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Response to Q 3 What issues the marketing orders is the Agricultural Marketing Service. The order is further implemented by Raisin Administrative Committee. In the case of raisins, the committee comprises of 47 raisin farmers and packers, as well as the sole members of the raisin-eating public. It is worth noting that the government is not come up with the market orders without consultation but the orders are issued by USDA. The consultations and agreements are derived from the industry. One of the requirements is that at least two thirds of the board members are needed to support a proposal for the Agricultural secretariat. The committee also comes up with decisions on the regulations to be adopted every year. Response to Q4 There is no certain amount of raisins that should be given to the government. The market orders are predetermined by the market dynamics, including the supply and demand. The compensation that the farmers get is the surplus profit obtained from selling the produces that is given by the farmers as the market orders, that is, after deriving the fund that sustains the regulatory body. The government sells the raisins to foreign markets. The consumers are compelled to pay more for the domestic raisin prices to enable the farmers meet the costs of production. Response to Q 5 The farmers who disregard the marketing orders face legal action. ...
However, the effect is also arguably extended to other products such as clothing, furniture, books and electronics. This means

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that the regulation affect non-agricultural products. Response to Q 7 The reason for the raisin farmers to vote for the abolition of the marketing order is that the orders is extortionist and unnecessary. The only reason for them to vote to keep the order is that it regulates the raisin produce by checking on wasteful demand. Response to Q 8 Another policy is to introduce regulatory controls such as through taxation systems Response to Q 9 I agree that the market orders are government enforced cartels. The order is to blame for high costs of raisin in the domestic market. In other cases, it compels the farmers to part with significant portions. In my view, objective regulation would strive to limit associated consequences. Response to Q 10 The private entities have often been labeled as being extortionist and capitalist in nature because they rarely represent the interest of the public. Indeed, there are laws that check on the extortionist, but these are rarely directed at the government agencies. The government extortionist policies are considered legitimate and rarely questioned. Response to Q 11 There are two general justifications for the necessity of the interventions of the government in the economic activities. One of the justifications is the need to foster fairness while the other is to improve efficiency. Fairness, in this scenario, would be described as the addressing extortionism while efficiency implies aligning the operation of the market with supply and demand dynamics for the benefit of the economy. Examining the market orders regulations on the basis of the justifications reveals otherwise because they fail to assure

Summary

Name Institution Date Response to Questions: Government intervention in the Marketing of Raisins. Response to Q 1 What allows the government to issue the marketing orders pertaining to the marketing of the raisin is Agricultural and Marketing Agreement Act that was adopted in 1937…
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