MARKETING ORDERS AND AGREEMENTS HELPING FARMERS HELP THEMSELVES National Council of Farmer Cooperatives February 10, 2016

Authority and Coverage Authority: Agricultural Marketing Agreement Act of 1937 (AMAA) Commodities o Milk o Fruits o Vegetables o Specialty crops Marketing Orders o 28 active programs o 60,000 commercial growers o > $13 billion value of production

Purposes Stabilize market conditions for fruit, vegetable and specialty crop producers Allow farmers and handlers to solve marketing problems together Balance the supply of quality product with the demand by consumers Improve returns to producers

Tools Promotion and Advertising Research and Development Quality Regulation Pack and Container Requirements Marketing Information Collection Quantity Regulation Import Quality Regulation

Marketing Order Approval Process Initiated by producers Voluntary programs Federal oversight Formal rulemaking procedure Approval process 2/3 of the growers voting Number Volume Secretary of Agriculture is final approval All handlers are regulated and pay assessments

Marketing Agreement Approval Process Initiated by handlers Voluntary programs Federal oversight Formal rulemaking procedure Approval process Handlers sign agreement Secretary of Agriculture is final approval Only signatory handlers are regulated and pay assessments

Food Safety Modernization Act Produce Safety Regulation Important Dates: Produce Safety Regulation Effective Date: January 26, 2016 Compliance dates dependent upon size 1/26/201918; 1/26/2019; 1/26/2020 Key Requirements of the Produce Safety Regulation 1.Agricultural Water & Processing Water 2.Biological Soil Amendments of Animal Origin 3.Buildings, Equipment & Tools 4.Wildlife & Domestic Animals 5.Worker Training, Health, & Hygiene 6.Postharvest Handling

Marketing Order / Agreement Tools and FSMA Quality Align handling practices with FDA regulations and guidelines. Research and promotion Conduct research on the best practices. Create recall strategies and promotional materials. Marketing information collection Produce verifiable information that helps FDA. Training Coordinate training efforts.

Quality and Food Safety Absence of a food hazard is food quality Consumer confidence = Repeat purchase Detection of problems prior to distribution Design of Handling regulations Can add food safety mechanisms Proactive vs. Reactive Can add industry standards to incoming or outgoing shipments Can exceed U.S. Government standards

Regulated Fruits FL Citrus * TX Citrus * FL Avocados * CA Kiwifruit * WA Apricots * CA Olives * WA Cherries * WA-OR Fresh Prunes * CA Grapes (Desert) * Cranberries OR-WA Pears * Tart Cherries *

Regulated Vegetables ID-OR Potatoes * WA Potatoes * CO Potatoes * VA-NC Potatoes * (inactive) Vidalia Onions Walla Walla Onions * ID-E. OR Onions * TX Onions *

Regulated Specialty Crops CA Almonds * OR-WA Hazelnuts CA, AZ, NM Pistachios* CA Walnuts * CA Dates * CA Raisins * CA Dried Prunes* Far West Spearmint Oil

Current Regulated Areas

Success stories...

Florida Tomato Committee Promotion efforts into Canada Market Access Program and Specialty Crop Block Grant Program participant $300,000 for Research; $100,000 specific to food safety and FSMA ($348 million crop value)

Almond Board of California Food safety, nutrition and health research Salmonella kill-step requirement EU aflatoxin program Foreign market promotion (70 percent of crop exported) $6 million for Research; $40.28 million for Market Development and Promotion ($5.76 billion crop value)

Administrative Committee for Pistachios Food safety, nutrition and health research Marketing order requires aflatoxin testing Imports subject to aflatoxin testing $125,000 for Research; $641,0000 overall

Under Construction OR/ WA Hazelnuts – requesting quality authority to develop salmonella regulation California Walnuts – developing salmonella regulation California Raisins – developing Ochratoxin regulation Proposed Pecan Marketing Order -- includes quality regulation authority

For More Information Michael Durando Director Marketing Order and Agreement Division 1400 Independence Ave SW Washington, DC Phone: (202) CaliforniaSoutheastNorthwest 2202 Monterey Street Suite 102-B Fresno, CA Phone: (559) st Street South Winter Haven, FL Phone: (863) ams.usda.gov 1220 SW 3 rd Ave. Suite 305 Portland, OR Phone: (503) ams.usda.gov Internet Resources: