LYCOS RETRIEVER 
Volstead Act: Capper-Volstead Act
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All antitrust protection legislation for farmer cooperatives, including the Capper-Volstead Act, may potentially be discontinued, according to the National Council of Farmer Cooperatives (NCFC). Both Land O’Lakes and CHS work closely with NCFC on policy initiatives that influence member cooperatives and producers.
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'The Capper-Volstead Act does not condemn any kind of monopoly or restraint of trade, or any price fixing, unless such monopoly or price fixing unduly enhances the price of an agricultural product. The Act then, by section 2 thereof, commits to an officer of the executive department, the Secretary of Agriculture, the power of regulation and visitation.
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Minnesota Representative Andrew Volstead was an earnest creator and supporter of the ‘farmer cooperative Magna Charta’, the Capper-Volstead Act. He was a student of cooperatives in this country and abroad, and believed that co-ops were appropriate instruments for the advance of small farmer welfare. His tenure in Congress covered years when the nation’s farmer marketing co-ops were still in their developing stages, and when there were repeated efforts to limit their effectiveness. The struggle to enact his legislation was intense, and its final success was credited in no small measure to his legislative effectiveness.
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This series largely contains correspondence on Prohibition and the Volstead Act. There are both opposing and supporting letters. There is ... correspondence relating to other areas of legislation including the Drainage Act and the Capper-Volstead Bill. All the folders contain both letters received and replies from Volstead. There are newspaper clippings attached to some of the letters. Correspondence predating Volstead's election to congress tends to be more personal and more diverse in character.
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The Capper-Volstead Act provides limited antitrust protection for producers to “process, prepare for market, handle and market” the agricultural products they produce on a cooperative basis. If absent, farmers and ranchers would not be able to market their production through a cooperative without risking felony violations of the Sherman Act and other antitrust laws, says NCFC.
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The Capper-Volstead Act is constantly under review by and subject to administrative and court interpretation. Farmer cooperatives that engage in marketing activities should make every effort to act responsibly in conforming with the letter and spirit of this law.
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Capper-Volstead Act