Richard G. Lugar, United States Senator for Richard G. Lugar, United States Senator for Indiana
Richard G. Lugar, United States Senator for Indiana
Home > Senator Lugar's Farm Bill > Agriculture: A Glossary of Terms, Programs, and Laws

Agriculture: A Glossary of Terms, Programs, and Laws

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M-W price — Minnesota-Wisconsin price.
Mad cow disease — The common term used for bovine spongiform encephalopathy (BSE).
Main line — Primary rail line over which trains operate between terminals. It excludes sidings, and yard and industry tracks.
Maintenance fees — The annual fees paid by pesticide manufacturers and formulators to continue registration of pesticide active ingredients and products with EPA. The fees supplement funds appropriated from general U.S. revenues, which cover most administrative costs of the EPA pesticide program under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA; 7 U.S.C. 136a-1). Fees are deposited into a separate Reregistration and Expedited Processing Fund to offset costs associated with EPA reregistration activities and expedited processing of pesticide registrations that are substantially similar to registrations already in effect or which are for public health pesticides, as defined in FIFRA Section 2(nn). Congress mandated collection of an annual maintenance fee from each pesticide registrant in 1988 amendments to(P.L. 100-532). EPA has authority to cancel a registration if a registrant fails to pay the maintenance fee.
Maize — Term used in many parts of the world for corn.
Major land resource area (MLRA) — Major land resource areas are geographically associated land resource units delineated by the Natural Resources Conservation Service and characterized by a particular pattern that combines soils, water, climate, vegetation, land use, and type of farming. There are 204 MLRAs in the United States, ranging in size from less than 500,000 acres to more than 60 million acres.
Make allowance (or milk manufacturing marketing adjustment) — The margin between the government support price for milk and the Commodity Credit Corporation (CCC) purchase price for butter, nonfat dry milk, and cheese. This margin is administratively set to cover the costs of "making" milk into butter, nonfat dry milk, or cheese to reach the desired level of prices for milk in manufacturing uses.
Mandatory price reporting — In the past, packers and processors were not required to report the prices they paid for the animals or the terms of sale. Rather, daily sales and price information was collected by AMS from companies on a voluntary basis. AMS reporters also attended auctions to collect price information. However, as more and more animals were sold under formula pricing, other contract, or captive supply arrangements, the open cash markets became less helpful as benchmarks. On the argument that such arrangements also enabled packers to more easily conceal potential anti-competitive practices, Congress passed the Livestock Mandatory Reporting Act of 1999 (P.L. 106-78, Title IX). This law requires large packers and importers to report prices and other transaction details to the Agricultural Marketing Service.
Mandatory spending — Budget authority and ensuing outlays provided in laws other than appropriations acts, including annually appropriated entitlements. Nearly three-fourths of USDA spending is classified as mandatory (or appropriated entitlement) spending, including the farm commodity price and income support programs, crop insurance, food stamps and child nutrition programs.
Manure management — Capturing, holding, treating, and utilizing animal wastes in ways that minimize pollution. Animal waste can occur in a liquid, slurry, or solid form. It can be retained in various holding facilities. It is disposed by distribution on fields in amounts that enrich soils without causing water pollution or unacceptably high levels of nutrient enrichment. Manure management is a component of nutrient management.
MAP — Market Access Program. www.fas.usda.gov/mos/programs/mapprog.html.
MARAD — Maritime Administration. www.marad.dot.gov.
Margin call — (1) A request from a brokerage firm to a customer to bring margin deposits up to initial levels; (2) a request by the clearinghouse to a clearing member to make a deposit of original margin, or a daily or intra-day variation payment, because of adverse price movement, based on positions carried by the clearing member.
Margin — The amount of money or collateral deposited by a customer with a broker, by a broker with a clearing member, or by a clearing member with the clearinghouse, for the purpose of insuring against loss on open futures contracts. The margin is not partial payment on a purchase. (1) Initial margin is the total amount of margin per contract required by the broker when a futures position is opened. (2) Maintenance margin is a sum that must be maintained on deposit at all times. If the equity in a customer's account drops to, or under, the level because of adverse price movement, the broker must issue a margin call to restore the customer's equity. Sometimes called a performance bond.
Mariculture — The form of aquaculture where fish, shellfish, other invertebrates, or aquatic plants are cultured in a saltwater environment.
Marker-Assisted Selection (MAS) — Marker assisted selection (MAS) is a combined product of traditional genetics and molecular biology. MAS has become a tool in selecting organisms for traits of interest, such as color, meat quality, or disease resistance. Conventional breeding methods can be cost-effective in cases where it is possible to identify segregating materials by visually inspection. But in cases where visual selection is not possible, use of molecular markers can lead to significant cost savings. Marker-assisted selection is the process of using the results of DNA testing to assist in the selection of individuals to become parents in the next generation. The word "assisted" implies that the selection is also influenced by other sources of information, such as a plant or animal's observed performance and expected progeny differences (EPDs). The genotypic information provided by DNA testing helps to improve the accuracy of selection and increase the rate of genetic progress by identifying plants or animals carrying desirable genetic variants for a given trait at an earlier age.
Market access — The extent to which a country allows imports. A variety of tariff and nontariff trade barriers can be used to limit the entry of foreign products. Governed by provisions of the Uruguay Round Agreement on Agriculture, which refer to concessions contained in the country schedules with respect to bindings and reduction of tariffs and to tariffication, the only allowable exceptions to the process are those described under the Special Safeguard Provisions and the special and differential treatment accorded developing countries. Free trade agreements (i.e, NAFTA, Chile) contain similar concessions.
