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Marketing Agreements and Orders
Established in 1862, the Department of Agriculture serves all Americans through anti-hunger efforts, stewardship of nearly 200 million acres of national forest and rangelands, and through product safety and conservation efforts. The USDA opens markets for American farmers and ranchers and provides food for needy people around the world.
Program Accomplishments
(Marketing's conducted under agreements and orders) fiscal year 2006, estimate $24.9 billion.
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.
Aplication and Award Process
Preapplication Coordination
None.
This program is excluded from coverage under E.O.
12372.
Application Procedures
Made in the form of a letter to the Secretary of Agriculture fully documenting the need for an agreement or order.
Award Procedures
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
None.
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.
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
None.
Renewals
None.
Assistance Considerations
Formula and Matching Requirements
None.
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.
Obigations
(Salaries and expenses) FY 07 $15,493,000; FY 08 est $16,798,000; and FY 09 est not reported.
Range and Average of Financial Assistance
None.
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.
Criteria for Selecting Proposals
None.
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