John Block Reports from Washington

Hello everybody out there in farm country. This radio commentary is brought to you by Monsanto, and John Deere. They are all friends, supporters, and allies of a healthy farm economy and prosperous rural America. Thank you.

And now for today’s commentary—

This week, the U.S. Supreme Court struck down the raisin Marketing Order program. It has been in place for nearly 80 years. Back in 2003, the government ordered California raisin growers to set aside 47% of their raisin crop. Mr. Marvin Horne said, “No – I’ll keep my raisins and sell them myself.” That began a court battle that went on for 10 years, but it is now settled.

You may wonder – “What is this all about?”

Turn back to the Great Depression of the 1930s and the federal government took a number of steps to control supply of farm products to strengthen prices. Many of those government control programs are gone. We don’t have farm land set aside today. In 1981, when I stepped in as Secretary of Agriculture, the government was paying farmers not to plant as much as 10% or 15% of their corn acres. In return, we got price supports. The set aside program was ended when we passed the 1985 farm bill. We really don’t have production controls for corn, soy beans, wheat, cattle, or rice anymore.

There are 46 federal Marketing Orders still in place affecting fruits, vegetables, nuts, and specialty crops. They are all a little different. Most of the Orders attempt to ensure uniformity of size and grade. With collective action of farmers, they can support price by limiting supply.

The raisin case is bigger than raisins. It will not kill all Marketing Order programs. However, if they survive, they may have to reform. They cannot violate the Takings Clause of the Fifth Amendment which says private property may not be taken for public use without just compensation. The government wanted to take Mr. Horne’s raisins without just compensation. I agree with Mr. Horne. He said, “The Marketing Order – it’s like all things, it served its time.”

Our farming industry is freer of government control than it has been in 80 years, but we still need to make some adjustments. I think this Court ruling will push us in the right direction. Let the market tell us what to do.

In closing, I want to say how pleased I am that Trade Promotion Authority is on the road to passage. Congratulations to President Obama and the Republican leadership in our Congress. Our divided government came together on a very important issue.

Finally, you probably are already aware that Dean Kleckner, who served as President of the American Farm Bureau for 14 years, passed away June 15. He was a great leader for our industry and will be missed. Rest in peace.

If you would like to review my radio shows going back more than 20 years, just go online to www.johnblockreports.com. Have a great weekend. Until next week, I am John Block from Washington, D.C.