Market Access Program (MAP) — MAP, previously called the Market Promotion Program, is administered by the Foreign Agricultural Service and uses funds from the Commodity Credit Corporation (CCC). It helps producers, exporters, private companies, and other trade organizations finance promotional activities for U.S. agricultural products. MAP is designed to encourage development, maintenance, and expansion of commercial agricultural export markets. Activities financed include consumer promotions, market research, technical assistance, and trade servicing. The Export Incentive Program, which is part of MAP, helps U.S. commercial entities conduct brand promotion activities including advertising, trade shows, in-store demonstrations, and trade seminars. MAP is authorized through 2007 by the 2002 farm bill (P.L. 107-171). The program promotes exports of specific U.S. commodities or products in specific markets. Under MAP, program participants are reimbursed for their expenses in carrying out approved promotional activities. Participating organizations include nonprofit trade associations, state regional trade groups, and private companies. Funding authority was limited to $100 million in fiscal year 2002, rising gradually to $200 million each in fiscal years 2006 and 2007. www.fas.usda.gov/mos/programs/mapprog.html.
Market allocation — A quantity provision in a fruit or vegetable marketing order specifying the maximum amount of the regulated commodity that can be sold for a given use or market (such as the domestic fresh market).
Market basket — Average quantities of consumables, including U.S. farm foods, purchased per household for a given base period, used to compute an index of retail prices.
Market loss assistance — See Market loss payments.
Market loss payments — A designation first used in the Omnibus Consolidated and Emergency Appropriations Act, FY1999 (P.L. 105-277) to describe the $3.1 billion in emergency income support payments authorized for eligible grain, cotton, and dairy farmers. The Act stated that such funds were to compensate farmers for the loss of 1998 income caused by "regional economic dislocation, unilateral trade sanctions, and the failure of the government to pursue trade opportunities aggressively." Similar economic emergency support payments for selected commodities were subsequently enacted in P.L. 106-78 ($6.5 billion), in P.L. 106-224 ($6.5 billion), in P.L. 106-387 ($0.9 billion), and in P.L. 107-25 ($5.5 billion). Market loss assistance to grain and cotton producers were distributed in parallel manner to the contract payments authorized by the Agricultural Market Transition Act.
Market price support (MPS) — An indicator, developed by the OECD, used in the calculation of Producer and Consumer Subsidy Equivalents (PSE/CSE). MPS is the annual monetary value of gross transfers from consumers and taxpayers to agricultural producers arising from policy measures creating a gap between domestic market prices and border prices of a specific agricultural commodity measured at the farm gate level. Conditional on the production of a specific commodity, MPS includes the transfer to producers associated with both production for domestic use and exports and is measured by the price gap applied to current production. The MPS is net of producer levies on sales of the specific commodity or penalties for not respecting regulations such as production quotas (price levies). In the case of livestock production MPS is net of the market price support on domestically produced coarse grains and oilseeds used as animal feed (excess feed cost).
Market price — The price per bushel (or pound or hundredweight) of an agricultural commodity paid in the private sector. It can sometimes refer to the price paid at domestic seaports or large inland terminal markets (such as daily cash prices listed in newspapers) and sometimes refers to the price received by farmers, or farm price.
Market Promotion Program (MPP) — An export promotion program authorized by the 1990 farm bill (P.L. 101-624) that replaced the Targeted Export Assistance (TEA) program authorized by the Food Security Act of 1985 (P.L. 99-198). The MPP was renamed the Market Access Program (MAP) under the 1996 farm bill (P.L. 104-127). www.fas.usda.gov/mos/programs/mapprog.html.
Market sharing quota (MSQ) — In Canada, the MSQ for industrial milk is determined by estimating the domestic demand for dairy products on a butterfat basis, adding about 3% to cover exports and subtracting the volume of approved imports. Provincial shares of the national quota are adjusted in line with changes in the total and each province allocates its share to its producers according to its own quota policies. The Canadian Dairy Commission sets a target price for industrial milk based on production costs, including a return to labor, capital and management. Dairy farmers receive direct government payments (which are part of the target price) on in-quota deliveries of industrial milk and cream. Farmers who produce in excess of their quota do not receive direct government payments and face an over-quota levy. Each province maintains and administers its own quota scheme for fluid milk.
Market structure — Characteristics of an industry that relate to its economic performance, such as the number of buyers and sellers, product differentiation among firms, barriers to entry, costs, degree of integration, and diversification.
Market transition payments — Referred to variously as AMTA payments, contract payments, or production flexibility contract payments made to farmers under Title I (the Agriculture Market Transition Act (AMTA)) of the 1996 farm bill (P.L. 104-127). These payments were replaced by direct payments in the Direct and Counter-cyclical Program (DCP) of the 2002 farm bill (P.L. 101-171, Sec. 1103).
Marketing agency (or board) — Generally, a statutory body possessing certain legislated regulatory powers over prices, quality standards, foreign trade, etc. In the United States, marketing orders and agreements exercise control over quality standards and flow to market. The Canadian Wheat Board and the Australian Wheat Board handle domestic and export marketing in those countries. See also State trade enterprises (STEs).
Marketing agreements — Marketing agreements (and orders) are authorized by the Agricultural Marketing Agreement Act of 1937 (50 Stat. 246), as amended). They may be designed to (1) maintain the high quality of produce that is on the market; (2) standardize packages and containers; (3) regulate the flow of product to market; (4) establish reserve pools for storable commodities; and (5) authorize production research, marketing research and development, and advertising. In contrast to marketing orders, agreements are enforceable only against those handlers who enter into the agreement. Federal oversight is provided by AMS. See Marketing orders and agreements. www.ams.usda.gov/fv/moab.html.
