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Do We Need a Strategic Cherry Reserve?

by Sherzod Abdukadirov on August 2, 2013

in Crony Capitalism, Government-Granted Privilege, Regulation

What do national public interest and cherries have in common? If you follow national politics on a regular basis, the answer probably will not surprise you. It is federal regulation. This week, the USDA issued an interim rule that revised the deadlines for cherry growers submitting their plans to comply with or applications to divert from the centrally planned production of tart cherries. The plan is approved each year by the Cherry Industry Administrative Board, which is elected by cherry growers. The USDA has the power to sanction any grower that deviates from the plan. Yes, the United States has a federally imposed cartel for cherries (among many other agricultural products; you can check here if your favorite fruit made the list). Take that, Canada.

The Agricultural Marketing Agreement Act, which gave the USDA power to regulate the volume of cherries produced in the country, originally passed in 1937. It is doubtful that it had much economic rationale back then (other than granting privilege to favored interest groups). It certainly makes little sense today. Granted that as a key ingredient in cherry pies tart cherries are dear to many Americans, but counting them as “agricultural commodities with a national public interest,” as the federal government does under the Act, is at best an overstatement. In the end, the best way to protect the national public interest is to for the federal government to stop telling farmers when and how to grow their crops.

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