What allows producers to create marketing agencies?
The Capper-Volstead Act of 1922 allows agricultural producers to form associations that allow producers to compete together in the market-place.
The act states that 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.
Source: Feb. 18, 1922, ch. 57, Sec. 1, 42 Stat. 388.
How Dairy Pricing got Started
In the spring of 2009 I was reading the Country Today paper. I read an interview with Robin Berg captioned,
A Call to Action: Farmer has plan to increase, stabilize milk price, about dairy pricing.
After talking to Robin I knew this program was a great idea. Robin said he would come and speak to dairy industry people so I arranged a meeting with approximately 20 processors and marketers. Everyone thought this program would work if implemented. About one month later we brought the same people together to discuss moving this forward. After the second meeting we could see no one in the industry was going to help get this started. In disappointment I called Robin and said we are going to have to start this at someone’s kitchen table.
After a year of waiting for grant money to arrive that didn’t show up we decided to move forward. On a visit home my sister, Ellen Phillips, said she and her husband, Chuck, wanted to help us with our start up cost, and they did. After a few hours with a lawyer, Dairy Pricing Association, Inc was born.
Tom Olson, Vice Chairman