Marketing assessments — At times, producers and first purchasers of some supported commodities are required to pay assessments as a contribution toward achieving budget deficit reduction targets. Under the 1996 farm bill (P.L. 104-127), assessments were imposed on sugar processors and on producers and first buyers of peanuts. However, the 1996 farm bill (P.L. 104-127) eliminated a milk marketing assessment. The 2002 farm bill (P.L. 107-171) eliminated the assessments for peanuts and sugar. Tobacco was subject to a no-net-cost assessment on all marketings to offset Commodity Credit Corporation (CCC) losses on price support loan operations until support was ended in 2005 under the quota buyout provision (P.L. 108-357, Title VI).
Marketing assistance loans — Nonrecourse loans made available to producers of loan commodities (wheat, corn, grain sorghum, barley oats, upland and ELS cotton, rice, soybeans, other oilseeds, honey, wool, mohair, dry peas, lentils, and small chickpeas) under the 2002 farm bill (P.L. 101-171, Sec. 1201-1205). The new law largely continued the commodity loan programs as they were under previous law. Loan rate caps are specified in the law. Marketing loan repayment provisions apply when market prices drop below the loan rates. For farmers who forego the use of marketing assistance loans, loan deficiency payment (LDP) rules apply (but not for ELS cotton).
Marketing certificate — A certificate that may be redeemed for a specified amount of Commodity Credit Corporation (CCC)-owned commodities. The certificates may be generic or for a specific commodity.
Marketing contract — Prices (or pricing mechanisms) are established for a commodity before harvest or before the commodity is ready for marketing. Most management decisions remain with the grower, who retains ownership of both production inputs and output until delivery. The farmer assumes the risks of production but shares price risks with the contractor. Marketing contracts are commonly used for crops and not livestock. According to the USDA, about 40% of the value of all fruits and vegetables produced in 1997 were under marketing contracts. Marketing contract shares for selected other commodities were: sugar beets, 82%; milk, 60%; cotton, 33%; cattle, 10%; soybeans, 9.4%; corn, 8%. See Production contract.
Marketing loan repayment provisions — A loan settlement provision, first authorized by the Food Security Act of 1985 (P.L. 99-198), that allowed producers to repay nonrecourse loans at less than the announced loan rates whenever the world price or loan repayment rate for the commodity were less than the loan rate. Marketing loan provisions became mandatory for soybeans and other oilseeds, upland cotton, and rice and were permitted for wheat, corn, grain sorghum, barley, oats, and honey under amendments made by the 1990 farm bill (P.L. 101-624). The 1996 farm bill (P.L. 104-127)retained the marketing loan provisions for wheat, feed grains, rice, upland cotton, and oilseeds. The 2002 farm bill (P.L. 101-171, Sec. 1201-1205) continued marketing assistance loans and expanded their application to wool, mohair, dry peas, lentils, and small chickpeas.
Marketing orders and agreements — Orders and agreements (authorized by the Agricultural Marketing Agreement Act of 1937 (50 Stat. 246), as amended) allow producers to promote orderly marketing through collectively influencing the supply, demand, or price of a particular commodity so as to create orderly marketing. Research and promotion can be financed with pooled funds. Once approved by a required number of producers (usually two-thirds) the marketing order is binding on all handlers of the commodity within the geographic area of regulation. It may limit the quantity of goods marketed, or establish the grade, size, maturity, or quality of the goods. Marketing orders have been established for milk, fruits, vegetables, and other commodities. Marketing agreements may contain more diversified provisions, but are enforceable only against those handlers who enter into the agreement. An order can be terminated when a majority of all producers favor its termination or when USDA determines that the order no longer serves its intended purpose. Federal oversight is provided by USDA's Agricultural Marketing Service (AMS). See Market allocation, Orderly marketing, Prorate, Reserve pool, Shipping holiday, and Specialty crops. www.ams.usda.gov/fv/moab.html.
Marketing quotas (or allotments) — Authorized by the Agricultural Adjustment Act of 1938, these quotas (sometimes called poundage quotas) limit marketings of certain commodities. The marketing quota, which must be approved by at least two-thirds of the eligible producers voting in a referendum, is intended to ensure an adequate and normal supply of the commodity, and also ensure that production and supplies are not excessive. Growers who market in excess of their quotas pay penalties on the excess and are ineligible for government price-support loans. Quotas have been suspended for wheat, feed grains, and cotton since the 1960s. Rice quotas were abolished in 1981. Tobacco quotas ended after the 2004 crop (P.L. 108-357, Title VI). Authority for standby marketing allotments for domestically-produced sugar and crystalline fructose was mandated by the 1990 farm bill (P.L. 101-624), but eliminated by the 1996 farm bill (P.L. 104-127). The 2002 farm bill (P.L. 107-171) reintroduced marketing allotments for domestically-produced sugar under the modified sugar program. Marketing allotments are required to be in effect unless USDA projects sugar imports will be above 1.532 million short tons.
Marketing spread — See Farm to retail price spread.
Marketing year — The 12-month period, generally from the beginning of a new harvest, over which a crop is marketed. For example, for wool, mohair, and Hawaiian sugarcane, the marketing year is January 1-December 31; for honey, it is April 1-March 31; for wheat, barley, and oats, it is June 1-May 31; for flue-cured tobacco, it is July 1-June 30; for cotton, peanuts, and rice, it is August 1-July 31; for sugar beets, it is September 1-August 31; for corn, sorghum, soybeans, mainland sugarcane, all tobacco but flue-cured, and milk, it is October 1-September 30. The crop marketing year beginning and ending dates are published by NASS in the Agricultural Prices annual summary. In contrast, the crop year is the calendar year during which the crop is harvested.
