adding other colleges (e.g., arts and sciences, medicine, law, etc.); in states where a public university existed prior to 1862, this first Morrill Act resulted in a college of agriculture being added to the university. USDA funds go only to the original land grant colleges of agriculture within the so-called land grant universities. www.nasulgc.org.
Land management (conservation) practices — Conservation practices that are carried out to protect soil water and related resources from degradation through programs such as the Environmental Quality Incentives Program. Conservation tillage is a land management practice.
Land management services contracts — A proposed national forest timber sale contract where purchasers would be required to perform activities, other than those directly related to timber cutting and removal, in or near the sale area, in exchange for a reduction in the stumpage price. Pilot tests of this contract arrangement have been conducted, but its general use is not authorized.
Land treatment — Any activity or project to improve conservation of soil, water, or other resources and to improve production.
Land trust — A private nonprofit organization exempted from federal taxes, if it conforms to Section 501 (c)(3) of the federal tax code, that may receive donations of money, property or development rights, and may use its assets to purchase property or development rights. According to a 2000 survey by the Land Trust Alliance, there are more than 1,250 land trusts that have protected about 6.2 million acres, and many of them have used easements to protect about 2.6 million acres of all types of land. A portion of the protected lands are used for agriculture.
Land use and development controls — Ordinances, resolutions, and controls enacted by local government under the authority of state enabling legislation to protect public health, safety, or welfare. Many controls can affect agriculture either directly or indirectly. How agriculture is affected depends on the design of the controls.
Land use plan — A coordinated collection of data, programs, and activities related to existing and potential uses of land and resources within a defined area. Commonly associated with local units of government trying to anticipate and organize uses of space so as to meet defined goals. For producers, conservation plans are a type of land use plan.
LATS — Long-Term Agricultural Trade Strategy.
LD50/lethal dose / LC50/lethal concentration — The dose (median concentration) of a toxicant that will kill 50% of the test animals within a designated period. The lower the LD50/LC50, the more toxic the compound. Testing to determine lethal dosages is used to characterize the acute toxicity of pesticides and other toxic chemicals.
LDCs — Less developed countries. See also Developing countries.
LDP — Loan deficiency payment.
Leaching — The process by which chemicals are dissolved and transported through the soil by percolating water. Pesticides and nutrients from fertilizers or manures may leach from fields, areas of spills, or feedlots and thereby enter surface water, groundwater, or soil. Leaching from concentrated sources such as waste sites and loading areas vulnerable to spills can be prevented by paving or containment with a liner of relatively impermeable material designed to keep leachate inside a treatment pond, landfill, or a tailings disposal area. Liner materials include plastic and dense clay.
Legumes — A family of plants, including many valuable food, forage and cover species, such as peas, beans, soybeans, peanuts, clovers, alfalfas, sweet clovers, lespedezas, vetches, and kudzu. Sometimes referred to as nitrogen-fixing plants, they can convert nitrogen from the air to build up nitrogen in the soil. Legumes are an important rotation crop because of their nitrogen-fixing property.
LESA — Land evaluation and site assessment.
Letters of credit — Letters of credit are commonly used in agricultural export trade. A letter of credit from a bank (or other financial institution) is the bank's guarantee that a buyer of goods will pay the seller. A letter of credit gives the buyer of goods the financial backing of a bank, thereby becoming a financially reliable customer. The buyer can use a letter of credit to help assure that proper shipment is made prior to actual payment. Also, the buyer may obtain a lower price for the purchased product due to the seller being exposed to a lower risk. The seller is assured prompt payment and is protected against cancellation of the sales contract. An advising bank to the seller will notify the seller that a letter of credit has been issued on behalf of the buyer. This advising bank is responsible only for authenticating and forwarding the letter of credit, but makes no commitment to pay unless it agrees to act as a confirming bank. A confirming bank adds its commitment to pay along with the commitment of the issuing bank.
