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Administrative Law Keyed to Popper
Sugar Cane Growers Cooperative of Florida v. Veneman
Citation:
289 F.3d 89 (2002)Facts
The Department of Agriculture supports sugar production through various programs, including non-recourse loans that effectively guarantee minimum prices for harvested sugar. Due to low sugar prices, the Department had accumulated over 700,000 tons of sugar in storage. In 2000, the Department implemented a payment-in-kind (PIK) program for sugar beet farmers without notice-and-comment rulemaking, allowing farmers to destroy crops in exchange for government-stored sugar. In January 2001, the Department indicated it was considering a PIK program for the 2001 sugar crop and stated it would not proceed without notice and comment. However, on August 31, 2001, the Department announced the 2001 PIK program through a press release, followed by a “Notice of Program Implementation” in the Federal Register on September 7, 2001. The program included both beet and cane sugar producers but contained a $20,000 payment limitation per producer that effectively eliminated the plaintiffs’ opportunity to participate due to their size. The Department also waived a restriction from the 2000 program that would have disqualified participants who had increased their crop acreage. The plaintiffs filed suit, arguing that the Department violated the APA by not engaging in notice-and-comment rulemaking and violated the Food Security Act by not making required findings.
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