Marketing orders and agreements in United States agricultural policy allow producers to promote orderly marketing through collectively influencing the supply, demand, or price of a particular commodity. Research and promotion can be financed with pooled funds.
Marketing orders are binding on all handlers of the commodity within the geographic area of regulation once it is approved by a required number of producers (usually two-thirds).[1] An order may limit the quantity of goods marketed, or establish the grade, size, maturity, quality, or prices of the goods. The Agricultural Marketing Service of the United States Department of Agriculture (USDA) uses marketing orders to regulate the sale of dairy products[2] and fruits and vegetables.[3] An order can be terminated when a majority of all producers favor its termination or when the USDA determines that the order no longer serves its intended purpose. Marketing agreements may contain more diversified provisions, but are enforceable only against those handlers who enter into the agreement.
They are authorized by the Agricultural Marketing Agreement Act of 1937 (AMAA), as amended.[1] The AMAA was a piece of New Deal era legislation implemented for price stability and essential marketing functions in response to economic pressure faced by small farmers in the 1920s.[1]
Except for DFA, they are not bound by federal orders and can pay producers whatever they want.[dubious – discuss]
^ abcKalebjian, Bradley. "The Effect of Terminated Federal Marketing Orders on Small Farms, and a Reflection on the Jeffersonian Spirit" (PDF). San Joaquin Agricultural Law Review. 22 (1): 115–140. Retrieved 3 February 2014.
^AMS at USDA - Dairy Programs- Federal Milk Marketing Orders
^AMS at USDA, Fruit and Vegetable Marketing Orders
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