10.155 Marketing Agreements and Orders

Provision of Specialized Services

Advisory Services and Counseling

Specialized Group

Profit Organization

Individual/Family

A--Agriculture

A-Marketing

A-Technical Assistance, Information, Services;

O--Information, Statistics

O-General

 

FEDERAL AGENCY: AGRICULTURAL MARKETING SERVICE, DEPARTMENT OF AGRICULTURE

AUTHORIZATION: Agricultural Marketing Agreement Act of 1937, as amended, 7 U.S.C. 601, 602, 608a-e, 612, 614, 624, 671-674; Omnibus Budget Reconciliation Act of 1987, Public Law 100-203, 7 U.S.C. 4501- 4513; Agriculture and Food Act of 1981, 7 U.S.C. 2242a.

OBJECTIVES: To assure ample supplies of agricultural products, maintain adequate producer prices, and provide consumers with quality products at reasonable prices.  All funds collected are remitted to the Commodity Credit Corporation to partially offset the costs of the dairy price support.

TYPES OF ASSISTANCE: Provision of Specialized Services; Advisory Services and Counseling.

USES AND USE RESTRICTIONS: The provisions of orders and agreements are designed specifically to meet the marketing and economic problems of the commodity or area covered.  For dairy products, the orders establish orderly marketing conditions in the sale of milk by dairy farmers to handlers, whereas fruit, vegetable, nut, and grass seed, are established to regulate the quantity and quality of products sold in commercial channels.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility: Marketing orders are issued by the Secretary of Agriculture only after a public hearing where milk, fruit and vegetable producers, marketers, and consumers testify, and after farmers vote approval through a referendum.  Growers of certain fruits, vegetables, and specialty crops (like nuts, raisins, olives, and hops). Dairy farmers are the primary applicants.

Beneficiary Eligibility: The beneficiaries are producers of milk, fruit and vegetable products.

Credentials/Documentation: Evidence (usually hearings) required indicating that agreement or order will assist in the orderly marketing of a commodity.

APPLICATION AND AWARD PROCESS:

Preapplication Coordination: None.  This program is excluded from coverage under E.O. 12372.

Application Procedure: Made in the form of a letter to the Secretary of Agriculture fully documenting the need for an agreement or order.

Award Procedure: Decision to establish or not to establish an agreement and order is made by the Secretary of Agriculture after public hearings and referendums are conducted.

Deadlines: Not applicable.

Range of Approval/Disapproval Time: Subject to time required to hold public hearings, investigations and to conduct a referendum. Approximately 1 year after start of public hearings.

Appeals: Not applicable.

Renewals: Not applicable.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements: Not applicable.

Length and Time Phasing of Assistance: Duration of agreement and order.

POST ASSISTANCE REQUIREMENTS:

Reports: Quarterly and yearly financial and statistical reports are to be made to the applicable AMS commodity division by producers or handlers as provided for by each agreement and order.

Audits: Financial and program audits pertaining to marketing agreements and order transactions are made periodically.

Records: Financial and statistical records relating to the operation of the agreement and order are to be maintained for 3 years.

FINANCIAL INFORMATION:

Account Identification: 12-5209-0-2-605.

Obligations: (Salaries and expenses) FY 99 $10,189,472; FY 00 est $10,998,000; and FY 01 est $12,443,000.

Range and Average of Financial Assistance: Not applicable.

PROGRAM ACCOMPLISHMENTS: (Marketing's conducted under agreements and orders) fiscal year 1999, $15.0 billion; fiscal year 2000, estimate $14.7 billion; and fiscal year 2001, estimate $15.3 billion.

REGULATIONS, GUIDELINES, AND LITERATURE: AH-421, Compilation of Agricultural Marketing Agreement Act; PA947, Can a Marketing Order Help?; PA-1095, Marketing Agreements and Orders for Fruits and Vegetables; AMS-565, Sources of Milk for Federal Order Markets by State and County; AMS-559, Questions and Answers on Federal Milk Marketing Orders; MB-27, The Federal Milk Marketing Order Program; SB-625, Federal Milk Order Market Statistics, Annual Summary; SB-624, Dairy Market Statistics, Annual Summary; MB-63, Market News Service on Dairy Products; How to Buy Dairy Products, HG-201; How to Buy Cheese, HG-193; How to Buy Butter, HG-148; Diary Products Grading Services, MB-69; Judging and Scoring Milk and Cheese, FB-2259.

INFORMATION CONTACTS:

Regional or Local Office: None.

Headquarters Office: Associate Administrator, Agricultural Marketing Service, Department of Agriculture, Washington, DC 20250. Telephone: (202) 720-4276.  Use the same number for FTS.

RELATED PROGRAMS: 10.051, Commodity Loans and Loan Deficiency Payments; 10.500, Cooperative Extension Service; 36.001, Fair Competition Counseling and Investigation of Complaints.

EXAMPLES OF FUNDED PROJECTS: Not applicable.

CRITERIA FOR SELECTING PROPOSALS: Not applicable.