Raisins are sometimes known as nature’s candy, but they’re unlikely to be called free-market fodder. The healthy snack is a “heavily regulated” agricultural commodity under the Agricultural Marketing Agreement Act (AMAA) of 1937. Not that everyone is on board with such regulation.

The Supreme Court will consider a federal foray into raisin price-stabilization this term. On Tuesday, the Court granted certiorari in Horne, et al., v. U.S. Department of Agriculture.

Last year, the Ninth Circuit Court of Appeals upheld the civil assessments and the constitutionality of the regulatory scheme.

Now the Supreme Court has agreed to address two issues in the case:

  • Whether the Ninth Circuit erred in holding – contrary to the decisions of five sister circuits – that a party may not raise the Takings Clause as a defense to a “direct transfer of funds mandated by the Government,” but instead must pay the money and then bring a separate, later claim requesting reimbursement of the money under the Tucker Act in the Court of Federal Claims; and
  • Whether the Ninth Circuit erred in holding, contrary to a decision of the Federal Circuit, that it lacked jurisdiction over petitioners’ takings defense, even though petitioners, as “handlers” of raisins under the Raisin Marketing Order, are statutorily required to exhaust all claims and defenses in administrative proceedings before the USDA, with exclusive jurisdiction for review in federal district court.

If the Court sides with the Hornes, the agricultural market would be flooded with raisins, thus driving prices down, The Associated Press reports.

Sadly, we doubt that even an incentive like lower prices could make raisins more popular.

Related Resources:

  • Horne v. USDA (FindLaw’s CaseLaw)
  • Little Tucker Act Doesn’t Waive Sovereign Immunity for FCRA Suit (FindLaw’s Supreme Court Blog)
  • On Raisins and Takings: Ninth Circuit Upholds USDA (Constitutional Law Prof Blog)

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