On Monday, the U.S. Supreme Court ruled that the requirement that raisin growers to set aside a portion of their crop to be placed in reserve to control price and supply was in violation of the Constitution. The Courts said the marketing order violated the Fifth Amendment prohibition that requires the government pay just compensation when it takes personal property for public use.
The Court held, “The reserve requirement imposed by the Raisin Committee is a clear physical taking” that causes raisin growers “to ‘lose the entire bundle’ of property rights in the appropriated raisins.”
The decision has the potential to affect marketing orders for other commodities such as almonds and dates, however, since similar programs rarely exercise reserve orders, it is unlikely. For more information, please contact WG’s Ken Gilliland (949) 885-2267.
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