delete PART 1425—COOPERATIVE MARKETING ASSOCIATIONS
This regulation establishes terms and conditions for approved Cooperative Marketing Associations (CMAs) to obtain marketing assistance loans (MALs) and loan deficiency payments (LDPs) from the Commodity Credit Corporation on behalf of their members, including eligibility requirements, financial standards, recordkeeping, and distribution of proceeds.
This regulation represents federal intervention in agricultural markets that distorts prices, creates moral hazard, and violates principles of free enterprise. It forces taxpayers to subsidize commodity prices through below-market loans, creating artificial price floors that benefit incumbent farmers at the expense of consumers and new market entrants. The compliance costs and bureaucratic requirements create barriers to entry for smaller cooperatives while the payment limitation rules demonstrate how regulatory capture protects established interests.