Mad cow disease — The common term used for bovine spongiform encephalopathy (BSE).
Major land resource area (MLRA) — Major land resource areas are geographically associated land resource units delineated by the Natural Resources Conservation Service and characterized by a particular pattern that combines soils, water, climate, vegetation, land use, and type of farming. There are 204 MLRAs in the United States, ranging in size from less than 500,000 acres to more than 60 million acres.
Make allowance (or milk manufacturing marketing adjustment) — The margin between the government support price for milk and the CCC’s purchase price for butter, nonfat dry milk, and cheese. This margin is administratively set to cover the costs of "making" milk into butter, nonfat dry milk, or cheese to reach the desired level of prices for milk in manufacturing uses.
Mandatory price reporting — Currently, packers and processors are not required to report the prices they pay for the animals they buy from producers or the terms of sale. Rather, daily sales and price information is collected by AMS from companies on a voluntary basis. AMS reporters also attend live cash market sales (auctions) to collect price information. However, as more and more animals are sold under formula pricing, other contract, or captive supply arrangements, the open cash markets have become less helpful as benchmarks of prices being paid. Some producers believe that such arrangements also enable packers to more easily conceal potential anti-competitive practices, and argue that more transparency (i.e., more readily and widely available price and sales information) is needed in livestock markets. This has led to various legislative proposals for mandatory price reporting. Although the proposals have differed, most essentially would require packers to report, immediately and publicly, the prices they paid for animals, and the terms of the sale.
MAP — Market Access Program.
MARAD — Maritime Administration.
Margin — The amount of money or collateral deposited by a customer with a broker, by a broker with a clearing member, or by a clearing member with the clearinghouse, for the purpose of insuring against loss on open futures contracts. The margin is not partial payment on a purchase. (1) Initial margin is the total amount of margin per contract required by the broker when a futures position is opened; (2) maintenance margin is a sum that must be maintained on deposit at all times. If the equity in a customer’s account drops to, or under, the level because of adverse price movement, the broker must issue a margin call to restore the customer’s equity. Sometimes called a performance bond.
Margin call — (1) A request from a brokerage firm to a customer to bring margin deposits up to initial levels; (2) a request by the clearinghouse to a clearing member to make a deposit of original margin, or a daily or intra-day variation payment, because of adverse price movement, based on positions carried by the clearing member.
Mariculture — The form of aquaculture where fish, shellfish, or aquatic plants are cultured in a salt water environment.
Market Access Program (MAP) — MAP, previously called the Market Promotion Program, is administered by the Foreign Agricultural Service and uses funds from the Commodity Credit Corporation. It helps producers, exporters, private companies, and other trade organizations finance promotional activities for U.S. agricultural products. MAP is designed to encourage development, maintenance, and expansion of commercial agricultural export markets. Activities financed include consumer promotions, market research, technical assistance, and trade servicing. The Export Incentive Program, which is part of MAP, helps U.S. commercial entities conduct brand promotion activities including advertising, trade shows, in-store demonstrations, and trade seminars. MAP is authorized in Section 244 of the FAIR Act of 1996. The program promotes exports of specific U.S. commodities or products in specific markets. Under MAP, program participants are reimbursed for their expenses in carrying out approved promotional activities. Participating organizations include nonprofit trade associations, state regional trade groups, and private companies. Funding authority is limited to $90 million annually for fiscal years 1996-2002.
Market allocation — A quantity provision in a fruit or vegetable marketing order specifying the maximum amount of the regulated commodity that can be sold for a given use or market (such as the domestic fresh market).
Market basket — Average quantities of consumables, including U.S. farm foods, purchased per household for a given base period, used to compute an index of retail prices.
Market loss payments — Term used in the Omnibus Consolidated and Emergency Appropriations Act, FY1999 (P.L. 105-277, October 21, 1998), to describe the one-time $3.1 billion in emergency income support payments authorized for eligible grain, cotton, and dairy farmers. The act states that such funds are to compensate farmers for the loss of 1998 income caused by "regional economic dislocation, unilateral trade sanctions, and the failure of the government to pursue trade opportunities aggressively."
Market price — The price per bushel (or pound or hundredweight) of an agricultural commodity paid in the private sector. It can sometimes refer to the price paid at domestic seaports or large inland terminal markets (such as daily cash prices listed in newspapers) and sometimes refers to the farm price.
