The Administrator is required to review the proposal to determine whether there is « reason to believe » that the issuance of the mission or agreement « generally provokes the declared policy » of AMAA. If the administrator finds that the proposed order or agreement has the effect of « the declared directive » of AMAA, he must provide for the possibility of a hearing on the proposed order. A public hearing is published at least 15 days before the hearing. The Agricultural Marketing Agreement Act of 1937 provides jurisdiction for federal marketing contracts and also confirmed the marketing agreements of the Agricultural Adjustment Act of 1933. The final step in establishing a marketing order or agreement is the approval of the referendum. As a general rule, two-thirds of the producers of the goods concerned, either in number or volume, must accept the proposed order or agreement. After approval, the contract or agreement is required for all handlers in the marketing area specified in the order or agreement. Marketing contracts and agreements are managed by the Agricultural Marketing Service (AMS), an agency within the USDA, and are managed by the Agricultural Marketing Agreement Act of 1937 (« AMAA ») in its amended version, 7.C 671-74. The provisions relating to the establishment and regulation of markets and marketing agreements are contained in 7 C.F.R. 900-999 (fruits, vegetables, nuts and special crops), 7 C.F.R. 1000-1199 (milk) and 7 C.F.R. no.
1200-1599 (various materials). Marketing contracts and agreements are legal instruments of the USDA Secretary that aim to stabilize market conditions for certain agricultural raw materials by regulating the management of these raw materials in intergovernmental or foreign trade. After approval by the USDA Secretary and producers, marketing contracts are mandatory for the entire sector in a given geographic area. Sna agreements for the marketing of marketing orders are divided into three specific categories: (1): fruits, vegetables and specialty crops, (2). Milk and dairy products and (3). According to current rules, marketing orders for each product or product, with the exception of milk, must be designed to achieve at least one of the following objectives: AMAA must « set up and maintain … conditions for marketing agricultural raw materials in intergovernmental trade, « so that farmers benefit from a higher price. WADA must also protect the interests of consumers by demanding prices, the « Secretary . . . in the public interest and given the current consumer demand in domestic and external markets, that it is possible and achievable. The process of amending an order or agreement takes place in parallel with the process of establishing an order or agreement.
AMAA, its rules of application and administrative procedure, 5 U.S.C 551-706, define the process for developing contracts and marketing agreements. Anyone, including the secretary, can propose a marketing order or agreement. If someone other than the secretary initiates the proposal, that person must file a written request with the secretary. Economic conditions during the Great Depression of the 1930s exacerbated a problem of overburdened markets. In response to this crisis, Congress passed the Agricultural Adjustment Act of 1933 to increase agricultural prices by imposing certain restrictions on the amount of agricultural raw materials that could be produced. To allay concerns about the constitutionality of the 1933 Act and the Agricultural Adjustment Act of 1935, Congress arrested AMAA in 1937. At the end of the hearing, the administrator adopts a recommended decision which, among other things, decides on each of the conclusions proposed by the interested parties, proposing either a marketing agreement, a contract, or rejects the application.