Rebel Farmers And Government Cartels: How The New Deal Cartelized U.S. Agriculture

“Marvin Horne doesn’t look like a man in open rebellion against the United States government, but the 70-year-old raisin farmer and his wife Laura have had enough. If they get their way, they’re not going to let the U.S. Raisin Administrative Committee take their raisins anymore.

Yes, there’s a Raisin Administrative Committee.

This week, the Supreme Court heard arguments in Horne’s case challenging the Raisin Administrative Committee. It’s the New-Deal case that took 80 years to bring.

Like an agency pulled from the pages of an Ayn Rand novel, the Raisin Administrative Committee (RAC) oversees many parts of U.S. raisin production. The 47-member committee consists of different representatives from the raisin industry, including ‘handlers,’ those who pack the raisins and prepare them for sale, and ‘growers,’ those who grow and dry grapes. They meet in an office in Fresno and issue ‘marketing orders,’ which decide, among other things, how many raisins should be diverted into the National Raisin Reserve each year. By taking raisins off the open market, the RAC maintains an artificially high price for raisins and keeps many, but obviously not all, raisin farmers happy. Think of it as a raisin cartel, a raisin OPEC.”

(Via.) Forbes <—Read more here

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