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Agricultural Marketing Orders

According to Sims and Montana state university (312), the intention of the Agricultural Marketing Agreement Act (AMAA) is to be able to establish and even maintain orderly marketing conditions for commodities in the agricultural sector in interstate commerce. This will enable farmers to receive higher prices. The AMAA also protects the interests of consumers by ensuring prices deems to be in the interest of the public and be feasible. This should be in view of the existing consumptive demand in the domestic and foreign markets. The farmers in such regions were authorized by the government to form cartels. This would help in setting controls on the amount and even the quality of products that might be imported to these regions.According to American Agriculture (228-229), Agricultural Marketing Orders (AMO) is legislation allowing producers to be able to withhold output from a specific market for them to be able to increase the market price. In other words, Marketing orders are legal instruments designed to help stabilize market conditions for commodities in the agricultural sector. Marketing orders established a self-imposed assessment and fee used in various activities in the agricultural sector. The activities include advertising and farmers being able to promote their agricultural products. Secondly, the fee will assist in the expansion of markets and distribution channels. Thirdly, the producers will be able to carry out research on how to improve growing techniques. Fourthly, it will enable farmers to regulate their products in terms of quality and grade. Therefore, trade practices will be regulated. The final point is that producers will be able to resolve various critical problems and their various needs in the industry. Marketing orders were established for various commodities with a requirement of 2/3 support of the producer. It helps to regulate the handling of various commodities in instating or even foreign commerce. According to Engle and Quagrainie, (118) in the requirements of the regulations, marketing orders for a commodity or its products, other than milk has to be designed to achieve the following goals.