7 U.S.C. § 291 — Authorization of associations; powers

submitted 104 years ago by ch. 57 to r/title-7-AGRICULTURE · 186 words · no verdicts yet

in plain englishAI-generated · not legal advice

Farmers, ranchers, and growers may form associations to jointly process, prepare, and market their farm products. To count under this law, an association must run for its members' mutual benefit and follow limits on voting power or on dividends, and can't primarily sell nonmembers' products.

People who grow farm products — farmers, planters, ranchmen, dairymen, and nut or fruit growers — can act together in associations. These associations can be incorporated or not, and can have capital stock or not. Together, these associations can jointly process, prepare for market, handle, and market their members' products in interstate and foreign commerce. Associations can share marketing agencies with each other, and both the associations and their members can make the contracts needed to do all this. But this only works if the association is run for the mutual benefit of its members, as producers, and if it follows one or both of these rules: First: No member gets more than one vote just because of how much stock or membership capital they own; or Second: The association doesn't pay dividends on stock or membership capital of more than 8 percent per year. And in every case, the association also must follow this rule: Third: The association cannot deal in nonmembers' products in an amount worth more than what it handles for its own members.

the actual law source: uscode.house.gov ↗public domain

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 credit: (Feb. 18, 1922, ch. 57, § 1, 42 Stat. 388.)

history & why it existsrecord from the source credit

1922Enacted · Act of Feb. 18, 1922, ch. 57 · 42 Stat. 388

A history note hasn’t been published yet. The record shows enactment by ch. 57 on 1922-02-18.

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