Montana Attorney General Opinion 17-186

Opinion No. 186. Unfair Practices-Agricultural Prod- ucts-Butter. HELD: That butter is not an agri. cultural product as used in Section 5 (a) of the Unfair Practice Act. November 1, 1937. Mr. B. F. Thrailkill Chief of Dairy Division The Capitol Dear Sir: You have asked if hutter is an agri- cultural product, so that the method in determining a fair price would he as set forth in Section 5 (a), Chapter 80, Laws of 1937, or if it is a manu- factured product so that the method used to determine fair price should be as set forth in the halance of said Chapter 80. An agricultural product is defined in 3 Corpus Juris Secondum, p. 361. as "That which is a direct result of hus- bandry and the cultivation of the soil. The product in 'its natural unmanu- factured condition." Quoting from the case of Getty v. Milling Co., 40 Kan. 281; 19 Pac. 617. In that case the question was whether flour was included within the meaning of the term agricultural products, and the court further said: "In one sense it may be said that flour is a product of agriculture. but in the common application of the term we think this is not true. As cotton is a product of agriculture, yet cotton cloth, or other fabrics made from' cotton, could hardly be termed 'agricultural products.' If the products resulting from the manufac- turer of agricultural products are not to be determined by the common ac- ceptation of the term 'agricultural products,' then this charter would em- brace an innumerable variety of man- ufactures and their products. Flour, being the product of manufacture, is not strictly within the purview of this charter." Montana has held that the term agri- culture includes the raising and care of livestock and means the art of culti- vating the ground, especially in fields or large quantities, including the prep- aration of the soil, planting of the seed, raising and harvesting the crops. and rearing, feeding, and managing the livestock. De Fontenay v. Childs, 19 Pac. 2nd, 651. Then in Montana a product of agriculture would include the natural products, of the rearing, feeding, and management of livestock. It has been held that dairy and poul- try products are agricultural products and result from the lahor of those en- gaged in agricultural pursuits. In District of Columbia v. Oyster, 15 D. C. 285; 54 Am. R. 275, the ques- tion was whether milk, cream, and eggs were agricultural products and the court said: "The product of the dairy, or the product of the poultry yard, while it does not come directly. out of the soil, is necessarily connected with the soil and those who are en- gaged in the culture of the soil." Apparently, the answer to the ques- tion turns on the matter of the in- tervention of a processing between the natural product of the soil and the final product for the consumer. If there is no processing, as in milk, cream, eggs, wheat. cotton, the product is an agricultural product. If it is nec- essary to manufacture it or treat it in some way, as grinding the wheat into flour, spinning the cotton, or churn- ing the butter, then it passes from the category of an agricultural product to a manufactured product. Therefore, it is my opinion that but- ter is not included within the defini- tion of agricultural product as used by Section 5 (a) of said Chapter 80, and the fair trade price would be set for butter as for other manufactured products.