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US Capper-Volstead Act (7 USC ch 12): Antitrust Exemption for Agricultural Cooperative Associations

The Capper-Volstead Act of 1922 (7 U.S.C. ch. 12, sections 291 and 292) gives a limited antitrust exemption to associations of agricultural producers,…

What US Capper-Volstead Act (7 USC ch 12): Antitrust Exemption for Agricultural Cooperative Associations requires

The Capper-Volstead Act of 1922 (7 U.S.C. ch. 12, sections 291 and 292) gives a limited antitrust exemption to associations of agricultural producers, administered by the Secretary of Agriculture. Section 291 authorizes persons engaged in the production of agricultural products to act together in associations, corporate or otherwise, with or without capital stock, in collectively processing, preparing for market, handling, and marketing those products in interstate and foreign commerce. The exemption applies only if the association is operated for the mutual benefit of its members and conforms to one of two governance conditions: either no member is allowed more than one vote regardless of the amount of stock held, or the association does not pay dividends on stock or membership capital in excess of 8 per centum per annum. In addition, the association may not deal in the products of nonmembers to an amount greater in value than the products it handles for its own members. Section 292 makes clear the exemption is not a shield for abuse: if the Secretary of Agriculture has reason to believe that an association monopolizes or restrains trade in interstate or foreign commerce to such an extent that the price of any agricultural product is unduly enhanced, the Secretary must issue a complaint, hold a hearing on notice, and may issue an order to cease and desist, enforceable through the district court of the United States. Conduct that goes beyond the protected collective marketing functions remains subject to the Sherman and Clayton Acts. The Act is the legal foundation of the United States farmer cooperative system.

Pillar: Agriculture & Agritech · Authority: US Congress / Department of Agriculture (Secretary of Agriculture) · Version: 1.0.0 · Last updated:

Primary source: https://www.govinfo.gov/content/pkg/USCODE-2022-title7/html/USCODE-2022-title7-chap12.htm

SHA-256 integrity: 40466270701b527a2e00fa3006ce07b91e35bd340a82c023366601de39b88c69

Primary Citations — 8 traced to source

  • Capper-Volstead Act, 7 U.S.C. 291 - authorization of associations of agricultural producers and their powers to collectively process, prepare for market, handle and market products.
  • Capper-Volstead Act, 7 U.S.C. 291 - governance condition; one vote per member regardless of stock, or dividends on stock or membership capital not exceeding 8 per centum per annum.

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