7 U.S.C. § 608c : US Code - Section 608C: Orders

    (1) Issuance by Secretary
      The Secretary of Agriculture shall, subject to the provisions of
    this section, issue, and from time to time amend, orders applicable
    to processors, associations of producers, and others engaged in the
    handling of any agricultural commodity or product thereof specified
    in subsection (2) of this section. Such persons are referred to in
    this chapter as "handlers". Such orders shall regulate, in the
    manner hereinafter in this section provided, only such handling of
    such agricultural commodity, or product thereof, as is in the
    current of interstate or foreign commerce, or which directly
    burdens, obstructs, or affects, interstate or foreign commerce in
    such commodity or product thereof. In carrying out this section,
    the Secretary shall complete all informal rulemaking actions
    necessary to respond to recommendations submitted by administrative
    committees for such orders as expeditiously as possible, but not
    more than 45 days (to the extent practicable) after submission of
    the committee recommendations. The Secretary is authorized to
    implement a producer allotment program and a handler withholding
    program under the cranberry marketing order in the same crop year
    through informal rulemaking based on a recommendation and
    supporting economic analysis submitted by the Cranberry Marketing
    Committee. Such recommendation and analysis shall be submitted by
    the Committee no later than March 1 of each year. The Secretary
    shall establish time frames for each office and agency within the
    Department of Agriculture to consider the committee
    recommendations.
    (2) Commodities to which applicable
      Orders issued pursuant to this section shall be applicable only
    to (A) the following agricultural commodities and the products
    thereof (except canned or frozen pears, grapefruit, cherries,
    apples, or cranberries, the products of naval stores, and the
    products of honeybees), or to any regional, or market
    classification of any such commodity or product: Milk, fruits
    (including filberts, almonds, pecans and walnuts but not including
    apples, other than apples produced in the States of Washington,
    Oregon, Idaho, New York, Michigan, Maryland, New Jersey, Indiana,
    California, Maine, Vermont, New Hampshire, Rhode Island,
    Massachusetts, Connecticut, Colorado, Utah, New Mexico, Illinois,
    and Ohio, and not including fruits for canning or freezing other
    than pears, olives, grapefruit, cherries, caneberries (including
    raspberries, blackberries, and loganberries), cranberries, and
    apples produced in the States named above except Washington,
    Oregon, and Idaho), tobacco, vegetables (not including vegetables,
    other than asparagus, for canning or freezing and not including
    potatoes for canning, freezing, or other processing), hops,
    honeybees and naval stores as included in the Naval Stores Act [7
    U.S.C. 91 et seq.] and standards established thereunder (including
    refined or partially refined oleoresin): Provided, That no order
    issued pursuant to this section shall be effective as to any
    grapefruit for canning or freezing unless the Secretary of
    Agriculture determines, in addition to other findings and
    determinations required by this chapter, that the issuance of such
    order is approved or favored by the processors who, during a
    representative period determined by the Secretary, have been
    engaged in canning or freezing such commodity for market and have
    canned or frozen for market more than 50 per centum of the total
    volume of such commodity canned or frozen for market during such
    representative period; and (B) any agricultural commodity (except
    honey, cotton, rice, wheat, corn, grain sorghums, oats, barley,
    rye, sugarcane, sugarbeets, wool, mohair, livestock, soybeans,
    cottonseed, flaxseed, poultry (but not excepting turkeys and not
    excepting poultry which produce commercial eggs), fruits and
    vegetables for canning or freezing, including potatoes for canning,
    freezing, or other processing (!1) and apples), or any regional or
    market classification thereof, not subject to orders under (A) of
    this subdivision, but not the products (including canned or frozen
    commodities or products) thereof. No order issued pursuant to this
    section shall be effective as to cherries, apples, or cranberries
    for canning or freezing unless the Secretary of Agriculture
    determines, in addition to other required findings and
    determinations, that the issuance of such order is approved or
    favored by processors who, during a representative period
    determined by the Secretary, have engaged in canning or freezing
    such commodity for market and have frozen or canned more than 50
    per centum of the total volume of the commodity to be regulated
    which was canned or frozen within the production area, or marketed
    within the marketing area, defined in such order, during such
    representative period. No order issued pursuant to this section
    shall be applicable to peanuts produced in more than one of the
    following production areas: the Virginia-Carolina production area,
    the Southeast production area, and the Southwest production area.
    If the Secretary determines that the declared policy of this
    chapter will be better achieved thereby (i) the commodities of the
    same general class and used wholly or in part for the same purposes
    may be combined and treated as a single commodity and (ii) the
    portion of an agricultural commodity devoted to or marketed for a
    particular use or combination of uses, may be treated as a separate
    agricultural commodity. All agricultural commodities and products
    covered hereby shall be deemed specified herein for the purposes of
    subsections (6) and (7) of this section.

