Title 7AgricultureRelease 119-73

§671 Arbitration of disputes concerning milk

Title 7 › Chapter CHAPTER 26A— - AGRICULTURAL MARKETING AGREEMENTS › § 671

Last updated Apr 6, 2026|Official source

Summary

The Secretary of Agriculture, or someone the Secretary picks, can step in to help settle disputes about how milk and milk products are sold, handled, processed, or marketed across state lines or to other countries. A cooperative owned or run by milk producers can ask in writing for mediation. If everyone agrees, the Secretary must arbitrate a dispute when the Secretary thinks doing so would help carry out the Agricultural Adjustment Act. The arbitration can only cover the same kinds of sale or order issues that the Act can regulate. Meetings and hearings follow rules the Secretary sets. Any agreement or award must be approved by the Secretary or the person the Secretary names, and it will not be approved if it allows illegal trade practices or unfair competition. Holding meetings or approving awards this way is not a violation of federal antitrust laws.

Full Legal Text

Title 7, §671

Agriculture — Source: USLM XML via OLRC

(a)The Secretary of Agriculture, or such officer or employee of the Department of Agriculture as may be designated by him, upon written application of any cooperative association, incorporated or otherwise, which is in good faith owned or controlled by producers or organizations thereof, of milk or its products, and which is bona fide engaged in collective processing or preparing for market or handling or marketing (in the current of interstate or foreign commerce, as defined by section 610(j) of this title), milk or its products, may mediate and, with the consent of all parties, shall arbitrate if the Secretary has reason to believe that the declared policy of the Agricultural Adjustment Act [7 U.S.C. 601 et seq.], as amended, would be effectuated thereby, bona fide disputes, between such associations and the purchasers or handlers or processors or distributors of milk or its products, as to terms and conditions of the sale of milk or its products. The power to arbitrate under this section shall apply only to such subjects of the term or condition in dispute as could be regulated under the provisions of the Agricultural Adjustment Act, as amended, relating to orders for milk and its products.
(b)Meetings held pursuant to this section shall be conducted subject to such rules and regulations as the Secretary may prescribe.
(c)No award or agreement resulting from any such arbitration or mediation shall be effective unless and until approved by the Secretary of Agriculture, or such officer or employee of the Department of Agriculture as may be designated by him, and shall not be approved if it permits any unlawful trade practice or any unfair method of competition.
(d)No meeting so held and no award or agreement so approved shall be deemed to be in violation of any of the antitrust laws of the United States.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Agricultural Adjustment Act, referred to in subsec. (a), is title I of act May 12, 1933, ch. 25, 48 Stat. 31, as amended, which is classified generally to chapter 26 (§ 601 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 601 of this title and Tables.

Reference

Citations & Metadata

Citation

7 U.S.C. § 671

Title 7Agriculture

Last Updated

Apr 6, 2026

Release point: 119-73