Agricultural Marketing Agreement Act Of 1937


In 2015, the U.S. Supreme Court issued a letter from certiorari to Horne v. Department of Agriculture, a case dealing with a federal marketing order. In 1949, the U.S. Department of Agriculture introduced a marketing ordinance authorizing the federal government to reserve a percentage of the annual harvest of California raisins in order to stabilize the supply and therefore the price of California raisins. Horne, a California-based producer of raisins, tried to circumvent marketing orders by processing his own raisins, which he believed would exclude from the reserve obligation. After a $700,000 fine, he sued the Department of Agriculture for violating his Fifth Amendment rights under the De Takings clause. As part of this permanent law and subsequent amendments, marketing markets have been launched for milk as well as for many fruit, vegetable and specialty crops. The final step in establishing a marketing order or agreement is the approval of the referendum. As a general rule, two-thirds of the producers of the goods concerned, either in number or volume, must accept the proposed order or agreement.

After approval, the contract or agreement is required for all handlers in the marketing area specified in the order or agreement. Marketing contracts are different from marketing agreements: marketing contracts are mandatory for all persons and companies classified as “handler” in a geographical area covered by the order, and marketing agreements are binding only on voluntary signatories to the agreement. Unlike marketing contracts, marketing agreements are voluntary and only handlers who have signed the agreement are bound by their rules. It is not necessary to grant a marketing agreement for a marketing contract to take effect. Marketing contracts and agreements are managed by the Agricultural Marketing Service (AMS), an agency within the USDA, and are managed by the Agricultural Marketing Agreement Act of 1937 (“AMAA”) in its amended version, 7.C 671-74. The provisions relating to the establishment and regulation of markets and marketing agreements are contained in 7 C.F.R. 900-999 (fruits, vegetables, nuts and special crops), 7 C.F.R. 1000-1199 (milk) and 7 C.F.R. no. 1200-1599 (various materials). THE goal of WADA is to “establish and care for…

conditions for marketing agricultural raw materials in intergovernmental trade, “so that farmers benefit from a higher price. WADA must also protect the interests of consumers by demanding prices, the “Secretary . . . in the public interest and given the current consumer demand in domestic and external markets, that it is possible and achievable.¬†AMAA, its rules of application and administrative procedure, 5 U.S.C 551-706, define the process for developing contracts and marketing agreements. Anyone, including the secretary, can propose a marketing order or agreement. If someone other than the secretary initiates the proposal, that person must file a written request with the secretary.