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Prior
to 1995 Oregon perennial ryegrass seed growers had historically
been “price takers,” having little influence on the
price they received for the perennial ryegrass seed crop they grew
under various seed production agreements for the Oregon seed dealers.
Congress passed the Capper-Volstead Act in 1922 to allow growers
to form cooperatives and collectively pool their products to negotiate
with buyers.
The Capper-Volstead Act, signed into law on February 18, 1922 by
President Warren Harding, has been called the "Magna Carta"
of cooperatives in the agriculture industry, and the act has played
and continues to play a vital role in enabling producers to collaborate,
while providing legal protection from antitrust laws.
The system of negotiating the price for members of the PRBA for
the crop
years 1995 through 2000, was by negotiating with the individual
seed dealers. Because of antitrust implications, grower Bargaining
Associations had to negotiate with buyers individually — antitrust
laws prevented more than one buyer jointly meeting together with
growers to discuss prices — this became price collusion.
The only way around this situation was to have a state supervised
price negotiation process. House Bill 3811, signed into law by the
Governor on May 16, 2001, created the authority for this process
in Oregon, but only for one segment of Oregon agriculture at this
time -- proprietary perennial ryegrass being produced by members
of the PRBA for the various seed dealers in Oregon.
HB 3811 allowed the grass seed dealers to elect a negotiating committee
to meet with the Perennial Ryegrass Bargaining Association (PRBA),
under the direct supervision of the Oregon Department of Agriculture,
to negotiate seed prices for
proprietary seed production meeting TournamenT® Quality Standards.
The first meeting of the Bargaining Council was on May 17, 2001.
This
meeting was called by the Oregon Department of Agriculture resulting
from legislation passed by the 2001 legislative session and signed
by the Governor in May 2001. For additional information on the process
and development of the PRBA members and seed dealer bargaining process
in the Bargaining Council, refer to the following.
Contracts and pricing
Bargaining Council Rules
Minutes of Bargaining Council meeting on
2004 price
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Press
Release
12/15/04
Dept.
of Agriculture Advisory Document on Grass Seed Contracts
Testimony by Dept. of Agriculture on House
Bill 3811
(April 25, 2001)
Price
Negotiations --Historical Development in Oregon Agriculture
House
Bill 3811 -- Relating to Agricultural Cooreratives
Implements
Supervised Price Bargaining Process for TournamenT® Quality
perennial ryegrass
Minutes:
August Minutes
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