The Capper-Volstead Act 

(Public-No. 146-67th Congress) 

An Act to Authorize Association of Producers of Agricultural Products 

Be it enacted by the Senate and House of Representatives of the United States of America 

in Congress assembled, That persons engaged in the production of agricultural products 

as farmers, planters, ranchmen, dairymen, nut or fruit growers may act together in 

associations, corporate or otherwise, with or without capital stock, in collectively processing, 

preparing for market, handling, and marketing in interstate and foreign commerce, 

such products of persons so engaged. Such associations may have marketing 

agencies in common; and such associations and their members may make the necessary 

contracts and agreements to effect such purposes: Provided, however, That such associations 

are operated for the mutual benefit of the members thereof, as such producers, 

and conform to one or both of the following requirements: 

First. That no member of the association is allowed more than one vote because of the 

amount of stock or membership capital he may own therein, or, 

Second. That the association does not pay dividends on stock or membership capital in 

excess of 8 per centum per annum. 

And in any case to the following: 

Third. That the association shall not deal in the products of nonmembers to an amount 

greater in value than such as are handled by it for members. 

Sec. 2. That if the Secretary of Agriculture shall have reason to believe that any such 

association monopolizes or restrains trade in interstate or foreign commerce to such an 

extent that the price of any agricultural product is unduly enhanced by reason thereof, 

he shall serve upon such association a complaint stating his charge in that respect, to 

which complaint shall be attached or contained therein, a notice of hearing, specifying a 

day and place not less than thirty days after the service thereof, requiring the association 

to show cause why an order should not be made directing it to cease and desist from 

monopolization or restraint of trade. An association so complained of may at the time 

and place so fixed show cause why such order should not be entered. The evidence given 

on such a hearing shall be taken under such rules and regulations as the Secretary of 

Agriculture may prescribe, reduced to writing and made a part of the record therein. If 

upon such hearing the Secretary of Agriculture shall be of the opinion that such association 

monopolizes or restrains trade in interstate or foreign commerce to such an extent 

that the price of any agricultural produce is unduly enhanced thereby, he shall issue and 

cause to be served upon the association an order reciting the facts found by him, directing 

such association to cease and desist from monopolization or restraint of trade. On the 

request of such association or if such association fails or neglects for thirty days to obey 

such order, the Secretary of Agriculture shall file in the district court in the judicial district 

in which such association has its principal place of business a certified copy of the 

order and of all the records in the proceeding, together with a petition asking that the 

order be enforced, and shall give notice to the Attorney General and to said association 

of such filing. Such district court shall thereupon have jurisdiction to enter a decree 
affirming, modifying, or setting aside said order, or enter such other decree as the court 

may deem equitable, and may make rules as to pleadings and proceedings to be had in 

considering such order. The place of trial may.; for cause or by consent of parties, be 

changed as in other causes. 

The facts found by the Secretary of Agriculture and recited or set forth in said order shall 

be prima facie evidence of such facts, but either party may adduce additional evidence. 

The Department of Justice shall have charge of the enforcement of such order. After the 

order is so filed in such district court and while pending for review therein the court may 

issue a temporary writ of injunction forbidding such association from violating such order 

or any part thereof. The court may, upon conclusion of its hearing, enforce its decree 

by a permanent injunction forbidding such association from violating such order or any 

part thereof. The court may, upon conclusion of its hearing, enforce its decree by a permanent 

injunction or other appropriate remedy. Service of such complaint and of all 

notices may be made upon such association by service upon any officer or agent thereof 

engaged in carrying on its business, or any attorney authorized to appear in such 

proceeding for such association, and such service shall be binding upon such association, 

the officers, and members thereof. 

Approved, February 18, 1922. (42 Stat. 388) 7 U.S.C.A., 291-192