Marrakech accords — Used often to designate the Uruguay Round trade agreements, including the agreement to establish the World Trade Organization, because they were signed on April 15, 1994, in Marrakech, Morocco.
Maximum tolerated dose (MTD) — Loosely, the highest dose of a chemical that when administered to a group of test animals does not increase the death rate during a long-term study. The purpose of administering MTD is to determine whether long-term exposure to a chemical might lead to any adverse health effects in a population, when the level of exposure is not sufficient to cause premature mortality due to short-term toxic effects. The maximum dose is used, rather than a lower dose, to reduce the number of animals that need to be tested (and thus, the cost of animal testing), in order to detect an effect that occurs only rarely. This analysis is used in establishing chemical residue tolerances in foods.
mbf — Thousand board feet of timber or lumber.
MBM — See Meat and bone meal.
MBTA — Migratory Bird Treaty Act (16 U.S.C. 703 et seq.).
McGovern-Dole International Food for Education and Child Nutrition Program (IFEP) — A food aid program authorized in the 2002 farm bill (P.L. 107-171, Sec. 3107) which provides for the donation of U.S. agricultural commodities and associated financial and technical assistance to carry out preschool and school feeding programs in foreign countries. Maternal, infant and child nutrition programs also are authorized under this program. The program was first implemented in FY2003 with $100 million of CCC funds as stipulated in the 2002 farm bill. Beginning in FY2004, the authorizing statute provides for the program to be carried out with appropriated funding. The FY2004 agricultural appropriations act (P.L. 108-199) provided $50 million to carry out the program. IFPED began in FY2000 as a pilot project and was called Global Food for Education Initiative(GFEI). It used the donation of surplus agricultural commodities under Section 416 of the Agricultural Act of 1949 (P.L. 89-439, as amended) to support a global school feeding program. www.fas.usda.gov/excredits/FoodAid/FFE/FFE.html.
McIntire-Stennis Act of 1962 — P.L. 87-788 makes funding available to the state agricultural experiment stations and to forestry schools and programs at the land grant colleges of agriculture for forestry research. The research covers such areas as reforestation, woodlands and related watershed management, outdoor recreation, wildlife habitats and wood utilization. Many of the research projects are performed cooperatively with scientists at the laboratories of the Forest Service. McIntire-Stennis funds are distributed by a formula that allocates $10,000 to each state, with 40% of the remainder being distributed according to a state's share of the nation's total commercial forest land, 40% according to the value of its timber cut annually, and 20% according to its state appropriation for forestry research.
MDM — Mechanically deboned meat.
Meat and bone meal (MBM) — Meat and bone meal basically is the protein which remains after dead animals or their parts are rendered--i.e., the excess moisture removed and the fats (used for tallow and other products) are separated. In recent decades, the use of MBM was increasingly being added to animal feeds (cattle, hog, poultry, seafood, pet foods) as a source of essential amino acids and nutrients. Most scientists believe that bovine spongiform encephalopathy (BSE) can be spread by feeding ruminant-based MBM back to ruminants, and this practice is increasingly being banned worldwide, including in the United States and Canada. At issue here and in other countries is whether much more extensive limitations on the use of MBM in animal feeds are warranted for food safety and animal health reasons.
Mechanically separated meat (MSM) — A paste-like meat product obtained through a mechanical process that crushes bone. Until the publication of new regulations (69 FR 1862, January 12, 2004) following the U.S. BSE case, USDA permitted MSM that met standards for calcium, iron, and central nervous system tissue to be used as an ingredient in meat products that would be heated again in manufacturing. MSM now is not permitted for use in any human food.
Medfly — A shortened name for the Mediterranean fruit fly, a destructive pest of fruits and vegetables that is found throughout most of Central America. The Animal and Plant Health Inspection Service (APHIS) is involved in programs to keep the Medfly from spreading north and becoming established in Mexico, where it could easily enter the United States on imported winter fruits and vegetables. Eradication efforts in California, Florida and Texas have prevented infestations from becoming established. Hawaii currently is the only state with a Medfly infestation. Travelers returning to the continental United States from Hawaii or a foreign country are prohibited from bringing into the country fresh fruits that may harbor the Medfly.
Mega-reg — An exceptionally large set of regulations. In agriculture, this term usually refers to the extensive rules that the Food Safety and Inspection Service (FSIS) issued in July 1996, establishing the hazard analysis and critical control point (HACCP) approach as a complementary inspection system to the traditional organoleptic approach.
Memorandum of agreement (MOA) — An agreement between federal agencies, or divisions/units within an agency or department, or between federal and state agencies, which delineate tasks, jurisdiction, standard operating procedures or other matters that the agencies or units are duly authorized and directed to conduct. Sometimes referred to as a memorandum of understanding (MOU).
Merchant Marine Act of 1920 — P.L. 66-261 provides for the promotion and maintenance of a U.S. merchant marine. Section 27, also known as the Jones Act, deals with cabotage (i.e., coastal shipping) and requires that all goods transported by water between U.S. ports be carried in U.S.-flag ships, constructed in the United States, owned by U.S. citizens, and crewed wholly by U.S. citizens. In addition, amendments to the Jones Act, known as the Cargo Preference Act (P.L. 83-644), provide permanent legislation for the transportation of waterborne cargoes in U.S.-flag vessels.
MERCOSUR — Mercado Comun del Sur (Southern Cone Common Market).
Methane — A gas created by anaerobic decomposition of organic compounds. Natural gas is composed mostly of methane. Methane is a so-called greenhouse gas (see Greenhouse effect). Agricultural wastes, especially animal wastes, are a major source of methane releases to the atmosphere.
