Agricultural marketing Agreement Act of 1937

AG RIC UL TU RA L M AR KE TIN G A GR EEM EN T A CT OF 193 7,

1

REENACTING, AMENDING, AND SUPPLEMENTING THE AGRICULTURAL
ADJUSTMENT ACT, AS AMENDED
(7 U.S.C. 601, 602, 608a)608e, 610, 612, 614, 624, 627, 671)674)
AN ACT T o reenact an d am end provisions o f the Agricultural Adjustment Act,
as amended, relating to m arketing agreements and orders.
Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled, That the following provisions of the Agricultural
Adjustment Act, as amended, not having been intended for the control of the production of
agricultural comm odities, and having b een intended to b e effective irrespe ctive of the validity
of any other provision of that Act are expressly affirmed and validated, and are reena cted
without change except as p rovid ed in section 2 :
(a) Section 1 (relating to the declaration of emergency);
DECLARATION
[It is hereb y decla red tha t the disruption of the orderly exchange of commod ities in
interstate commerce impairs the purchasing power of farmers and destroys the value of
agricultural assets which support the national credit structure and that these conditions affect
transactions in agricultural commo dities with a national public interest, and burden and
obstruct the normal channels of interstate commerce. (7 U.S.C. 601.)] 2
(b) Section 2 (relating to declaratio n of po licy);
DECLARATION OF POLICY
[S EC . 2. It is hereby declared to be the po licy of Congress)
(1) Through the exercise of the powers conferred upon the Sec retary o f Agriculture
under this title, to establish and maintain such orderly marketing conditions for agricultural
commodities in interstate commerce as will establish, as the prices to farmers, parity prices
as defined by section 301 (a)(1) of the Agricultural Adjustment Act of 1938.3
(2) To protect the interest of the consumer by (a) approaching the level of prices which
it is declared to b e the policy of Co ngress to establish in subsection (1) of this section by
gradual correction of the current level at as rapid a rate as the Secretary of Agriculture deems

1
App roved Jun e 3, 1937 , 50 S tat. 246 . Section 1 of this Act reenacted the following
sections of Title 1 of the Agricultural Adjustment Act of 1933, as amended: 1; 2; 8a(5), (6),
(7), (8), (9); 8b; 8c; 8e; 10(a), (b)(2), (C), (f), (g), (h), (I); 12(a), (C); 14; 22. The language
of the provisions which were reenacted (with all amendments up to date of printing) are set
forth in bracke ts after the appropriate subsection s.
2
The Agricultural Act of 1970, Pub. L. 91-524, 84 Stat. 1361, (7 U.S.C. 601 note), as
reenacted and amended by the Agriculture and Consumer Protection Act of 1973, Pub. L. 9386, 87 Stat. 224, Pub. L. 95-113, 91 Stat. 919, Sept. 29, 1977; Pub. L. 97-98, 95 Stat. 1219,
Dec. 22, 1981; Pub. L. 99-198, 99 Stat. 1373, Dec. 23, 198 5; and Pub . L. 101-62 4, 10 4 Stat.
3381, Nov. 28, 1990
specifies “The legal status of producer handlers of milk under the provisions of the
Agricultural Adjustment Act, as reenacted and amended by the Agricultural Marketing
Agreement Act of 193 7 shall be the sa me after the am endments mad e by this title take effect
as it was before the effective date of the amendments.”
3
Amended by section 302 of the Agricultural Act of 1948 (July 3, 1948, 62 Stat. 1247)
to refer to parity prices as defined in the Agricultural Adjustment Act of 1938.

159

to be in the public interest and feasible in view of the current co nsumptive d emand in
dom estic and foreign markets, and (b) authorizing no action under this title which has for its
purpo se the maintenance of prices to farmers above the level which it is declared to be the
policy of Co ngress to estab lish in subsection (1) of this section.
(3) Through the exercise of the powers conferred upon the Secretary of Agriculture
under this title, to estab lish and maintain such production research, marketing research, and
development projects provided in section 8c(6)(I),4 such container and pack requirements
provided in section 8(c)(6)(H) 5 such minimum standards of quality and maturity and such
grading and inspection requirements for agricultural commodities enumerated in section
8c(2), other than milk and its products, in interstate comm erce a s will effectuate such o rderly
marketing of such agricultural commod ities as will be in the public interest. 6
(4) Through the exercise of the power conferred upon the Secretary of Agriculture under
this title, to establish and maintain such orderly marketing conditions for any agricultural
com mod ity enumerated in section 8c(2) as will provide, in the interests of producers and
consum ers, an orderly flow of the supp ly thereof to market throughout its normal marketing
season to avoid unreasonable fluctuations in supplies and prices. 7
(5) Through the ex ercise of the power conferred upon the Secretary of Agriculture under
this title, to continue for the remainder of any marketing season or mark eting year, such
regulation pu rsuant to any order as will tend to avoid a disruption of the orderly marketing
of any commodity and be in the public interest, if the regulation of such commodity under
such order has been initiated during such marketing season or marketing year on the basis of
its need to effectuate the policy of this title. 8 (7 U.S.C. 602.)]
(c) Section 8a (5), (6), (7), (8), and (9) relating to violations and enforc ement);
VIOLATIONS AND ENFORCEMENT
[S EC . 8a. (5) Any person exceeding any quota or allotment fixed for him under this title
by the Secretary of Agriculture and any other person knowingly participating or aiding in the
exceeding of such quota or allo tment shall forfeit to the United States a sum equal to the
value of such excess at the current market price for suc h com mod ity at the time of violation,
which forfeiture shall be recoverable in a civil suit brought in the name of the United States. 9
(6) The several district courts of the U nited States are hereby vested with jurisdiction
specifically to enforce, and to p revent and re strain any perso n from violating any order,
regulation, or agreement, heretofore or hereafter made or issued pursuant to this title, in any
proceed ing now pending or hereafter b rought in said courts.
(7) U pon the req uest of the Secretary of Agriculture, it shall be the duty of the several
United States attorneys, in their resp ective d istricts, under the dire ctions of the Attorney
General, to institute proceedings to enforce the remedies and to collect the forfeitures
provided for in, or pursuant to, this title. Whenever the Secretary, or such officer or employee
of the Department of Agriculture as he may designate for the purpose, has reason to believe
that any handler has violated, or is violating the provisions of any order or amendment
thereto issued pursuant to this title, the Secretary shall have p ower to institute an
investigation and, after due notice to such handler, to co nduct a hearing in order to determine

4

Authority for production research under marketing agreements and orders was added by
Pub . L. 91-292 , 84 S tat. 333 , June 2 5, 19 70.
5
The words “such container and pack requirements provided in section 8(c)(6) (H)” were
add ed by Pub . L. 89-330 , 79 S tat. 127 0, Nov. 8, 1965.
6
Subsection (3) ad ded by Ac t of Aug . 1, 1947, 6 1 Stat. 707 .
7
Subsection (4) added by section 401 of the Agricultural Act of 1954, 68 Stat. 906.
8
Subsection (5) added by section 141 of the Agricultural Act of 1961 (Aug. 8, 1961, 75
Stat. 303).
9
Amended by section 141 of the Agricultural Act of 1961 (Aug. 8, 1961, 75 Stat. 304).
160

the facts for the purpose of referring the matter to the A ttorney G enera l for appropriate
action.
(8) The remed ies provided for in this section shall be in addition to, and not exclusive
of, any of the remedies or penalties provided for elsewhere in this title or now or hereafter
existing at law or in equity.
(9) The term “person” as used in this title includes an individual, partnership,
corp oratio n, association, and any other business unit.
(7 U.S.C. 608a.)]
(d) Section 8b (relating to marketing agreem ents);
MARK ETING AG REEM ENTS
[S EC . 8b. 10 (a) In order to effectuate the declared policy of this title, the Secretary of
Agriculture shall have the power, after due notice and oppo rtunity for he aring, to enter into
marketing agreements with processors, producers, associations of producers, and others
engaged in the handling of any agricultural commodity o r product thereof, only with respect
to such handling as is in the current of interstate or foreign com merc e or which directly
burdens, obstructs, or affects, interstate or foreign commerce in such commodity or product
thereo f. The making of any such agreement shall not be held to be in violation of any of the
antitrust laws of the United States, and any such agreement shall be deemed to be lawful:
Provided, That no such agreement shall remain in force after the terminatio n of this Act.
(b)(1) If an agreement with the Secretary is in effect with respect to peanuts pursuan t to
this section)
(A) all peanuts handled by persons who have not entered into such an
agreement with the Secretary shall be subject to inspection to the same extent and
manner as is re quired by such agreement;
(B) no such peanuts shall be sold or otherwise disposed of for human
consumption if such peanuts fail to meet the quality requirements of such
agreement; and
(C)11 any assessment (except with respect to any assessment for the
indemnification of losses on rejected peanuts) imposed under the agreement shall)
(i) apply to peanut handlers (as defined by the Secretary) who have
not entered into such an agreement with the Secretary in addition to those
handlers who have entered into the agreement; and
(ii) be p aid to the Secretary.
(2)12 Violation of this subsection by a person who has not entered into such an agreement
shall result in the assessment by the Secretary of a penalty equal to 140 p ercent of the support
price for quota peanuts multiplied by the quantity of peanuts sold or disposed of in violation
of subsection (b)(1)(B), as determined under section 108B of the Agricultural Act of 1949
(7 U.S.C. 1445c)3), for the marketing year for the crop with resp ect to which such violation
occurs. (7 U.S.C. 608b)]
(e) Section 8c (relating to orders)

10
Pub. L. 101-220, 103 Stat. 1878, Dec. 12, 1989, designated existing provisions as
subsection (a) and added subsection (b), to require peanut handlers who have not signed the
marketing agreement to meet the same quality requirements as specified in the peanut
marketing agreement. Sec. 4(c) of Pub. L. 101-220, 103 Stat. 1878, Dec. 12, 1989, provided
that: “The amendment made by this section shall be effective with respect to 1990 and
subsequent crops of peanuts.”.
11
Sec. 1109(b) of Pub. L. 103-66, 107 Stat. 326, Aug. 10, 1993, added subparagraph (C),
requiring non-signers of the peanut agreement to pay the same assessments as the signers.
12
Sec. 115(1) of Pub. L. 102-237, 105 Stat. 1840, Dec. 13, 1991, struck “7 U.S.C. 1445c2" and inserted “1445c-3".

161

ORDER S
[S EC .1 8c. (1) 13 The S ecretary of Agriculture shall, subject to the provisio ns of this
section, issue, and from time to time, amend orders applicable to processors, associations of
prod ucers, and others engaged in the handling of any agricultural commodity or product
thereof specified in subsection (2) of this section. Such perso ns are referred to in this title as
“hand lers.” Such orders shall regulate, in the manner hereinafter in this section provided,
only such handling of such agricultural commod ity, or product thereo f, as is in the current
of interstate or foreign commerce, or which directly burdens, obstructs, or affects, interstate
or foreign commerce in such commodity or product thereof. In carrying out this section, the
Secretary shall complete all informal rulemaking actions necessary to re spond to
recommend ations submitted by adm inistrative comm ittees for such orders as expeditiou sly
as possible, but not more than 45 days (to the extent practicable) after submission of the
committee recommendations. T he Secretary is authorized to implement a producer
allotment program and a handler withholding program under the cranberry marketing order
in the sam e crop year through informal rulemaking based on a recom mendation and
supporting econo mic analysis submitted by the Cranberry Marketing Committee. Such
recommendation and analysis shall be submitted by the Committee no later than March 1 of
each year.14 The Secretary shall establish time frames for each office and agency within the
Departm ent of A griculture to co nsider the co mmittee reco mmendations.
COMMOD ITIES TO WHICH APPLICABLE
(2) Orders issued pursuant to this section shall be applicable only to (A) the following
agricultural commo dities and the pro ducts thereo f (except canned or froz en pe ars, grapefruit,
cherries, apples, or cranberries,15 the products of naval stores, and the products of
honeybees), or to any regional, or mark et classification of any such com mod ity or pro duct:
Milk, fruits (including filberts, almonds, 16 pecans and walnuts but not including apples, other
than apples produced in the States of Washington, Oregon, Idaho, New York, Michigan,
Maryland, New Jersey, Indiana, California, Maine, Vermont, New Hampshire, Rhode Island,
Massachusetts, Connecticut, Co lorad o, Utah, New M exico , Illinois, and Ohio 17 and not
including fruits for canning or freezing other than pears, olives, grapefruit, cherries,
caneberries (including raspb erries, blackberries, and loganberries), cranberries, and apples
produced in the States nam ed ab ove except W ashington, O regon, and Idaho), 18 tobacco,
vegetables (not including vegetables, other than asparagus, for canning or freezing and not
including potatoes for canning, freezing, or other processing19), hops, honeybees, and naval
stores as included in the Naval Stores Act and standards established thereunder (including
refined or partially refined oleoresin): Provided, That no order issued pursuant to this section

13
Pub. L. 102-553, 106 Stat. 4141, Oct. 28, 1992, added the requirement for U SD A to
exped ite rulemaking for Federal marketing orders.
14
Provision added by Pub. L. 107-76, Sec. 765, 115 Stat. 743, Nov. 28, 2001, that authorizes a
producer allotment program and a handler withholding program under the Cranberry Marketing Order
in the same crop year.
15
“Pears,” added by Pub. L. 92-466, 86 Stat. 780, Oct. 6, 1972. The words “cherries, apples, or
cranberries,” were added by section 141 of the Agricultural Act of 1961, 75 Stat. 304, August 8, 1961.
16
The words “filberts, almonds,” were added by the Act of June 29, 1949, 63 Stat. 282.
17
Authority to provide for marketing orders for apples produced in Colorado, Utah, New Mexico,
Illinois, and Ohio was added by Pub. L. 91-341, July 18, 1970, 84 Stat. 438.
18
Pub. L. 107-171, Sec. 10601(a), 116 Stat. 511, May 13, 2002, added “caneberries (including
raspberries, blackberries, and loganberries)”. The language referring to the States, other than Idaho,
was added by section 141 of the Agricultural Act of 1961. “Pears,” added by Pub. L. 92-466, Oct, 6,
1972, 86 Stat. 780.
19
The words “and not including potatoes for canning, freezing, or other processing” were added by
Pub. L. 91-196, 84 Stat. 14.

