Marketing orders and agreements in United States agricultural policy allow producers to promote orderly marketing through collectively influencing the supply, demand, or price of a particular commodity. Research and promotion can be financed with pooled funds.
Marketing orders are binding on all handlers of the commodity within the geographic area of regulation once it is approved by a required number of producers (usually two-thirds). [1] An order may limit the quantity of goods marketed, or establish the grade, size, maturity, quality, or prices of the goods. The Agricultural Marketing Service of the United States Department of Agriculture (USDA) uses marketing orders to regulate the sale of dairy products [2] and fruits and vegetables. [3] An order can be terminated when a majority of all producers favor its termination or when the USDA determines that the order no longer serves its intended purpose. Marketing agreements may contain more diversified provisions, but are enforceable only against those handlers who enter into the agreement.
They are authorized by the Agricultural Marketing Agreement Act of 1937 (AMAA), as amended. [1] The AMAA was a piece of New Deal era legislation implemented for price stability and essential marketing functions in response to economic pressure faced by small farmers in the 1920s. [1] Except for DFA, they are not bound by federal orders and can pay producers whatever they want.[ dubious ]
Federal milk marketing orders regulate handlers that sell milk or milk products within an order region by requiring them to pay not less than an established minimum price for the Grade A milk they purchase from dairy producers, depending on how the milk is used. This classified pricing system requires handlers to pay a higher price for milk used for fluid consumption (Class I) than for milk used in manufactured dairy products such as yogurt, ice cream, cheese, butter and nonfat dry milk (Class II, Class III and Class IV products). The Federal Milk Marketing Order (FMMO) does not include certain states, such as Idaho.
Federal milk marketing orders were first instituted in the 1930s to promote orderly marketing conditions by, among other things, applying a uniform system of classified pricing throughout the farm milk market. The 1996 Farm Bill required the USDA to consolidate the number of federal milk marketing orders and to revise the method by which minimum class prices are determined. The USDA implemented these changes in 2000. There are now 10 milk marketing orders, down from 31 when the law was enacted.
The National Raisin Reserve was a raisin reserve of the United States. It was created after World War II by the government in order to control raisin prices. The reserve was run by the Raisin Administrative Committee. [4] It was the subject of the 2013 and 2015 Supreme Court case Horne v. Department of Agriculture which found it an unconstitutional taking and ended it. [5]
A marketing board is an organization created by many producers to try to market their product and increase consumption and thus prices. It can also be defined as an organization set up by a government to regulate the buying and selling of a certain commodity within a specified area. They most commonly exist to help sell farm products such as milk, eggs, beef or tripe and are funded by the farmers or processors of those crops or products. Marketing boards often also receive funding from governments as an agricultural subsidy. The leadership and strategies of the marketing boards are set through votes by the farmers who are members of the board.
The National Organic Program (NOP) is the federal regulatory framework in the United States of America governing organic food. It is also the name of the United States Department of Agriculture (USDA) Agricultural Marketing Service (AMS) program responsible for administering and enforcing the regulatory framework. The core mission of the NOP is to protect the integrity of the USDA organic seal. The seal is used for products adhering to USDA standards that contain at least 95% organic ingredients.
The Agricultural Marketing Service (AMS) is an agency of the United States Department of Agriculture; it maintains programs in five commodity areas: cotton and tobacco; dairy; fruit and vegetable; livestock and seed; and poultry. These programs provide testing, standardization, grading and market news services for those commodities, and oversee marketing agreements and orders, administer research and promotion programs, and purchase commodities for federal food programs. The AMS enforces certain federal laws such as the Perishable Agricultural Commodities Act and the Federal Seed Act. The AMS budget is $1.2 billion. It is headquartered in the Jamie L. Whitten Building in Washington, D.C.
In the United States, a commodity checkoff program promotes and provides research and information for a particular agricultural commodity without reference to specific producers or brands. It collects funds through a checkoff mechanism that is sometimes called checkoff dollars, from producers of a particular agricultural commodity and uses these funds to promote and do research on that particular commodity. As stated earlier the organizations must promote their commodity in a generic way without reference to a particular producer. Checkoff programs attempt to improve the market position of the covered commodity by expanding markets, increasing demand, and developing new uses and markets. Checkoff programs amount to $750 million per year.
An agricultural cooperative, also known as a farmers' co-op, is a producer cooperative in which farmers pool their resources in certain areas of activity.
The Commodity Credit Corporation (CCC) is a wholly owned United States government corporation that was created in 1933 to "stabilize, support, and protect farm income and prices". The CCC is authorized to buy, sell, lend, make payments, and engage in other activities for the purpose of increasing production, stabilizing prices, assuring adequate supplies, and facilitating the efficient marketing of agricultural commodities.
Government cheese is processed cheese provided to welfare beneficiaries, Food Stamp recipients, and the elderly receiving Social Security in the United States, as well as to food banks and churches. This processed cheese was used in military kitchens during World War II and has been used in schools since the 1950s.
Food policy is the area of public policy concerning how food is produced, processed, distributed, purchased, or provided. Food policies are designed to influence the operation of the food and agriculture system balanced with ensuring human health needs. This often includes decision-making around production and processing techniques, marketing, availability, utilization, and consumption of food, in the interest of meeting or furthering social objectives. Food policy can be promulgated on any level, from local to global, and by a government agency, business, or organization. Food policymakers engage in activities such as regulation of food-related industries, establishing eligibility standards for food assistance programs for the poor, ensuring safety of the food supply, food labeling, and even the qualifications of a product to be considered organic.