Methanol — A liquid alcohol, (CH3OH, also known as methyl alcohol or wood alcohol), formed in the destructive distillation of wood or made synthetically, and used especially as an alternative fuel, a gasoline additive, a solvent, an antifreeze, or a denaturant for ethyl alcohol. As a gasoline additive it lowers the carbon monoxide emissions but increases hydrocarbon emissions. Methanol is also seen as a potential transitional fuel for fuel cells.
Methyl bromide — A fumigant used for soil treatment, to control pests in postharvest storage, for killing pests on fruits, vegetables, and grain going into export trade, for plant quarantine treatment, and for fumigation of buildings. Because methyl bromide contributes to depletion of stratospheric ozone, it is subject to phase out requirements of the 1987 Montreal Protocol on Ozone Depleting Substances and of the Clean Air Act (CAA) (42 U.S.C. 7401 et seq.). The Montreal Protocol requires a complete phase out in industrialized countries by the year 2005, and a future freeze in developing country use. A 1998 amendment (P.L. 105-178, Title VI) conformed the Clean Air Act phase out date with that of the Montreal Protocol. Methyl bromide regulations exempt quarantine and pre-shipment treatment of agricultural commodities. Applications for additional exemptions for critical agricultural uses, for which there are no alternative pesticides, are being evaluated by EPA. EPA will nominate uses that meet international criteria for exemptions, which may be granted by parties to the Montreal Protocol at their next meeting. In addition, a limited number of emergency exemptions will be allowed after 2005. Methyl bromide is regulated as a pesticide under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA; 7 U.S.C. 136 et seq.) and as a hazardous substance under the Resource Conservation and Recovery Act (RCRA; 42 U.S.C. 6901 et seq.), and is subject to reporting requirements under the Emergency Planning and Community Right to Know Act (EPCRA; (42 U.S.C. 11001 et seq.). www.epa.gov/spdpublc/mbr.
Methyl tertiary butyl ether — See MTBE.
Metric ton (MT) — Usually abbreviated MT, a metric ton is 2,204.62 pounds, compared to a short ton of 2,000 pounds. Generally, international agricultural trade data are cited in metric tons.
MFN — Most-favored-nation.
MGEX — Minneapolis Grain Exchange. www.mgex.com/index.cfm.
MicroLoan Program — A program administered by the Small Business Administration (SBA). The MicroLoan Program provides very small loans to start-up, newly established, or growing small business concerns. Under this program, SBA makes funds available to non-profit community based lenders (intermediaries) that in turn, make loans to eligible borrowers in amounts up to a maximum of $35,000. The average loan size is about $10,500. Applications are submitted to the local intermediary and all credit decisions are made on the local level. The maximum term allowed for a microloan is six years. Loan terms, however, vary according to the size of the loan, the planned use of funds, the requirements of the intermediary lender, and the needs of the small business borrower. Interest rates vary, depending upon the intermediary lender and costs to the intermediary from the U.S. Treasury.
Micronutrient Fortification Programs — The 2002 farm bill (P.L. 107-171, Sec. 3013) requires the Administrator of USAID, in consultation with the Secretary of Agriculture, to establish micronutrient fortification programs under P.L. 480 food aid. Section 3013 replaces a pilot program similarly named and authorized in the 1996 farm bill (P.L. 104-127, Sec. 415). Under the programs, grains and other commodities made available to countries selected for participation will be fortified with micronutrients ( e.g., iron, vitamin A, iodine, and folic acid).
Mid-term Review Reforms — A set of reforms of the EU's Common Agricultural Policy adopted by the EU Council of Ministers on June 26, 2003. In summary, the main elements of the reformed CAP include: a single farm payment for EU farmers independent (decoupled) from production (although limited coupling may be permitted in some circumstances); compliance with environmental, food safety, animal and plant health, and animal welfare standards in order to receive the single payment; increased funding for rural development and accompanying environmental or animal welfare measures; a reduction in direct payments (modulation) for larger farms to finance the expanded rural development program; an agreement to limit the CAP (including rural development) budget at the 2007 level through 2013; and some additional market price support cuts.
MIF — Milk Industry Foundation. www.idfa.org.
Migrant and Seasonal Agricultural Workers Protection Act (MSPA) — P.L. 97-470 (January 14, 1983) repealed and replaced the Farm Labor Contractor Registration Act (P.L. 88-582). The Act provides federal labor-related standards with respect to the transportation and housing of agricultural workers, sets specific requirements concerning payment of wages and conditions of employment, and deals with the relationship between agricultural workers, their employers and farm labor contractors. The Act requires certification of farm labor contractors through the U.S. Department of Labor. (29 U.S.C. 1801 et seq.).
Migratory Bird Treaty Act of 1918 — This Act, as amended (16 U.S.C. 703 et seq.), regulates the taking of wild birds and implements the provisions of four different bilateral treaties for bird conservation (with Canada, Mexico, Japan, and Russia). Very few of its provisions affect farmers more than any other citizen, save when bird populations become pests. The Act and the associated treaties allow taking of birds to prevent serious injury "to the agricultural or other interests in any particular community." As implemented, the practice has been to use non-lethal methods where possible, especially for native species. The control of bird pests is managed by the Animal and Plant Health Inspection Service.
Milk equivalent — A measure of the quantity of fluid milk used in a processed dairy product. Measured on a milkfat basis, it takes about 21.8 pounds of farm milk to make a pound of butter, and about 9.2 pounds to make a pound of American cheese. Measured on a skim solids basis, it takes about 11.6 pounds of farm milk to make a pound of nonfat dry milk. Farm milk weighs about 8.6 pounds per gallon.