Levy — The USDA defines levy as an import charge assessed by a country or group of countries not in accordance with a definite tariff schedule. The variable import levy of the European Communities was an example. The EC's levy on grains varied from day to day, depending on the offering price of third-country suppliers. In USDA's view the variable import levy is a nontariff trade barrier because, unlike a moderate customs duty or even a quota, it can completely bar imports. The Uruguay Round Agreement on Agriculture resulted in the replacement of variable levies by fixed tariffs.
Liability — When used as a term in the federal crop insurance program, it represents the maximum amount a participating farmer could collect in the program if a total crop loss were experienced.
LIBOR — London interbank offered rate.
Limited global quota for upland cotton — A provision of the Food and Agriculture Act of 1977 (P.L. 95-113) that authorized the President to proclaim an import quota whenever the USDA determines that the spot market average price in any one month exceeds 130% of the previous 36-month average. If triggered by such a determination, the established quota allows for imports of up to 21 days of mill consumption during a 90-day period. A limited global quota cannot overlap with the step 3 quota, one of the cotton competitiveness provisions.
Limited Resource Farmers and Ranchers — The Agricultural Credit Act of 1987 (P.L.100-233, Section 622) requires the Secretary of Agriculture to maintain a Limited Resources Farmer Initiative in carrying out USDA programs. Natural Resources Conservation Service (NRCS) provides conservation technical assistance and other resources to these farmers and ranchers who, are defined as being those who, when compared to other farmers, ranchers and farm operators in a given geographic area (such as a state, county, or project area), have distinct disadvantages in obtaining USDA program assistance. The NRCS determines this by low income and farm sales: (1) total household income must be at or below the national poverty level for a family of four, or not more than 50% of the county median income in each of the previous two years, and (2) gross farm sales may not exceed $100,000 in each of the previous two years, with this amount adjusted for inflation beginning in FY2004. The limited resource phrase often is used along with small, disadvantaged, under served, and minority farmers in describing outreach, education, loan programs and support activities operated by other USDA agencies. For example, farm ownership and operating loans are available to farmers and ranchers unable to get conventional credit. These limited resource applicants are described as those who operate small or family farms and meet the general requirements for a loan but are unable to pay the regular interest rate because of low income. See also Socially disadvantaged farmers and ranchers,and Beginning farmer and rancher.
Line capacity — The maximum number of trains that can operate safely and reliably over a given segment of track during a given period of time.
Line-haul service — The movement over the tracks of a carrier from one city to another, not including the switching service.
Linola — A new form of linseed known by the generic crop name Solin, which produces a high-quality edible polyunsaturated oil similar in composition to sunflower oil. It was developed and released in Australia in 1992 and first commercially grown in 1994. Linola is being produced in Australia, Canada, the U.K. and in the states of Washington and Idaho. Linola substitutes for flax in cropping rotations, is claimed to have lower production costs than canola, but brings prices comparable to canola or other edible oils. Linola is Generally Recognized as Safe (GRAS) by the Food and Drug Administration.
Linters — The short fibers that remain on cottonseed after ginning. They are used mainly for batting, mattress stuffing, and as a source of cellulose.
Live weight — The weight of live animals purchased or sold by a producer.
Livestock Assistance Program (LAP) — An emergency livestock assistance periodically authorized and funded by Congress in response to natural disasters. The most recent version of LAP provides direct payments to eligible livestock producers who suffered grazing losses due to natural disasters during either calendar year 2001 or 2002 (not both). For an individual producer to be eligible, the producer's county must have suffered a minimum 40% loss of available grazing for at least 3 consecutive months due to a disaster during the year. The county also had to be declared a disaster area by either the President or the Secretary of Agriculture in 2001 or 2002. Once the county qualified for assistance, a producer had to suffer a minimum loss of 40% in order to qualify for a payment to partially compensate for purchases of off-farm feed. Producers with more than $2.5 million of gross revenue are ineligible. The maximum payment is $40,000 per person. www.fsa.usda.gov/pas/publications/facts/html/lap01.htm.
