Cooper, R. W.

Sorenson, H. B.

Texas A&M University

-489
for Texas Fruits
10 SERVICE
]. E. Hutchison, Director, College Station, Texas
H. B. Sorensen
and
R. W. Cooper*
Marketing
Agreements and Orders
lor
Texas
Fruits and Vegetables
MARKETI G GREEME TS A D OR-
DERS are designed to enable producers to
help themselves through industry-government
cooperation. The goal i orderly and effi-
cient marketing. Thi can be achieved only
if producers exerci e constant diligence and
attain a high degree of un elfish cooperation
among all concerned.
Marketing agreements and orders are use-
ful to producer of crops, such as fruits and
vegetables. Such agreements and orders con-
tribute to orderly marketing where producer
have learned to work together and where there
is substantial community interest between the
producers and handler .
The purpose of a fruit and vegetable mar-
keting order is to insure orderly marketing of
the commodity, help producers of it obtain
higher income and give consumer a better
quality product.
A federal marketing order is issued by the
United States Secretary of Agriculture, with
the terms binding upon all growers and han-
dlers in the indu try whether or not they sign
the agreement. Thi wa provided for in the
gricultural Marketing greement ct of
1937.
*Respectively, associate professor, Department of
Agricultural Economics and Sociology, Texas Ag-
ricultural Experiment Station; and economist in
farm organization, Department of Agricultural
Economics and Sociology, Texas Agricultural Ex-
tension Service, the Texas A. & M. College System.
EXTENT IN THE UNITED STATES AND TEXAS
More than 35 federal marketing agree-
ments and order programs covering fruit and
vegetable products exist in 20 states. More
than 140,000 producers particjpate in these
marketing agreement programs. The prod-
ucts involved have a farm value of about 700
million dollar .
In addition to the federal program, some
states have passed legislation permitting or-
ders to be set up. Nine states have special
legislation and have established separate
commissions for particular products, such as
the Florida Citrus Commission. California is
perhaps the best known of the 15 states now
having general enabling legislation for estab-
lishing marketing programs. Some 32 state
and 16 federal orders were operating in Cali-
fornia in 1959. These orders covered 41 per-
cent of the fruit and vegetables marketed in
the state, having an annual value of approxi-
mately 400 million dollars. The primary dif-
ference between a state and federal order in
California is that the state order permits a
promotional and advertising program.
Texas had a marketing order for grapefruit
in the late 1930's, but it was terminated sev-
eral years ago. A federal marketing order
was established in Texas in 1959 for market-
ing tomatoes from four Lower Rio Grande
Valley counties. At present, there is consid-
erable interest for marketing orders on car-
rots, onions, citrus and lettuce.
ITEMS THAT MAY BE AUTHORIZED
The Agricultural Marketing Agreement Act
provides types of authorities, which upon ap-
propriate proof, may be included in indi-
vidual marketing orders for a commodity.
Several authorities are:
• Regulate quality, maturity of the
product to be shipped.
