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The dispositions of overly produced agricultural products and regulatory takings in the U.S.

  • Public Land Law Review
  • Abbr : KPLLR
  • 2016, 73(2), pp.207-224
  • Publisher : Korean Public Land Law Association
  • Research Area : Social Science > Law

JEONG, HA MYOUNG 1

1경북대학교

Accredited

ABSTRACT

Agricultural Marketing Agreement Act of 1937(AMAA) provides the extensive remedial provisions to stabilize market price of agricultural products. The AMAA was a Depression-era statute intended to control plummeting prices for farmers, as well as protect the orderly supply of food to the market. The AMAA allows the Secretary of Agriculture to regulate the sale of agricultural products to create stable prices and supplies by issuing marketing orders and by making marketing agreements. These mechanisms of marketing orders and marketing agreements include limiting or allotting the quantity of an agricultural product that can be marketed; limiting the size, grade, or quality of products that can be sold; and providing for the control and disposition of surpluses and the creation of reserve pools. Regional marketing committees -- such as the Raisin Administrative Committee (RAC)— are delegated to implement the Secretary of Agriculture’s marketing order to stabilize raisin’s market prices. To stabilize producer prices, the RAC requires raisin handlers to reserve and hold some of the producers' raisins, known as reserve-tonnage raisins. While the raisin handlers may sell the remaining raisins -- free-tonnage raisins -- in any market for market value for immediate profit, the RAC holds the reserve-tonnage raisins to sell in non-competitive markets. Each year, the RAC requires that all raisin growers withhold a certain percentage of their crop from the market and to deliver those excess raisins to the RAC with virtually no payment. In an opinion by Chief Justice John Roberts, by a vote of 8-1, the Court held that the raisin program constitute a taking in Horne v. Department of Agriculture(135 S. Ct. 2419 (2015)). Korean jurists might have some reference from this ruling to protect farmers’ personal property rights with agricultural products. Korean measurements to stabilize agricultural commodity’s price in domestic market shall be stipulated by the statutes and just compensation shall be paid to farmers who take burden to sustain a stable market prices.

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