Cooperative Information Report 26
July 1980
Reviewed and Approved for Reprinting February 1988
Cooperative Farm Bargaining and Price Negotiations
I. The Need for Farm Bargaining
Overcoming Weaknesses
Farm Bargaining and Changes in the
Market Structure
II. The Legal Background for Cooperative Farm Bargaining
The Sherman Act (1890)
The Capper-Volstead Act (1922)
Farm Bargaining Compared to Labor
Unions
Court Actions
The Agricultural Fair Practices Act
(1967)
State Legislation
Future Legislation
III. The History of Farm Bargaining
The 1920's
After World War II
Milk Bargaining
Fruit and Vegetable Bargaining
National Farmers Organization
American Farm Bureau
Broilers and the AAMA
A Half Century of Progress
IV. How Farm Bargaining Works
Opportunities and Limitations
Common Characteristics
Philosophy
Bargaining Power
The Individual Farmer's Weaknesses
Growth in Spite of Fears
Association Goals
V. Types of Bargaining Associations
Marketing Type
Bargaining or Sales Agent
Exclusive Representative in
Collective Bargaining
Market Service Association
Exclusive Agency Bargaining
VI. Why and How Bargaining Associations Are Organized
Below Cost of Production Prices
Adverse Terms of Trade
The Arrogant Buyer
Farmers Must Take the Initiative
Advantages to Food Companies
Four Essential Considerations
A Typical Organizing Effort
Financing
VII. Managing and Operating a Farm Bargaining Association
The Manager
Selecting a Board
Responsibilities
Board-Manager Relations
The Manager's Role
Member Communications
Meetings
Personal Contact
VIII. Bargaining: Planning, Strategy, and Tactics
The Bargaining and Negotiating
Process
Establishing Goals
Members Provide the Bargaining Power
Preparation and Fact Finding
Who Should Negotiate
Planning Strategy
What People Strive For
The Bottom Line
Values Will Not Change
Maximizing the Negotiation Effort
Negotiating
Power
Mediation and Arbitration
Operating Cooperatives
Final Decision Making
IX. The Future of Farm Bargaining
Appendixes:
A. Sample Cooperative Membership and Marketing Agreements
C. Agricultural Fair Practices Act of 1967
D. Proposed National Agricultural Bargaining Act of 1979
E. Agricultural Marketing Legislation in Ontario