    (3) Notice and hearing
      Whenever the Secretary of Agriculture has reason to believe that
    the issuance of an order will tend to effectuate the declared
    policy of this chapter with respect to any commodity or product
    thereof specified in subsection (2) of this section, he shall give
    due notice of and an opportunity for a hearing upon a proposed
    order.
    (4) Finding and issuance of order
      After such notice and opportunity for hearing, the Secretary of
    Agriculture shall issue an order if he finds, and sets forth in
    such order, upon the evidence introduced at such hearing (in
    addition to such other findings as may be specifically required by
    this section) that the issuance of such order and all of the terms
    and conditions thereof will tend to effectuate the declared policy
    of this chapter with respect to such commodity.
    (5) Terms - Milk and its products
      In the case of milk and its products, orders issued pursuant to
    this section shall contain one or more of the following terms and
    conditions, and (except as provided in subsection (7) of this
    section) no others:
      (A) Classifying milk in accordance with the form in which or the
    purpose for which it is used, and fixing, or providing a method for
    fixing, minimum prices for each such use classification which all
    handlers shall pay, and the time when payments shall be made, for
    milk purchased from producers or associations of producers. Such
    prices shall be uniform as to all handlers, subject only to
    adjustments for (1) volume, market, and production differentials
    customarily applied by the handlers subject to such order, (2) the
    grade or quality of the milk purchased, and (3) the locations at
    which delivery of such milk, or any use classification thereof, is
    made to such handlers. Throughout the 2-year period beginning on
    the effective date of this sentence (and subsequent to such 2-year
    period unless modified by amendment to the order involved), the
    minimum aggregate amount of the adjustments, under clauses (1) and
    (2) of the preceding sentence, to prices for milk of the highest
    use classification under orders that are in effect under this
    section on December 23, 1985, shall be as follows:

                                                      Minimum
                                                         Aggregate
                                                         Dollar         
                                                      Amount of Such
                                                         Adjustments    
    Marketing Area                                    Per
                                                         Hundredweight
                                                         of Milk        
      Subject to Order                                Having 3.5
                                                         Percent Milkfat

      New England                                              $3.24  
      New York-New Jersey                                       3.14  
      Middle Atlantic                                           3.03  
      Georgia                                                   3.08  
      Alabama-West Florida                                      3.08  
      Upper Florida                                             3.58  
      Tampa Bay                                                 3.88  
      Southeastern Florida                                      4.18  
      Michigan Upper Peninsula                                  1.35  
      Southern Michigan                                         1.75  
      Eastern Ohio-Western Pennsylvania                         1.95  
      Ohio Valley                                               2.04  
      Indiana                                                   2.00  
      Chicago Regional                                          1.40  
      Central Illinois                                          1.61  
      Southern Illinois                                         1.92  
      Louisville-Lexington-Evansville                           2.11  
      Upper Midwest                                             1.20  
      Eastern South Dakota                                      1.50  
      Black Hills, South Dakota                                 2.05  
      Iowa                                                      1.55  
      Nebraska-Western Iowa                                     1.75  
      Greater Kansas City                                       1.92  
      Tennessee Valley                                          2.77  
      Nashville, Tennessee                                      2.52  
      Paducah, Kentucky                                         2.39  
      Memphis, Tennessee                                        2.77  
      Central Arkansas                                          2.77  
      Fort Smith, Arkansas                                      2.77  
      Southwest Plains                                          2.77  
      Texas Panhandle                                           2.49  
      Lubbock-Plainview, Texas                                  2.49  
      Texas                                                     3.28  
      Greater Louisiana                                         3.28  
      New Orleans-Mississippi                                   3.85  
      Eastern Colorado                                          2.73  
      Western Colorado                                          2.00  
      Southwestern Idaho-Eastern Oregon                         1.50  
      Great Basin                                               1.90  
      Lake Mead                                                 1.60  
      Central Arizona                                           2.52  
      Rio Grande Valley                                         2.35  
      Puget Sound-Inland                                        1.85  
      Oregon-Washington                                         1.95  

    Effective at the beginning of such two-year period, the minimum
    prices for milk of the highest use classification shall be adjusted
    for the locations at which delivery of such milk is made to such
    handlers.
      (B) Providing:
        (i) for the payment to all producers and associations of
      producers delivering milk to the same handler of uniform prices
      for all milk delivered by them: Provided, That, except in the
      case of orders covering milk products only, such provision is
      approved or favored by at least three-fourths of the producers
      who, during a representative period determined by the Secretary
      of Agriculture, have been engaged in the production for market of
      milk covered in such order or by producers who, during such
      representative period, have produced at least three-fourths of
      the volume of such milk produced for market during such period;
      the approval required hereunder shall be separate and apart from
      any other approval or disapproval provided for by this section;
      or
        (ii) for the payment to all producers and associations of
      producers delivering milk to all handlers of uniform prices for
      all milk so delivered, irrespective of the uses made of such milk
      by the individual handler to whom it is delivered;

    subject, in either case, only to adjustments for (a) volume,
    market, and production differentials customarily applied by the
    handlers subject to such order, (b) the grade or quality of the
    milk delivered, (c) the locations at which delivery of such milk is
    made, and (d) a further adjustment, equitably to apportion the
    total value of the milk purchased by any handler, or by all
    handlers, among producers and associations of producers, on the
    basis of their marketings of milk during a representative period of
    time.,(!2) [(e) omitted] and (f) a further adjustment, equitably to
    apportion the total value of milk purchased by any handler or by
    all handlers among producers on the basis of the milk components
    contained in their marketings of milk (!3)


