Cooperative Marketing Act
Encyclopedia
The Cooperative Marketing Act of 1926 was a piece of agricultural legislation
passed in the United States
which expanded upon the Capper-Volstead Act
of 1922. It allowed farmers to exchange “past, present, and prospective crop, market, statistical, economic, and other similar information” at their local cooperative meeting, without breaking antitrust
laws. Previously, under the Capper-Volstead Act, they had only been permitted to exchange pricing
information.
Under the Cooperative Marketing Act, farmers and their local, regional, and national cooperatives could legally exchange a host of information within their marketing systems. It was a critically important strategic authorization that enabled federated cooperative systems and marketing agencies-in-common to effectively function as coordinated entities.
In addition, the Act created the Division of Cooperative Marketing within the United States Department of Agriculture
to assist cooperatives in gathering and sharing data on output, prices, and demand. The Act also created the Cooperative Research and Service Division which conducted research
and service activities relating to problems of management
, organization policies, merchandising
, sales
, costs, competition
, and membership arising in connection with the cooperative marketing of agricultural products and the cooperative purchase of farm supplies and services.
The Cooperative Marketing act was useful, but it was still not satisfactory to the Farm Bureau or other farm lobbyist groups. For farmers, an increase in available information to help cooperatives work together was no substitute for the price floor
on select crop
s that they demanded. Demand for a price floor was steady, and culminated in the passage of the McNary-Haugen bills in 1927, and again in 1928, both which suffered the veto
of President Calvin Coolidge
.
Legislation
Legislation is law which has been promulgated by a legislature or other governing body, or the process of making it...
passed in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
which expanded upon the Capper-Volstead Act
Capper-Volstead Act
Capper-Volstead Act , the Co-operative Marketing Associations Act was adopted by the United States Congress on February 18, 1922. It gave “associations” of persons producing agricultural products certain exemptions from antitrust laws...
of 1922. It allowed farmers to exchange “past, present, and prospective crop, market, statistical, economic, and other similar information” at their local cooperative meeting, without breaking antitrust
Antitrust
The United States antitrust law is a body of laws that prohibits anti-competitive behavior and unfair business practices. Antitrust laws are intended to encourage competition in the marketplace. These competition laws make illegal certain practices deemed to hurt businesses or consumers or both,...
laws. Previously, under the Capper-Volstead Act, they had only been permitted to exchange pricing
Pricing
Pricing is the process of determining what a company will receive in exchange for its products. Pricing factors are manufacturing cost, market place, competition, market condition, and quality of product. Pricing is also a key variable in microeconomic price allocation theory. Pricing is a...
information.
Under the Cooperative Marketing Act, farmers and their local, regional, and national cooperatives could legally exchange a host of information within their marketing systems. It was a critically important strategic authorization that enabled federated cooperative systems and marketing agencies-in-common to effectively function as coordinated entities.
In addition, the Act created the Division of Cooperative Marketing within the United States Department of Agriculture
United States Department of Agriculture
The United States Department of Agriculture is the United States federal executive department responsible for developing and executing U.S. federal government policy on farming, agriculture, and food...
to assist cooperatives in gathering and sharing data on output, prices, and demand. The Act also created the Cooperative Research and Service Division which conducted research
Research
Research can be defined as the scientific search for knowledge, or as any systematic investigation, to establish novel facts, solve new or existing problems, prove new ideas, or develop new theories, usually using a scientific method...
and service activities relating to problems of management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
, organization policies, merchandising
Merchandising
Merchandising is the methods, practices, and operations used to promote and sustain certain categories of commercial activity. In the broadest sense, merchandising is any practice which contributes to the sale of products to a retail consumer...
, sales
Sales
A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity....
, costs, competition
Competition (economics)
Competition in economics is a term that encompasses the notion of individuals and firms striving for a greater share of a market to sell or buy goods and services...
, and membership arising in connection with the cooperative marketing of agricultural products and the cooperative purchase of farm supplies and services.
The Cooperative Marketing act was useful, but it was still not satisfactory to the Farm Bureau or other farm lobbyist groups. For farmers, an increase in available information to help cooperatives work together was no substitute for the price floor
Price floor
A price floor is a government- or group-imposed limit on how low a price can be charged for a product. For a price floor to be effective, it must be greater than the equilibrium price.-Effectiveness of price floors:...
on select crop
Crop
Crop may refer to:* Crop, a plant grown and harvested for agricultural use* Crop , part of the alimentary tract of some animals* Crop , a modified whip used in horseback riding or disciplining humans...
s that they demanded. Demand for a price floor was steady, and culminated in the passage of the McNary-Haugen bills in 1927, and again in 1928, both which suffered the veto
Veto
A veto, Latin for "I forbid", is the power of an officer of the state to unilaterally stop an official action, especially enactment of a piece of legislation...
of President Calvin Coolidge
Calvin Coolidge
John Calvin Coolidge, Jr. was the 30th President of the United States . A Republican lawyer from Vermont, Coolidge worked his way up the ladder of Massachusetts state politics, eventually becoming governor of that state...
.