Council Urges ICC Not to Restrict the Agricultural Cooperative Exemption From Motor Carrier Regulation

by Council on Wage and Price Stability on February 15, 1977
by Council on Wage and Price Stability

Proposed action to extend the scope of trucking regulation by substantially limiting the exemption from regulation currently enjoyed by agricultural cooperatives was criticized today by the Council on Wage and Price Stability.

By law, an agricultural cooperative’s transportation of its members’ goods is exempt from the Interstate Commerce Commission’s entry and ratemaking regulations. Cooperatives also enjoy certain privileges in transporting nonmember goods.

The Council’s comments on the proposed rules expressed concern that restricting the cooperative exemption would raise co-op shipping costs, and that these higher costs will be passed on to consumers in the form of higher food and other prices.

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