Understanding the Agricultural Commodity Cooperator: Legal Insights

Definition & Meaning

An agricultural commodity cooperator is a farmer whose planted acreage for a specific agricultural commodity does not exceed the designated farm acreage allotment. This term is primarily associated with the Agricultural Adjustment Act of 1938 and its amendments. To qualify as a cooperator, a producer must adhere to specific eligibility conditions set by the Secretary of Agriculture, particularly regarding crops like upland cotton, rice, corn, and wheat. The aim of this designation is to regulate production levels and ensure fair pricing for agricultural products.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A farmer growing upland cotton has a farm acreage allotment of 100 acres. To qualify as a cooperator, they must plant no more than 87.5 acres of cotton, as specified for the crop year.

Example 2: A rice producer with a designated acreage allotment must ensure they meet set-aside requirements to maintain their status as a cooperator and receive price support. (hypothetical example)

State-by-state differences

State Key Differences
California Specific regulations for rice production may vary.
Texas Different eligibility criteria for cotton producers.
Iowa Unique provisions for corn producers based on local agricultural practices.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Difference
Producer A person or entity that grows agricultural products. All cooperators are producers, but not all producers are cooperators.
Acreage Allotment The maximum area designated for planting a specific crop. Cooperators must adhere to these allotments to qualify.

What to do if this term applies to you

If you believe you qualify as an agricultural commodity cooperator, ensure you understand the specific acreage limits and eligibility requirements for your crop. You can use US Legal Forms to access templates and resources to assist you in compliance. If your situation is complex or uncertain, consulting a legal professional is advisable.

Quick facts

  • Typical fees: Varies based on state and specific programs.
  • Jurisdiction: Federal and state agricultural regulations.
  • Possible penalties: Loss of price support or fines for exceeding allotments.

Key takeaways

Frequently asked questions

If you knowingly exceed your allotment, you may lose eligibility for price support and face penalties.