162

shall be effective as to any grap efruit for canning or freezing unless the Secretary of
Agriculture determines, in addition to other findings and d eterminations required b y this Act,
that the issuance of such order is approved or favored by the processors who, during a
representative period determined by the Secretary, have been engag ed in canning or freezing
such commodity for market and have canned or frozen for market more than 50 per centum
of the total volume of such commodity canned or frozen for market during such
representative period; and (B) any agricultural commodity (except honey, cotton, rice, wheat,
corn, grain sorghums, oats, barley, rye, sugarcane, sugarbeets, wool, mohair, livestock,
soybeans, cottonseed, flaxseed, poultry (but not excepting turkeys and not excepting poultry
which produce com mercial eggs), fruits and vegetables for canning or freezing, including
potatoes for canning, freezing, or other processing,20 and apples), or any regional or market
classification thereof, not subject to orders under (A) of this paragraph, but not the products
(including canned or froz en co mmodities or products) there of. No order issued pursuan t to
this section shall be effective as to cherries, apples, or cranberries for canning or freezing
unless the Secretary of Agriculture determines, in addition to other required findings and
determinations, that the issuance of such order is approved or favored by processors who,
during a representative period determined by the Secretary, have engaged in canning or
freezing such commodity for market and have frozen or canned more than 50 per centum of
the total volume of the commodity to be regulated which was canned or frozen within the
production area, or marketed within the marketing area, defined in such order, during such
representative perio d. No order issued pursuan t to this section shall be applicable to peanuts
produced in more than one of the following production areas: the Virginia-Carolina
production area, the Southeast production area, and the Southwest production area. If the
Secretary determines that the declared policy of the title will be better achieved thereby (I)
the com mod ities of the same ge neral class used wholly or in part for the same purposes may
be combined and treated as a single commodity and (ii) the portion of an agricultural
com mod ity devoted to or marketed for a particular use or combination of uses, may be
treated as a sep arate agricultural com mod ity. All agricultural commodities and p roducts
covered hereb y shall be deemed specified herein for the purposes of section 8c (6) and (7)
of this title.
NOTICE AND HEARING
(3) W henever the Secretary of Agriculture has reason to believe that the issuance of an
order will tend to effectuate the d eclared po licy of this title with respect to any co mmodity
or product thereof specified in subsection (2) of this section, he shall give due notice of and
an op portunity for a hearing upon a propo sed order.
FINDING AND ISSUANCE OF ORDER
(4) After such notice and oppo rtunity for hearing, the Secretary of Agriculture shall issue
an order if he finds, and sets forth in such order, upon the evidence introduced at such
hearing (in add ition to such other findings as may be specifically required by the section) that
the issuance of such ord er and all of the terms and conditions thereo f will tend to effectuate
the declared policy of this title with respect to such com mod ity.

20
Pub. L. 98-180, 97 Stat. 1151, Nov. 29, 1983, authorized eggs and poultry which produce
commercial eggs for marketing orders. The words “including potatoes for canning, freezing, or other
processing,” were added by Pub. L. 91-196, 84 Stat. 14. Pub. L. 91-196 is effective only from date of
enactment (Feb. 20, 1970) to two years afterward (Feb. 20, 1972). Pub. L. 92-233, Feb. 15, 1972, 86
Stat. 39, made permanent the amendment to the Act.

163

T E RM S)MILK AND ITS PRODU CTS
(5) 21 In the case of milk and its prod ucts, orders issu ed pursuan t to this sectio n shall
contain one or more of the following terms and conditions, and (except as provided in
subsection (7 )) no o thers:
(A)22 Classifying milk in accordance with the form in which or the purpose for
which it is used, and fixing, or providing a method for fixing, minimum prices for
each such use classification which all handlers shall pay, and the time when
paym ents shall be made for milk purchased from producers or associations of
prod ucers. Such prices shall be uniform as to all handlers, subject only to
adjustments for (1) volume, market, and production differentials customa rily
applied by the handlers subjec t to such order, (2) the grad e or q uality of the m ilk
purchased, and (3) the locations at which delivery of such milk, or any use

21
Sec. 107 of Pub. L. 97-98, 95 Stat. 1220 states: “Not later than Dec. 31, 1982, the Secretary of
Agriculture shall submit to the House Committee on Agriculture and the Senate Committee on
Agriculture, Nutrition, and Forestry a report describing the strengths and weaknesses of existing
Federal programs, and the consequences of possible new programs, for controlling or minimizing
surpluses of fluid milk and the products thereof. The report shall include, but need not be limited to,
an assessment, on a region by region basis, of the effect of existing and proposed pricing mechanisms
on supply and demand conditions, including the impact on farm income and consumer costs. The
report shall also describe the social costs and benefits associated with such programs.”.
Sections 103 and 104 of Pub. L. 101-624, 104 Stat. 3379, Nov. 28, 1990 state:
“Sec. 103. Minnesota-Wisconsin Price Series Reform.
“(a) IN GENERAL.) Within 60 days of the date of enactment of this Act, the Secretary of Agriculture
shall commence to accept alternative pricing formula recommendations, as they may relate to the
Minnesota-Wisconsin price series used to determine the minimum prices paid under milk marketing
orders, in order to amend such milk marketing orders authorized under section 8c of the Agricultural
Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural Marketing Agreement
Act of 1937. Among the alternative pricing formulas to be considered by the Secretary shall be a price
series based on prices paid by milk processors for Grade A milk and manufacturing grade milk that is
used in the manufacture of dairy products.
“(b) AVAILABILITY OF DATA.) The Secretary shall compile and make available to the public the
historical and current data used to compare the alternative pricing formulas submitted and
recommended as provided in subsection (a) with the existing Minnesota-Wisconsin price series.
“(c) IMPLEMENTATION IN FEDERAL MARKETING ORDERS.)
“(1) ANNOUNCEMENT OF HEARING.) Not later than Oct. 1, 1991, the Secretary shall)
“(A) announce a national hearing to consider the proposed replacement of the
Minnesota-Wisconsin price series in Federal milk marketing orders; and
“(B) invite industry and consumer proposals on the specific provisions to be
considered for each order.
“(2) REPORT TO CONGRESS .) On issuance of the final decision on the hearing proposals, the
Secretary shall report the decision to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.
“(3) OPPORTUNITY FOR PUBLIC COMMENT.) The opportunity for public comment on the
recommended decision shall not be less than 30 legislative days. For purposes of this paragraph,
the term `legislative day' means a day on which either House of Congress is in session.
“Sec. 104. Hearings on Federal Milk Marketing Orders.
“The Secretary of Agriculture shall)
“(1) conclude the national hearings announced by the Secretary on Mar. 29, 1990, regarding
possible changes in the pricing provisions of Federal milk marketing orders; and
“(2) to the maximum extent practicable consistent with applicable laws, effect any resulting
system-wide changes in the Federal orders setting minimum prices that milk processors must pay
for Grade A milk received from producers by Jan. 1, 1992.” (7 U.S.C. 608c note.)
22
Pub. L. 99-198, 99 Stat. 1372, Dec. 23, 1985, amended subparagraph (A) to require adjustment
to the Class I prices for fluid milk under marketing orders as specified for a two-year period, and
subsequently unless modified by amendments, and are to be effective the first day of the first month
that occurs more than 120 days after enactment (May 1, 1986).

164

classification thereof, is made to such handlers. Throughout the 2-year period
beginning on the effective date of this sentence (and subsequent to such 2-year
period unless modified by amendment to the order involved), the minimum
aggregate amount of the adjustments, under clauses (1) and (2) of the preceding
sentence, to prices for m ilk of the highest use classifica tion und er ord ers that are in
effect under this section on the date of the enactment of the Food Security Act of
198 5 shall be as follows:
Minimum Aggregate Dollar
Amount o f Such Adjustments
Per Hun dred weight of M ilk
Having 3.5 Percent Milkfat

Marketing Area
Subject to Order

New E ngland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3.24
New York-New Jersey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.14
Middle Atlantic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.03
Georgia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.08
Alabama-West Florida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.08
Upper Florida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.58
Tampa B ay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.88
Southeastern Florida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.18
Michigan Up per P eninsula . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.35
Southern Michigan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.75
Eastern O hio-W estern P ennsylvania . . . . . . . . . . . . . . . . . . . . . . 1.95
Ohio Valley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.04
Indiana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.00
Chicago Regional . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.40
Central Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.61
Southern Illino is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.92
Louisville-Lexington-Evansville . . . . . . . . . . . . . . . . . . . . . . . . . 2.11
Upper M idwest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.20
Eastern So uth Dakota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.50
Black H ills, South Dakota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.05
Iowa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.55
Nebraska-Western Iowa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.75
Gre ater K ansas C ity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.92
Tennessee Valley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.77
Nashville, Tennessee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.52
Paducah, K entucky . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.39
Memp his, Tennessee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.77
Central Arkansas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.77
Marketing Area
Subject to Order

Minimum Aggregate Dollar
Amount o f Such Adjustments
Per Hun dred weight of Milk
Having 3.5 Percent Milkfat

Fort Smith, Arkansas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.77
Southwest Plains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.77
Texas P anhandle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.49
Lubbock-Plainview, Texas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.49
Texas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.28
Greater Louisiana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.28
New Orleans-Mississippi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.85
Eastern Colorado . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.73
165

Western Colorado . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Southwestern Idaho-Eastern Oregon . . . . . . . . . . . . . . . . . . . . . .
Gre at Ba sin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lake Mead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Central Arizona . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rio Grande Valley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Puget Sound-Inland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Oregon-Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.00
1.50
1.90
1.60
2.52
2.35
1.85
1.95

Effective at the beginning of such two-year period, the minimum prices for milk of the
highest use classification shall be adjusted for the locations at which delivery of such milk
is mad e to such hand lers.
(B) Pro viding:
(i) for the payment to all producers and associations of producers delivering
milk to the same handler of uniform prices for all milk delivered by the m: Provided,
That, except in the case of orders covering milk products only, such provisions is
approved or favo red b y at least three-fourths of the producers who, during a
representative period determined by the Secretary of Agriculture, have been
engaged in the production for market of milk covered in such order or by producers
who, during such representative period, have prod uced at least three-fourths of the
volume of such milk produced for market during such period; the approval required
hereunder shall be separate and apart from any other approval or disapproval
provided for by this section; or
(ii) for the payment to all producers and associations of producers delivering
milk to all handlers o f uniform prices for all milk so delivered irrespective of the
uses made of such milk by the individual handler to whom it is delivered;
subje ct, in either case, only to adjustments for (a) volume, market, and production
differentials customarily applied by the handlers subject to such order, (b) the grade or
quality of the milk delivered, (c) the locations at which delivery of such milk is made, (d)23

23
The Food and Agriculture Act of 1965, Pub. L. 89-321, 79 Stat. 1187, Nov. 3, 1965, amended
clause (d) and added the remainder of subparagraph B, but was not effective after Dec. 31, 1960. This
date was changed to Dec. 31, 1970, by Pub. L. 90-559, 82 Stat. 996, Oct. 11, 1968. The Agricultural
Act of 1970, Pub. L. 91-524, 84 Stat. 1359, Nov. 30, 1970, subsequently amended subparagraph (B)
of subsection 8c(5) by deleting everything following the comma at the end of clause (c) and inserting
new clauses (d), (e), and (f). Sec. 101(a)(1) of Pub. L. 97-98, 95 Stat. 1219, Dec. 22, 1981 deleted
clause (f), which provided authority for Class I Base Plans. Sec. 101(b) of Pub. L. 97-98, 95 Stat.
1219, Dec. 22, 1981, provided that “The provisions of subsection (a) [of Pub. L. 97-98] shall become
effective Jan. 1, 1982 and shall terminate Dec. 31, 1985.”. See footnote 47. Sec. 132 of Pub. L. 99198, 99 Stat. 1373, Dec. 23, 1985, extended the date to Dec. 31, 1990. Sec. 108 of Pub. L. 101-624,
104 Stat. 3380, Nov. 28, 1990, extended the date to Dec. 31, 1995. Sec. 1105(b) of Pub. L. 103-66,
107 Stat. 317, Aug. 10, 1993, extended the date to Dec. 31, 1996. Sec. 116 of Pub. L. 101-624, 104
Stat. 3381, Nov. 28, 1990, states:
“Sec. 116. Multiple Component Pricing Study.
“(a) IN GENERAL.) Not later than 60 days after the date of enactment of this Act, the Secretary of
Agriculture shall initiate a study to determine whether, and to what extent, milkfat is being produced
in the United States in excess of commercial market needs as a result of any provision of law,
regulation, or order that affects the manner in which producers receive payment for milk on the basis
of the milk components contained in their marketings of milk under any Federal or State milk pricing
program.
“(b) STUDY.) In conducting the study, the Secretary shall assess the potential impact on achieving
balance in the production, marketing, and domestic commercial use of milkfat through adoption of
multiple component pricing programs under Federal and State milk pricing programs.
“(c) REPORT.) Not Later than 180 days after the date of enactment of this Act, the Secretary shall)
“(1) report the results of the study conducted under subsection (a), together with associated
(continued...)