Market Promotion Program (MPP) — An export promotion program authorized by the FACT Act of 1990 that replaced the Targeted Export Assistance (TEA) program authorized by the Food Security Act of 1985. The MPP was renamed the Market Access Program (MAP) under the FAIR Act of 1996.
Market structure — Characteristics of an industry that relate to its economic performance, such as the number of buyers and sellers, product differentiation among firms, barriers to entry, costs, degree of integration, and diversification.
Market transition payments — Referred to variously as AMTA payments, contract payments, or production flexibility contract payments made to farmers under Title I (the Agriculture Market Transition Act (AMTA)) of the FAIR Act of 1996.
Marketing assessments — Producers and first purchasers of some supported commodities are required to pay an assessment as a contribution toward achieving budget deficit reduction targets. Under the FAIR Act of 1996, assessments are imposed on sugar processors and on producers and first buyers of peanuts. Tobacco also is subject to deficit reduction assessments. The FAIR Act of 1996 eliminated the milk marketing assessment.
Marketing assistance loans — Nonrecourse loans made available to producers of wheat, feed grains, upland and ELS cotton, rice, soybeans, and minor oilseeds under the Agricultural Market Transition Act provisions in the FAIR Act of 1996. The new law largely continues the commodity loan programs as they were under previous law. Loan rate caps are specified in the law. Marketing loan repayment provisions apply should market prices drop below the loan rates. For farmers who forego the use of marketing assistance loans, loan deficiency payment rules apply.
Marketing certificate — A certificate that may be redeemed for a specified amount of CCC-owned commodities. The certificates may be generic or for a specific commodity.
Marketing contract — Prices (or pricing mechanisms) are established for a commodity before harvest or before the commodity is ready for marketing. Most management decisions remain with the grower, who retains ownership of both production inputs and output until delivery. The farmer assumes the risks of production but shares price risks with the contractor. Marketing contracts are commonly used for crops and not livestock. According to the USDA, about 40% of the value of all fruits and vegetables produced in 1997 were under marketing contracts. Marketing contract shares for selected other commodities were: sugar beets, 82%; milk, 60%; cotton, 33%; cattle, 10%; soybeans, 9.4%; corn, 8%. See production contract.
Marketing loan repayment provisions — A loan settlement provision, first authorized by the Food Security Act of 1985, that allows producers to repay nonrecourse loans at less than the announced loan rates whenever the world price or loan repayment rate for the commodity is less than the loan rate. Marketing loan provisions became mandatory for soybeans and other oilseeds, upland cotton, and rice and were permitted for wheat, feed grains, and honey under amendments made by the FACT Act of 1990. The FAIR Act of 1996 retains the marketing loan provisions for feed grains, wheat, rice, upland cotton, and oilseeds.
Marketing year — The 12-month period, generally from the beginning of a new harvest, over which a crop is marketed. For example, for wool, mohair, and Hawaiian sugarcane, the marketing year is January 1-December 31; for honey, it is April 1-March 31; for wheat, barley, and oats, it is June 1-May 31; for flue-cured tobacco, it is July 1-June 30; for cotton, peanuts, and rice, it is August 1-July 31; for sugar beets, it is September 1-August 31; for corn, sorghum, soybeans, mainland sugarcane, all tobacco but flue-cured, and milk, it is October 1-September 30. The crop marketing year beginning and ending dates are published by NASS in the Agricultural Prices annual summary. In contrast, the crop year is the calendar year of production.
Marketing orders and agreements — Orders and agreements (authorized by the Agricultural Marketing Agreement Act of 1937, as amended) allow producers to promote orderly marketing through collectively influencing the supply, demand, or price of a particular commodity so as to create orderly marketing. Research and promotion can be financed with pooled funds. Once approved by a required number of a commodity’s producers—usually two-thirds—the marketing order is binding on all handlers of the commodity within the geographic area of regulation. It may limit the quantity of goods marketed, or establish the grade, size, maturity, or quality of the goods. Marketing orders have been established for milk, fruits, vegetables, and other commodities. Marketing agreements may contain more diversified provisions, but are enforceable only against those handlers who enter into the agreement. An order can be terminated when a majority of all producers favor its termination or when USDA determines that the order no longer serves its intended purpose. See market allocation, orderly marketing, prorate, reserve pool, shipping holiday, and specialty crops.