The Federal Agriculture Improvement and Reform Act of 1996, known informally as the Freedom to Farm Act, the FAIR Act, or the 1996 U.S. Farm Bill, was the omnibus 1996 farm bill that, among other provisions, revises and simplifies direct payment programs for crops and eliminates milk price supports through direct government purchases.
The Agricultural Marketing Agreement Act of 1937 provides authority for federal marketing orders, and also reaffirmed the marketing agreements provisions of the Agricultural Adjustment Act of 1933.
Agricultural marketing covers the services involved in moving an agricultural product from the farm to the consumer. These services involve the planning, organizing, directing and handling of agricultural produce in such a way as to satisfy farmers, intermediaries and consumers. Numerous interconnected activities are involved in doing this, such as planning production, growing and harvesting, grading, packing and packaging, transport, storage, agro- and food processing, provision of market information, distribution, advertising and sale. Effectively, the term encompasses the entire range of supply chain operations for agricultural products, whether conducted through ad hoc sales or through a more integrated chain, such as one involving contract farming.
The Food Security Act of 1985, a five-year omnibus farm bill, allowed lower commodity price, income supports, and established a dairy herd buyout program. This 1985 farm bill made changes in a variety of other USDA programs. Several enduring conservation programs were created, including sodbuster, swampbuster, and the Conservation Reserve Program.
The Southern Dairy Compact was an agreement between thirteen states in the southern United States. It was proposed to ensure the continued marketability of dairy producers in the member states and to supply a stable, local supply of milk products to the region. The proposed agreement was modeled on the Northeast Interstate Dairy Compact, that would allow member states to jointly establish a minimum farm price for fluid milk that is above the federally mandated minimum price level in the region.
The Organic Foods Production Act of 1990 (OFPA) authorizes a National Organic Program (NOP) to be administered by USDA's Agricultural Marketing Service (AMS). The program is based on federal regulations that define standard organic farming practices and on a National List of acceptable organic production inputs. Private and state certifiers visit producers, processors, and handlers to certify that their operations abide by the standards. Once certified, these operations may affix the USDA Organic Seal. USDA has established four distinct categories for labeling organic products—100 percent organic, organic, "made with" organic ingredients, and specific organic ingredients—and only 100 percent organic and organic categories can use the USDA Organic Seal. It is illegal for anyone to use the word "organic" on a product if it does not meet the standards set in the law and regulations. The regulations under the OFPA are intended to set uniform minimum standards for organic production. However, states may adopt additional requirements after review and approval by USDA. AMS re-accredits certifying agents every 5 years, maintains federal oversight to assure truth in labeling, and provides assurance that imported organic products have been produced under standards that are equivalent to the U.S. standards.
In United States agricultural policy, marketing agreements are authorized by the Agricultural Marketing Agreement Act of 1937, as amended). They may be designed to:
Aurora Organic Dairy is an American company, based in Boulder, Colorado, which operates large factory farms, each with thousands of dairy cows, in Colorado and Texas. The company supplies and packages private-label, store-brand, organic dairy products for many of the country's largest grocery chains, including Wal-Mart, Safeway, Target and Costco.
Dairy Farmers of Ontario (DFO), is the marketing organization and regulatory body representing over 4,000 dairy farmers in Ontario, Canada. DFO was formerly known as the Ontario Milk Marketing Board (OMMB), which was established as result of the 1965 Ontario Milk Act. On August 1, 1995, the Ontario Milk Marketing Board and the Ontario Cream Producers' Marketing Board merged to form Dairy Farmers of Ontario.
The National Raisin Reserve was a raisin reserve of the United States. It was created after World War II by the government in order to control raisin prices. The reserve was run by the Raisin Administrative Committee. It was enforced by means of a "marketing order". In 2015, the United States Supreme Court ruled that the confiscation of a portion of a farmer's crops without market price compensation was unconstitutional and ended the reserve.
Canada's supply management, abbreviated SM, is a national agricultural policy framework used across the country, which controls the supply of dairy, poultry and eggs through production and import controls and pricing mechanisms. The supply management system was authorized by the 1972 Farm Products Agencies Act, which established the two national agencies that oversee the system. The Agriculture and Agri-Food Canada federal department is responsible for both the Canadian Dairy Commission and its analogue for eggs, chicken and turkey products, the Farm Products Council of Canada. Five national supply management organizations, the SM-5 Organizations — Egg Farmers of Canada (EFC), Turkey Farmers of Canada (TFC), Chicken Farmers of Canada (CFC), the Canadian Hatching Egg Producers (CHEP) and the Ottawa-based Canadian Dairy Commission (CDC), a Crown corporation — in collaboration with provincial and national governing agencies, organizations and committees, administer the supply management system.
Horne v. Department of Agriculture, 569 U.S. 513 (2013) ; 576 U.S. 351 (2015), is a case in which the United States Supreme Court issued two decisions regarding the Takings Clause of the Fifth Amendment to the United States Constitution. The case arose out of a dispute involving the National Raisin Reserve, when a farmer challenged a rule that required farmers to keep a portion of their crops off the market. In Horne I the Court held that the plaintiff had standing to sue for violation of the United States Constitution’s Takings Clause. In Horne II the Court held that the National Raisin Reserve was an unconstitutional violation of the Takings Clause.