166

a further adjustment to encourage seasonal adjustments in the production of milk through
equitab le apportionment of the total value of the milk purchased by any handler, or by all
handlers, among producers on the basis of their marketings of milk during a representative
period of time, which need not be limited to one year, (e) 24 a pro vision providing for the
accumulation and disbursement of a fund to encourage seasonal adjustments in the
production of milk may be included in an order, and (f) 25 a further a djustm ent, equitably to
apportion the total value of milk purchased by any handler or by all handlers among
producers on the basis of the milk compone nts contained in their marketings of milk.
(C) In order to accomplish the purposes set forth in paragraphs (A) and (B) of
this subsection (5), providing a method for making adjustments in payments, as
among handlers (including producers who are also handlers), to the end that the
total sums paid by each handler shall equal the value of the milk purchased by him
at the prices fixed in acco rdance with p aragraph (A) he reof.
(D) Pro viding that, in the ca se of all milk purchased by handlers from any
producer who d id not regularly sell milk during a period of 30 days next preceding
the effective date o f such order for consumption in the area cov ered thereb y,
paym ents to such producer, for the perio d beginning with the first regular delivery
by such producer and continuing until the end of the two full calendar months
following the first day of the next succeeding calendar month, shall be made at the
price for the lowest use classification specified in such order, subject to the
adjustments specified in paragraph (B) of this subsection (5).
(E) Providing (I) except as to producers for whom such services are being
rendered by a cooperative marketing association, qualified as provided in paragraph
(F) of this subsection (5), for market information to producers and for the
verification of weights, sampling, and testing of milk purchased from pro ducers,
and for making appropriate deductions therefor from payments to producers, and
(ii) for assurance of, and se curity for, the paym ent by handlers for m ilk purchased.
(F) Nothing contained in this subsection (5) is intended or shall be construed
to prevent a cooperative marketing association qualified under the provisions of the
Act of Congress of February 18, 1922, as amended, known as the “Capper-Volstead
Act,” engaged in making collective sales or marketing of milk or its products for the
producers thereof, from blending the net proceeds of all its sales in all markets in
all use classifications, and making distribution thereo f to its producers in
accordance with the contract between the association and its produ cers: Provided,
That it shall not sell milk or its pro ducts to any ha ndler for use o r consump tion in
any market at prices less than the prices fixed p ursuan t to paragrap h (A) o f this
subsection (5 ) for such milk.
(G) No ma rketing agreement or order applicable to milk and its products in any
marketing area shall prohibit or in any manner limit, in the case of the products of

(...continued)
recommendations, to the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate; and
“(2) publish the results of the study.
“(d) IMPLEMENTATION IN FEDERAL MARKETING ORDERS.) On completion and publication of the
study described in this section, the Secretary shall)
“(1) announce a national hearing to consider the adoption of multiple component pricing
provisions in individual Federal milk marketing orders issued under section 8c of the
Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937; and
“(2) invite industry and consumer proposals on the specific provisions to be considered for
each order.” (7 U.S.C. 608c note.)
24
Clause (e) as amended by Sec. 115(2) of Pub. L. 102-237, 105 Stat. 1840, Dec. 13, 1991.
25
Clause (f) added by Sec. 112 of Pub. L. 101-624, 104 Stat. 3380, Nov. 28, 1990.
167

milk, the marketing in that area o f any milk or product thereof produced in any
prod uction area in the U nited States.
(H)26 Ma rketing orders applicable to milk and its products may be limited in
app lication to milk used for m anufac turing.
(I)27 Establishing or providing for the establishment of research and
development projects, and advertising (excluding brand advertising), sales
promotion, educational, and other programs, designed to improve or pro mote the
dom estic marketing and consumption of milk and its products, to be financed by
producers in a manner and at a rate specified in the order, o n all pro ducer milk
under the order. Producer contributions under this subparagraph may be deducted
from funds due producers in computing total pool value or otherwise computing
total funds due producers and such deductions shall be in addition to the
adjustments authorized by subparagraph (B) of subsection 8c(5). Provision may be
made in the order to ex emp t, or allow suitable adjustments or credits in connection
with, milk on which a mandatory checkoff for advertising or marketing research is
required under the authority of any State law. Such funds shall be paid to an agency
organized by milk prod ucers and producers' cooperative asso ciations in such form
and with such methods of operation as shall be specified in the order. Such agency
may expend such funds for a ny of the p urpo ses authorized by this subparagraph and
may designate, employ, and allocate funds to persons and organizations engaged in
such programs which meet the standards and qualifications specified in the order.
All funds collected under this subparagraph shall be separately accounted for and
shall be used only for the purposes for which they were collected. Programs
authorized by this subparagraph may be either local or national in scope, or both,
as provided in this order, but shall not be international. Ord er pro visions under this
subparagraph shall not become effective in any marketing order unless such
provisions are approved by pro ducers separately from other order provisions, in the
same manner provided for the approval of marketing orders, and may be terminated
separately whenever the Secretary makes a determination with respect to such
provisions as is provided for the termination of an order in subsection 8c(16)(B).
Disapproval or termination of such order provisions shall not be considered
disapproval of the order or of other terms of the order. Notwithstanding any other
provision of this Act, as amend ed, any producer against whose marketings any
assessment is withheld or collected under the authority of this subparagraph, and
who is not in favor of supporting the research and promotion programs, as provided
for herein, shall have the right to demand and receive a refund of such assessment
pursuant to the terms and co nditions specified in the o rder.

26
New subsection (H) added by Food and Agriculture Act of 1965, Pub. L. 89-321, 79 Stat. 1187,
Nov. 3, 1965, with a provision that it would not be effective after Dec. 31, 1969. This date was
changed to Dec. 31, 1970, by Pub. L. 90-559, 82 Stat. 996, and then subsequently amended to extend
the date to Dec. 31, 1973, by Pub. L. 91-524, 84 Stat. 1361, Nov. 30, 1970. The Food and Agriculture
Act of 1965, Pub. L. 89-321, 79 Stat. 1187, as amended by Pub. L. 95-113, 91 Stat. 919, Sept. 29,
1977; Pub. L. 97-98, 95 Stat. 1219, Dec. 22, 1981, Pub. L. 99-198, 99 Stat. 1373, Dec. 23, 1985, and
Pub. L. 101-624, 104 Stat. 3381, Nov. 28, 1990 provided: “The legal status of producer handlers of
milk under the Agricultural Adjustment Act (7 U.S.C. 601 et. seq.), reenacted with amendments by the
Agricultural Marketing Agreement Act of 1937, shall be the same after the amendments made by this
title take effect as it was before the effective date of such amendments.”.
27
New subsection (I) added by Pub. L. 91-670, 84 Stat. 2040, Jan. 11, 1971.

168

(J)28 Providing for the payment, from the total sums payable by all handlers for
milk (irrespective of the use classification of such milk) and before computing
uniform prices under paragraph (A) and making adjustments in payments under
paragraph (C), to handlers that are cooperative marketing associations described in
paragraph (F) and to ha ndlers with respect to which adjustments in payments are
made under paragraph (C), for services of marketwide benefit, including but not
limited to )
(i) providing facilities to furnish additional supplies of milk needed by
handlers and to handle and dispo se of milk supp lies in excess of quantities
need ed by handlers;
(ii) handling on specific days quantities of milk that exceed the quantities
needed by handlers; and
(iii) transporting milk from one location to another for the purpose of
fulfilling requirements for milk of a higher use classification or for providing
a market ou tlet for milk o f any use classification .
(K)(I) Notwithstanding any other provision of law, milk produced by dairies)
(I) owned or controlled by foreign persons; and
(II) financed by or with the use of bonds the interest on which is
exempt from F ederal income tax under section 103 of the Internal
Revenue Code of 198 6;
shall be treated as other-source milk, and sh all be allocated as m ilk received from
producer-handlers for the purposes of classifying pro ducer milk, under the milk
marketing program established under this Act. For the purp oses o f this
subparagraph, the term “foreign person” has the meaning given such term under
section 9(3) of the Agricultural Foreign Investment Disclosure Act o f 1978 (7
U.S.C. 3508 (3)).
(ii) The Secretary of Agriculture shall prescribe regulations to carry out this
subparagraph.
(iii) This subparagraph shall not apply with respect to any dairy that began
operation before May 6, 1986.
(L) Providing that adjustments in payments by handlers under paragraph (A)
need not be the same as adjustments to producers under paragraph (B) with regard
to adjustments authorized by subparagraphs (2) and (3) of paragraph (A) and
clauses (b), (c), and (d) of paragraph (B)(ii).29
TERM S)OTH ER COM MO DITIES
(6) In the case of the agricultural commodities and the products thereo f, other than milk
and its products, specified in sub section (2) orders issued pursuant to this section shall

28
New subsection (J) added by Pub. L. 99-198, 99 Stat. 1373, Dec. 23, 1985. Section 9 of Pub. L.
99-260, 100 Stat. 51, Mar. 20, 1986, provided:
“(a) HEARING.) Not later than 90 days after receipt of a proposal to amend a milk marketing order
in accordance with section 8c(5)(J) of the Agricultural Adjustment Act, reenacted with amendments
by the Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 608c(5)(J)) (as added by section 133
of the Food Security Act of 1985), the Secretary of Agriculture shall conduct a hearing on the proposal.
“(b) IMPLEMENTATION.) Not later than 120 days after a hearing is conducted under subsection (a),
the Secretary shall implement, in accordance with the Agricultural Adjustment Act, a marketwide
service payment program under section 8c(5)(J) of such Act that meets the requirements of such Act.”.
(7 U.S.C. 608c note.)
29
New subsection (K) added by Pub. L. 100-418, 102 Stat. 1407, Aug. 23, 1988. New subsection
(L) added by Pub. L. 101-624, 104 Stat. 3381, Nov. 28, 1990.

169

contain one or m ore of the following term s and conditions, and (exc ept as provided in
subsection (7 ) no others. 30
(A) Limiting, or providing methods for the limitation of, the total quantity of
any such comm odity o r product, or of any grade, size, or quality thereof, produced
during any specified period or periods which may be marketed in or transported to
any or all markets in the current of interstate or foreign com merc e or so as directly
to burden, obstruct, or affect interstate or foreign commerce in such commodity or
product thereof, during any spe cified period or pe riods by all handlers thereo f.
(B) Allotting, or providing methods for allotting, the amount of such
com mod ity or product, or any grade, size, or quality thereof, which each handler
may purchase from or handle on behalf of any and all producers thereof during any
specified period or periods, under a uniform rule based upon the amounts sold by
such producers in such prior period as the Secretary determines to be representative,
or up on the current quantities available for sale by such producers, or both, to the
end that the total quantity thereof to be purchased, or handled during any specified
perio d or perio ds shall be ap portioned equitably among p roducers.
(C) Allotting, or providing methods for allotting, the amount of any such
com mod ity or product, or any grade, size, or quality thereof, which each handler
may market in or transpo rt to any o r all markets in the curr ent of interstate or
foreign commerce or so as directly to burden, obstruct, or affect interstate or foreign
commerce in such commodity or product thereof, under a uniform rule based upon
the amounts which each such handler has available for current shipment, or upon
the amounts shipped by each such handler in such prior period as the Secretary
determines to be representative, or both, to th e end that the total quantity of such
commodity or product, or any grade, size, or quality thereof, to be marketed in or
transported to any or all markets in the current of interstate or foreign commerce or
so as d irectly to burden, obstruct, or affect interstate or foreign commerce in such
com mod ity or product thereof, during any specified period or periods shall be
equitably ap portioned amo ng all of the handlers there of.
(D) Determining, or pro viding methods for determining, the existence and
extent of the surplus of any such commodity or product, or of any grade, size, or
quality thereof, and providing for the control and disposition of such surplus, and
for equalizing the burden of such surplus elimination or control among the
producers and handlers there of.
(E) Establishing or providing for the establishm ent of reserve poo ls of any such
commodity or product, or of any grade, size, or quality thereof, and providing for
the equitable distribution of the net return derived from the sale thereof among the
perso ns beneficially interested therein.
(F) Requiring or providing for the requirement of inspection of any such
com mod ity or product produced during specified periods and marketed by handlers.
(G) In the case of hops and their prod ucts, in addition to, or in lieu of, the
foregoing terms and conditions, orders may contain one or more of the following:
(i) Limiting, or providing methods for the limitations of, the total
quantity thereo f, or of any grade, type, or variety thereof, produced during
any specified period or periods, which all handlers may handle in the
current of or so as directly to burden, obstruct, or affect interstate or
foreign com merc e in hops or any product thereof.
(ii) Appo rtioning, or providing methods for ap portioning, the total
quantity of hops of the production of the then current calendar year
permitted to be handled equitably among all producers in the production
area to which the order applies upon the basis of one or more or a

30
The provisions of this paragraph were substituted for the previous provisions by section 401 of
the Agricultural Act of 1954, Aug. 28, 1954