Marketing quotas (or allotments) — Authorized by the Agricultural Adjustment Act of 1938, these quotas (sometimes called poundage quotas) limit marketings of certain commodities. The marketing quota, which must be approved by at least two-thirds of the eligible producers voting in a referendum, is intended to ensure an adequate and normal supply of the commodity, and ensure that production and supplies are not excessive. Growers who market in excess of their quotas pay penalties on the "excess" and are ineligible for government price-support loans. Quotas have been suspended for wheat, feed grains, and cotton since the 1960s. Rice quotas were abolished in 1981. Marketing quotas still are used in conjunction with the tobacco program and the peanut program. The authority for standby marketing allotments for domestically produced sugar and crystalline fructose mandated by the FACT Act of 1990 was eliminated by the FAIR Act of 1996.
Marketing spread — See farm to retail price spread.
Maximum tolerated dose (MTD) — Loosely, the highest
dose of a chemical that when administered to a group of test animals does
not increase the death rate during a long-term study. The purpose of administering
MTD is to determine whether long-term exposure to a chemical might lead
to any adverse health effects in a population, when the level of exposure
is not sufficient to cause premature mortality due to short-term toxic
effects. The maximum dose is used, rather than a lower dose, to reduce
the number of animals that need to be tested (and thus, the cost of animal
testing), in order to detect an effect that occurs only rarely. This analysis
is used in establishing chemical residue tolerances in foods.
mbf — Thousand board feet of timber or lumber.
MBTA — Migratory Bird Treaty Act.
McIntire-Stennis Act of 1962 — P.L. 87-788 (October 10, 1962) makes funding available to the state agricultural experiment stations and to forestry schools and programs at the land grant colleges of agriculture for forestry research. The research covers such areas as reforestation, woodlands and related watershed management, outdoor recreation, wildlife habitats and wood utilization. Many of the research projects are performed cooperatively with scientists at the laboratories of the Forest Service. McIntire-Stennis funds are distributed by a formula that allocates $10,000 to each state, with 40% of the remainder being distributed according to a state’s share of the nation’s total commercial forest land, 40% according to the value of its timber cut annually, and 20% according to its state appropriation for forestry research.
MDM — Mechanically deboned meat.
Medfly — A shortened name for the Mediterranean fruit fly, a destructive pest of fruits and vegetables that is found throughout most of Central America. The Animal and Plant Health Inspection Service is involved in programs to keep the Medfly from spreading north into Mexico, where it could easily enter the United States on imported winter fruits and vegetables. Eradication efforts in California, Florida and Texas have prevented infestations from becoming established. Hawaii is infested with the Medfly and no eradication efforts currently are under way. Travelers returning to the continental United States from Hawaii or a foreign country are prohibited from bringing into the country fresh fruits, meats, plants, birds, and plant and animal products that may harbor pests or diseases.
Mega-reg — A term meaning a large set of regulations that some have used to describe the extensive new rules issued by USDA in July 1996 that are aimed at controlling pathogens in meat and poultry products, including mandatory hazard analysis and critical control point (HACCP) plans.
Memorandum of agreement (MOA) — An agreement between federal agencies, or divisions/units within an agency or department, or between federal and state agencies, which delineate tasks, jurisdiction, standard operating procedures or other matters which the agencies or units are duly authorized and directed to conduct. Sometimes referred to as a memorandum of understanding (MOU).
Mercado Commun del Sur (MERCOSUR) — A customs union between Argentina, Brazil, Paraguay, and Uruguay, which came into effect on January 1, 1995. Chile and Bolivia have become associate members.
Merchant Marine Act of 1920 — P.L. 66-261, also known as the Jones Act, provides for the promotion and maintenance of a U.S. merchant marine. Provisions dealing with cabotage (i.e., coastal shipping) require that all goods transported by water between U.S. ports be carried in U.S.-flag ships, constructed in the United States, owned by U.S. citizens, and crewed wholly by U.S. citizens. In addition, amendments to the Jones Act, known as the Cargo Preference Act, provide permanent legislation for the transportation of waterborne cargoes in U.S.-flag vessels.
