Marketing orders and agreements
- Marketing orders and agreements
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In United States agricultural policy, Marketing orders and agreements (authorized by the Agricultural Marketing Agreement Act of 1937 (50 Stat. 246), as amended) allow producers to promote orderly marketing through collectively influencing the supply, demand, or price of a particular commodity so as to create orderly marketing. Research and promotion can be financed with pooled funds. Once approved by a required number of producers (usually two-thirds) the marketing order is binding on all handlers of the commodity within the geographic area of regulation. It may limit the quantity of goods marketed, or establish the grade, size, maturity, or quality of the goods.
Marketing orders have been established for milk, fruits, vegetables, and other commodities. Marketing agreements may contain more diversified provisions, but are enforceable only against those handlers who enter into the agreement. An order can be terminated when a majority of all producers favor its termination or when USDA determines that the order no longer serves its intended purpose. Federal oversight is provided by USDA’s Agricultural Marketing Service (AMS).
See also
- Orderly marketing
- Prorate
- Reserve pool
- Shipping holiday
References
External links
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2010.
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This article incorporates public domain material from the Congressional Research Service document "Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition" by Jasper Womach.