170

com bination of the following: The total quantity of hops available or
estimated will become available for market by each producer from his
production during such periods; the normal production of the acreage of
hops operated by each produce r during such period upon the basis of the
number of acres of hops in production, and the average yield of the
acreage during such period as the Secretary determ ines to be
representative, with adjustments determined by the Secretary to be proper
for age of plantings or abnormal conditions affecting yield; such normal
production or historical record of any such acreage for which data as to
yield of hops are not available or which had no yield during such period
shall be determined b y the Secretary on the basis o f the yields of other
acreage of hops of similar characteristics as to p roductivity, subject to
adjustment as just provided for.
(iii) Allotting, or providing methods for allotting, the quantity of hops
which any handler m ay handle so that the allotment fixed for that handler
shall be limited to the quantity of hops apportioned under preceding
section (ii) to each respective producer of ho ps; such allotm ent shall
constitute an allotment fixed for that handler within the meaning of
subsection (5) of section 8a of this title (U.S.C., 1940 ed ition, title 7, sec.
608 a).
(H)31 Providing a method for fixing the size, capacity, weight, dimensions, or
pack of the co ntainer, or containers, which may be used in the packaging,
transportation, sale, shipment, or handling of any fresh or dried fruits, vegetables,
or tree nuts.
(I)32 Establishing or providing for the establishment of production research,
marketing research and develop ment projects designed to assist, improve, or
promote the marketing, distribution, and consumption or efficient production of any
such commodity or product, the expense of such projects to be paid from funds
collected pursuant to the marketing order: Provided, That with respect to orders
app licable to almonds, filberts (otherwise known as hazelnuts), California-grown
peache s, cherries, 33 papayas,34 carro ts, citrus fruits, onions, T okay grapes, pears,
dates, plums, nectarines, celery, sweet corn, limes, olives, pec ans, eggs, avoca dos, 35
apples, raisins, walnuts, tomatoes, caneberries (including raspberries, blackberries,
and loganberries), Florida grown strawberries, or cranberries 36 such projects may
provide for any form of marketing p romotion including paid advertising and with

31

Subsection added by section 401 of Act of Aug. 28, 1954, 68 Stat. 907.
Ibid. The words “production research” and “or efficient production” were added by Pub. L. 91292, 84 Stat. 333, June 25, 1970.
33
Pub. L. 87-703, 76 Stat. 632, Sept. 27, 1962, added proviso and cherry marketing order provisions
for advertising. The words “filberts (otherwise known as hazelnuts)” were added by Pub. L. 98-171,
97 Stat. 1117, Nov. 29, 1983.
34
The word “papayas” was added by Pub. L. 91-384, 84 Stat. 827, Aug. 18, 1970. The word
“almonds” was added by Pub. L. 91-522, 84 Stat. 1357, Nov. 25, 1970. The words “California-grown
peaches” were added by Pub. L. 92-120, 85 Stat. 340, Aug. 13, 1971.
35
Pub. L. 89-330, 79 Stat. 1270, Nov. 8, 1965, inserted “carrots, citrus fruits, onions, Tokay grapes,
pears, dates, plums, nectarines, celery, sweet corn, limes, olives, pecans, avocados” in the proviso. The
word “fresh” preceding “pears” was deleted by Pub. L. 92-466, 86 Stat. 780, Oct. 6, 1972. The word
“eggs” was added by Pub.L. 98-180, 97 Stat. 1152, Nov. 29, 1983.
36
The word “apples” was added by Pub. L. 91-363, 84 Stat. 687, July 31, 1970. The word “raisins”
was added by Pub. L. 95-279, 92 Stat. 242, May 15, 1978. The word “walnuts” was added by Pub. L.
96-494, 94 Stat. 2570, Dec. 3, 1980. The word “tomatoes” was added by Pub. L. 91-670, 84 Stat.
2041, Jan. 11, 1971. The words “caneberries (including raspberries, blackberries, and loganberries)”
were added by Pub. L. 107-171, Sec. 10601(a)(2), 116 Stat. 511, May 13, 2002. The words
“Florida-grown strawberries” were added by Pub. L. 100-418, 102 Stat. 1407, Aug. 23, 1988. The
word “cranberries” was added by Pub. L. 106-78, Sec. 757(1), 113 Stat. 1171, Oct. 22, 1999.
32

171

respect to almond s, filberts (otherwise known as hazelnuts), raisins, walnuts, olives,
Florida Indian River grapefruit, and cranberries may provide for crediting the pro
rata expense assessment obligations of a handler with all or any portion of his direct
expenditures for such marketing promotion including paid advertising as may be
authorized by the order 37 and when the handling of any commodity for canning or
freezing is regulated, then any suc h pro jects may also d eal with the commodity or
its products in canned or frozen form 38: Provided further, That the inclusion in a
Federal marketing order of pro visions fo r research and ma rket de velop ment,
including paid advertising, shall not be deemed to preclude, preempt or supersede
any such pro visions in any State pro gram cove ring the sa me comm odity. 39
(J)40 In the case of pears for canning or freezing, any order for a production
area encompassing territory within two or more States or portions thereof shall
provide that the grade, size, quality, maturity, and inspection regulation under the
order applicable to pears grown within any such State or portion thereof may be
recommended to the Secretary by the agency established to administer the order
only if a majority of the representatives from that State on suc h agen cy con cur in
the recomm endation each year.
TERM S COM MO N TO A LL ORDERS
(7) In the case of the agricultural comm odities and the pro ducts thereo f specified in
subsection (2 ) orders shall contain one o r more of the following terms and cond itions:
(A) Prohibiting unfair methods of competition and unfair trade practices in the
hand ling thereof.
(B) Pro viding that (except for milk and cream to be so ld for consumptio n in
fluid form) such commodity or product thereof, or any grade, size or quality thereof
shall be sold b y the handlers thereo f only at prices filed by such handlers in the
manner provid ed in such order.
(C) Providing for the selection by the Secretary of Agriculture, or a method for
the selection, of any agency or agencies and defining their powers and duties, which
shall includ e only the pow ers:
(i) To ad minister such order in accordance with its terms and
provisions;

37
The words “and with respect to almonds . . . including paid advertising as may be authorized by
the order” were added by Pub. L. 91-522, 84 Stat. 1357, Nov. 25, 1970. The words “walnuts, olives”
were added by Pub. L. 96-494, 94 Stat. 2570, Dec. 3, 1980. The word “raisins” was added by Pub. L.
95-279, 92 Stat. 242, May 15, 1978, “Florida Indian River Grapefruit” added by Pub. L. 93-230, 87
Stat. 945, Dec. 29, 1973. The words “filberts (otherwise known as hazelnuts)” were added by Pub. L.
98-171, 97 Stat. 1117. The word “cranberries” was added by Pub. L. 106-78, Sec. 757(2), 113 Stat.
1171, Oct. 22, 1999.
38
The words “and when the handling of any commodity for canning . . . or its products in canned or
frozen form”were added by Pub. L. 92-466, 86 Stat. 780, Oct. 6, 1972. Section 401(b) of Pub. L. 95279, 92 Stat. 243, provides for the following report:
“ (b) Within a period of sixty days following the second anniversary of the implementation of this
section, the Secretary of Agriculture shall submit to the Committee on Agriculture of the House of
Representatives and to the Committee on Agriculture, Nutrition, and Forestry of the Senate a report
that shall describe in detail how this section has been implemented including, but not limited to,
information as to the issuance or amendment of any affected order, the annual amount of assessments
collected, in the aggregate and by size and class of handler, the manner in which such assessments were
collected, the amount of direct expenditures credited against the pro rata expense assessment
obligations of each handler, and the purpose to which such assessments and such direct expenditures
of each such handler were devoted.”.
39
Second proviso added by Pub. L. 91-292, 84 Stat. 333, and was amended by Pub. L. 91-522, 84
Stat. 1357.
40
Subsection (J) was added by Pub. L. 92-466, 84 Stat. 780, approved Oct. 6, 1972.

172

(ii) To m ake rules and regulations to effectuate the terms and
provisions o f such order;
(iii) To receive, investigate, and repo rt to the Secretary of Agriculture
complaints of violations of such order; and
(iv) To recommend to the Secretary of Agriculture am endments to
such o rder.
No person acting as a member of an agency established pursuant to this paragraph
(C) shall be deemed to be acting in an official capacity, within the meaning of
section 10(g) of this title, unless such person receives compensation for his personal
services from funds of the United States. There shall be included in the mem bersh ip
of any agency selected to administer a marketing ord er applicab le to grapefruit or
pears for canning or freezing one or more representatives of processors of the
com mod ity specified in such order: Provided, That in a marketing order applicable
to pears for canning or freezing the representation of processors and producers on
such agency shall be equa l.41
(D) Incidental to, and not inconsistent with, the terms and conditions specified
in subsections (5 ), (6) an d (7) and necessary to effectuate the other provisions of
such o rder.
ORDERS WITH MARKETING AGREEMENT
(8) Except as provided in subsection (9) of this section, no order issued pursuant to this
section shall become effective until the handlers (excluding cooperative associations of
producers who are not engaged in processing, distributing, or shipping the commodity or
product thereof covered by such order) of not less than 50 per centum of the volume of the
com mod ity or product thereof covered by such order which is produced or marketed within
the production or marketing area d efined in such o rder have signed a marketing agreem ent,
entered into pursuant to section 8b o f this title, which regulates the handling of such
com mod ity or product in the sam e manner as such o rder, excep t that as to citrus fruits
produced in any area producing what is known as California citrus fruits no order issued
pursuant to this subsection (8) shall become effective until the handlers of not less than 80
per centum of the volume of such commodity or product thereof covered by such order have
signed such a marketing agreem ent: Provided, That no order issued pursu ant to this
subsection shall be effective unless the Secretary of Agriculture determines that the issuance
of such order is approved or favo red:
(A) By at least two-thirds of the producers who (except that as to citrus fruits
produced in any area producing what is known as California citrus fruits said order
must be approved or favored by three-fourths of the producers), during a
representative period determined by the Secretary, have been engaged, within the
production area specified in such marketing agreement or order, in the production
for market of the commodity specified therein, or who, during such representative
period, have been engaged in the production of such commod ity for sale in the
marketing area specified in such marketing agreement, or order, or
(B) By producers who, during such representative period, have produced for
market at least two-thirds of the volume of such commodity produced for market
within the production area specified in such marketing agreement or order, or who,
during such representative period, have produced at least two-thirds of the volume
of such commodity sold within the marketing area specified in such marketing
agree ment or order.
ORDERS WITH OR WITHOUT MARKETING AGREEMENT

41

“Pears” added by Pub. L. 92-466, dated Oct. 6, 1972, 86 Stat. 780. Proviso added by same statute.
173

(9) Any order issued pursuant to this section sha ll beco me effective in the event that,
notwithstanding the refusal or failure of handlers (excluding cooperative associations of
producers who are not engaged in processing, distributing, or shipping the commodity or
product thereof covered by such order) of more than 50 percent of the volume of the
com mod ity or product thereof (except that as to citrus fruits produced in any areas producing
what is known as California citrus fruits said per centum shall be 80 per centum) covered by
such order which is produced or marketed within the production or marketing area defined
in such o rder to sign a m arketing agreement relating to such com mod ity or pro duct thereof,
on which a hearing has b een he ld, the Secretary of Agriculture, with the approval of the
President,42 determines:
(A) That the refusal or failure to sign a marketing agreement (upon which a
hearing has been held) by the handlers (excluding cooperative associations of
producers who a re not engaged in p rocessing, distributing, or shipping the
com mod ity or product thereof covered by such order) of more than 50 per centum
of the volume o f the com mod ity or pro duct thereo f (except that as to citrus fruits
produced in any area producing what is known as California citrus fruits said per
centum shall be 80 per centum) specified therein which is produced or marketed
within the production or marketing area specified therein tends to prevent the
effectuation of the declared policy of this title with respect to such commodity or
product, and
(B) That the issuance of such order is the only practical means of advancing the
interests of the producers of such commodity pursuant to the declared policy and
is approved or favore d:
(i) By at least two-thirds of the pro ducers (except that as to citrus fruits
produced in any area producing what is know n as California citrus fruits said
order must be approved or favored by three-fourths of the producers) who,
during a representative period determined by the Secretary have been engaged
within the production area specified in such marketing agreement or order in
the production for market of the commo dity specified therein, or who, during
such representative period, have been engaged in the production of such
com mod ity for sale in the marketing are a specified in such ma rket agreem ent,
or order, or
(ii) By producers who, during such representative period, have produced
for market at least two-thirds of the volume of such com mod ity produced for
market within the p roduction area specified in such marketing agreement or
order, or who, during such representative period, have prod uced at least
two-thirds of the vo lume o f such co mmodity sold within the marketing area
specified in such marketing agreem ent or o rder.
MANNER OF REGULATION AND APPLICABILITY
(10) No order shall b e issued under this section unless it regulates the handling of the
com mod ity or product covered thereby in the same manner as, and is made applicable only
to persons in the resp ective classes of industrial or commercial activity spec ified in, a
marketing agreement upon which a hearing has been held. N o order shall be issued under this
title prohibiting, regulating, or restricting the advertising of any commodity or product
covered thereby, nor
shall any marketing agreement contain any provision prohibiting, regulating, or restricting
the advertising o f any commodity o r product covered b y such m arketing agreement.
REGIONAL APPLICATION

