National Raisin Reserve facts for kids

The National Raisin Reserve was a special program in the United States that dealt with raisins. It was started after World War II by the government. Its main goal was to control how much raisins cost. The program was managed by a group called the Raisin Administrative Committee. It worked by using something called a "marketing order". In 2015, the highest court in the U.S., the Supreme Court, decided that taking a part of a farmer's crops without paying them a fair price was against the law. This ruling officially ended the reserve.

Why the Raisin Reserve Started

The reserve began in 1949. It was created to stop raisin prices from falling too low after World War II. After the war, the government didn't need as many raisins. This meant there were suddenly too many raisins available, and their prices started to drop.

To fix this, Marketing Order 989 was passed in 1949. This order created the reserve and the Raisin Administrative Committee. This committee was in charge of running the reserve. The reserve acted like a government-backed cartel. It purposely limited the amount of raisins available. This helped to push prices up, which was good for raisin farmers.

Raisins that were taken by the reserve were sent to warehouses in California. They were stored there until they could be sold to other countries. Sometimes, they were even given to cattle or school children. The goal was to get them off the market so prices would stay high.

The Raisin Administrative Committee was located in Fresno, California. The United States Department of Agriculture watched over it. The committee members were people from the raisin industry. Each year, they would decide how many raisins to put into the reserve. They also decided what to do with the stored raisins. Money from selling the reserved raisins was used to pay for the committee's costs. Sometimes, farmers were paid for their seized raisins, but not always. For example, in one year, over $65 million worth of raisins were taken. All that money was spent, and farmers received nothing.

Daniel Sumner, an expert from the University of California, once said the reserve was like a "cartel." He meant it used government power to control the market. Similar reserves were also created for other products like almonds, walnuts, and tart cherries. These were part of a government plan called the New Deal.

In 2013, a politician named Trey Radel tried to pass a law to end Marketing Order 989. However, his bill did not become a law.

Supreme Court Ends the Reserve

The reserve became very well known in 2003. This was when a farmer named Marvin Horne challenged its legality. He argued that taking his raisins without payment was against his rights. His case, called Horne v. Department of Agriculture, eventually went all the way to the U.S. Supreme Court.

The Supreme Court first sent the case back to a lower court. That court decided the reserve's rules were fine. But in April 2015, the case was argued again before the Supreme Court. In June 2015, the Supreme Court made a big decision. They ruled that taking a part of a farmer's crops without paying them a fair price was unconstitutional. The Court said the case had gone on long enough. This ruling officially ended the National Raisin Reserve.

Other Similar Reserves

Besides the National Raisin Reserve, there were other similar reserves during the Great Depression. These included reserves for almonds, walnuts, and tart cherries. These reserves were part of the New Deal plan. The government created them to help farmers get fair prices for their crops. This made sure farmers could still make a living. Most of these other reserves no longer exist today.