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91ST CONGRESS 1st Session

SENATE

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REPORT No. 91-491

EXTENSION OF MARKETING ORDER AUTHORITY TO APPLES PRODUCED IN COLORADO, UTAH, NEW MEXICO, ILLINOIS, AND OHIO

OCTOBER 22, 1969.-Ordered to be printed

Mr. HOLLAND, from the Committee on Agriculture and Forestry, submitted the following

REPORT

[To accompany S. 1455]

The Committee on Agriculture and Forestry, to which was referred the bill (S. 5455) to amend section 8c (2) (A) of the Agricultural Marketing Agreement Act of 1937, as amended, so as to include Colorado, Utah, New Mexico, Illinois, and Ohio among the specified States which are eligible to participate in marketing agreement and order programs with respect to apples, having considered the same, reports favorably thereon with amendments and recommends that the bill (as amended) do pass.

EXPLANATION OF BILL

This bill extends authority for marketing orders to apples produced in the States of Colorado, Utah, New Mexico, Illinois, and Ohio (including those for canning or freezing) and their products (other than canned or frozen products). Similar authority now exists for apples produced in the States of New York, Michigan, Maryland, New Jersey, Indiana, California, Maine, Vermont, New Hampshire, Rhode Island, Massachusetts, and Connecticut; and, except as to those for canning or freezing, to apples produced in the States of Washington, Oregon, and Idaho.

The bill is identical to section 804 of S. 3590, as passed by the Senate on July 20, 1968.

COMMITTEE AMENDMENTS

The committee amendments merely correct the citation of the provision being amended, and the punctuation.

BACKGROUND INFORMATION

Marketing orders are designed to improve returns to growers through orderly marketing. Orders may (1) regulate the quality of the commodity shipped in order to keep inferior products from depressing prices; (2) regulate the quantity of the commodity marketed by rate of flow or by total quantity; (3) provide for standardized containers or packs; (4) provide for marketing research and development projects; (5) prohibit unfair trade practices; (6) require price posting; and (7) authorize the collection and dissemination of marketing information.

Orders are issued only after notice, hearing, and determinations by the Secretary that the order will effectuate the purpose of the act and that it is favored by two-thirds of the producers (by number or volume of production).

While not required by statute, orders are always initiated by the producers of the commodity to be regulated, and orders regulating fruits and vegetables are almost always accompanied by handler agreements providing for identical regulation and signed by handlers of 50 percent of the volume of the commodity.

CHANGES IN EXISTING LAW

In compliance with subsection (4) of rule XXIX of the Standing Rules of the Senate, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman):

Agricultural Adjustment Act, as reenacted and amended by the Agricultural Marketing Agreement Act of 1937 and subsequent legislation.

SEC. 8c (1) * ** *

COMMODITIES TO WHICH APPLICABLE

(2) Orders issued pursuant to this section shall be applicable only to (A) the following agricultural commodities and the products thereof (except canned or frozen grapefruit, cherries, apples, or cranberries, the products of naval stores, and the products of honeybees), or to any regional, or market classification of any such commodity or product: Milk, fruits (including filberts, almonds, pecans and walnuts but not including apples, other than apples produced in the States of Washington, Oregon, Idaho, New York, Michigan, Maryland, New Jersey, Indiana, California, Maine, Vermont, New Hampshire, Rhode Island, Massachusetts, [and] Connecticut, Colorado, Utah, New Mexico, Illinois, and Ohio, and not including fruits for canning or freezing other than olives, grapefruit, cherries, cranberries, and apples produced in the States named above except Washington, Oregon, and Idaho), tobacco, vegetables (not including vegetables, other than asparagus, for canning or freezing), hops, honeybees, and naval stores as included in the Naval Stores Act and standards established thereunder (including refined or partially refined oleoresin): Provided, That no order issued pursuant to this section shall be effective as to any grapefruit for canning or freezing unless the S. Rept. 91-491

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