MERCOSUR — Mercado Commun del Sur (Southern Cone Common Market).
Methane — A gas created by anaerobic decomposition of organic compounds. Natural gas is composed mostly of methane. Methane is a so-called greenhouse gas (see greenhouse effect). Agricultural wastes, especially animal wastes, are a major source of methane releases to the atmosphere.
Methanol — A liquid alcohol (also known as methyl alcohol or wood alcohol), formed in the destructive distillation of wood or made synthetically, and used especially as an alternative fuel, a gasoline additive, a solvent, an antifreeze, or a denaturant for ethyl alcohol. As a gasoline additive it lowers the carbon monoxide emissions but increases hydrocarbon emissions.
Methyl bromide — A fumigant used for soil treatment, to control pests in postharvest storage, for killing pests on fruits, vegetables, and grain going into export trade, for plant quarantine treatment, and for fumigation of buildings. Because methyl bromide contributes to depletion of stratospheric ozone, it is subject to phase out requirements of the 1987 Montreal Protocol on Ozone Depleting Substances and of the Clean Air Act (CAA). The Montreal Protocol and Vienna Adjustments require a complete phase out in industrialized countries by the year 2010, and a future freeze in developing country use. A 1998 amendment (P.L. 105-178, Title VI) conformed the Clean Air Act phase out date with that of the Montreal Protocol. All methyl bromide regulations so far exempt quarantine and pre-shipment treatment of agricultural commodities; however, this exemption is being reevaluated after completion of additional scientific assessments. Methyl bromide is regulated as a pesticide under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), as a hazardous substance under the Resource Conservation and Recovery Act (RCRA), and is subject to reporting requirements under the Emergency Planning and Community Right to Know Act (EPCRA).
Metric ton — Usually abbreviated mt. or MT, a metric ton is 2,204.62 pounds, compared to a short ton of 2,000 pounds. Generally, international agricultural trade data are cited in metric tons.
MFN — Most-favored-nation.
MIF — Milk Industry Foundation.
Migratory Bird Treaty Act of 1918 — P.L. 65-186 (July 3, 1918), as amended, regulates the taking of wild birds and implements the provisions of four different bilateral treaties for bird conservation (with Canada, Mexico, Japan, and Russia). Very few of its provisions affect farmers more than any other citizen, save when bird populations become pests. The act and the associated treaties allow taking of birds to prevent serious injury "to the agricultural or other interests in any particular community." As implemented, the practice has been to use non-lethal methods where possible, especially for native species. The control of bird pests is managed by the Animal and Plant Health Inspection Service.
Milk equivalent — A measure of the quantity of fluid milk used in a processed dairy product, usually expressed on a milkfat basis. For example, one pound of cheese is the equivalent of 9.88 pounds of milk.
Milk-feed price ratio — A measure of the value of 16% protein ration (feed) to one pound of whole milk. As with the hog-corn ratio, this relationship is an indicator of the profitability of milk production.
Milk marketing orders — Administered by the Agricultural Marketing Service, federal milk marketing orders were first instituted in the 1930s to promote orderly marketing conditions by, among other things, applying a uniform system of classified pricing throughout the farm milk market. Federal milk marketing orders regulate handlers that sell milk or milk products within an order region, by requiring them to pay not less than an established minimum price for the Grade A milk they purchase from dairy producers, depending on how the milk is used. This classified pricing system requires handlers to pay a higher price for milk used for fluid consumption (Class I) than for milk used in manufactured dairy products such as yogurt, ice cream, cheese, butter and nonfat dry milk (Class II, Class III and Class III-A products). The FAIR Act of 1996 requires USDA to consolidate the number of federal milk marketing orders into 10 to 14 regions, down from 32, by 1999.
Minnesota-Wisconsin price (M-W price) — A component of the basic formula price for farm milk used in federal milk marketing orders. It is a survey of the average price Minnesota and Wisconsin plants are paying farmers for Grade B milk to be used in processed dairy products.
Minimal nutritional value — Refers to foods that may not be sold in competition with the school lunch and breakfast programs. These are foods that USDA has determined contain little if any nutritional value. For example, sugar candy, soda pop without fruit juices, and chewing gum are considered to be foods of minimal nutritional value. Candy containing nuts or chocolate is considered to have some nutritional value.