• Regulate quantities to be shipped,
handled for specified period.
• Regulate container and packs.
• Determine the e tent of urplu con-
trol.
• Prohibit unfair trade practice .
• Promote re earch.
• Price posting.
• Reserve pool .
• Other provi ion .
HOW AN ORDER OPERATES
marketing order i administered by a
local committee composed of growers and
handler. Some of it more important pro-
VI IOns are:
V committee of handlers and grow-
ers administer the terms of agree-
ments and order .
V The committee i required to keep
accurate book and records. These
are audited yearly.
V Growers and handlers make decisions
as to whether they want the regula-
tions:
• What changes are to their
best interest
• When should the order be
terminated
V Burden of regulation falls upon han-
dlers of the commodity. They must
ee that term of orders are complied
with and which one are subject to
penaltie .
V The program i financed by asse s-
ments collected from handlers of the
product.
V The program i limited to the small-
est regional production area practi-
cal.
Growers and the handlers decide if they
want a program, what changes are to their
best interest and, ordinarily, when it shall be
terminated.
Enforcement of a federal marketing agree-
ment or order is primarily the responsibility
of the federal government. Violations are
investigated and turned over to the Depart-
ment of Justice for prosecution. This may be
done three ways:
1) Civil action to obtain an injunction.
2) Criminal action brought in court.
(If convicted, a person may be fined not less
than $50 and not more than $500 for each
violation. )
3) Civil suit instituted for triple dam-
ages. (The person may be required to pay
three times the value of the product shipped
in violation of the order.)
HOW TO OBTAIN A MARKETING ORDER
Growers and handlers may obtain a mar-
keting order by:
V Drafting a proposal which sets forth
their wishes.
V Submitting proposals to the Secre-
tary of Agriculture and requesting a
hearing.
V Conducting an educational program,
followed by a public hearing in the
producing area under the direction
of the Secretary of Agriculture after
notice of 15 days.
V The Secretary of Agriculture filing
recommendations and allowing time
for exceptions.
V Holding a referendum with two-third
of the producers in the area approv-
ing it.
V Having a committee organize and
begin operations.
CONCLUSIONS
Each marketing order is et up and oper,~
ated differently. Each ha it problem ;fo~
its egment of the indu try. To have a tic}
ce ful marke.ting order, determine the prob-
lems that need regulating, the effects on the
local indu try over a period of year and how
it will affect competing area and their entry
into the market.
Marketing order will not cure all the ill
in a local area. To be ucce sful, attention
hould be given to:
• Close cooperation and understanding
among the producer , handlers and
community.
• Skill and judgment of managers and
participant.
• Industry-wide under tanding of the
problems.
Cooperative Extension Work in Agriculture and
Home Economics, The Texas A. & M. College Sys-
tem and United States. Department of Agriculture
cooperating. Distributed in furtherance of the Acts
of Congress of May 8, 1914, as amended, and June
30, 1914.
5M-4-60


