§ 9.7 - Federal, State, and Local Regulation of Crops

• Jurisdiction: Washington

§9.7 FEDERAL, STATE, AND LOCAL REGULATION OF CROPS

Regulation of crops under federal, state, and local law is discussed below.

(1) Federal regulation of crops

The United States Department of Agriculture (USDA) is given broad authority to regulate agricultural activities to the extent such regulation affects interstate activities. The major areas of coverage include plant quarantine and inspection, production control and price support, and marketing regulation.

(a) Agricultural marketing acts and agreements

USDA regulates marketing of crops through both legislation and marketing agreements, as discussed below.

(i) Marketing acts

The primary federal statutes regulating marketing of crops are the Agricultural Marketing Act of 1946, 7 U.S.C. §§ 1621-1627; the Perishable Agricultural Commodities Act, 7 U.S.C. § 499a-t, and regulations, 7 C.F.R. §§ 46.1-46.49 (see §9.5(4), above); the United States Grain Standards Act, 7 U.S.C. §§ 71-87k, 7 C.F.R. Pt. 800; the Export Apple Act, 7 U.S.C. §§ 581-590; and the Export Grape and Plum Act, 7 U.S.C. §§ 591-599. The statues establish grading criteria and inspection requirements for the various commodities regulated. Each act should be carefully reviewed as to whether its terms are voluntary or mandatory. Violations of marketing acts can cause loss of federal licenses to market commodities and can lead to imposition of a criminal penalty in some circumstances.

(ii) Marketing agreements

Under the Agricultural Marketing Agreement Act of 1937, 7 U.S.C. §§ 671-674 (reenacting and amending the Agricultural Agreement Act, 7 U.S.C. Ch. 26), the United States Secretary of Agriculture is authorized to enter into agreements with producers, processors, and associations of producers of agricultural commodities for the purpose of establishing and maintaining "orderly marketing conditions." The purpose of such agreements is to establish parity for farmers. The Secretary also is authorized to issue orders regulating the marketing and distribution of certain agricultural commodities. 9 Neil E. Harl, AGRICULTURAL LAW Ch. 70 (June 1998).

A marketing agreement or order also may be proposed by any person, by submitting a written request for a hearing on the proposed agreement. The Secretary is required to investigate the proposal to determine whether it will implement the stated policy of the Act. If so, a public hearing is scheduled upon notice to interested and affected handlers and producers. 7 C.F.R. § 900.3. Hearings on the record are conducted by an administrative law judge. After the hearing, the Secretary's delegate issues a recommended decision that is published in the record. 7 C.F.R. § 900.13a; 9 Neil E. Harl, AGRICULTURAL LAW §70.01-02 (June 1998).

Before any order becomes effective it must be approved in a referendum by two-thirds of the commodity producers or by producers representing two-thirds of the volume of the commodity to be regulated. 7 U.S.C. §608c(8), (9). Eligibility for voting is based upon production of the specified commodity in the particular geographic area regulated by the agreement or order.

Among the primary types of orders currently in effect are milk orders, 7 U.S.C. § 608c(5); 7 C.F.R. §§ 1001.1-1001.86; 9 Neil E. Harl, AGRICULTURAL LAW §70.03-04 (June 1998), and various fruit, nut, and vegetable orders, 7 U.S.C. §608c(6). Milk orders generally fix a price for the sale of milk for a given purpose. Fruit, nut, and vegetable orders do not set a price but usually regulate the grade and quality requirements for sale. Only producers have standing to seek direct court review of federal marketing orders. A handler must first seek administrative review of an order and then may seek court review. 9 Neil E. Harl, AGRICULTURAL LAW §70.07 (June 1998).

(b) Plant protections and quarantine

Importing and shipment in interstate commerce of new or nonprevalent plants and plant pests is extensively regulated by a number...