      (C) In order to accomplish the purposes set forth in paragraphs
    (A) and (B) of this subsection, providing a method for making
    adjustments in payments, as among handlers (including producers who
    are also handlers), to the end that the total sums paid by each
    handler shall equal the value of the milk purchased by him at the
    prices fixed in accordance with paragraph (A) of this subsection.
      (D) Providing that, in the case of all milk purchased by handlers
    from any producer who did not regularly sell milk during a period
    of 30 days next preceding the effective date of such order for
    consumption in the area covered thereby, payments to such producer,
    for the period beginning with the first regular delivery by such
    producer and continuing until the end of two full calendar months
    following the first day of the next succeeding calendar month,
    shall be made at the price for the lowest use classification
    specified in such order, subject to the adjustments specified in
    paragraph (B) of this subsection.
      (E) Providing (i) except as to producers for whom such services
    are being rendered by a cooperative marketing association,
    qualified as provided in paragraph (F) of this subsection, for
    market information to producers and for the verification of
    weights, sampling, and testing of milk purchased from producers,
    and for making appropriate deductions therefor from payments to
    producers, and (ii) for assurance of, and security for, the payment
    by handlers for milk purchased.
      (F) Nothing contained in this subsection is intended or shall be
    construed to prevent a cooperative marketing association qualified
    under the provisions of sections 291 and 292 of this title, engaged
    in making collective sales or marketing of milk or its products for
    the producers thereof, from blending the net proceeds of all of its
    sales in all markets in all use classifications, and making
    distribution thereof to its producers in accordance with the
    contract between the association and its producers: Provided, That
    it shall not sell milk or its products to any handler for use or
    consumption in any market at prices less than the prices fixed
    pursuant to paragraph (A) of this subsection for such milk.
      (G) No marketing agreement or order applicable to milk and its
    products in any marketing area shall prohibit or in any manner
    limit, in the case of the products of milk, the marketing in that
    area of any milk or product thereof produced in any production area
    in the United States.
      (H) Omitted
      (I) Establishing or providing for the establishment of research
    and development projects, and advertising (excluding brand
    advertising), sales promotion, educational, and other programs
    designed to improve or promote the domestic marketing and
    consumption of milk and its products, to be financed by producers
    in a manner and at a rate specified in the order, on all producer
    milk under the order. Producer contributions under this
    subparagraph (!4) may be deducted from funds due producers in
    computing total pool value or otherwise computing total funds due
    producers and such deductions shall be in addition to the
    adjustments authorized by paragraph (B) of this subsection.
    Provision may be made in the order to exempt, or allow suitable
    adjustments or credits in connection with, milk on which a
    mandatory checkoff for advertising or marketing research is
    required under the authority of any State law. Such funds shall be
    paid to an agency organized by milk producers and producers'
    cooperative associations in such form and with such methods of
    operation as shall be specified in the order. Such agency may
    expend such funds for any of the purposes authorized by this
    subparagraph (!4) and may designate, employ, and allocate funds to
    persons and organizations engaged in such programs which meet the
    standards and qualifications specified in the order. All funds
    collected under this subparagraph (!4) shall be separately
    accounted for and shall be used only for the purposes for which
    they were collected. Programs authorized by this subparagraph (!4)
    may be either local or national in scope, or both, as provided in
    the order, but shall not be international. Order provisions under
    this subparagraph (!4) shall not become effective in any marketing
    order unless such provisions are approved by producers separately
    from other order provisions, in the same manner provided for the
    approval of marketing orders, and may be terminated separately
    whenever the Secretary makes a determination with respect to such
    provisions as is provided for the termination of an order in
    subsection (16)(B) of this section. Disapproval or termination of
    such order provisions shall not be considered disapproval of the
    order or of other terms of the order. Notwithstanding any other
    provision of this chapter, any producer against whose marketings
    any assessment is withheld or collected under the authority of this
    subparagraph,(!4) and who is not in favor of supporting the
    research and promotion programs, as provided for herein, shall have
    the right to demand and receive a refund of such assessment
    pursuant to the terms and conditions specified in the order.

      (J) Providing for the payment, from the total sums payable by all
    handlers for milk (irrespective of the use classification of such
    milk) and before computing uniform prices under paragraph (A) and
    making adjustments in payments under paragraph (C), to handlers
    that are cooperative marketing associations described in paragraph
    (F) and to handlers with respect to which adjustments in payments
    are made under paragraph (C), for services of marketwide benefit,
    including but not limited to - 
        (i) providing facilities to furnish additional supplies of milk
      needed by handlers and to handle and dispose of milk supplies in
      excess of quantities needed by handlers;
        (ii) handling on specific days quantities of milk that exceed
      the quantities needed by handlers; and
        (iii) transporting milk from one location to another for the
      purpose of fulfilling requirements for milk of a higher use
      classification or for providing a market outlet for milk of any
      use classification.

      (K)(i) Notwithstanding any other provision of law, milk produced
    by dairies - 
        (I) owned or controlled by foreign persons; and
        (II) financed by or with the use of bonds the interest on which
      is exempt from Federal income tax under section 103 of title 26;

    shall be treated as other-source milk, and shall be allocated as
    milk received from producer-handlers for the purposes of
    classifying producer milk, under the milk marketing program
    established under this chapter. For the purposes of this
    subparagraph,(!4) the term "foreign person" has the meaning given
    such term under section 3508(3) of this title.
      (ii) The Secretary of Agriculture shall prescribe regulations to
    carry out this subparagraph.(!4)
      (iii) This subparagraph (!4) shall not apply with respect to any
    dairy that began operation before May 6, 1986.
      (L) Providing that adjustments in payments by handlers under
    paragraph (A) need not be the same as adjustments to producers
    under paragraph (B) with regard to adjustments authorized by
    subparagraphs (2) and (3) of paragraph (A) and clauses (b), (c),
    and (d) of paragraph (B)(ii).
      (M) Minimum Milk Prices for Handlers. - 
        (i) Application of minimum price requirements. -
      Notwithstanding any other provision of this section, a milk
      handler described in clause (ii) shall be subject to all of the
      minimum and uniform price requirements of a Federal milk
      marketing order issued pursuant to this section applicable to the
      county in which the plant of the handler is located, at Federal
      order class prices, if the handler has packaged fluid milk
      product route dispositions, or sales of packaged fluid milk
      products to other plants, in a marketing area located in a State
      that requires handlers to pay minimum prices for raw milk
      purchases.
        (ii) Covered milk handlers. - Except as provided in clause
      (iv), clause (i) applies to a handler of Class I milk products
      (including a producer-handler or producer operating as a handler)
      that - 
          (I) operates a plant that is located within the boundaries of
        a Federal order milk marketing area (as those boundaries are in
        effect as of April 11, 2006);
          (II) has packaged fluid milk product route dispositions, or
        sales of packaged fluid milk products to other plants, in a
        milk marketing area located in a State that requires handlers
        to pay minimum prices for raw milk purchases; and
          (III) is not otherwise obligated by a Federal milk marketing
        order, or a regulated milk pricing plan operated by a State, to
        pay minimum class prices for the raw milk that is used for such
        dispositions or sales.