Milk Income Loss Contract (MILC) Payments — Name given by USDA to the dairy farmer counter-cyclical payments program, authorized by the 2002 farm bill (P.L. 107-171, Sec. 1502, 7 U.S.C. 7982) as amended by the Deficit Reduction Act of 2005 (P.L. 109-171). Under the program, dairy farmers nationwide are eligible for a federal payment whenever the minimum monthly market price for farm milk used for fluid consumption in Boston falls below $16.94/cwt. A producer potentially can receive a payment equal to 34% of the difference between the $16.94 per cwt. target price and the market price, in any month that the Boston Class I price falls below $16.94. A producer can receive a payment on all milk production during that month, but no payments will be made on any annual production in excess of 2.4 million pounds per dairy operation. On average this limit is reached by a milking herd of 130 cows. MILC payments apply to production beginning December 1, 2002, through August 31, 2007.
Milk marketing orders — Administered by the Agricultural Marketing Service (AMS), federal milk marketing orders were first instituted in the 1930s to promote orderly marketing conditions by, among other things, applying a uniform system of classified pricing throughout the farm milk market. Federal milk marketing orders regulate handlers that sell milk or milk products within an order region by requiring them to pay not less than an established minimum price for the Grade A milk they purchase from dairy producers, depending on how the milk is used. This classified pricing system requires handlers to pay a higher price for milk used for fluid consumption (Class I) than for milk used in manufactured dairy products such as yogurt, ice cream, cheese, butter and nonfat dry milk (Class II, Class III and Class IV products). The 1996 farm bill (P.L. 104-127) required USDA to consolidate the number of federal milk marketing orders, and to revise the method by which minimum class prices are determined. USDA implemented these changes in 2000. There now are 11 milk marketing orders, down from 31 when the law was enacted.
Milk protein concentrate (MPC) — Any type of concentrated milk that contains 40-90% milk protein. In addition to ultrafiltered milk products, the MPC classification includes concentrates made through other processes, such as blending nonfat dry milk with highly concentrated proteins, such as casein. Currently, almost all MPC used in the U.S. is imported and is not subject to a tariff rate quota. Many dairy producer groups are concerned that foreign manufacturers are using nonfat dry milk in the production of MPC, and hence circumventing existing quotas on nonfat dry milk.
Milk-feed price ratio — A measure of the value of 16% protein ration (feed) to one pound of whole milk. As with the hog-corn ratio, this relationship is an indicator of the profitability of milk production.
Milling yield — A general term that can refer to the milling of any cereal crop. Wheat milling yield refers to the percent of flour obtained from a given unit of whole wheat kernels (flour yield or flour extraction rate), averaging 70-75% in the United States. Rice milling yield refers to the amount of polished white rice obtained from unhusked rough rice. Rice milling rates for polished white rice vary by crop variety and quality, but tend to average about 72% of rough rice weight in the United States. Byproducts from rice milling include rice hulls (about 20% of rough rice weight) and bran, polish, and germ (about 8%).
Minimal nutritional value — Refers to foods that may not be sold in competition with the school lunch and breakfast programs. These are foods that USDA has determined contain little if any nutritional value. For example, sugar candy, soda pop without fruit juices, and chewing gum are considered to be foods of minimal nutritional value. Candy containing nuts or chocolate is considered to have some nutritional value.
Minimum access — In the Uruguay Round Agreement on Agriculture, countries are obliged to provide minimum levels of imports for products subject to tariffication. Access is assured by tariff-rate quotas.
Minimum tillage — The minimum soil manipulation necessary for crop production. Conservation tillage, reduced tillage, and no-till farming are related terms.
Minnesota-Wisconsin price (M-W price) — Prior to May 1995, a component of the basic formula price for farm milk formerly used in federal milk marketing orders. It represented a survey of the average price Minnesota and Wisconsin plants were paying farmers for Grade B milk to be used in processed dairy products. In 1995, the M-W price was replaced with the basic formula price as the price mover under federal milk marketing orders.
Minor crops — Crops that may be high in value but that are not widely grown. Many fruits, vegetables, and tree nuts come under this definition. The IR-4 program is one publicly funded program to help producers of minor crops with their unique problems.
Minor oilseeds — Oilseed crops other than soybeans and peanuts; usually a reference to the "other oilseeds" eligible for marketing assistance loans under the 2002 farm bill (P.L. 101-171, Sec. 1201-1205) (sunflower seed, rapeseed, canola, safflower, flaxseed, and mustard seed).
mmt — Million metric tons.
MOA — Memorandum of agreement.
Modalities — Modalities are the formulas, targets, or specific measures used to accomplish objectives in trade negotiations. An example of modalities in the current WTO agriculture negotiations would be a percentage phase-out over a specified time period of agricultural export subsidies or the use of the Swiss formula for tariff reduction and harmonization.
Model Good Samaritan Food Donation Act — See Bill Emerson Good Samaritan Act of 1996 (P.L. 104-210).
Modulation — As part of its Agenda 2000 reforms, and effective January 1, 2000, EU member-countries may reduce direct aid to producers (by a maximum of 20%) in cases where: the labor employed in a farm falls below a threshold set by national authorities; the overall prosperity of the holding is above a certain limit; and, the total payments granted under support programs exceed a limit set by national authorities. The savings that result and those from cross-compliance or econ-conditionality (observance of environmental criteria) may be used by the member countries to supplement EU funding for early retirement measures, payments for less favored areas and areas subject to environmental restrictions, agri-environmental provisions, afforestation and rural development. Modulation is an essential element of the EU Commission's Mid-term Review (MTR) proposals. Funds acquired from the reduction of payments to farms will be allocated to rural development under the MTR.
