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Administrative Law Keyed to Aman
Sugar Cane Growers Cooperative of Florida v. Veneman
Citation:
289 F.3d 89 (2002)Facts
The Department of Agriculture supports sugar production through non-recourse loans, which effectively guarantee minimum prices for harvested sugar. Due to low sugar prices, the Department had accumulated over 700,000 tons of sugar in storage, costing approximately $1.35 million monthly in storage fees. In 2000, the Department implemented a payment-in-kind (PIK) program for sugar beet farmers, allowing them 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 implement such a program without notice-and-comment rulemaking. 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. Unlike the 2000 program, the 2001 program included both beet and cane sugar producers, but a $20,000 payment limitation effectively excluded the plaintiffs due to their size. The Department also waived a restriction from the 2000 program that had prevented participants who increased their crop acreage from future eligibility. The plaintiffs filed suit, arguing the Department violated the APA by implementing a rule without notice-and-comment procedures and failed to make findings required by the Food Security Act.
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