        (iii) Obligation to pay minimum class prices. - For purposes of
      clause (ii)(III), the Secretary may not consider a handler of
      Class I milk products to be obligated by a Federal milk marketing
      order to pay minimum class prices for raw milk unless the handler
      operates the plant as a fully regulated fluid milk distributing
      plant under a Federal milk marketing order.
        (iv) Certain handlers exempted. - Clause (i) does not apply to -
       
          (I) a handler (otherwise described in clause (ii)) that
        operates a nonpool plant (as defined in section 1000.8(e) of
        title 7, Code of Federal Regulations, as in effect on April 11,
        2006);
          (II) a producer-handler (otherwise described in clause (ii))
        for any month during which the producer-handler has route
        dispositions, and sales to other plants, of packaged fluid milk
        products equaling less than 3,000,000 pounds of milk; or
          (III) a handler (otherwise described in clause (ii)) for any
        month during which - 
            (aa) less than 25 percent of the total quantity of fluid
          milk products physically received at the plant of the handler
          (excluding concentrated milk received from another plant by
          agreement for other than Class I use) is disposed of as route
          disposition or is transferred in the form of packaged fluid
          milk products to other plants; or
            (bb) less than 25 percent in aggregate of the route
          disposition or transfers are in a marketing area or areas
          located in one or more States that require handlers to pay
          minimum prices for raw milk purchases.

      (N) Exemption for Certain Milk Handlers. - Notwithstanding any
    other provision of this section, no handler with distribution of
    Class I milk products in the marketing area described in Order No.
    131 shall be exempt during any month from any minimum price
    requirement established by the Secretary under this subsection if
    the total distribution of Class I products during the preceding
    month of any such handler's own farm production exceeds 3,000,000
    pounds.
      (O) Rule of Construction Regarding Producer-Handlers. -
    Subparagraphs (M) and (N) shall not be construed as affecting,
    expanding, or contracting the treatment of producer-handlers under
    this subsection except as provided in such subparagraphs.
    (6) Terms - Other commodities
      In the case of the agricultural commodities and the products
    thereof, other than milk and its products, specified in subsection
    (2) of this section orders issued pursuant to this section shall
    contain one or more of the following terms and conditions, and
    (except as provided in subsection (7) of this section), no others:
      (A) Limiting, or providing methods for the limitation of, the
    total quantity of any such commodity or product, or of any grade,
    size, or quality thereof, produced during any specified period or
    periods, which may be marketed in or transported to any or all
    markets in the current of interstate or foreign commerce or so as
    directly to burden, obstruct, or affect interstate or foreign
    commerce in such commodity or product thereof, during any specified
    period or periods by all handlers thereof.
      (B) Allotting, or providing methods for allotting, the amount of
    such commodity or product, or any grade, size, or quality thereof,
    which each handler may purchase from or handle on behalf of any and
    all producers thereof, during any specified period or periods,
    under a uniform rule based upon the amounts sold by such producers
    in such prior period as the Secretary determines to be
    representative, or upon the current quantities available for sale
    by such producers, or both, to the end that the total quantity
    thereof to be purchased, or handled during any specified period or
    periods shall be apportioned equitably among producers.
      (C) Allotting, or providing methods for allotting, the amount of
    any such commodity or product, or any grade, size, or quality
    thereof, which each handler may market in or transport to any or
    all markets in the current of interstate or foreign commerce or so
    as directly to burden, obstruct, or affect interstate or foreign
    commerce in such commodity or product thereof, under a uniform rule
    based upon the amounts which each such handler has available for
    current shipment, or upon the amounts shipped by each such handler
    in such prior period as the Secretary determines to be
    representative, or both, to the end that the total quantity of such
    commodity or product, or any grade, size, or quality thereof, to be
    marketed in or transported to any or all markets in the current of
    interstate or foreign commerce or so as directly to burden,
    obstruct, or affect interstate or foreign commerce in such
    commodity or product thereof, during any specified period or
    periods shall be equitably apportioned among all of the handlers
    thereof.
      (D) Determining, or providing methods for determining, the
    existence and extent of the surplus of any such commodity or
    product, or of any grade, size, or quality thereof, and providing
    for the control and disposition of such surplus, and for equalizing
    the burden of such surplus elimination or control among the
    producers and handlers thereof.
      (E) Establishing or providing for the establishment of reserve
    pools of any such commodity or product, or of any grade, size, or
    quality thereof, and providing for the equitable distribution of
    the net return derived from the sale thereof among the persons
    beneficially interested therein.
      (F) Requiring or providing for the requirement of inspection of
    any such commodity or product produced during specified periods and
    marketed by handlers.
      (G) In the case of hops and their products in addition to, or in
    lieu of, the foregoing terms and conditions, orders may contain one
    or more of the following:
        (i) Limiting, or providing methods for the limitation of, the
      total quantity thereof, or of any grade, type, or variety
      thereof, produced during any specified period or periods, which
      all handlers may handle in the current of or so as directly to
      burden, obstruct, or affect interstate or foreign commerce in
      hops or any product thereof.
        (ii) Apportioning, or providing methods for apportioning, the
      total quantity of hops of the production of the then current
      calendar year permitted to be handled equitably among all
      producers in the production area to which the order applies upon
      the basis of one or more or a combination of the following: The
      total quantity of hops available or estimated will become
      available for market by each producer from his production during
      such period; the normal production of the acreage of hops
      operated by each producer during such period upon the basis of
      the number of acres of hops in production, and the average yield
      of that acreage during such period as the Secretary determines to
      be representative, with adjustments determined by the Secretary
      to be proper for age of plantings or abnormal conditions
      affecting yield; such normal production or historical record of
      any acreage for which data as to yield of hops are not available
      or which had no yield during such period shall be determined by
      the Secretary on the basis of the yields of other acreage of hops
      of similar characteristics as to productivity, subject to
      adjustment as just provided for.
        (iii) Allotting, or providing methods for allotting, the
      quantity of hops which any handler may handle so that the
      allotment fixed for that handler shall be limited to the quantity
      of hops apportioned under preceding section (!5) (ii) to each
      respective producer of hops; such allotment shall constitute an
      allotment fixed for that handler within the meaning of subsection
      (5) of section 608a of this title.