English

Marketing Agreements and Orders for Texas Fruits and Vegetables.

OAKTrust Digital Repository (Texas A&M Univ)

-489for Texas Fruits10 SERVICE]. E. Hutchison, Director, College Station, TexasH. B. SorensenandR. W. Cooper*MarketingAgreements and OrderslorTexasFruits and VegetablesMARKETI G GREEME TS A D OR-DERS are designed to enable producers tohelp themselves through industry-governmentcooperation. The goal i orderly and effi-cient marketing. Thi can be achieved onlyif producers exerci e constant diligence andattain a high degree of un elfish cooperationamong all concerned.Marketing agreements and orders are use-ful to producer of crops, such as fruits andvegetables. Such agreements and orders con-tribute to orderly marketing where producerhave learned to work together and where thereis substantial community interest between theproducers and handler .The purpose of a fruit and vegetable mar-keting order is to insure orderly marketing ofthe commodity, help producers of it obtainhigher income and give consumer a betterquality product.A federal marketing order is issued by theUnited States Secretary of Agriculture, withthe terms binding upon all growers and han-dlers in the indu try whether or not they signthe agreement. Thi wa provided for in thegricultural Marketing greement ct of1937.*Respectively, associate professor, Department ofAgricultural Economics and Sociology, Texas Ag-ricultural Experiment Station; and economist infarm organization, Department of AgriculturalEconomics and Sociology, Texas Agricultural Ex-tension Service, the Texas A. & M. College System.EXTENT IN THE UNITED STATES AND TEXASMore than 35 federal marketing agree-ments and order programs covering fruit andvegetable products exist in 20 states. Morethan 140,000 producers particjpate in thesemarketing agreement programs. The prod-ucts involved have a farm value of about 700million dollar .In addition to the federal program, somestates have passed legislation permitting or-ders to be set up. Nine states have speciallegislation and have established separatecommissions for particular products, such asthe Florida Citrus Commission. California isperhaps the best known of the 15 states nowhaving general enabling legislation for estab-lishing marketing programs. Some 32 stateand 16 federal orders were operating in Cali-fornia in 1959. These orders covered 41 per-cent of the fruit and vegetables marketed inthe state, having an annual value of approxi-mately 400 million dollars. The primary dif-ference between a state and federal order inCalifornia is that the state order permits apromotional and advertising program.Texas had a marketing order for grapefruitin the late 1930's, but it was terminated sev-eral years ago. A federal marketing orderwas established in Texas in 1959 for market-ing tomatoes from four Lower Rio GrandeValley counties. At present, there is consid-erable interest for marketing orders on car-rots, onions, citrus and lettuce.ITEMS THAT MAY BE AUTHORIZEDThe Agricultural Marketing Agreement Actprovides types of authorities, which upon ap-propriate proof, may be included in indi-vidual marketing orders for a commodity.Several authorities are:• Regulate quality, maturity of theproduct to be shipped.• Regulate quantities to be shipped,handled for specified period.• Regulate container and packs.• Determine the e tent of urplu con-trol.• Prohibit unfair trade practice .• Promote re earch.• Price posting.• Reserve pool .• Other provi ion .HOW AN ORDER OPERATESmarketing order i administered by alocal committee composed of growers andhandler. Some of it more important pro-VI IOns are:V committee of handlers and grow-ers administer the terms of agree-ments and order .V The committee i required to keepaccurate book and records. Theseare audited yearly.V Growers and handlers make decisionsas to whether they want the regula-tions:• What changes are to theirbest interest• When should the order beterminatedV Burden of regulation falls upon han-dlers of the commodity. They mustee that term of orders are compliedwith and which one are subject topenaltie .V The program i financed by asse s-ments collected from handlers of theproduct.V The program i limited to the small-est regional production area practi-cal.Growers and the handlers decide if theywant a program, what changes are to theirbest interest and, ordinarily, when it shall beterminated.Enforcement of a federal marketing agree-ment or order is primarily the responsibilityof the federal government. Violations areinvestigated and turned over to the Depart-ment of Justice for prosecution. This may bedone three ways:1) Civil action to obtain an injunction.2) Criminal action brought in court.(If convicted, a person may be fined not lessthan $50 and not more than $500 for eachviolation. )3) Civil suit instituted for triple dam-ages. (The person may be required to paythree times the value of the product shippedin violation of the order.)HOW TO OBTAIN A MARKETING ORDERGrowers and handlers may obtain a mar-keting order by:V Drafting a proposal which sets forththeir wishes.V Submitting proposals to the Secre-tary of Agriculture and requesting ahearing.V Conducting an educational program,followed by a public hearing in theproducing area under the directionof the Secretary of Agriculture afternotice of 15 days.V The Secretary of Agriculture filingrecommendations and allowing timefor exceptions.V Holding a referendum with two-thirdof the producers in the area approv-ing it.V Having a committee organize andbegin operations.CONCLUSIONSEach marketing order is et up and oper,~ated differently. Each ha it problem ;fo~its egment of the indu try. To have a tic}ce ful marke.ting order, determine the prob-lems that need regulating, the effects on thelocal indu try over a period of year and howit will affect competing area and their entryinto the market.Marketing order will not cure all the illin a local area. To be ucce sful, attentionhould be given to:• Close cooperation and understandingamong the producer , handlers andcommunity.• Skill and judgment of managers andparticipant.• Industry-wide under tanding of theproblems.Cooperative Extension Work in Agriculture andHome Economics, The Texas A. & M. College Sys-tem and United States. Department of Agriculturecooperating. Distributed in furtherance of the Actsof Congress of May 8, 1914, as amended, and June30, 1914.5M-4-60

https://oaktrust.library.tamu.edu/bitstream/1969.1/162438/6/489/Leaf0489.pdf

Marketing Agreements and Orders for Texas Fruits and Vegetables.

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