Mohair Recourse Loan Program — A program authorized by the emergency provisions of the FY1999 USDA appropriations act (P.L. 105-277) that made interest-free recourse loans of $2.00 per pound on mohair produced prior to October 1, 1998. Final date to obtain a loan was September 30, 1999. The producer-owned mohair used as loan security had to be stored in approved bonded warehouses. Loans matured not later than 1 year following disbursement. Under the 2002 farm bill (P.L. 107-171, Sec. 1201-1205), mohair was designated a "loan commodity" and made eligible for marketing assistance loans and loan deficiency payments (LDPs).
Moisture content — Refers to the portion of grain weight made up of water. Moisture content plays a key role in grain storage and processing. Excess moisture content will cause grain to spoil quickly limiting its storability. Overly dry grains will crack or split easily during milling thus lowering the value of the end product, particularly for rice where the percent of whole grains is highly valued. Managing moisture and pest control are two important problems associated with grain storage. For some grains (i.e., corn), moisture is a grading factor.
Monetary compensatory amounts (MCAs) — Border measures in the EU consisting of taxes and subsidies formerly applicable to intra-EC trade in agricultural and food products for which intervention prices were set. These border measures were made necessary by the fact that intervention prices were set in ECUs and converted into national currency terms at green rates, set at levels different from commercial market rates. This gave rise to price differentials between member nations (in market ECUs) that would influence intra-EC trade if not offset by the MCAs. The system worked by subsidizing exports (and taxing imports) from strong-currency countries, and taxing exports (subsidizing imports) from weak-currency countries. MCAs were abolished in 1993, when border controls were removed with the advent of the Single Market.
Monetization — A P.L. 480 provision (section 203) first included in the Food Security Act of 1985 (P.L. 99-198) that allows private voluntary organizations and cooperatives to sell a percentage of donated P.L. 480 commodities in the recipient country or in countries in the same region. Under section 203, private voluntary organizations or cooperatives are permitted to sell (i.e., monetize) for local currencies or dollars an amount of commodities equal to not less than 15% of the total amount of commodities distributed in any fiscal year in a country. The currency generated by these sales can then be used: to finance internal transportation, storage, or distribution of commodities; to implement development projects; or to invest and with the interest earned used to finance distribution costs or projects.
Monoculture — A pattern of crop or tree production that relies on a single plant variety.
Montreal Protocol on Ozone Depleting Substances — An international agreement, to which the U.S. is a signatory, for controlling emissions of chemicals that deplete stratospheric ozone (including methyl bromide). The Clean Air Act Amendments of 1990 (P.L. 101-549) contain provisions for implementing the Montreal Protocol, as well as explicit, separate authority for the EPA to regulate ozone depleting chemicals.
Morbidity — Rate of disease incidence; an important measure in epidemiological studies.
Morrill Act of 1862 — This first Morrill act (7 U.S.C. 301 et seq.) allocated federal land to each state and directed the states to sell the land and use the proceeds to establish a college dedicated to the agricultural and mechanical arts. States without federal lands within their borders received land in scrip, giving them the right to sell federal land located in other states. The act resulted in the establishment of the land grant colleges of agriculture. The purpose of the Act was not only to improve the economic and social welfare of farmers, but also to make higher education with a practical application generally available to all segments of U.S. society. The Act pertained only to the original establishment of the colleges of agriculture, and is not an authority under which the colleges currently receive federal funds.
Morrill Act of 1890 — This popularly named Agricultural College Act of 1890 (7 U.S.C. 321 et seq.) authorized additional direct appropriations for the land grant colleges of agriculture that had been established under the Morrill Act of 1862 (7 U.S.C. 301 et seq.). However, the most significant feature of this second Morrill Act was that the 1862 schools could receive the additional funds only if they admitted blacks into their programs or if they provided separate but equal agricultural higher education to black students. In the period following the Civil War, sixteen southern states established separate land grant colleges of agriculture for black students under this Act; Congress designated Tuskegee University an 1890 institution at a later date. Federal funds for research and extension at the 1890 schools are provided under subsequent laws, not the second Morrill Act.
Most-favored-nation treatment (MFN) — A commitment that a country will extend to another country any concessions (reduced tariff rates) it grants to other countries. MFN is a basic principle and obligation of the General Agreement on Tariffs and Trade (GATT, 1947). Almost all countries are accorded permanent MFN status by U.S. law. Since 1998, the term normal trade relations (NTR) has replaced most-favored-nation in all U.S. statutes. This change was included in section 5003 of the Internal Revenue Service Restructuring and Reform Act of 1998 (P.L. 105-206). However, Title IV of the Trade Act of 1974 (P.L. 93-618) established conditions on U.S. MFN/NTR tariff treatment to certain non-market economies, one of which is certain freedom-of-emigration requirements (better known as the Jackson-Vanik amendment). The Act authorizes the President to waive a country's full compliance with Jackson-Vanik under specified conditions, and this must be renewed by June 3 of each year. Once the President does so, the waiver is automatic unless Congress passes (and sustains a Presidential veto of) a disapproval resolution. MFN/NTR status for China, a non-market economy, which had been originally suspended in 1951, was restored in 1980 and was continued in effect through subsequent annual Presidential extensions. Following the brutal suppression of pro-democracy demonstrators in Tiananmen Square in 1989, however, the annual renewal of China's MFN status became a source of considerable debate in the Congress; and legislation was introduced to terminate China's MFN/NTR status or to impose additional conditions relating to improvements in China's actions on various trade and non-trade issues. Agricultural interests generally opposed attempts to block MFN /NTR renewal for China, contending that several billion dollars annually in current and future U.S. agricultural exports could be jeopardized if that country retaliated. In China's case, permanent normal trade relations (PNTR) status was accorded in P.L. 106-286. PNTR paved the way for China's accession to the WTO in December 2000; it provides U.S. exporters of agricultural products the opportunity to benefit from China's WTO agreements to reduce trade barriers and open its agricultural markets.
