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The Role of Marketing Orders in Establishing and Maintaining Orderly Marketing Conditions

RCED-85-57 Published: Jul 31, 1985. Publicly Released: Jul 31, 1985.
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Highlights

GAO reviewed 9 marketing orders covering 11 agricultural commodities to: (1) address controversies surrounding the marketing order program and the effect of each individual type of marketing order tool on commodity supplies; (2) determine emerging trends in the use of marketing orders; and (3) assess the Agricultural Marketing Service's (AMS) administration of the marketing order program. Under the program, AMS helps commodity producers collectively work out solutions to supply and demand problems that individual producers are unable to resolve.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Agriculture The Secretary of Agriculture should require the Administrator, AMS, to develop and apply criteria for measuring the performance of individual marketing orders and make the results available so that Department of Agriculture (USDA) decisionmakers and other interested parties can appropriately judge the merits and shortcomings of marketing orders.
Closed – Implemented
A criteria development task force, made up of five university agricultural economists, was established in May 1986. The team developed draft criteria and held meetings around the country to obtain industry input. A report to the Administrator, AMS, entitled Criteria for Evaluating Marketing Orders: Fruits, Vegetables, Nuts, and Specialty Commodities, was published in December 1986.
Department of Agriculture The Secretary of Agriculture should direct the Administrator, AMS, to update and keep current the operations manual for marketing orders. The manual should: (1) incorporate the criteria for measuring the program's principal objective of creating and maintaining orderly marketing; (2) incorporate legislative and administrative policy and guideline changes, including 1982 and 1983 marketing order guidelines; and (3) focus on ways to develop market-oriented programs that can improve the quality and variety of available products.
Closed – Implemented
USDA issued a request for proposals (RFP) in March 1986 to update its Marketing Order Operations Manual. The manual was completed in 1987.

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Topics

Agricultural cooperativesAgricultural industryAgricultural policiesAgricultural productionCommodity marketingFood supply projectionsMicroeconomic analysisProgram managementTrade regulationAgricultural commodities