42

174

1947 Reorganization Plan No. 1 abolished this function of the President.

(11)(A) No order shall be issued under this section which is applicable to all production
areas or marke ting areas, or both, or any commodity or product thereof unless the Secretary
finds that the issuance of several orders applicable to the respective regional production areas
or regional marketing areas, or both, as the case may be, of the com mod ity or pro duct would
not effec tively carry out the d eclared po licy of this title.
(B) Except in the case of milk and its prod ucts, orders issu ed under this section shall be
limited to their application to the smallest regional production areas or regional marketing
areas, or bo th, as the case may be, which the Secretary finds practicable, consisten tly with
carrying out such dec lared policy.
(C) All ord ers issued und er this section which are applicable to the same commodity or
product thereo f shall, so far as prac ticable, prescribe such different term s, applicable to
different production areas and marketing areas, as the Secretary finds necessary to give due
recognition to the differences in production and marketing of such co mmodity or product in
such areas. The price of milk paid by a handler at a plant operating in Clark County, Nevada
shall not be sub ject to a ny ord er issued under this section. 43
COOPERATIVE ASSOCIATION REPRESENTATION
(12) When ever, p ursuan t to the provisio ns of this section, the Secretary is req uired to
determine the approval or disapproval of producers with respect to the issuance of any order,
or any term or condition thereo f, or the terminatio n thereof, the Secretary shall consider the
approval or disapproval by any coope rative association of p roducers, bona fide engaged in
marketing the commodity or product thereof covered by such order, or in rendering services
for or advancing the interests of the producers of such commodity, as the approval or
disapproval of the producers who are members of, stockholders in, or under contract with,
such coop erative association of prod ucers.
RETAILER AND PRODUCER EXEMPTION
(13)(A) No order issued under subsection (9) of this section shall be applicable to any
person who sells agricultural commodities or products thereof at retail in his capacity as such
retailer, excep t to a retailer in his capacity as a retailer of milk and its products.
(B) No order issued under this title shall be ap plicab le to any producer in his capacity
as a producer.
VIOLATION OF ORDER
(14)44 (A) Any handler subject to an orde r issued under this section, or any officer,
director, agent, or employee of such handler, who violates any provision of such ord er shall
on conviction, be fined not less than $50 or more than $5,000, for each such violation, and
each day during which such violation continues shall be deem ed a separate violation. If the
court finds that p etition pursuan t to subsection (15) of this section was filed and prosecuted
by the defendant in goo d faith and not for delay, no p enalty shall be imp osed under this
subsection for such violations as occurred between the date upon which the defendant's
petition was filed with the Secretary, and the date upon which notice of the Secretary's ruling

43
Pub. L. 106-78, Sec. 760, 113 Stat. 1173, Oct. 22, 1999 added last sentence at end of
paragraph (11) which became effective Oct. 1, 1999.
44
Pub. L. 99-198, 99 Stat. 1630, Dec. 23, 1985, increased the maximum penalty from $500 to $5,000
for marketing order violations. Pub. L. 100-203, 101 Stat. 1330-27, Dec. 22, 1987, designated former
provision as paragraph (A) and added a new paragraph (B), giving the Secretary authority to assess
civil penalties for marketing order violations. Pub. L. 101-624, 104 Stat. 3561, Nov. 28, 1990,
authorized civil fines and penalties for marketing order assessment violations.

175

thereon was given to the de fendant in accordance with regulations p rescrib ed pursuan t to
subsection (15).
(B) Any handler subject to an order issued under this section, or any officer, director,
agent, or employee of such handler, who violates any provision of such order may be
assessed a civil penalty by the Secretary not exceeding $1,000 for each such violation. Each
day during which such violation continues shall be deemed a separate violation, except that
if the Secretary finds that a petition pursuant to paragraph (15) was filed and prosecuted by
the handler in good faith and not for delay, no civil penalty may be a ssessed under this
paragraph for such violations as occurred between the date on which the handler's petition
was filed with the Secretary, and the date on which notice of the Secretary's ruling thereon
was given to the handler in accordance with re gulations prescribed pursuant to paragraph
(15). The Sec retary m ay issue an ord er assessing a civil pena lty under this paragraph only
after notice and an opportunity for an agency hearing on the record. Such order shall be
treated as a final order reviewable in the district courts o f the United S tates in any district in
which the handler subject to the order is an inhabitant, or has the handler's principal place of
business. The valid ity of such order may not be reviewed in an action to co llect such civil
penalty.
P ET IT IO N B Y H AN DLE R A ND RE VIE W
(15)(A) Any handler subject to an order may file a written petition with the Secretary of
Agriculture, stating that any such order or any provision of any such order or any obligation
imposed in connection therewith is not in accordance with law and praying for a modification
thereof or to be exempted therefrom. He shall thereupon be given an opportunity for a
hearing upon such petition, in accordance with regulations made by the Secretary of
Agriculture, with the approval of the President. After such hearing, the Secretary shall make
a ruling upon the pra yer of suc h petition which shall be final, if in acco rdance with law.
(B) The D istrict Courts of the United States45 in any district in which such handler is an
inhabitant, or has his princ ipal place o f business, are he reby vested with jurisdiction in equity
to review such ruling, provided a bill in equity for that purpose is filed within twenty days
from the date of the entry of such ruling. Service of process in such proceedings may be had
upon the Secretary b y delivering to him a copy of the bill of complaint. If the court
determines that such ruling is no t in acco rdance with law, it shall remand such proceedings
to the Secretary with directions either (1) to make such rulings as the court shall determine
to be in accordance with law, or (2) to take such further proceedings as, in its opinion, the
law req uires. T he pe ndency of p roceedings instituted p ursuan t to this subsection (15) shall
not impede, hinder, or delay the United States or the Secretary of Agriculture from obtaining
relief pursuant to section 8a(6) of this title. Any proceedings brought pursuant to section
8a(6) of this title (except where brought by way of counterclaim in proceedings instituted
pursuant to this subsection (15)) shall abate whenever a final decree has been rend ered in
proceedings between the same parties, and covering the same subject matter, instituted
pursuant to this subsection (15).

45
The reference to the district court of the United States for the District of Columbia has been deleted
as superfluous. See 28 U.S.C. 88, 132a.

176

TERM INATION O F ORDERS AN D MA RKET ING AGREE MEN TS
(16)46 (A)(i) Except as provided in clause (ii), the Secretary of A griculture shall,
whenever he finds that any order issued under this section , or any p rovisio n thereof, ob structs
or does not tend to effectuate the dec lared policy of this title, terminate or suspend the
ope ration o f such order or such pro vision the reof.
(ii) The Secretary may not terminate any order issued under this section for a co mmodity
for which there is no Federal progra m established to support the price of such com mod ity
unless the Secretary gives notice of, and a statement of the reasons relied upon by the
Secretary for, the proposed termination of such order to the Committee on Agriculture,
Nutrition, and Forestry of the Senate and the Comm ittee on Agriculture of the House of
Rep resentatives no t later than 60 d ays before the date such order will be term inated.
(B) The S ecretary shall terminate any marketing agreement entered into under section
8b, or order issued under this section, at the end of the then current marketing period for such
com mod ity, specified in such marketing agreement or order, whenever he finds that such
termination is favored by a majority of the producers who, during a representative period
determined by the Secretary, have been engaged in the production for market of the
com mod ity specified in such marketing agreement or order, within the production area
specified in such marketing agreement or order, or who, during such representative period,
have been engag ed in the production of such co mmodity for sale within the marketing area
specified in such marketing agreement or order. Provided, That such majority have, during
such representative period, produced for market more than 50 per centum of the volume of
such com mod ity produced for market within the production area specified in such marketing
agreement or order, or have, during such representative period, produced more than 50 per
centum of the volume of such commodity sold in the marketing area specified in such
marketing agreement or order, but such termination shall be effective only if announced on
or before such date (p rior to the end of the then curre nt marketing period) as may be
specified in such marketing agreem ent or o rder.
(C) Except as otherwise provided in this subsection with respect to the termination of
an order issued under this section, the termination or suspension of any order or amendment
thereto or provision the reof, shall not be co nsidered an ord er within the meaning o f this
section .
PROVISIONS AP PLICABLE TO AMEN DM ENTS
(17) The pro visions o f this section and section 8d, applicable to orders shall be
app licable to amendments to ord ers: Provided, That notice of a hearing upon a proposed
amendment to any order issued pursuant to section 8c, given not less than three days prior
to the date fixed fo r such hearing, shall be deem ed due notice there of: Provided further, That
if one-third or more of the producers as defined in a milk order apply in writing for a hearing
on a proposed am endment of such order, the Secretary shall call such a hearing if the
proposed amendm ent is one that may legally be made to such o rder. Subsection (12) of this
section shall not be construed to perm it any cooperative to act for its members in an
application for a hearing un der the forego ing pro viso and nothing in such proviso shall be
construed to preclude the Sec retary from calling an am endment hearing as pro vided in
subsection (3) of this section. The Secretary shall not be required to call a hearing on any
proposed amendment to an order in response to an application for a hearing on such proposed

46
Sec. 1662(a) of Pub. L. 99-198, 99 Stat. 1631, Dec. 23, 1985, added subparagraph(A)(ii). Sec.
1662(b) of Pub. L. 99-198, 99 Stat. 1631, states: “The Secretary of Agriculture may not terminate any
marketing order under section 8c(16) of the Agricultural Adjustment Act (7 U.S.C. 608c(16)),
reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, if such termination
becomes effective before January 16, 1986.”

177

amendment if the application requesting the hearing is received b y the Secretary within
ninety days after the date on which the Secretary has announced the d ecision on a p reviously
proposed amen dme nt to such order and the two proposed amendments are essentially the
same.47
MILK PRICES
(18) The Secretary of Agriculture, prior to prescribing any term in any marketing
agreement or order, o r amendm ent there to, relating to milk or its products, if such term is to
fix minimum prices to be paid to pro ducers or associations o f prod ucers, or prior to
modifying the price fixed in any such term, shall ascertain the parity prices of such
comm odities. The prices which it is declared to be the policy of Co ngress to estab lish in
section 2 of this title sha ll, for the purpo ses of such agreement, ord er, or amendment, be
adjusted to reflect the price of feeds, the available supplies of feed s, and o ther economic
conditions which affect market sup ply and dem and for milk o r its products in the marketing
area to which the contemplated marketing agreement, order, or amendment relates. Whenever
the Secretary finds, upon the basis of the evidence adduced at the hearing required by section
8b or 8c, as the case may be, that the parity prices of such commodities are not rea sonable
in view of the price of feeds, the available supplies of feeds, and other economic conditions
which affect market supply and demand for milk and its pro ducts in the ma rketing area to
which the contemp lated agreem ent, ord er or amendme nt relates, he shall fix such prices as
he finds will reflect such factors, insure a sufficient quantity of pure and wholesome milk and
be in the public interest. Thereafter, as the Secretary finds necessary on account of changed
circumstances, he shall, after due notice and o ppo rtunity for hearing m ake adjustm ents in
such prices. 48
P RO D UC ER REFEREN DU M
(19) For the purpose of ascertaining whether the issuance of an order is approved or
favored by producers or processo rs, as req uired under the ap plicab le provisions of this title,
the Secretary may conduct a referendum amo ng producers or processors and in the case of
an order other than an amendatory order shall do so. The requirements of approval or favor
under any such provision shall be held to be complied with if, of the total number of
producers or processors, or the total volume of production, as the case may be, represented
in such referendum, the percentage approving or favoring is equal to or in excess of the
percentage required under such provision. The terms and conditions of the proposed order
shall be described by the Secretary in the ballot used in the conduct of the referendum. The
nature, content, or extent of such description shall not be a basis for attacking the legality of
the order or any action relating thereto. Nothing in this subsection shall be construed as
limiting representation by cooperative associations as provided in subse ction (1 2) of this
section.49 For the purpose of ascertaining whether the issuance of an order applicable to pears

47
Second proviso added by Pub. L. 93) 86, 87 Stat. 222, Aug. 10, 1973. Identical proviso added by
Pub. L. 97) 98, 95 Stat. 1219, Dec. 22, 1981, to terminate Dec. 31, 1985. Termination date changed
to Dec. 31, 1990, by Pub. L. 99) 198, 99 Stat. 1373, Dec. 23, 1985. Termination date changed to Dec.
31, 1995, by Pub. L. 101) 624, 104 Stat. 3380, Nov. 28, 1990. Sec. 1105(b) of Pub. L. 103-66, 107
Stat. 317, Aug. 10, 1993, changed the termination date of Dec. 31, 1996.
48
The provisions by this section were substituted for the previous provisions by section 302 of the
Agricultural Act of 1948 (July 3, 1948, 62 Stat. 1247).
49
The provisions of this section were substituted for the previous provisions by section 141 of the
Agricultural Act of 1961 (August 8, 1961, 75 Stat. 345). The Agricultural Act of 1970, Pub. L. 91-524,
84 Stat. 1361, (7 U.S.C. 608c note) as amended by Pub. L. 93-86, 87 Stat. 222 and as further amended
by Pub. L. 95-113, 91 Stat. 919, September 29, 1977, states:
“(c) Nothing in subsection (a) of this section 201 shall be construed as invalidating any class I base
(continued...)

