Question 1. The agricultural marketing agreement act commonly referred to as ‘AMAA’, is the law that allows the government to issue ‘marketing orders’ for agricultural products. Question 2. This law was adopted in 1937; however the current marketing order for raisins was adopted in August.18 1949.
Question 3.The marketing orders are formally issued by the united states department of agriculture(USDA) secretary, after it is issued, the agricultural marketing services is the federal body (“AMS”) that administers the order. The “AMS” itself is an agency within the USDA. The committee that determines how the order will be applied every in the case of raisins, consists of 46 industry representatives and only one representative from the public. Question 4a. The committee determines the quantity of raisins to be surrendered to the government each year b. the farmers in 2003-2004 did not receive any compensation. c. In the same crop year the farmers did not set aside the requisite reserve-tonnage requisite and they were required to pay heavy fines.
d) This policy increases the cost of production to farmers who cultivate their crops way before committee announces the quantity required the year, e) the price of raisins domestically is more expensive than international price hence more costs on consumers. Question 5. Farmers who disregard this marketing order may be jailed as suggested by Justice Antonin Scalia. Question 6.Currently, there are 30 products subjected to similar marketing orders. Question 7.The farmers if given a chance to vote may abolish the order because it is mandatory and they have not been consulted since it was enacted or keep the order as it increases grower profits.
Question 8.To reduce wastage, the government can set the quantity of raisins to be produced each year. Question 9.I disagree that marketing order are effectively government cartels because the orders were enacted for sole benefits of the farmers and the economy following the great depression of 1930 and the law was approved through a referendum. Question 10 One of Cato’s spokesperson, Michael McConnell, argues that the domestic prices of raisin are higher than the international thereby negatively affecting consumers. If private firms could do this, he argues, it would be a felony.
Question 11 a.Efficiency is a situation resources are utilized to achieve maximum amount of goods and services with minimal wastage. The marketing for raisins does not improve efficiency as it results to wastage and the resources are not utilized to achieve maximum amount of raisins due to restrictions. b. Marketing order for raisins improves fairness as it is applied to every raisin farmer without discrimination and to the benefit farmers and the economy as a whole. Question 12. There are specific issues in the case appearing before the supreme where the petitioner is claiming that the requirement to give up their crops and the associated fines violates the Takings clause of the Fifth Amendment. Secondly, that the penalties imposed on them violates the Excessive Fine Clause of the Eighth amendment and that the USDA misconstrued the Raisin market order in applying it.
References:
Supreme Court of unites states. Marvin D. Horne petitioners vs. United States department of Agriculture respondent. New York: supreme Court press. print.
The Economist. America’s raisins regime: The Supreme Court grapples with tiny fruit. Washington DC: the economist press, 30th march 2013.print.
The national agricultural law center. Federal marketing orders and agreements: an overview. Fayetteville: University of Arkansas press, 19th April 2013.print.
