As a result of the study, producers had a clear understanding of the impacts of the marketing order on their businesses.
In the balloting in Marchof 2008, 80.6 % of the 417 valid producer ballots favored continuance of the order;
78.3 % of valid processor ballots favored continuance of the order. Thus, continuation of the marketing order was approved.
Our research shows that the Marketing order increased returns to tart cherry growers by $212 dollars per acre annually. Thus the estimated benefit of the continuation of the marketing order is a farm gate value of tart cherries in the US that is $7.8 million annually higher than the farm gate value would have been if the industry was operating without the marketing order.
impact statement issue
The project was undertaken in response to a request by the Cherry Industry Administrative Board (CIAB) in 2007. The purpose of the study was to inform tart cherry producers of the impacts of the operation of the Tart Cherry Administrative Board on the farm gate value of the tart cherries.
impact statement response
In cooperation with another economist at the Agricultural Marketing Service of USDA, we examined and analyzed historical data from the last 35 years (1972-2006) and to answered the following question: Was the tart cherry industry better off operating pursuant to the marketing order, as measured by the farm gate value of tart cherries at the grower level, than it would be operating without the Order?
Results of the applied research were communicated to tart cherry producers in four meetings held in December 2007-February 2008, attended by over 500 tart cherry producers from the US and Canada.
impact statement summary
In March 2008, the Tart Cherry Federal Marketing Order was scheduled for a referendum to authorize continuing operations. A study was conducted for the U.S. Cherry Industry Administrative Board. The purpose of this study was to examine and analyze historical data from the last 35 years (1972-2006) and to answer the following question: Is the tart cherry industry better off operating pursuant to the marketing order, as measured by the farm gate value of tart cherries at the grower level, than it would be operating without the Order? Results of the applied research were communicated to tart cherry producers in four meetings held in December 2007-February 2008.