Livestock Compensation Program — A program administratively authorized by USDA in 2002 to compensate certain livestock producers for feed and pasture losses caused by a natural disaster declared in 2001 and 2002. Under the program, estimated total direct payments of just over $1 billion were made to all producers of beef, dairy, sheep and goats in any county that was declared a disaster area by the Secretary between January 1, 2001, and February 20, 2003, regardless of the individual producer's loss experience. The payment rates under the LCP were $31.50 per adult dairy cattle, $18 per adult beef cattle, $13.50 for certain livestock over 500 lbs., and $4.50 per sheep or goat. Payments were limited to $40,000 per person, and were not made to any person with qualifying gross revenue over $2.5 million. The program was not specifically authorized by Congress but was initially implemented by USDA under existing authorities. The Livestock Compensation Program was initiated because funding was not available to implement the Livestock Assistance Program. www.fsa.usda.gov/pas/publications/facts/html/LCP03.htm.
Livestock Indemnity Program (LIP) — A program periodically authorized and funded on an emergency basis by Congress to compensate livestock producers for losses caused by a natural disaster. Under the program, a payment is made to help producers defray the cost of replenishing their herds when livestock are killed by a natural disaster. disaster.fsa.usda.gov/lip.htm.
Livestock Mandatory Reporting Act of 1999 — Title IX of the FY2000 USDA appropriations act (P.L. 106-78), requires large packers and importers to report to USDA the details of all transactions involving purchases of livestock and imported boxed lamb cuts, and the details of all transactions involving domestic and export sales of boxed beef cuts, sales of domestic and imported boxed lamb cuts, and sales of lamb carcasses. Additional provisions impose, in turn, new data reporting requirements on USDA, including more frequent price reports along with new monthly information on retail prices for meat and poultry products. Policy issues include the ability of USDA to effectively implement the mandatory program, which has a 5-year authorization that expires October 22, 2004, and whether mandatory reporting is more or less helpful to producers than the longstanding voluntary reporting system. See Mandatory price reporting.
Livestock — When used in agricultural policy discussions, the term broadly refers to farm animals, often, but not always, exclusive of poultry and seafood. However, federal legislation sometimes more narrowly defines the term in order to make specified agricultural commodities either eligible, or ineligible, for a program or activity. For example, the Livestock Mandatory Reporting Act of 1999 (P.L. 106-78, Title IX) defines livestock only as cattle, swine, and lambs. However, 1988 disaster assistance legislation defined the term as "cattle, sheep, goats, swine, poultry (including egg-producing poultry), equine animals used for food or in the production of food, fish used for food, and other animals designated by the Secretary."
LMA — Livestock Marketing Association. www.lmaweb.com.
LOAEL — Lowest-observed-adverse-effect-level.
Loan commodity — Under the 2002 farm bill (P.L. 101-171, Sec. 1201-1205), the following commodities are eligible for marketing assistance loans and are called loan commodities: wheat, corn, grain sorghum, barley oats, upland cotton, extra long staple cotton, rice, soybeans, other oilseeds, wool, mohair, honey, dry peas, lentils, and small chickpeas. With the exception of extra long staple cotton, farmers agreeing to forgo the loans are eligible for loan deficiency payments (LDPs) on actual production of loan commodities.
Loan deficiency payments — A farm income support program first authorized by the Food Security Act of 1985 (P.L. 99-198) that makes direct payments, equivalent to marketing loan gains, to producers who agree not to obtain nonrecourse loans, even though they are eligible. Loan deficiency payments are available under the 2002 farm bill (P.L. 101-171, Sec. 1205) for wheat, corn, grain sorghum, barley, oats, upland cotton, rice, soybeans, other oilseeds, wool, mohair, honey, dry peas, lentils, and small chickpeas.