      (H) providing (!6) a method for fixing the size, capacity,
    weight, dimensions, or pack of the container, or containers, which
    may be used in the packaging, transportation, sale, shipment, or
    handling of any fresh or dried fruits, vegetables, or tree nuts:
    Provided, however, That no action taken hereunder shall conflict
    with the Standard Containers Act of 1916 (15 U.S.C. 251-256) and
    the Standard Containers Act of 1928 (15 U.S.C. 257-257i); (!7)


      (I) establishing (!6) or providing for the establishment of
    production research, marketing research and development projects
    designed to assist, improve, or promote the marketing,
    distribution, and consumption or efficient production of any such
    commodity or product, the expense of such projects to be paid from
    funds collected pursuant to the marketing order: Provided, That
    with respect to orders applicable to almonds, filberts (otherwise
    known as hazelnuts), California-grown peaches, cherries, papayas,
    carrots, citrus fruits, onions, Tokay grapes, pears, dates, plums,
    nectarines, celery, sweet corn, limes, olives, pecans, eggs,
    avocados, apples, raisins, walnuts, tomatoes, caneberries
    (including raspberries, blackberries, and loganberries), Florida
    grown (!8) strawberries, or cranberries, such projects may provide
    for any form of marketing promotion including paid advertising and
    with respect to almonds, filberts (otherwise known as hazelnuts),
    raisins, walnuts, olives, Florida Indian River grapefruit, and
    cranberries may provide for crediting the pro rata expense
    assessment obligations of a handler with all or any portion of his
    direct expenditures for such marketing promotion including paid
    advertising as may be authorized by the order and when the handling
    of any commodity for canning or freezing is regulated, then any
    such projects may also deal with the commodity or its products in
    canned or frozen form: Provided further, That the inclusion in a
    Federal marketing order of provisions for research and marketing
    promotion, including paid advertising, shall not be deemed to
    preclude, preempt or supersede any such provisions in any State
    program covering the same commodity.

      (J) In the case of pears for canning or freezing, any order for a
    production area encompassing territory within two or more States or
    portions thereof shall provide that the grade, size, quality,
    maturity, and inspection regulation under the order applicable to
    pears grown within any such State or portion thereof may be
    recommended to the Secretary by the agency established to
    administer the order only if a majority of the representatives from
    that State on such agency concur in the recommendation each year.
    (7) Terms common to all orders
      In the case of the agricultural commodities and the products
    thereof specified in subsection (2) of this section orders shall
    contain one or more of the following terms and conditions:
      (A) Prohibiting unfair methods of competition and unfair trade
    practices in the handling thereof.
      (B) Providing that (except for milk and cream to be sold for
    consumption in fluid form) such commodity or product thereof, or
    any grade, size, or quality thereof shall be sold by the handlers
    thereof only at prices filed by such handlers in the manner
    provided in such order.
      (C) Providing for the selection by the Secretary of Agriculture,
    or a method for the selection, of an agency or agencies and
    defining their powers and duties, which shall include only the
    powers:
        (i) To administer such order in accordance with its terms and
      provisions;
        (ii) To make rules and regulations to effectuate the terms and
      provisions of such order;
        (iii) To receive, investigate, and report to the Secretary of
      Agriculture complaints of violations of such order; and
        (iv) To recommend to the Secretary of Agriculture amendments to
      such order.