Minimum access — In the Uruguay Round Agreement on Agriculture, countries are obliged to provide minimum levels of imports for products subject to tariffication. Access is assured by tariff-rate quotas.
Minimum tillage — The minimum soil manipulation necessary for crop production. Conservation tillage, reduced tillage, and no-till farming are related terms.
Minor crops — Crops that may be high in value but that are not widely grown. Many fruits, vegetables, and tree nuts come under this definition. The IR-4 program is one publicly funded program to help producers of minor crops with their unique problems.
Minor oilseeds — Oilseed crops other than soybeans and peanuts; usually a reference to the other oilseeds eligible for marketing assistance loans under the FAIR Act of 1996 (sunflower seed, canola, rapeseed, safflower, mustard seed, and flaxseed).
Mitigation bank, wetlands — A bank is created when wetlands at a site are restored, enhanced or created in advance of destruction of similar wetlands in nearby locations. The bank then sells "credits" in the bank to permit applicants under Section 404 who are required, as a permit condition, to offset the negative impacts their project will have on wetlands. Banks may be established by public entities or private enterprise. The FAIR Act of 1996 has a provision allowing USDA to establish a pilot banking program.
mmt — Million metric tons.
MOA — Memorandum of agreement.
Model Good Samaritan Food Donation Act — See Bill Emerson Good Samaritan Act of 1996.
Mohair Recourse Loan Program — A program authorized by the emergency provisions of the FY1999 USDA appropriations act (P.L. 105-277, October 21, 1998) that makes interest-free recourse loans of $2.00 per pound on mohair produced prior to October 1, 1998. Final date to obtain a loan is September 30, 1999. The producer-owned mohair used as loan security must be stored in approved bonded warehouses. Loans mature not later than 1 year following disbursement. The program is administered by the Farm Service Agency.
Monetization — A P.L. 480 provision added by the Food Security Act of 1985 that allows private voluntary organizations to sell a small percentage of donated P.L. 480 commodities within the recipient country. The currency generated by these sales can then be used for such purposes as defraying the cost of food distribution within the country.
Monoculture — A pattern of crop or tree production that relies on a single plant variety.
Montreal Protocol on Ozone Depleting Substances — An international agreement, to which the U.S. is a signatory, for controlling emissions of chemicals that deplete stratospheric ozone (including methyl bromide). The Clean Air Act Amendments of 1990 contain provisions for implementing the Montreal Protocol, as well as explicit, separate authority for the Environmental Protection Agency to regulate ozone depleting chemicals.
Morbidity — Rate of disease incidence; an important measure in epidemiological studies.
Morrill Act of 1862 — Enacted July 2, 1862 (chapter 130, 12 Stat. 503), this law allocated federal land to each state and directed the states to sell the land and use the proceeds to establish a college dedicated to the agricultural and mechanical arts. States without federal lands within their borders received land in scrip, giving them the right to sell federal land located in other states. The act resulted in the establishment of the land grant colleges of agriculture. The purpose of the Act was not only to improve the economic and social welfare of farmers, but also to make higher education with a practical application generally available to all segments of U.S. society. The Act pertained only to the original establishment of the colleges of agriculture, and is not an authority under which the colleges currently receive federal funds.
Morrill Act of 1890 — Enacted August 30, 1890 (chapter 841, 26 Stat. 417), this law authorized additional direct appropriations for the land grant colleges of agriculture that had been established under the Morrill Act of 1862. The most significant feature of the second Morrill Act was that the 1862 schools could receive the additional funds only if they admitted blacks into their programs or if they provided separate but equal agricultural higher education to black students. In the period following the Civil War, sixteen southern states established separate land grant colleges of agriculture for black students under this Act; Congress designated Tuskegee University an 1890 institution at a later date. Federal funds for research and extension at the 1890 schools are provided under subsequent acts, not the second Morrill Act.
