PPP is under the provision of the Agricultural Marketing Program Act AMPA . Summary The Price Pooling Program is a market development program designed to assist and encourage cooperative marketing of eligible agricultural products, including processed products. The program provides for initial payment to producers for products delivered to the pool. It also covers eligible costs incurred by the agency for products sold under a cooperative plan. The program provides a price guarantee that protects the marketing agencies and its producers against unanticipated declines in the market price of their products.
Producers can benefit from the program through six marketing agencies currently administrating it.
The program would also be open to existing or newly developed marketing agencies. The agreement provides for a price guarantee for products sold, allows the marketing agency to make an initial payment to the producers for products delivered and covers eligible storing, processing, carrying and selling costs of the marketing agency, to a fixed maximum. The price guarantee is set at a percentage of the expected average wholesale price of the product. The agreement covers the production of an agricultural product for a crop year. Once all the agricultural product is sold out, the actual average wholesale price received by the marketing agency is determined.