§1141j Miscellaneous Provisions

Summary

Defines what a cooperative association is and sets rules for how it must run. A cooperative is a group of farmers who work together to process, handle, market, buy, or provide services and supplies for farm products. It must operate for the members’ benefit. No member can have more than one vote because of how much stock or capital they own. The group cannot pay more than 8% per year in dividends on stock or membership capital. It also cannot do more business, by value, with nonmembers than with members. Sales or purchases made for the United States or its agencies do not count when comparing member and nonmember business. The law also says “agricultural commodity” includes crude gum (oleoresin) from a living tree and the products that the original producer makes from that gum, like gum spirits of turpentine and gum rosin (see section 92 of title 7). The governor and any officer or employee of the Farm Credit Administration must not speculate, directly or indirectly, in agricultural commodities, related contracts, or in the stock or membership of firms that handle those commodities. A person who breaks this can be fined up to $10,000, imprisoned up to ten years, or both. It is also illegal for cooperative associations, stabilization corporations, clearing-house associations, commodity committees, or their directors, officers, employees, members, or agents to disclose confidential information given by the Administration in violation of its rules. That violation can bring a fine up to $5,000, imprisonment up to five years, or both. If part of the law is found invalid, the rest still applies. This chapter may be called the Agricultural Marketing Act.