MOU — Memorandum of understanding (see Memorandum of agreement).
MPC — Milk protein concentrate
MPP — Market Promotion Program.
MPS — Market price support.
MRL — Maximum-residue limit (see Registration, and Pesticide).
MS(S) — Mechanically separated (S), where (S) denotes the species, e.g., beef, pork, or chicken.
MTBE — Methyl tertiary butyl ether. A byproduct of petroleum refining and natural gas production, MTBE is used to extend gasoline stocks, boost octane, and comply with reformulated gasoline (RFG) oxygen requirements. While MTBE use has reduced ozone-forming and toxic pollutant emissions from motor vehicles, its use has led to contamination of underground wells. Because of this contamination, several states have banned or will ban its use, and there is interest in a national ban, as well. Ethanol is being used to replace MTBE.
MTD — Maximum tolerated dose.
MTN — Multilateral trade negotiations.
Mulch — A natural or artificial layer of plant residue or other material on the soil surface. Mulch reduces erosion, conserves soil moisture, inhibits weed growth, and can provide the soil with organic matter as it breaks down. Mulch till prepares the soil so as to leave plant residues (or other mulching materials) on or near the surface.
Multi-Peril Crop Insurance (MPCI) — The oldest and most common form of federal crop insurance. MPCI protects against crop yield losses by allowing participating producers to insure a certain percentage of historical crop production. A single policy protects crops against all natural perils including adverse weather, fire, insects, disease, wildlife, earthquake, volcanic eruption and failure of irrigation water due to unavoidable causes. It is delivered by private companies and reinsured by the federal government.
Multifunctionality — The term used to characterize a broad range of economic, social, and environmental attributes generated by the agricultural sector, in addition to its primary role of producing food and fiber. These additional attributes, according to proponents of supporting agricultural multifunctionality, include long-term food security, rural viability, cultural heritage, land conservation, agricultural landscape, agro-biological diversity, and sanitary/phytosanitary health. In agricultural trade discussions in the WTO, the EU and Japan, among others, argue that multifunctionality justifies continued protection and subsidization of agriculture. The United States and the Cairns Group argue that support of multifunctionality should be specific, targeted, and provided in a non-trade distorting manner.
Multilateral agreement — A trade agreement involving many countries (as with the World Trade Organization) in contrast to a bilateral agreement (as with the US-Israel Free Trade agreement) involving only two countries.
Multilateral aid — See Bilateral aid.
Multilateral trade negotiations (MTN) — Initially this applied to negotiations between General Agreement on Tariffs and Trade (GATT) member nations conducted under the auspices of the GATT and aimed at reducing tariff and nontariff trade barriers. The World Trade Organization has now replaced the GATT as the administrative body. A current round of multilateral negotiations to further reform trade, including trade in agriculture, is under way in the Doha Development Agenda round.
Multiple basing points — A method of regional pricing in milk marketing orders that would allow more than one basing point, or surplus area, to be used. Surplus areas are administratively defined as areas with low Class I utilization, meaning that a relatively small percentage of the milk produced in an area is used in that area as Class I (fluid) milk. In a multiple basing point system, the order used as the basing point has the smallest Class I differential (the difference between the Class I price and the Class III price). The Class I differential for other orders is then based on transportation costs to the nearest basing point plus the minimum differential. Pricing now largely reflects the Upper Midwest as the only basing point, even though the northeast and southwest are surplus areas.
Multiple component pricing — The practice of valuing farm milk according to the value of its protein, fat, and mineral content. This practice has been adopted by many regions for federal milk marketing orders. Historically, milk was priced solely on the basis of fat content.
Multiple use — According to the Multiple Use, Sustained Yield Act of 1960 (P.L. 86-517), multiple use of the national forests means the "harmonious and coordinated management of the various resources, each with the other, without impairment of the productivity of the land, with consideration being given to the relative values of the various resources, and not necessarily the combination of uses that will give the greatest dollar return or the greatest unit output." Multiple use implies a sustained yield of outdoor recreation, range, timber, watershed, and wildlife and fish values.
Multiple Use, Sustained Yield Act of 1960 (MUSY) — P.L. 86-517 specifies that the national forests are to achieve a coordinated high level of annual or periodic output through harmonious management of outdoor recreation, range, timber, watershed, wildlife and fish, and wilderness, but without impairing the long-term productivity.
MUSY — Multiple Use and Sustained Yield Act of 1960 (P.L. 86-517; 16 U.S.C. 528 et seq.).
Mutagen — An agent that causes a permanent genetic change in a cell other than that which occurs during normal growth. Testing to determine mutagenicity is one component of assessing the potential chronic toxicity of pesticides and other chemicals.
Mutual self-help housing — A program to assist groups of low-income families in building their own homes. Each family is expected to contribute at least 700 hours of labor in building homes for each other. Participating families generally have low income and are unable to pay for homes built by the contract method. The homes generally are financed by Section 502 loans.
Mycotoxins — Toxic substances produced by fungi or molds on agricultural crops that may cause sickness in animals or humans that eat feed or food made from contaminated crops. There are between 300 and 400 known mycotoxins, but of most concern, based on toxicity and occurrence, are aflatoxin, vomitoxin, zearalenone, fumonisin, T-2 toxin, and T-2-like toxins (trichothecenes). The Grain Inspection Packers and Stockyards Administration (GIPSA) currently measures for aflatoxin in all exports shipments of corn, and measures for aflatoxin and vomitoxin on a voluntary basis in domestic shipments.