Title 7 — AgricultureRelease 119-73not60

§291 Authorization of Associations; Powers

Title 7 › Chapter 12— ASSOCIATIONS OF AGRICULTURAL PRODUCTS PRODUCERS › § 291

Last updated Apr 3, 2026|Official source

Summary

Farmers, planters, ranchers, dairy farmers, and fruit or nut growers may form groups or corporations, with or without stock, to process, prepare for market, handle, and sell their products across state lines and to other countries. They may share marketing agencies and make contracts to carry out those activities. The group must work for the benefit of its producer members and must either limit voting so no member gets more than one vote because of how much stock or membership capital they own, or keep dividend payments on stock or membership capital at no more than 8 percent per year (or both). Also, the group cannot handle products from nonmembers in a larger total value than it handles for its 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

Apr 3, 2026

Release point: 119-73not60