Loan forfeiture level (sugar) — The mandatory nonrecourse loan rates for raw cane sugar and refined beet sugar are 18¢/lb. and 22.9¢/lb. However, borrowers are likely to forfeit loan collateral when raw can prices are below 20¢-22¢/lb. and refined beet prices are below 23¢-26¢/lb, depending upon geographic location. These higher loan forfeiture levels result from the added costs of interest and transportation associated with repayment of loans. Therefore, USDA seeks to keep market prices above the loan forfeiture levels through the administration of sugar import quotas, marketing allotments, and payment-in-kind authority. Accordingly, the loan forfeiture level serves as the effective price support level.
Loan forfeiture — Under commodity program rules, a producer or processor who pledges a stored commodity as collateral to the Commodity Credit Corporation (CCC) to obtain a nonrecourse loan can settle the repayment obligation by forfeiting the commodity without any penalty. This happens, by design, if forfeiture is more profitable than selling the commodity in the marketplace. The difference between the loan price and the market price at the time of forfeiture is called the marketing loan gain to the farmer and is taxed as income. The incentives for loan forfeiture largely were eliminated by the introduction of loan deficiency payments (LDPs). Per person payment limits on LDPs and marketing loan gains can be avoided when producers purchase commodity certificates at posted county prices for use in settling loans. Until the introduction of marketing loans, loan forfeiture was used to reduce the available market supply of commodities and raise market prices.
Loan rate — The price per unit (bushel (bu.), bale, pound (lb.), or hundredweight (cwt.), depending on the commodity) at which the government will provide nonrecourse or recourse loans to farmers (or associations acting on their behalf) by the Commodity Credit Corporation (CCC). This short term financing at below market interest rates enables farmers to hold their commodities for later sale. The introduction of marketing assistance loan provisions (repayment at the posted county price and loan deficiency payments) largely eliminates the forfeiture of nonrecourse loan commodities when market prices fall below loan rates.
Local educational agency (LEA) — This term refers to schools or school districts that are charged with overseeing eligibility determinations for free and reduced price school meals.
London interbank offered rate — Interest rate offered by a specific group of London banks for U.S. dollar deposits of a stated maturity. Used as base index for setting some adjustable rate financial instruments, including adjustable rate mortgages. Used by Fannie Mae.
Long ton — A measure of weight equal to 2,240 pounds. By contrast, a short ton is 2,000 pounds; a metric ton (MT) equals 2,204.62 pounds.
Long — (1) One who has bought a futures contract or option to establish a market position; (2) a market position that obligates the holder to take delivery; (3) one who owns an inventory of commodities. The opposite of short.
Long-term agreements — Providing benefits through conservation programs for periods of longer than a single year. Many of the newer conservation programs, such as the Conservation Reserve Program (CRP) and the Farmland Protection Program FPP), use multi-year agreements with land owners.
Loss Ratio — A term used to measure the financial performance of the federal crop insurance program. It is expressed as the ratio of indemnity, or loss payments, to total premiums. For example, a loss ratio of 1.3 to 1.0 means that for every $1.30 of indemnity or loss payments, premiums amounted to $1.00.
Low-flow irrigation systems — These systems (drip, trickle, and micro sprinklers) provide water in small volumes and generally target it to plants with less waste than furrow irrigation. Drip and trickle systems apply water through small holes in small diameter tubes placed on or below the surface of the field. Another type of system, micro sprinklers, supplies water from low-volume sprinkler heads located above the surface. Low flow systems are expensive and their use is generally limited to high-value crops such as vegetables, fruits, and vineyards.
Lowest-observed-adverse-effect-level — Lowest concentration or amount of a substance found by experiment or observation which causes an adverse alteration of morphology, function, capacity, growth, development or life span of a target organism distinguished from normal organisms of the same species under defined conditions of exposure. Federal agencies use set approval standards below this level.
Lump-sum sales — A common term for tree measurement sales.