    No person acting as a member of an agency established pursuant to
    this paragraph shall be deemed to be acting in an official
    capacity, within the meaning of section 610(g) of this title,
    unless such person receives compensation for his personal services
    from funds of the United States. There shall be included in the
    membership of any agency selected to administer a marketing order
    applicable to grapefruit for canning or freezing one or more
    representatives of processors of the commodity specified in such
    order.
      (D) Incidental to, and not inconsistent with, the terms and
    conditions specified in subsections (5), (6), and (7) of this
    section and necessary to effectuate the other provisions of such
    order.
    (8) Orders with marketing agreement
      Except as provided in subsection (9) of this section, no order
    issued pursuant to this section shall become effective until the
    handlers (excluding cooperative associations of producers who are
    not engaged in processing, distributing, or shipping the commodity
    or product thereof covered by such order) of not less than 50 per
    centum of the volume of the commodity or product thereof covered by
    such order which is produced or marketed within the production or
    marketing area defined in such order have signed a marketing
    agreement, entered into pursuant to section 608b of this title,
    which regulates the handling of such commodity or product in the
    same manner as such order, except that as to citrus fruits produced
    in any area producing what is known as California citrus fruits no
    order issued pursuant to this subsection shall become effective
    until the handlers of not less than 80 per centum of the volume of
    such commodity or product thereof covered by such order have signed
    such a marketing agreement: Provided, That no order issued pursuant
    to this subsection shall be effective unless the Secretary of
    Agriculture determines that the issuance of such order is approved
    or favored:
      (A) By at least two-thirds of the producers who (except that as
    to citrus fruits produced in any area producing what is known as
    California citrus fruits said order must be approved or favored by
    three-fourths of the producers), during a representative period
    determined by the Secretary, have been engaged, within the
    production area specified in such marketing agreement or order, in
    the production for market of the commodity specified therein, or
    who, during such representative period, have been engaged in the
    production of such commodity for sale in the marketing area
    specified in such marketing agreement, or order, or
      (B) By producers who, during such representative period, have
    produced for market at least two-thirds of the volume of such
    commodity produced for market within the production area specified
    in such marketing agreement or order, or who, during such
    representative period, have produced at least two-thirds of the
    volume of such commodity sold within the marketing area specified
    in such marketing agreement or order.
    (9) Orders with or without marketing agreement
      Any order issued pursuant to this section shall become effective
    in the event that, notwithstanding the refusal or failure of
    handlers (excluding cooperative associations of producers who are
    not engaged in processing, distributing, or shipping the commodity
    or product thereof covered by such order) of more than 50 per
    centum of the volume of the commodity or product thereof (except
    that as to citrus fruits produced in any area producing what is
    known as California citrus fruits said per centum shall be 80 per
    centum) covered by such order which is produced or marketed within
    the production or marketing area defined in such order to sign a
    marketing agreement relating to such commodity or product thereof,
    on which a hearing has been held, the Secretary of Agriculture
    determines:
      (A) That the refusal or failure to sign a marketing agreement
    (upon which a hearing has been held) by the handlers (excluding
    cooperative associations of producers who are not engaged in
    processing, distributing, or shipping the commodity or product
    thereof covered by such order) of more than 50 per centum of the
    volume of the commodity or product thereof (except that as to
    citrus fruits produced in any area producing what is known as
    California citrus fruits said per centum shall be 80 per centum)
    specified therein which is produced or marketed within the
    production or marketing area specified therein tends to prevent the
    effectuation of the declared policy of this chapter with respect to
    such commodity or product, and
      (B) That the issuance of such order is the only practical means
    of advancing the interests of the producers of such commodity
    pursuant to the declared policy, and is approved or favored:
        (i) By at least two-thirds of the producers (except that as to
      citrus fruits produced in any area producing what is known as
      California citrus fruits said order must be approved or favored
      by three-fourths of the producers) who, during a representative
      period determined by the Secretary, have been engaged, within the
      production area specified in such marketing agreement or order,
      in the production for market of the commodity specified therein,
      or who, during such representative period, have been engaged in
      the production of such commodity for sale in the marketing area
      specified in such marketing agreement, or order, or
        (ii) By producers who, during such representative period, have
      produced for market at least two-thirds of the volume of such
      commodity produced for market within the production area
      specified in such marketing agreement or order, or who, during
      such representative period, have produced at least two-thirds of
      the volume of such commodity sold within the marketing area
      specified in such marketing agreement or order.
    (10) Manner of regulation and applicability
      No order shall be issued under this section unless it regulates
    the handling of the commodity or product covered thereby in the
    same manner as, and is made applicable only to persons in the
    respective classes of industrial or commercial activity specified
    in, a marketing agreement upon which a hearing has been held. No
    order shall be issued under this chapter prohibiting, regulating,
    or restricting the advertising of any commodity or product covered
    thereby, nor shall any marketing agreement contain any provision
    prohibiting, regulating, or restricting the advertising of any
    commodity, or product covered by such marketing agreement.
    (11) Regional application
      (A) No order shall be issued under this section which is
    applicable to all production areas or marketing areas, or both, of
    any commodity or product thereof unless the Secretary finds that
    the issuance of several orders applicable to the respective
    regional production areas or regional marketing areas, or both, as
    the case may be, of the commodity or product would not effectively
    carry out the declared policy of this chapter.
      (B) Except in the case of milk and its products, orders issued
    under this section shall be limited in their application to the
    smallest regional production areas or regional marketing areas, or
    both, as the case may be, which the Secretary finds practicable,
    consistently with carrying out such declared policy.
      (C) All orders issued under this section which are applicable to
    the same commodity or product thereof shall, so far as practicable,
    prescribe such different terms, applicable to different production
    areas and marketing areas, as the Secretary finds necessary to give
    due recognition to the differences in production and marketing of
    such commodity or product in such areas.
      (D) In the case of milk and its products, no county or other
    political subdivision of the State of Nevada shall be within the
