[Code of Federal Regulations]
[Title 7, Volume 2]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR46.30]

[Page 273]
 
                          TITLE 7--AGRICULTURE
 
                        DEPARTMENT OF AGRICULTURE
 
PART 46_REGULATIONS (OTHER THAN RULES OF PRACTICE) UNDER THE 
PERISHABLE AGRICULTURAL COMMODITIES ACT, 1930--Table of Contents
 
Sec. 46.30  Types of operations by growers' agents and shippers.

    (a) The usual operations of shippers consist of purchasing produce 
from growers in their own names. They distribute the produce in commerce 
by selling, consigning, or jointing the shipments, assuming any loss or 
profits that result from these operations. In addition, shippers may 
handle produce on joint account with growers or others.
    (b) Growers' agents sell and distribute produce for or on behalf of 
growers and others and, in addition, may perform a wide variety of 
services, such as financing, planting, harvesting, grading, packing, 
furnishing labor, seed, containers, and other supplies or services. They 
usually distribute the produce in their own names and collect payment 
direct from the consignees. They render accountings to their principals, 
paying the net proceeds after deducting their expenses and fees. Some 
agents are limited by contract to making only sales and cannot joint or 
consign produce without obtaining the prior consent of the growers. 
Other agents are granted blanket authority by the growers to market and 
distribute the produce, using their discretion as to the best methods, 
depending on market conditions and the quality of the produce available. 
They can sell, consign or ship on joint account, use the services of 
brokers or sell through terminal market auctions. They are authorized to 
grant credits, make adjustments in the invoice price, handle claims with 
the carriers, or even abandon shipments, when circumstances justify such 
action, without consulting the growers. Some agents have an agreement 
with the growers to pool the produce and render accountings on the basis 
of the average or prorated selling prices after deducting the prorated 
expenses incurred for the various operations performed and the agents' 
selling fees. Some agents's contracts require an accounting on the basis 
of actual selling prices after deducting the actual expenses incurred 
for services performed and the selling fees. Some agents' contracts 
specify a fixed charge for harvesting, grading, packing, furnishing the 
container or other services, plus a selling fee, and thereby 
substantially reduce the record requirements necessary to prove the cost 
of the various operations.