PRIA, Government Policy, Made Personal

Summary

The Secretary of Agriculture can make marketing agreements, after giving notice and holding a hearing, with processors, farmers, farmer groups, and others who handle farm products that move between states or affect interstate or foreign trade. Those agreements are allowed even if they might otherwise raise antitrust concerns, and they only stay in effect while the law that allows them is still in force. If there is an agreement for peanuts, peanuts handled by people who did not sign must be inspected the same way as peanuts handled by signers. Peanuts that do not meet the agreement’s quality rules cannot be sold for human food. Any assessment fee under the agreement (except fees to cover losses on rejected peanuts) applies to both signers and non‑signers and must be paid to the Secretary. A non‑signer who sells or disposes of peanuts that fail the quality rules faces a penalty equal to 140 percent of the support price for quota peanuts times the quantity sold or disposed, calculated under section 1445c–3 for that marketing year.

Title 7, §608b

Agriculture, Source: USLM XML via OLRC

(a)In order to effectuate the declared policy of this chapter, the Secretary of Agriculture shall have the power, after due notice and opportunity for hearing, to enter into marketing agreements with processors, producers, associations of producers, and others engaged in the handling of any agricultural commodity or product thereof, only with respect to such handling as is in the current of interstate or foreign commerce or which directly burdens, obstructs, or affects, interstate or foreign commerce in such commodity or product thereof. The making of any such agreement shall not be held to be in violation of any of the antitrust laws of the United States, and any such agreement shall be deemed to be lawful: Provided, That no such agreement shall remain in force after the termination of this chapter.

(b)(1)If an agreement with the Secretary is in effect with respect to peanuts pursuant to this section—

(A)all peanuts handled by persons who have not entered into such an agreement with the Secretary shall be subject to inspection to the same extent and manner as is required by such agreement;

(B)no such peanuts shall be sold or otherwise disposed of for human consumption if such peanuts fail to meet the quality requirements of such agreement; and

(C)any assessment (except with respect to any assessment for the indemnification of losses on rejected peanuts) imposed under the agreement shall—

(i)apply to peanut handlers (as defined by the Secretary) who have not entered into such an agreement with the Secretary in addition to those handlers who have entered into the agreement; and

(ii)be paid to the Secretary.

(2)Violation of this subsection by a person who has not entered into such an agreement shall result in the assessment by the Secretary of a penalty equal to 140 percent of the support price for quota peanuts multiplied by the quantity of peanuts sold or disposed of in violation of subsection (b)(1)(B), as determined under section 1445c–3 of this title, for the marketing year for the crop with respect to which such violation occurs.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 1445c–3 of this title, referred to in subsec. (b)(2), was repealed by Pub. L. 104–127, title I, § 171(b)(2)(E), Apr. 4, 1996, 110 Stat. 938. Codification The provisions appearing in subsec. (a) of this section except the first sentence, were originally enacted as part of section 8(2) of act May 12, 1933, and formerly appeared as section 608(2) of this title.

Amendments

1993—Subsec. (b)(1)(C). Pub. L. 103–66 added subpar. (C). 1991—Subsec. (b)(2). Pub. L. 102–237 made technical amendment to reference to section 1445c–3 of this title involving corresponding provisions of original Act. 1989—Pub. L. 101–220 designated existing provisions as subsec. (a) and added subsec. (b). 1947—Act June 30, 1947, repealed provisions providing for loans from Re

Construction

Finance Corporation. 1935—Act Aug. 24, 1935, designated subsection 2 of section 8 of act May 12, 1933, as section 8b and amended first sentence generally. 1934—Act Apr. 7, 1934, empowered Secretary of Agriculture to enter into marketing agreements with individual producers.

Statutory Notes and Related Subsidiaries

Effective Date

of 1989 Amendment Pub. L. 101–220, § 4(c), Dec. 12, 1989, 103 Stat. 1878, provided that: “The amendment made by this section [amending this section] shall be effective with respect to the 1990 and subsequent crops of peanuts.” Validity of Section AffirmedAct June 3, 1937, affirmed and validated, and reenacted without change the provisions of this section. See note set out under section 601 of this title.

§608b Marketing Agreements; Exemption From Anti-trust Laws; Inspection Requirements for Handlers Not Subject to Agreements