178

for canning or freezing is approved or favored by producers as required und er the applicable
provisions of this title, the Secretary shall conduct a referendum amo ng producers in each in
which pears for canning or freezing are proposed to be included within the provisions of such
marketing order and the requirements of approval or favor under any such provisions
app licable to pears for canning or freezing sha ll be held to be complied with if, of the total
number of producers, or the total volume of production, as the case may be, represented in
such referendum, the percentage approving or favoring is equal to or in excess of 66 2/3 per
centum except that in the event that pear producers in any State fail to approve or favor the
issuance of any such marketing order, it shall not be made effective in such State.49 (7 U.S.C.
608c.)]
(f) Section 8d (relating to boo ks and records);
BOO KS AND R ECORD S
[S EC . 8d. (1) All parties to any marketing agreement, and all handlers subject to an order,
shall severally, from time to time, upon the request of the Secretary, furnish him with such
information as he finds to be necessary to enable him to ascertain and determine the extent
to which such agreement or order has been carried out or has effectuated the declared policy
of this title, and with such information as he finds to be necessary to determine whether or
not there has been any abuse of the privilege of exemptions from the antitrust laws. Such
information shall be furnished in accordance with forms of reports to be prescribed by the
Secretary. For the purpose of ascertaining the correctness of any report made to the Secretary
pursuant to this subsection, or for the purpose of obtaining the information required in any
such report, where it has been requested and has not been furnished , the Sec retary is hereby
authorized to examine such books, papers, records, copies of incom e-tax reports, acco unts,
correspondence, contracts, documents, or memoranda , as he deems relevant and which are
within the control (1 ) of any such pa rty to such marketing agreement, or any such handler,
from whom such report was requested or (2) of any person having, either directly or
indirec tly, actual or legal control of or over such party or such handler or (3) of any
subsid iary of any such p arty, hand ler, or p erson .

(...continued)
plan provisions of any marketing order previously issued by the Secretary of Agriculture pursuant to
authority contained in the Food and Agriculture Act of 1965 (79 Stat. 1187), but such provisions are
expressly ratified, legalized, and confirmed and may be extended through and including December 31,
1971.
“(d) It is not intended that existing law be in any way altered, rescinded, or amended with respect
to section 8c(5)(G) of the Agricultural Adjustment Act, as reenacted and amended by the Agricultural
Marketing Agreement Act of 1937, as amended, and such section 8c(5)(G) is fully reaffirmed.
“(e) The provisions of this section shall not be effective after December 31, 1981 except with
respect to orders providing for Class I base plans issued prior to such date, but in no event shall any
order so issued extend or be effective beyond December 31, 1984.”
49
Amendment added by Pub. L. 92-466, Oct. 6, 1972, 86 Stat. 780.
179

(2)50 Notwithstanding the provisions of section 7, all information furnished to or
acquired by the Secretary of Agriculture pursuant to this section, as well as information for
marketing order programs that is categorized as trade secrets and commercial or financial
information exempt under section 552(b)(4) of title 5 of the United States Code from
disclosure under section 552 of such title, shall be kept confidential by all officers and
emp loyees of the Department of Agriculture and only such information so furnished or
acquired as the Secretary deems relevant sha ll be disclosed by the m, and then only in a suit
or adm inistrative hearing brought at the direction, or upon the req uest of the Secretary of
Agriculture, or to which he or any officer of the United S tates is a party, and involving the
marketing agreement or order with reference to which the information so to be disclosed was
furnished or acquired. Notwithstanding the preceding sentence, any such information
relating to a marketing agreement or order applicable to milk may be released upon the
authorization of any regulated milk handler to whom such information pertains. The
Secretary shall notify the Committee on A griculture, Nu trition, and Fo restry of the Senate
and the Co mmittee on A griculture of the H ouse of Represe ntatives not later than 10
legislative days before the contemplated release under law, of the names and addresses of
producers participating in such marketing agreem ents and ord ers, and shall include in such
notice a statement of reasons relied upon by the Secretary in making the determination to
release such na mes and ad dresses. No thing in this section shall be deemed to prohibit (A)
the issuance of general statements based upon the reports of a number of parties to a
marketing agreement or of ha ndlers subje ct to an order, which statements do not identify the
information furnished by any person, or (B) the publication by direction of the Secretary of
the name of any person violating any marketing agreement or any order, together with a
statement of the particular provisions of the marketing agreement or order violated by such
person. Any such officer or employee violating the provisions of this section shall upon
conviction be subject to a fine of not more than $1,000 or to imprisonment for not more than
one year, or to both, and shall be removed from office.
(3) 51 Collection o f cranb erry inventory data.–
(A) In general.–If an order is in effect with respect to cranberries, the Secretary of
Agriculture may require persons engaged in the handling or importation of cranberries
or cranberry products (including producer-handlers, second handlers, processors, brokers,
and importers) to provide such information as the Secretary co nsiders nece ssary to
effectuate the declared policy of this title, including information o n acquisitions,
inventories, and d ispositions of cranb erries and cran berry pro ducts.
(B) Delegation to committee.--The Secretary may delegate the authority to carry out
subparagraph (A) to any committee that is responsible for administering an order
covering cranberries.
(C) C onfidentiality.–
(2) shall apply to information provided under this paragraph.

50
As amended by Pub. L. 99) 198, Sec. 1663, 99 Stat. 1631, Dec. 23, 1985. Pub. L. 103-111, title
VII, sec. 715, 107 Stat. 1079, Oct. 21, 1993, provided that: Hereafter, none of the funds available to
the Department of Agriculture may be expended to release information acquired from any handler
under the Agricultural Marketing Agreement Act of 1937, as amended: Provided, That this provision
shall not prohibit the release of information to other Federal agencies for enforcement purposes:
Provided further, That this provision shall not prohibit the release of aggregate statistical data used in
formulating regulations pursuant to the Agricultural Marketing Agreement Act of 1937, as amended:
Provided further, That this provision shall not prohibit the release of information submitted by milk
handlers. (7 U.S.C. 608d note.) Similar provisions were contained in prior appropriation acts: Pub.
L, 102-341, title VII, Sec. 721, 106 Stat. 908, Aug. 14, 1992; Pub. L. 102-42 , title VII, Sec. 728,105
Stat. 914, Oct. 28, 1991; Pub. L. 101-506, title VI, Sec. 630, 104 Stat. 1349, Nov. 5, 1990; Pub. L.
101-161, title VI, Sec. 630, 103 Stat. 985, Nov. 21, 1989; Pub. L. 100-460, title VI, Sec. 630, 102 Stat.
2262, Oct. 1, 1988; and Pub. L. 99-591, title VI, Sec. 631, 100 Stat. 3341-30, Oct. 30, 1986.
51
Pub. L. 106-78, Sec. 757(b), 113 Stat. 1171, Oct. 22, 1999,added new paragraph (3).

180

(D) Violations.--Any person who v iolates this paragraph shall be subject to the
penalties provided under section 8c(14). (7 U.S.C. 608d.)]
(g) Section 8e; (relating to determination of base period)52
RESTRICTION S ON IMPO RTED COM MO DITIES
[S EC . 8e.53 (a) Subject to the provisions of subsections (c) and (d) and notwithstanding
any other provision of law, whenever a marketing order issued by the Secretary of
Agriculture pursuant to section 8c of this Act contains any terms or conditions regulating the
grade, size, quality, or maturity of tomatoes, raisins, olives (other than Spanish-style green
olives), prunes, avocados, mangoes, limes, grapefruit, green pepp ers, Irish potatoes,
cucumb ers, oranges, on ions, wa lnuts, dates, filberts, table grapes, eggp lants, kiwifruit,
nectarines, plums, pistachios, apples, or caneberries (including raspberries, blackberries, and
loganbe rries) produced in the United States the importation into the United States of any such
com mod ity, other than dates for processing, during the period of time such order is in effect
shall be prohibited unless it co mplies with the grade, size, quality, and m aturity provisions
of such order o r com parable restrictions p romulgated hereunder: Provided, That this
prohibition shall not apply to such commodities when shipped into continental United States
from the Co mmonwealth of Puerto Rico or any Territory or possession of the United States
where this Act has force and effect: Provided further, That whenever two or more such
marketing orders regulating the same agricultural commodity produced in different areas of
the United States are concurrently in effect, the importation into the United States of any such
commodity, other than dates for processing, shall be prohibited unless it complies with the
grade, size, quality, and maturity provisions of the order which, as determined by the
Secretary of Agriculture, regulates the commodity produced in the area with which the
imported commodity is in most direct competition. Such prohibition shall not become
effective until after the giving of such notice as the Secretary of Agriculture determines
reasonable, which shall not be less than three days. In determining the amount of notice that
is reasonable in the case of tomatoes the Secretary of Agriculture shall give due consideration
to the time req uired for their transportation and entry into the United States after picking.
Whenever the Secretary of Agriculture finds that the application of the restrictions under a
marketing order to an impo rted com mod ity is not practicable because o f variation s in
characteristics between the domestic and impo rted com mod ity he shall establish with respect
to the imported commod ity, other than dates for processing, such grade, size, quality, and
maturity restrictions by varieties, types, or other classifications as he finds will be equivalent
or com parable to those im pose d upon the dom estic commodity under such order. The
Secretary of Agriculture may promulgate such rules and regulations as he deems necessary,
to carry out the pro visions of this section. Any person who violates any pro vision o f this
section or of any rule, regulation, or order promulgated hereunder shall be subject to a
forfeiture in the amount prescribed in section 8a(5) or, upon conviction, a penalty in the
amo unt pre scribed in section 8c (14) of the A ct, or to both such forfeiture and penalty.

52
The original provisions of this section were repealed by section 302 of the Agricultural Act of 1948
(July 3, 1948, 62 Stat. 1258). The language shown below in brackets was substituted for the previous
provisions by section 141 of the Agriculture Act of 1961 (August 8, 1961, 75 Stat. 345).
53
See footnote 52. The words “raisins., olives (other than Spanish-style green olives), prunes” were
added by Pub. L. 91-670, 84 Stat. 2047, January 11, 1971. The word “filberts” was added by Pub. L.
95-113, 91 Stat. 951, September 29, 1977. The words “table grapes” were added by Pub. L. 97-312,
96 Stat. 1461, Oct. 14, 1982. Pub. L. 100-418, 102 Stat. 1407, Aug. 23, 1988, designated former
section as subsection (a) and added subsection (b). Pub. L. 101-624, 104 Stat. 3561, Nov. 28, 1990,
added kiwifruit, nectarines, plums, pistachios, or apples; and added subsections (c) and (d), requiring
advice and concurrence by the USTR prior to any import regulation being made effective. Pub. L. 107171, Sec. 10601(b), 116 Stat. 511, May 13, 2002, added the words “caneberries (including raspberries,
blackberries, and loganberries.”

181

(b)(1) The Secretary may provide for a period of time (not to exceed 35 days) in addition
to the period of time covered b y a marketing order during which the marketing order
requirements would be in effect for a particular commodity during any year if the Secretary
determines that such additional period of time is necessary)
(A) to effectuate the purposes of this Act; and
(B) to prevent the circumvention of the grade, size, quality, or maturity standards
of a seasonal marketing order applicable to a commodity produced in the United
States b y impo rts of such com mod ity.
(2) In making the determination required by paragraph (1), the Secretary, through notice
and comment procedures, shall consider)
(A) to what extent, during the previous yea r, impo rts of a co mmodity that did not
meet the req uirements of a marketing order applicable to such commodity were
marketed in the United States during the period that such marketing order
requirements were in effect for available domestic commodities (or would have been
marketed during such time if not for any additional period established by the
Secretary):
(B) if the importation into the United States of such com mod ity did, or was likely
to, circumvent the grad e, size, quality or m aturity standards of a seasonal marketing
order applicable to such commod ity produced in the United States; and
(C) the availability and price of commodities of the variety covered by the
marketing order during any a dditional period the marketing order requirements are
to be in effect.
(3) An additional period established by the Secretary in accordance with this subsection
shall be)
(A) announced not later than 30 d ays before the date such ad ditiona l period is to
be in effect; and
(B) reviewed by the Secretary on request, through notice and comment
procedures, at least every 3 years in order to determine if the additional period is still
needed to prevent circum vention of the se asonal marketing o rder by imp orted
comm odities.
(4) For the purposes of carrying out this subsection, the Secretary is authorized to make
such reasonable inspections as m ay be necessary.
(c) Prior to any import prohibition or regulation under this section being made effective
with resp ect to any com mod ity)
(1) the Secretary of Agriculture shall notify the United States Trade
Representative of such import prohibition or regulation; and
(2) the United States Trade Representative shall advise the Secretary of
Agriculture, within 60 days of the no tification under p aragraph (1), to ensure that the
application of the gra de, size , quality, and ma turity provisions of the relevant
marketing order, or com parable restrictions, to impo rts is not inconsisten t with United
States international obligations under any trade agreement, including the General
Agreement on Tariffs and Trade.
(d) The Secretary may proceed with the proposed prohibition or regulation if the
Secretary receives the advice and concurrence of the United States Trade R epresentative
within 60 days of the notification under subsection (c)(1). (7 U.S.C. 608e)1.)]
(h) Section 10(a), (b)(1) (b)(2), (c), (f), (g), (h), (i) and (j) miscellaneous provisions);
MISCELLANEO US
[S EC . 10. (a) The Secretary of Agriculture may appo int such officers and employees,
subject to the provisions of the Classification Act of 1923,54 as amended an d Ac ts

54

182

Classification Act of 1923, as amended, now cited as 5 U.S.C. chapter 51 and subchapter III of
(continued...)