    marketing area definition of any order issued under this section.
    (12) Cooperative association representation
      Whenever, pursuant to the provisions of this section, the
    Secretary is required to determine the approval or disapproval of
    producers with respect to the issuance of any order, or any term or
    condition thereof, or the termination thereof, the Secretary shall
    consider the approval or disapproval by any cooperative association
    of producers, bona fide engaged in marketing the commodity or
    product thereof covered by such order, or in rendering services for
    or advancing the interests of the producers of such commodity, as
    the approval or disapproval of the producers who are members of,
    stockholders in, or under contract with, such cooperative
    association of producers.
    (13) Retailer and producer exemption
      (A) No order issued under subsection (9) of this section shall be
    applicable to any person who sells agricultural commodities or
    products thereof at retail in his capacity as such retailer, except
    to a retailer in his capacity as a retailer of milk and its
    products.
      (B) No order issued under this chapter shall be applicable to any
    producer in his capacity as a producer.
    (14) Violation of order
      (A) Any handler subject to an order issued under this section, or
    any officer, director, agent, or employee of such handler, who
    violates any provision of such order shall, on conviction, be fined
    not less than $50 or more than $5,000 for each such violation, and
    each day during which such violation continues shall be deemed a
    separate violation. If the court finds that a petition pursuant to
    subsection (15) of this section was filed and prosecuted by the
    defendant in good faith and not for delay, no penalty shall be
    imposed under this subsection for such violations as occurred
    between the date upon which the defendant's petition was filed with
    the Secretary, and the date upon which notice of the Secretary's
    ruling thereon was given to the defendant in accordance with
    regulations prescribed pursuant to subsection (15) of this section.
      (B) Any handler subject to an order issued under this section, or
    any officer, director, agent, or employee of such handler, who
    violates any provision of such order may be assessed a civil
    penalty by the Secretary not exceeding $1,000 for each such
    violation. Each day during which such violation continues shall be
    deemed a separate violation, except that if the Secretary finds
    that a petition pursuant to paragraph (15) was filed and prosecuted
    by the handler in good faith and not for delay, no civil penalty
    may be assessed under this paragraph for such violations as
    occurred between the date on which the handler's petition was filed
    with the Secretary, and the date on which notice of the Secretary's
    ruling thereon was given to the handler in accordance with
    regulations prescribed pursuant to paragraph (15). The Secretary
    may issue an order assessing a civil penalty under this paragraph
    only after notice and an opportunity for an agency hearing on the
    record. Such order shall be treated as a final order reviewable in
    the district courts of the United States in any district in which
    the handler subject to the order is an inhabitant, or has the
    handler's principal place of business. The validity of such order
    may not be reviewed in an action to collect such civil penalty.
    (15) Petition by handler and review
      (A) Any handler subject to an order may file a written petition
    with the Secretary of Agriculture, stating that any such order or
    any provision of any such order or any obligation imposed in
    connection therewith is not in accordance with law and praying for
    a modification thereof or to be exempted therefrom. He shall
    thereupon be given an opportunity for a hearing upon such petition,
    in accordance with regulations made by the Secretary of
    Agriculture, with the approval of the President. After such
    hearing, the Secretary shall make a ruling upon the prayer of such
    petition which shall be final, if in accordance with law.
      (B) The District Courts of the United States in any district in
    which such handler is an inhabitant, or has his principal place of
    business, are hereby vested with jurisdiction in equity to review
    such ruling, provided a bill in equity for that purpose is filed
    within twenty days from the date of the entry of such ruling.
    Service of process in such proceedings may be had upon the
    Secretary by delivering to him a copy of the bill of complaint. If
    the court determines that such ruling is not in accordance with
    law, it shall remand such proceedings to the Secretary with
    directions either (1) to make such ruling as the court shall
    determine to be in accordance with law, or (2) to take such further
    proceedings as, in its opinion, the law requires. The pendency of
    proceedings instituted pursuant to this subsection (15) shall not
    impede, hinder, or delay the United States or the Secretary of
    Agriculture from obtaining relief pursuant to section 608a(6) of
    this title. Any proceedings brought pursuant to section 608a(6) of
    this title (except where brought by way of counterclaim in
    proceedings instituted pursuant to this subsection (15)) shall
    abate whenever a final decree has been rendered in proceedings
    between the same parties, and covering the same subject matter,
    instituted pursuant to this subsection (15).
    (16) Termination of orders and marketing agreements
      (A)(i) Except as provided in clause (ii), the Secretary of
    Agriculture shall, whenever he finds that any order issued under
    this section, or any provision thereof, obstructs or does not tend
    to effectuate the declared policy of this chapter, terminate or
    suspend the operation of such order or such provision thereof.
      (ii) The Secretary may not terminate any order issued under this
    section for a commodity for which there is no Federal program
    established to support the price of such commodity unless the
    Secretary gives notice of, and a statement of the reasons relied
    upon by the Secretary for, the proposed termination of such order
    to the Committee on Agriculture, Nutrition, and Forestry of the
    Senate and the Committee on Agriculture of the House of
    Representatives not later than 60 days before the date such order
    will be terminated.
      (B) The Secretary shall terminate any marketing agreement entered
    into under section 608b of this title, or order issued under this
    section, at the end of the then current marketing period for such
    commodity, specified in such marketing agreement or order, whenever
    he finds that such termination is favored by a majority of the
    producers who, during a representative period determined by the
    Secretary, have been engaged in the production for market of the
    commodity specified in such marketing agreement or order, within
    the production area specified in such marketing agreement or order,
    or who, during such representative period, have been engaged in the
    production of such commodity for sale within the marketing area
    specified in such marketing agreement or order: Provided, That such
    majority have, during such representative period, produced for
    market more than 50 per centum of the volume of such commodity
    produced for market within the production area specified in such
    marketing agreement or order, or have, during such representative
    period, produced more than 50 per centum of the volume of such
    commodity sold in the marketing area specified in such marketing
    agreement or order, but such termination shall be effective only if
    announced on or before such date (prior to the end of the then
    current marketing period) as may be specified in such marketing
    agreement or order.
      (C) Except as otherwise provided in this subsection with respect
    to the termination of an order issued under this section, the
    termination or suspension of any order or amendment thereto or
