Marketing Agreements And Orders
AGRICULTURAL MARKETING SERVICE, DEPARTMENT OF AGRICULTURE
Agricultural Marketing Agreement Act of 1937, as amended, 7 U.S.C. 601, 602, 608a-e, 612, 614, 624, 671-674; Omnibus Budget Reconciliation Act of 1987, Public Law 100-203, 7 U.S.C. 4501- 4513; Agriculture and Food Act of 1981, 7 U.S.C. 2242a.
Marketing Agreements and Orders are designed to stabilize market conditions and improve returns to producers through the establishment of minimum prices, regulating the quality and quantity of commodities sold through commercial channels, and providing market promotion.
Types of Assistance
Provision of Specialized Services; Advisory Services and Counseling.
Uses and Use Restrictions
The provisions of orders and agreements are designed specifically to meet the marketing and economic problems of the commodity or area covered. For dairy products, the orders establish orderly marketing conditions in the sale of milk by dairy farmers to handlers, whereas fruit, vegetable, nut, and grass seed, are established to regulate the quantity and quality of products sold in commercial channels.
Marketing orders are issued by the Secretary of Agriculture only after a public hearing where milk, fruit and vegetable producers, marketers, and consumers testify, and after farmers vote approval through a referendum. Growers of certain fruits, vegetables, and specialty crops (like nuts, raisins, olives, and hops). Dairy farmers are the primary applicants.
The beneficiaries are producers of milk, fruit and vegetable products.
Evidence (usually hearings) required indicating that agreement or order will assist in the orderly marketing of a commodity.
Application and Award Process
None. This program is excluded from coverage under E.O. 12372.
Made in the form of a letter to the Secretary of Agriculture fully documenting the need for an agreement or order.
Decision to establish or not to establish an agreement and order is made by the Secretary of Agriculture after public hearings and referendums are conducted.
Range of Approval/Disapproval Time
Subject to time required to hold public hearings, investigations and to conduct a referendum. Approximately 1 year after start of public hearings.
Formula and Matching Requirements
Length and Time Phasing of Assistance
Duration of agreement and order.
Post Assistance Requirements
Quarterly and yearly financial and statistical reports are to be made to the applicable AMS commodity division by producers or handlers as provided for by each agreement and order.
Financial and program audits pertaining to marketing agreements and order transactions are made periodically.
Financial and statistical records relating to the operation of the agreement and order are to be maintained for 3 years.
(Salaries and expenses) FY 07 $15,493,000; FY 08 est $16,798,000; and FY 09 est not reported.
Range and Average of Financial Assistance
(Marketing's conducted under agreements and orders) fiscal year 2006, estimate $24.9 billion.
Regulations, Guidelines and Literature
AH-421, Compilation of Agricultural Marketing Agreement Act; PA947, Can a Marketing Order Help?; PA-1095, Marketing Agreements and Orders for Fruits and Vegetables; AMS-565, Sources of Milk for Federal Order Markets by State and County; AMS-559, Questions and Answers on Federal Milk Marketing Orders; MB-27, The Federal Milk Marketing Order Program; SB-625, Federal Milk Order Market Statistics, Annual Summary; SB-624, Dairy Market Statistics, Annual Summary; MB-63, Market News Service on Dairy Products; How to Buy Dairy Products, HG-201; How to Buy Cheese, HG-193; How to Buy Butter, HG-148; Diary Products Grading Services, MB-69; Judging and Scoring Milk and Cheese, FB-2259.
Regional or Local Office
Associate Administrator, Agricultural Marketing Service, Department of Agriculture, Washington, DC 20250. Telephone: (202) 720-4276.
Web Site Address
10.051, Commodity Loans And Loan Deficiency Payments
10.500, Cooperative Extension Service
36.001, Fair Competition Counseling And Investigation Of Complaints
Examples of Funded Projects
Criteria for Selecting Proposals