Accreditation.

The Washington Agricultural Marketing and Fair Practices Act (Act) addresses production and marketing negotiation standards for certain agricultural products.  Under the Act, associations of pear, sweet corn, and potato producers may be accredited by the Washington State Department of Agriculture (WSDA) to be the exclusive negotiation agent for all producer members of the association within a negotiating unit.

An association of producers wishing to be accredited under the Act may file an application with the Director of the WSDA (Director) describing at minimum the geographical boundaries, producers, and products of the proposed negotiating unit.  The Director must approve the initial application if the Director determines the following conditions are met:

• the association is owned and controlled by producers under its charter documents or bylaws;
• the association has valid and binding contracts with its members empowering the association to negotiate terms of sale or compensation for its members' products;
• one of the association's functions is to act as principal or agent for its members in negotiations with handlers for prices and other terms of trade;
• the association represents a sufficient percentage of producers or agricultural products to enable it to function as an effective agent for producers in negotiation, excluding any products produced by handlers or by producers with producer-owned and controlled processing cooperatives;
• sufficient resources will be available to cover the WSDA costs for services provided by the WSDA under this chapter; and
• accreditation would not be contrary to legislative intent.

Negotiation.

Negotiations between agricultural product handlers, processors, or brokers and accredited associations of producers regarding the price, sale, compensation for products produced under contract, or other terms relating to the production or sale of agricultural products must begin at least 60 days before the normal planting date of sweet corn and potatoes, and at least 60 days before the normal harvest date of pears.  The required negotiations must conclude within 30 days of the normal planting date of sweet corn and potatoes, and within 30 days of the normal harvest date for pears.

A serious, fair, and reasonable attempt to reach agreement is required.  Neither negotiating party must agree to a proposal, make a concession, or enter into a contract, nor must either party disclose proprietary business or financial records or information.  If an acceptable price cannot be agreed to between a producer and a processor, the processor must meet with a mutually agreed upon third-party mediator to resolve the price dispute.  Negotiation is not required by a processor that only cleans, sorts, grades, and packages these products for sale without altering the natural condition of the products.  A cooperative association that contracts for crops from its own members is not required to negotiate.

Prohibited Practices.

It is unlawful for any handler to refuse to negotiate with an accredited association of producers; to refuse to deal with or discriminate against any producer because of their membership in or advocacy for an association; to coerce, intimidate, or induce any producer with respect to their membership in an association; or to knowingly make false reports about associations of producers or handlers.  It is unlawful for an accredited association of producers to refuse to negotiate with a handler for any qualitied commodity; coerce, intimidate, or induce a producer to terminate or refuse to negotiate a contract; coerce or intimidate a handler to terminate a contract; or to knowingly make false reports about an association of producers or a handler.

The Director shall investigate any alleged violations, conduct a hearing on contested cases, and may order a person to cease and desist from prohibited practices or take affirmative action to further the policies of the Act.  A person who engages in any prohibited practice under the Act may be assessed a civil penalty by the director of up to $5,000 per offense.

Juice grapes are included in the definition of "agricultural products" under the state Agricultural Marketing and Fair Practices Act (Act).  Negotiations related to juice grapes under the Act must begin at least 60 days before the normal harvest date and conclude within 30 days of the normal harvest date.  "Juice grapes" means grapes that are intended as a nonfermented juice product.