Most-favored-nation treatment (MFN) — A commitment that a country will extend to another country the lowest tariff rates it applies to any third country. MFN is a basic principle of the General Agreement on Tariffs and Trade (GATT) (1947). Almost all countries are effectively accorded permanent MFN status by the United States. However, Title IV of the Trade Act of 1974 established conditions on U.S. MFN tariff treatment to certain non-market economies, one of which is certain freedom-of-emigration requirements (better known as the Jackson-Vanik amendment). The Act authorizes the President to waive a country’s full compliance with Jackson-Vanik under specified conditions, and this must be renewed by June 3 of each year. Once the President does so, the waiver is automatic unless Congress passes (and sustains a Presidential veto of) a disapproval resolution. MFN status for China, which had been originally suspended in 1951, was restored in 1980 and has been continued in effect through subsequent annual Presidential extensions. Since the Tiananmen Square incident in 1989, however, the annual renewal of China’s MFN status has been a source of considerable debate in the Congress. Several Members have sought through legislation to terminate China’s MFN status or to impose additional conditions relating to improvements in China’s actions on various trade and nontrade issues. Agricultural interests generally have opposed attempts to block MFN renewal for China, contending that several billion dollars annually in current and future U.S. agricultural exports could be jeopardized if that country retaliated.
MOU — Memorandum of understanding (see memorandum of agreement).
MPP — Market Promotion Program.
MRL — Maximum-residue limit (see registration and pesticide).
MTD — Maximum tolerated dose.
MTN — Multilateral trade negotiations.
Mulch — A natural or artificial layer of plant residue or other material on the soil surface. Mulch reduces erosion, conserves soil moisture, inhibits weed growth, and can provide the soil with organic matter as it breaks down. Mulch till prepares the soil so as to leave plant residues (or other mulching materials) on or near the surface.
Multilateral agreement — A trade agreement involving three or more countries (as with the World Trade Organization) in contrast to a bilateral agreement (as with the US-Canada Free Trade agreement) involving only two countries.
Multilateral trade negotiations (MTN) — Negotiations between General Agreement on Tariffs and Trade (GATT) member nations that are conducted under the auspices of the GATT and that are aimed at reducing tariff and nontariff trade barriers. The World Trade Organization has now replaced the GATT as the administrative body.
Multiple basing points — A method of regional pricing in milk marketing orders that would allow more than one basing point, or "surplus area," to be used. Surplus areas are administratively defined as areas with low Class I utilization, meaning that a relatively small percentage of the milk produced in an area is used in that area as Class I (fluid) milk. In a multiple basing point system, the order used as the basing point has the smallest Class I differential (the difference between the Class I price and the Class III price). The Class I differential for other orders is then based on transportation costs to the nearest basing point plus the minimum differential.
Multiple component pricing — The practice of valuing farm milk according to the value of its protein, fat, and mineral content. This practice has been adopted by many regions for federal milk marketing orders. Historically, milk was priced solely on the basis of fat content.
Multiple use — According to the Multiple Use and Sustained Yield Act of 1960 (P.L. 86-517, June 12, 1960), as amended, multiple use of the national forests means the "harmonious and coordinated management of the various resources, each with the other, without impairment of the productivity of the land, with consideration being given to the relative values of the various resources, and not necessarily the combination of uses that will give the greatest dollar return or the greatest unit output." Multiple use implies a sustained yield of outdoor recreation, range, timber, watershed, and wildlife and fish values.
MUSY — Multiple Use and Sustained Yield Act of 1960 (P.L. 86-517, June 12, 1960).
Mutagen — An agent that causes a permanent genetic change in a cell other than that which occurs during normal growth. Testing to determine mutagenicity is one component of assessing the potential chronic toxicity of pesticides and other chemicals.
Mutual self-help housing — A program to assist groups of low-income families in building their own homes. Each family is expected to contribute at least 700 hours of labor in building homes for each other. Participating families generally have low income and are unable to pay for homes built by the contract method. The homes are generally financed by Section 502 loans.
Mycotoxins — Toxic substances produced by fungi or molds on agricultural crops that may cause sickness in animals or humans that eat feed or food made from contaminated crops. There are between 300 and 400 known mycotoxins, but of most concern, based on toxicity and occurrence, are aflatoxin, vomitoxin, zearalenone, funonisin, T-2 toxin, and T-2-like toxins (trichothecenes). GIPSA currently measures for aflatoxin in all exports shipments of corn, and measures for aflatoxin and vomitoxin on a voluntary basis in domestic shipments.