amendatory thereo f, and such exp erts as are necessary to execute the functions vested in him
by this title; (and the Secretary may make such ap pointments w ithout regard to the civil
service laws or regulations: Provided, That no salary in excess of $10 ,000 per annum shall
be paid to any officer, employee, or expert of the Agricultural Adjustment Administration,
which the Secretary shall establish in the Department of Agriculture for the administration
of the functio ns vested in him by this title): 55 And provided further, That the State
Administrator appointed to administer this Act in each State shall b e app ointed by th e
President, by and with the advice and consent of the Senate. Title II of the Act entitled “An
Act to maintain the credit of the United States Government”, approved March 2 0, 19 33, to
the extent that it provides for the impoundment of appropriations on account of reductions
in compensation, shall not operate to require such impoundments under appro priations
contained in this Act.
(b)(1) The Sec retary of Agriculture is authorized to establish, for the more effective
administration of the functions vested in him b y this title, State and local committees, or
associations of pro ducers, and to permit cooperative associations of producers, when in his
judgment they are qualified to do so, to act as age nts of their m emb ers and patro ns in
connection with the distribution of payments authorized to be made unde r section 8. The
Secretary, in the adm inistration of this title shall accord such recognition and encouragement
to producer-owned and producer-controlled cooperative associations as will be in harmony
with the policy toward cooperative associations set forth in existing Acts of Congress, and
as will tend to pro mote efficient method s of marketing and distribution .
(2)(i) Each order relating to milk and its prod ucts issued by the Secretary under this title
shall provide that each handler subject thereto shall pay to any authority or agency
established under such order such handler's pro rata share (as approved by the Secretary) of
such expe nses as the Sec retary may find will necessa rily be incurred by such authority or
agency, during any period specified by him, for the maintenance and functioning of such
authority or agency, other than expenses incurred in receiving, handling, holding, or
disposing of any quantity of m ilk or products thereof received, handled, held, or disposed of
by such authority or agency for the benefit or account of persons other than handlers subject
to such order. The pro rata share of the expenses payable by a cooperative association of
producers shall be com puted on the basis of the qua ntity of milk or product thereof covered
by such order which is distributed, processed, or shipped by such cooperative association of
producers.
(ii) Each order relating to any other commod ity or product issued by the Secretary under
this title shall provide that each handler subject thereto shall pay to any authority or agency
established under such order such handler's pro rata share (as approved by the Secretary) of
such expe nses as the Sec retary may find are reasonable and are likely to be incurred by such
authority or agency, during any period specified by him, for such purposes as the Secretary
may, pursuant to such order, determine to be appropriate, and for the maintenance and
functioning of such authority or agency, other than expenses incurred in receiving, handling,
holding, or disp osing o f any quantity of a comm odity received, handled, held, or disposed
of by such authority or agency for the benefit or account of persons other than handlers
subject to such order. The pro rata share of the expenses payable by a cooperative association
of producers shall be com puted on the basis o f the qua ntity of the agricultural commod ity or
product thereo f covered b y such order which is distributed, processed, or shipped by such
cooperative association of producers. The payment of assessments for the maintenance and
functioning of such authority or agency, as provided for herein, may be required under a
marketing agreement or marketing order throughout the period the marketing agreement or

(...continued)
chapter 53.
55
Parentheses supplied. The material therein is obsolete but was not repealed. See note after 7 U.S.C.
610.
183

order is in effect and irrespective of whether particular provisions thereof are suspended or
become inoperative.
(iii) Any au thority or agency estab lished under an order may maintain in its own name,
or in the name of its member, a suit against any handler subject to an order for the collection
of such hand ler's pro rata share of expenses. T he several district courts of the United States
are hereby vested with jurisdiction to entertain such suits regard less of the amo unt in
controversy.
(c) The Secretary of Agriculture is authorized, with the approval of the President, to make
such regulations with the force and effect of law as maybe ne cessary to carry out the powers
vested in him by this title. Any vio lation of any regulations shall be subjec t to such pena lty,
not in ex cess of $10 0, as may be p rovid ed therein.
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(f) The provisions of this title shall be applicab le to the United S tates and its possessions,
except the Philippine Islands, the Virgin Islands, American Samoa, the Canal Zone, and the
island of Guam; excep t that, in the case of sugarbeets and sugarcane, the President, if he finds
it necessary in order to effectuate the declared policy of this Act, is authorized by
proclamation to make the provisions of this title applicable to the Philippine Islands, the
Virgin Island s, American Samoa, the Canal Zone, and /or the island of Guam.
(g) No perso n shall, while acting in any official capa city in the administration of this title,
speculate, directly or indire ctly, in any agricultural commod ity or product thereof, to which
this title applies, or in contracts relating thereto, or in the stock or membership interests of
any association or corporation engaged in handling, processing, or disposing of any such
com mod ity or product. Any person violating this subsection shall upon conviction thereof
be fined not more than $10,0 00 o r imprisoned not more than two years, or both.
(h) For the efficient administration of the provisions of part 2 of this title, the provisions,
including pena lties, of sectio ns 8, 9, and 1 0 of the Federal T rade Commission A ct, approved
September 26, 1914, are made applicable to the jurisdiction, powers, the duties of the
Secretary in administering the pro visions of this title and to any person subject to the
provisions of this title whether or not a corporation. Hearings authorized or required under
this title shall be conducted by the Secretary of Agriculture or such officer or employee of
the Department as he may designate for the purpose. The Secretary may report any violation
of any agreement entered into under part 2 of this title to the Attorney General of the United
States, who shall cause appropriate proceedings to enforce such agreement to be commenced
and prosecuted in the p roper courts of the United States without delay.
(i) The Secretary of Agriculture upon the request of the duly constituted authorities of any
State is directed, in order to effectuate the declared policy of this title and in order to obtain
uniform ity in the form ulation, administration, and enforcement of Federal and State programs
relating to the regulation of the handling of agricultural commod ities or products thereof, to
confer with and hold joint hearings with the duly constituted au thorities o f any State, and is
authorized to cooperate with such authorities; to accept and utilize, with the consent of the
State, such State and local officers and employees as may be necessary; to avail himself of
the records and facilities of such authorities; to issue orders (subject to the provisions of
section 8c) complementary to orders or other regulations issued by such authorities; and to
make available to such State authorities the records and facilities of the Department of
Agriculture: Provided, That information furnished to the Secretary of Agriculture pursuant
to section 8d(1) hereof shall be made available o nly to the extent that such information is
relevant to transactions within the regulatory jurisdiction of such authorities, and then only
upon a written agreement by such authorities that the information so furnished shall be kept
confidential by them in a manner similar to that required of Federal officers and employees
unde r the provisions of sec tion 8d (2) hereof.
(j) The term “interstate or foreign commerce” means commerce between any State,
Territory, or po ssession, or the District of Columbia, and any place outside thereof; or
between points within the same State, Territory, or possession, or the District of Columbia,
184

but through any place outside thereof; or within any Territory or possession, or the District
of Columbia. For the purpose of this A ct (but in no wise limiting the foregoing definition)
a marketing transaction in respect to an agricultural commodity or the product thereof shall
be considered in interstate or foreign com merc e if such comm odity or product is part of that
current of interstate or foreign commerce usual in the handling of the commodity or product
whereby they, or either of them, are sent from one State to end their transit, after purchase,
in another, includ ing all cases where purchase or sale is either for shipment to another State
or for the processing within the State and the shipment outside the State of the produc ts so
processed. Agricultural commodities or products thereof normally in such current of
interstate or fore ign commerce shall not be co nsidered o ut of such current through resort
being had to any means or device intended to remove transactions in respect thereto from the
provisions of this Act. As used herein the word “State” includes Territory, the D istrict of
Colum bia, possession of the United S tates, and foreign nations. 56 (7 U.S.C. 610.)]
(I) Section 12(a) and (c) relating to appropriation and expense);
APPROPRIATION
[S EC . 12 (a) There is hereby appropriated, out of any mone y in the Treasury no t otherwise
appropriate d, the sum of $100,000,000 to be available to the Secretary of Agriculture for
administrative expenses under this title and for payments authorized to be made under section
8. Such sum shall rem ain available un til expen ded .
To enable the Secretary of Agriculture to finance, under such terms and conditions as he
may presc ribe, surplus reductions w ith respect to the dairy- and beef-cattle industries, and
to carry out any of the purposes described in subsections (a ) and (b) of this section (12) and
to suppo rt and balanc e the markets for the d airy and beef cattle industries, there is authorized
to be appropriated, out of any money in the Treasury not otherwise appropriated, the sum of
$200,000,000; Provided, That not more than 60 per centum of such amount shall be used for
either of such ind ustries.
*

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*

(c) The adm inistrative expenses provided for under this section shall include, among
others, expenditures for personal services and rent in the D istrict of Co lumbia and elsewhere,
for law books and bo oks of reference, for contract stenographic rep orting services, and for
printing and paper in addition to allotments under the existing law. The Secretary of
Agriculture shall transfer to the T reasury Departm ent, and is authorized to transfer to other
agencies, out of funds available for administrative expenses under this title, such sums as are
required to pay administrative expenses incurred and refunds made by such department or
agencies in the administration of this title. (7 U.S.C. 612.)]
(j) Section 14 (relating to separability);
SEPARABILITY O F PROVISIONS
[S EC . 14. If any provision of this title is declared unconstitutional, or the applicability
thereof to any p erson , circum stance, or commo dity is held invalid the validity of the
remainder of this title and the applicability thereof to other persons, circumstances, or
commo dities shall not be affected thereby. (7 U.S.C. 614.)]
(k) Section 22 (relating to impo rts);

56

Paragraph (j) added by section 2(i) of the Agricultural Act of 1937 (June 3, 1937, 50 Stat. 248).
185

Agricultural Adjustment Act of 1933)S EC . 2257 (a) Whenever the Secretary of
Agriculture has reason to believe that any article or articles are being or are practically
certain to be imported into the United States under such conditions and in such quantities as
to render or tend to render ineffective, or materially interfere with, any program or operation
undertaken under this title or the Soil Conservation and Domestic Allotment Act, as
amended, or section 32, Public Law Numbered 320, Seventy-fourth Congress, approved
August 24, 1935 , as amended, or any loan, purchase, or other program or operation
undertaken by the Department of Agriculture, or any agency operating under its direction,
with respe ct to any agricultural commodity or product thereof, or to reduce substantially the
amount of any product pro cessed in the U nited S tates from any agricultural comm odity or
product thereo f with respect to which any such program or operation is being undertaken, he
shall so advise the President, and, if the President agrees that there is reason for suc h belief,
the President shall cause an immediate investigation to be made by the United States
International Trade C ommission, which sha ll give preced ence to investigations under this
section to determine such facts. Such investigation shall be made after due notice and
opp ortunity for hearing to interested parties, and shall be conducted subject to such
regulations as the President shall specify. (7 U.S.C. 624(a).)
(b) If, on the basis of such investigation and report to him of findings and
recommend ations mad e in connection therewith, the President finds the existence of such
facts, he shall by pro clamation im pose such fees not in excess of 50 per centum ad valorem
or such quantitative limitations on any article or articles which may be entered, or withdrawn
from warehouse, for consumption as he finds and declares shown by such investigation to be
necessary in order that the entry of such article or articles will not render or tend to render
ineffective, or materially interfere with, any program or operation referred to in subsection
(a) of this section, or reduce substantially the amount of any product processed in the United
States from any such agricultural commodity o r product thereof with respect to which any
such program or op eration is being undertaken: Provided, That no proclamation under this
section shall impose any limitation on the total quantity of any article or articles which may
be entered, or withdrawn from wareh ouse, for consumption which reduces suc h permissible
total quantity to proportionately less than 50 per centum of the total quantity of such article
or articles which was entered, or withdrawn from warehouse, for consumption during a
representative period as determined by the President: And provided further, That in
designating any article or articles, the President may describe them by physical qualities,
value, use, or upon such o ther bases as he shall determine.
In any case where the Secretary of Agriculture determines and reports to the President
with regard to any article or articles that a condition exists requiring em ergency treatm ent,
the President may take immediate action under this section without awaiting the
recommend ations of the Tariff Commission, such action to continue in effect pending the
report and recommend ations of the Tariff Commission and action thereon by the President. 58
(7 U.S.C. 624(b ).)
(c) The fees and limitations imposed by the President by proclamation under this section
and any revocation, suspension, or modifica tion thereof, shall beco me effective on such date
as shall be therein specified, and such fees shall be treated for administrative purposes and
for the purposes of section 3 2 of Public Law Num bered 320, Seventy-fourth Congress,

57
See also section 202(a) of the Agricultural Act of 1956, 70 Stat. 199. Section 22 was added by
the Act of August 24, 1935 (49 Stat. 773). As originally enacted, action under this section could be
taken only with respect to articles the importation of which was found to be adversely affecting
programs or operations under the Agricultural Adjustment Act of 1933. Section 22 has been amended
several times and was revised in its entirety by section 3 of the Agricultural Act of 1948 (62 Stat. 1247)
and again by section 3 of the Act of June 28, 1950 (64 Stat. 261). Regulations governing investigations
under this section are set forth in Executive Order 7233, dated November 23, 1935, and in 19 CFR
201, 204. Pub. L. 93-618, 88 Stat. 2009, Jan. 3, 1975, substituted “United States International Trade
Commission” for “United States Tariff Commission”.
58
Paragraph added by section 104 of the Trade Agreement Extension Act of 1953, 67 Stat. 472.