    provision thereof, shall not be considered an order within the
    meaning of this section.
    (17) Provisions applicable to amendments
      (A) Applicability to amendments
        The provisions of this section and section 608d of this title
      applicable to orders shall be applicable to amendments to orders.
      (B) Supplemental rules of practice
        (i) In general
          Not later than 60 days after the date of enactment of this
        subparagraph, the Secretary shall issue, using informal
        rulemaking, supplemental rules of practice to define guidelines
        and timeframes for the rulemaking process relating to
        amendments to orders.
        (ii) Issues
          At a minimum, the supplemental rules of practice shall
        establish - 
            (I) proposal submission requirements;
            (II) pre-hearing information session specifications;
            (III) written testimony and data request requirements;
            (IV) public participation timeframes; and
            (V) electronic document submission standards.
        (iii) Effective date
          The supplemental rules of practice shall take effect not
        later than 120 days after the date of enactment of this
        subparagraph, as determined by the Secretary.
      (C) Hearing timeframes
        (i) In general
          Not more than 30 days after the receipt of a proposal for an
        amendment hearing regarding a milk marketing order, the
        Secretary shall - 
            (I) issue a notice providing an action plan and expected
          timeframes for completion of the hearing not more than 120
          days after the date of the issuance of the notice;
            (II)(aa) issue a request for additional information to be
          used by the Secretary in making a determination regarding the
          proposal; and
            (bb) if the additional information is not provided to the
          Secretary within the timeframe requested by the Secretary,
          issue a denial of the request; or
            (III) issue a denial of the request.
        (ii) Requirement
          A post-hearing brief may be filed under this paragraph not
        later than 60 days after the date of an amendment hearing
        regarding a milk marketing order.
        (iii) Recommended decisions
          A recommended decision on a proposed amendment to an order
        shall be issued not later than 90 days after the deadline for
        the submission of post-hearing briefs.
        (iv) Final decisions
          A final decision on a proposed amendment to an order shall be
        issued not later than 60 days after the deadline for submission
        of comments and exceptions to the recommended decision issued
        under clause (iii).
      (D) Industry assessments
        If the Secretary determines it is necessary to improve or
      expedite rulemaking under this subsection, the Secretary may
      impose an assessment on the affected industry to supplement
      appropriated funds for the procurement of service providers, such
      as court reporters.
      (E) Use of informal rulemaking
        The Secretary may use rulemaking under section 553 of title 5
      to amend orders, other than provisions of orders that directly
      affect milk prices.
      (F) Avoiding duplication
        The Secretary shall not be required to hold a hearing on any
      amendment proposed to be made to a milk marketing order in
      response to an application for a hearing on the proposed
      amendment if - 
          (i) the application requesting the hearing is received by the
        Secretary not later than 90 days after the date on which the
        Secretary has announced the decision on a previously proposed
        amendment to that order; and
          (ii) the 2 proposed amendments are essentially the same, as
        determined by the Secretary.
      (G) Monthly feed and fuel costs for make allowances
        As part of any hearing to adjust make allowances under
      marketing orders commencing prior to September 30, 2012, the
      Secretary shall - 
          (i) determine the average monthly prices of feed and fuel
        incurred by dairy producers in the relevant marketing area;
          (ii) consider the most recent monthly feed and fuel price
        data available; and
          (iii) consider those prices in determining whether or not to
        adjust make allowances.
    (18) Milk prices
      The Secretary of Agriculture, prior to prescribing any term in
    any marketing agreement or order, or amendment thereto, relating to
    milk or its products, if such term is to fix minimum prices to be
    paid to producers or associations of producers, or prior to
    modifying the price fixed in any such term, shall ascertain the
    parity prices of such commodities. The prices which it is declared
    to be the policy of Congress to establish in section 602 of this
    title shall, for the purposes of such agreement, order, or
    amendment, be adjusted to reflect the price of feeds, the available
    supplies of feeds, and other economic conditions which affect
    market supply and demand for milk or its products in the marketing
    area to which the contemplated marketing agreement, order, or
    amendment relates. Whenever the Secretary finds, upon the basis of
    the evidence adduced at the hearing required by section 608b of
    this title or this section, as the case may be, that the parity
    prices of such commodities are not reasonable in view of the price
    of feeds, the available supplies of feeds, and other economic
    conditions which affect market supply and demand for milk and its
    products in the marketing area to which the contemplated agreement,
    order, or amendment relates, he shall fix such prices as he finds
    will reflect such factors, insure a sufficient quantity of pure and
    wholesome milk, and be in the public interest. Thereafter, as the
    Secretary finds necessary on account of changed circumstances, he
    shall, after due notice and opportunity for hearing, make
    adjustments in such prices.
    (19) Producer referendum
      For the purpose of ascertaining whether the issuance of an order
    is approved or favored by producers or processors, as required
    under the applicable provisions of this chapter, the Secretary may
    conduct a referendum among producers or processors and in the case
    of an order other than an amendatory order shall do so. The
    requirements of approval or favor under any such provision shall be
    held to be complied with if, of the total number of producers or
    processors, or the total volume of production, as the case may be,
    represented in such referendum, the percentage approving or
    favoring is equal to or in excess of the percentage required under
    such provision. The terms and conditions of the proposed order
    shall be described by the Secretary in the ballot used in the
    conduct of the referendum. The nature, content, or extent of such
    description shall not be a basis for attacking the legality of the
    order or any action relating thereto. Nothing in this subsection
    shall be construed as limiting representation by cooperative
    associations as provided in subsection (12) of this section. For
    the purpose of ascertaining whether the issuance of an order
    applicable to pears for canning or freezing is approved or favored
    by producers as required under the applicable provisions of this
    chapter, the Secretary shall conduct a referendum among producers
    in each State in which pears for canning or freezing are proposed
    to be included within the provisions of such marketing order and
    the requirements of approval or favor under any such provisions
    applicable to pears for canning or freezing shall be held to be
    complied with if, of the total number of producers, or the total
    volume of production, as the case may be, represented in such
    referendum, the percentage approving or favoring is equal to or in
    excess of 66 2/3  per centum except that in the event that pear
    producers in any State fail to approve or favor the issuance of any
    such marketing order, it shall not be made effective in such State.