Title 7, AgricultureRelease 119-102
§291 Authorization of Associations; Powers
Title 7 › CHAPTER 12 — ASSOCIATIONS OF AGRICULTURAL PRODUCTS PRODUCERS › § 291
Summary
Farmers, ranchers, dairymen, nut and fruit growers may form groups or corporations, with or without stock, to jointly process, handle, and sell their products across state lines and abroad. They can share marketing agencies and make contracts. The group must serve its producer members and must meet at least one rule: give each member only one vote, or limit dividends on stock to 8% per year. The group also must not trade in nonmember products worth more than what it handles for members.
Full Legal Text
Title 7, §291
Agriculture, Source: USLM XML via OLRC
Persons engaged in the production of agricultural products as farmers, planters, ranchmen, dairymen, nut or fruit growers may act together in associations, corporate or otherwise, with or without capital stock, in collectively processing, preparing for market, handling, and marketing in interstate and foreign commerce, such products of persons so engaged. Such associations may have marketing agencies in common; and such associations and their members may make the necessary contracts and agreements to effect such purposes: Provided, however, That such associations are operated for the mutual benefit of the members thereof, as such producers, and conform to one or both of the following requirements: First. That no member of the association is allowed more than one vote because of the amount of stock or membership capital he may own therein, or, Second. That the association does not pay dividends on stock or membership capital in excess of 8 per centum per annum. And in any case to the following: Third. That the association shall not deal in the products of nonmembers to an amount greater in value than such as are handled by it for members.
Reference
Citations & Metadata
Citation
7 U.S.C. § 291
Title 7, Agriculture
Last Updated
Aug 21, 2026
Release point: 119-102