Marketing orders and agreements in

United States agricultural policy The agricultural policy of the United States is composed primarily of the periodically renewed federal U.S. farm bills. The Farm Bills have a rich history which initially sought to provide income and price support to US farmers and prevent them ...

allow producers to promote

orderly marketing An orderly marketing arrangement is a non-legal treaty agreed upon by the national government stating that a sovereign state must refrain from exporting goods to a targeted negotiating sovereign state. These agreements relate directly to voluntary e ...

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). 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 The Agricultural Marketing Service (AMS) is an agency of the United States Department of Agriculture; it maintains programs in five commodity areas: cotton and tobacco; dairy; fruit and vegetable; livestock and seed; and poultry. These programs ...

of the

United States Department of Agriculture The United States Department of Agriculture (USDA) is the federal executive department responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food. It aims to meet the needs of com ...

(USDA) uses marketing orders to regulate the sale of dairy products and fruits and vegetables.AMS at USDA, Fruit and Vegetable Marketing Orders
/ref> 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 The Agricultural Marketing Agreement Act of 1937 provides authority for federal marketing orders, and also reaffirmed the marketing agreements provisions of the Agricultural Adjustment Act of 1933. Under the authority of this permanent law and ...

(AMAA), as amended. The AMAA was a piece of

New Deal The New Deal was a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States between 1933 and 1939. Major federal programs agencies included the Civilian Con ...

era legislation implemented for price stability and essential marketing functions in response to economic pressure faced by small farmers in the 1920s. Except for DFA, they are not bound by federal orders and can pay producers whatever they want.

Milk

Federal milk marketing orders regulate handlers that sell milk or milk products within an order region by requiring them to pay not less than an established minimum price for the

Grade A milk In the United States, Grade A milk, also called fluid grade milk, refers to milk produced under sufficiently sanitary conditions to qualify for fluid (beverage) consumption. Only Grade A milk is regulated under federal milk marketing orders. Gr ...

they purchase from dairy producers, depending on how the milk is used. This classified pricing system requires handlers to pay a higher price for milk used for fluid consumption (Class I) than for milk used in manufactured dairy products such as yogurt, ice cream, cheese, butter and nonfat dry milk (Class II, Class III and Class IV products). The Federal Milk Marketing Order (FMMO) does not include certain states, such as Idaho. Federal milk marketing orders were first instituted in the 1930s to promote orderly marketing conditions by, among other things, applying a uniform system of classified pricing throughout the farm milk market. The

1996 Farm Bill The Federal Agriculture Improvement and Reform Act of 1996 (P.L. 104-127), known informally as the Freedom to Farm Act, the FAIR Act, or the 1996 U.S. Farm Bill, was the omnibus 1996 farm bill that, among other provisions, revises and simplifies ...

required the USDA to consolidate the number of federal milk marketing orders and to revise the method by which minimum class prices are determined. The USDA implemented these changes in 2000. There are now 10 milk marketing orders, down from 31 when the law was enacted.

Raisins

The

National Raisin Reserve The National Raisin Reserve was a raisin reserve of the United States. It was created after World War II by the government in order to control raisin prices. The reserve was run by the Raisin Administrative Committee. It was enforced by means of a " ...

was a

raisin A raisin is a dried grape. Raisins are produced in many regions of the world and may be eaten raw or used in cooking, baking, and brewing. In the United Kingdom, Ireland, New Zealand, and Australia, the word ''raisin'' is reserved for the d ...

reserve of the United States. It was created after

World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the World War II by country, vast majority of the world's countries—including all of the great power ...

by the government in order to control raisin prices. The reserve was run by the

Raisin Administrative Committee The National Raisin Reserve was a raisin reserve of the United States. It was created after World War II by the government in order to control raisin prices. The reserve was run by the Raisin Administrative Committee. It was enforced by means of a " ...

. It was the subject of the 2013 and 2015 Supreme Court case ''

Horne v. Department of Agriculture ''Horne v. Department of Agriculture'', 569 U.S. 513 (2013) ("''Horne I''"); 576 U.S. 350, 135 S. Ct. 2419 (2015) ("''Horne II''"), is a case in which the United States Supreme Court issued two decisions regarding the Takings Clause of the Fifth ...

'' which found it an unconstitutional

taking Taking or takings may refer to: * Theft, illicit taking * The acquisition of land under eminent domain * Take (hunting) or taking, an action that adversely affects a species * Kidnapping of persons See also * * * * Take (disambiguation) * ...

and ended it.

References

* {{reflist

External links

Agricultural Marketing Service
in the

Federal Register The ''Federal Register'' (FR or sometimes Fed. Reg.) is the official journal of the federal government of the United States that contains government agency rules, proposed rules, and public notices. It is published every weekday, except on fed ...

United States agricultural policy United States Department of Agriculture United States trade law Agricultural marketing