186

approved August 24, 1935, as amended, as duties imposed by the Tariff Act of 1930, but
such fees shall not be considered as duties for the purpose of granting any preferential
concession under any international obligation of the United States. (7 U.S.C. 624(c).)
(d) After investigation, report, finding, and declaration in the manner provid ed in the case
of a proclamation issued pursuant to subsection (b) of this section, any proclamation or
provision of such proclamation may be suspended or terminated by the President whenever
he finds and proclaims that the circumstances requiring the proclamation or provision thereof
no longer exist or may be modified by the President whenever he finds and proclaims that
changed circumstances require such modification to carry out the purposes of this section.
(7 U .S.C. 6 24(d).)
(e) Any decision of the President as to facts under this section shall be final. (7 U.S.C.
624(e).)
(f) 59 No quantitative limitation or fee shall be imposed under this section with resp ect to
any article that is the product of a WT O member (as defined in section 2(10) of the Uruguay
Round A greements Act). (7 U.S.C. 624(f).)
D AIR Y FOR W AR D PRIC IN G PR OG RA M

60

S EC . 23. D AIRY FORWARD PRICING PILOT PROGRAM
(a) P ILOT P R O GR AM R EQUIRED . —No t later than 90 days after November 29, 199 9, the
Secretary of Agriculture shall estab lish a temporary pilot program under which milk
producers and cooperatives are authorized to voluntarily enter into forward price contra cts
with milk handlers.
(b) M IN IM U M M ILK P RICE R EQUIREMENTS .—Payments made by milk handlers to milk
producers and cooperatives, and prices received by milk producers and cooperatives, under
the forw ard contracts shall be dee med to satisfy—
(1) all regulated minimum milk price requirements of paragraphs (B) and (F) of
subsection (5) of section 608c of this title; and
(2) the requirement of paragraph (C) of such subsection regarding total payments by
each handler.
(c) M ILK C O V E RE D B Y P ILOT P R O GR AM .—

59
The provisions of subsection (f) were substituted for earlier provisions by section 8(b) of the Trade
Agreements Extension Act of 1951, June 16, 1951, 65 Stat. 72, 75. Pub. L. 100-449, 102 Stat. 1868,
Sept. 28, 1988, added the exemption for products of Canada. Sec. 301(a) of Pub. L. 100-449, 102 Stat.
1865, would allow temporary duty on any Canadian fresh fruit and vegetable entering the U.S. if the
Secretary of Agriculture determines (1) for each of five consecutive workdays the import price of the
Canadian fresh fruit or vegetable is below 90 percent of corresponding five-year average monthly
import price for such fruit or vegetable, and (2) the U.S. planted acreage for the like fresh fruit or
vegetable is no higher than the average planted acreage over the preceding five years, excluding years
with highest and lowest acreage. (Any acreage increase attributed directly to a reduction in the acreage
that was planted to wine grapes as of Oct. 4, 1987, is excluded.)
Section was generally amended by Sec. 401(a)(1) of Pub. L. 103-456, 108 Stat. 4957, Dec. 8, 1994.
Prior to that Subsection (f) read as follows: “No trade agreement or other international agreement
heretofore or hereafter entered into by the United States shall be applied in a manner inconsistent with
the requirements of this section, except that the President may, pursuant to articles 705.5 and 707 of
the United States-Canada Free-Trade Agreement, exempt products of Canada from any import
restriction imposed under this section.”.
Sec. 401(a)(2) of Pub. L. 103-465, 108 Stat. 4957, Dec. 8, 1994, provided that: “The amendment
made by paragraph (1) shall take effect on the date of entry into force of the WTO Agreement with
respect to the United States, except that with respect to wheat, the amendment shall take effect on the
later of such date or September 12, 1995.”.
60
Pub. L. 106-113, div. B, Sec. 1000(a)(8) (Sec. 3), Nov. 29, 1999, 113 Stat. 1536, 1501A-519,
added new Sec. 23.

187

(1) C O V E RE D M ILK .—T he pilot program shall apply only with respect to the
marketing of federally regulated milk that —
(A) is not classified as Class I milk or otherwise intended for fluid use; and
(B) is in the current of interstate or foreign commerce or directly burdens,
obstructs, or affects interstate or fo reign comm erce in federally regulated milk.
(2) R ELA T IO N T O C LASS I M ILK .— To assist milk handlers in co mplying with the
limitation in paragraph (1)(A) without having to segregate or otherwise individually track
the source and disposition of milk, a milk handler may allocate milk receipts from
prod ucers, cooperatives, and other sources that are no t subject to a forward contra ct to
satisfy the handler's obligations with regard to Class I milk usage.
(d) D U R A TIO N .—T he authority of the Secretary of Agriculture to carry out the pilot
program shall terminate on December 31, 2004. No forward price contract entered into under
the pro gram may ex tend b eyond that date.
(e) S T U D Y AN D R E P O RT O N E FFECT OF P ILOT P ROGRAM .—
(1) S T U D Y .—T he Secretary of Agriculture shall conduct a study on forward
contracting betwe en milk producers and cooperatives and milk handlers to determine the
impact on m ilk prices paid to pro ducers in the U nited S tates. T o ob tain information for
the study, the S ecretary may use the au thorities available to the Secretary under section
608d of this title, subject to the confidentiality requirements of subsection (2) of such
section .
(2) R EPORT .— No t later than April 30, 2002 , the Sec retary shall submit to the
Committee on Agriculture, Nutrition and Forestry of the Senate and the Committee on
Agriculture of the House of Rep resentatives a repo rt containing the results of the stud y.
(7 U.S.C. 627).
AMENDMENTS TO AGRICULTURAL ADJUSTMENT ACT
S EC . 2. The following provisio ns, reenacted in section 1 of this Act, are amended as
follows:
[Subsec s. (a) to (j) inclusive, of sec. 2 of the Agricultural Marketing Agreement Act of 1937
are incorporated in the preceding text.]
ARBITRATION OF DISPUTES CONCERNING MILK
S EC . 3. (a) The Secretary of Agriculture, or such officer or employee of the Department
of Agriculture as may be designated by him, upon written application of any cooperative
association, incorporated or otherwise, which is in good faith owned or controlled by
producers or organiza tions thereof, of milk or its p roducts, and which is b ona fide engaged in
collective processing or preparing for m arket o r hand ling or m arketing (in the current of
interstate or foreign commerce, as defined by paragraph (I) of section 2 of this Act), milk or
its prod ucts, ma y mediate and , with the co nsent of all parties, shall arbitrate if the Secretary
has reason to believe that the declared policy of the Agricultural Adjustment Act, as amended,
would be effectuated thereby, bona fide disputes, between such associations and the
purchasers or handlers or processors or distributors of milk or its products, as to terms and
conditions of the sale of milk or its products. The power to arbitrate under this section shall
app ly only to such sub jects of the term or co ndition in dispu te as could be regulated under the
provisions of the Agricultural Adjustment Act, as amended, relating to orders for milk and its
products.
(b) Meetings held pursuant to this section shall be conducted subject to such rules and
regulations as the Sec retary m ay prescribe.
(c) No award or agreement resulting from any such arbitration or mediation shall be
effective unless and until approved by the Secretary of Agriculture, or such officer or

188

employee of the Department of Agriculture as may be designated by him, and shall not be
app roved if it perm its any unlawful trade practice or any unfair method o f competition.
(d) No me eting so held and no award or agreem ent so approved shall be de emed to b e in
violation of any of the antitrust laws of the United States. (7 U .S.C. 6 71).
AGREEMENTS ETC., UNAFFECTED
S EC . 4.61 (a) Nothing in this act shall be construed as invalidating any marketing
agreement, license, or order, or any regulation relating to, or any provision of, or any act of
the Secretary of Agriculture in connection with, any such agreement, license, or order which
has been executed, issued, approved, or done under the Agricultural Adjustment Act, or any
amendment thereof, but such marke ting agreemen ts, licenses, orders, regulations, pro visions,
and acts are hereb y expressly ratified, legalized, and confirm ed.
(b) Any program in effect under the Agricultural Adjustment Act, as reenacted and
amended by this Act, on the effective d ate of section 3 02 o f the Agricultural Act of 194 8 shall
continue in effect without the necessity for any amendatory action relative to such program,
but any such p rogra m shall be co ntinued in ope ration b y the Secretary of Agriculture only to
establish and maintain such orderly marketing conditions as will tend to effectuate the
declared purpose set out in section 2 or 8c (18) of the Agricultural Adjustment Act, as
reena cted a nd am ended by this Act. (7 . U.S.C. 67 2).
TAXES U NDER AG RICULTURA L ADJUSTM ENT AC T; PROVISIONS
UNAFFECTED
S EC . 5. No processing taxes or compensating taxes shall be levied or collected under the
Agricultural Adjustment Act, as amended. Except as provided in the preceding sentence,
nothing in this Act shall be construed as affecting provisions of the Agricultural Adjustment
Act, as amended, other than those enumerated in section 1. The provisions so enum erated shall
app ly in accordance with their terms (as amended by this Act) to the provisions of the
Agricultural Adjustment Act, this Act, and other provisions of law to which they have been
heretofore made applicable. (7 U.S.C. 673.)
SHORT TITLE
S EC . 6. This act may be cited as the “Agricultural Marketing Agreement Act of 1937 .” (7
U.S.C. 674.)

61
Section 302 of the Agricultural Act of 1948 (62 Stat. 1247) inserted the subsection designation (a)
and added subsection (b).

189

PEANU TS

1

(7 U.S.C. 7958)
(a) MAND ATO RY INSP ECT ION.— All peanuts marketed in the U nited S tates shall be
officially inspected and grad ed by Fe deral or Federal-State inspectors.
(b) TERMINATION OF PEANUT ADM INISTR ATIV E CO MM ITT EE.— The P eanut
Administrative Comm ittee established under Marketing Agreement No. 14 6 issued pursuant
to the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by the
Agricultural Marketing Agreement Act of 1937, is terminated.
(c) PEA NU T S TA ND ARDS BO ARD.—
(1) EST ABL ISHM ENT AND PUR POS E.— The Secretary shall establish a Peanut
Standards Board for the purpose of advising the Secretary regarding the establishment of
quality and hand ling standards for domestically prod uced and impo rted pean uts.
(2) M EM BE RSHIP AN D A PP OIN TM EN T.—
(A) TOT AL MEM BERS.—T he Board shall consist of 18 mem bers, with
representation equ ally divided between peanut producers and peanut industry
representatives.
(B) APP OIN TMENT PR OC ESS FO R P RO DU CE RS.— The Sec retary shall
app oint—
(i) 3 producers from the Southeast (Alabama, Georgia, and Florida) peanut
producing region;
(ii) 3 producers from the Southwest (Texas, Oklahoma, and New Mexico)
peanut producing region; and
(iii) 3 producers from the Virginia/Carolina (Virginia and North Carolina)
peanut producing region.
(C)
A P P O IN T M E N T
PROCESS
FOR
INDUSTRY
REP RESE NT ATIV ES.— The Secretary shall appoint 3 peanut industry
representatives from each of the 3 peanut producing regions in the U nited States.
(3) T ERMS.—
(A) IN GENERAL.—A member of the Board shall serve a 3-year term.
(B) INITIA L APP OIN TM ENT .—In making the initial appointments to the Board,
the Secretary shall stagger the terms of the membe rs so that—
(i) 1 producer member and peanut industry member from each peanut
producing region serves a 1-year term;
(ii) 1 pro ducer membe r and pean ut industry member from each peanut
producing region serves a 2-year term; and
(iii) 1 producer mem ber and peanut industry member from each peanut
producing region serves a 3-year term.
(4) CONSULTATION REQU IRE D.— The Sec retary shall consult with the B oard in
advance whenever the Secretary establishes or changes, or considers the establishment of
or a chang e to, quality and hand ling standards for peanuts.
(5) FEDERAL ADVISORY COMMITTEE ACT.— The Federal Advisory Committee
Act (5 U.S.C. App.) shall not apply to the Board.
(d) PR IOR ITY.— The Sec retary shall make identifying and combating the pre sence of all
quality concerns related to peanuts a priority in the development of quality and handling
standards for p eanuts and in the inspe ction of dom estically produced and imported peanuts.
The Secretary shall consult with appropriate Federal and State agencies to provide adeq uate
safeguards against all quality concerns related to peanuts.
(e) CON SISTE NT STA ND ARD S.—Im ported peanuts shall be subject to the same quality
and hand ling standards as ap ply to dom estically produced pean uts.
(f) AU TH OR IZATION OF APPR OP RIA TION S.—

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Pub. L. 107-171, Sec. 1308, 116 Stat. 178, May 13, 2002.

(1) IN GEN ERAL.— In addition to other funds that are available to carry out this
section, there is authorized to be appropriated such sums as are necessary to carry out this
section.
(2) TREATMENT OF B OAR D EX PEN SES.— The expenses of the Peanut Standards
Board shall not be co unted toward any genera l limitation o n the expenses of advisory
comm ittees, pane ls, commission s, and task forces of the Department of Agriculture,
whether enacted before, on, or after the date of enactment of this Act, unless the limitation
specifically refers to this paragraph and specifically includes the Peanut Standards Board
within the general limitation.
(g) T RANS ITION RU LE.—
(1) TEMPORARY DESIGNATION OF PEANUT ADMINISTRATIVE
COMMITTEE ME MB ERS.— Notwithstanding the appointment p rocess spec ified in
subsection (c) for the Peanut Standards Board, during the transition period, the Secretary
may designate persons serving as members of the Peanut Administrative Comm ittee on the
day before the date of enactment of this Act to serve as members of the Peanut Standards
Board for the purpose of carrying out the duties of the Board described in this section.
(2) FUND S.—T he Secretary may transfer any funds available to carry out the activities
of the Pea nut Ad ministrative Co mmittee to the Peanut Stan dard s Bo ard to carry out the
duties of the Board d escribed in this section.
(3) TRANSITION PERIOD.— In paragraph (1), the term ‘‘transition period’’ means
the period beginning on the date of enactm ent of this A ct and ending on the earlier o f—
(A) the date the Secretary appoints the members of the Peanut Standards Bo ard
pursuant to subsection (C); or
(B) 180 days after the date of enactm ent of this A ct.
(h) EFF ECT IVE DATE .—This section sha ll take effect with the 2002 cro p of peanuts.

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