Johnson, Samantha R.

Marketing orders are government-supported cartels designed to help farmers by allowing them to set production quotas and quality standards. Given that, it is surprising that a growing number have been voluntarily terminated in recent decades by their constituent farmers. To better understand why, we construct a novel data set on the timing of initiation and termination of marketing orders active between 1974 and 2019 and estimate duration models to examine the impact of specific factors on marketing orders’ probability of survival. We find that the most significant factor affecting marketing order persistence is whether the order had a corresponding marketing agreement.