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Agriculture Law: A Basic OverviewAgriculture includes soil preparation, seed planting, crop harvesting, gardening, horticulture, viticulture, dairying, poultry, bee-raising, and ranching. Generally, laws grouped under the heading "agricultural law" relate to the production of the fruits of these activities as they are carried out in a commercial setting. In a much broader sense agriculture is concerned with al most every aspect of law. It is effected and impinged upon by the laws of torts, contracts, labor law, employment law, real property , securities law, will and trusts, and environmental law. There are numerous federal statutes that subsidize, regulate or otherwise directly affect agricultural activity. Several focus on agricultural workers: The Federal Migrant and Seasonal Agricultural Worker Protection Act provides protection for migrant and seasonal agricultural workers (29 U.S.C. §§ 1802 et seq.). 42 U.S.C. §§ 1471 et seq. provides for financial assistance to farmers and others for the construction or improvement of farm housing and other agriculturally related purposes. Some states have also passed statutes relating to agriculture production and labor. For example, Arizona has enacted legislation granting agricultural workers the right to organize and engage in collective bargaining activities. In order to understand the present state of agriculture law -it is necessary to unerstand the hisptorical perspective in which it evolved.
Agriculture And The Government - A Historical Perspective The Ordinance of 1785 established a plan for disposing of western lands, and the Land Act of 1796 authorized the sale of single sections (640 acres). While the Land Law of 1820 discontinued extensions of credit, it did reduce the price per acre from $2 to $1.25. The Preemption Act of 1841 provided for the sale of previously settled public lands to original settlers ("squatters") at $1.25 per acre. The first of a series of Homestead Acts was signed into law in 1862. U.S. patents for 160 acre tracts were given to homesteading farmers who complied with statutory requirements. Homesteading ended, for practical purposes, in 1935 with the closing of the public lands to settlement following passage of the Taylor Grazing Act of 1934. In 1827 and 1828, Congress made land grants to Ohio, Indiana, Illinois and Alabama to fund the construction of canal systems. Every other section of land for a certain distance on each side of the canal route was granted in checkerboard fashion and the granted lands sold by the canal authority to finance construction. Not only did this open land to settlement, but construction of essential transportation systems was funded. Starting in the 1850s the same approach was used to finance the construction of thousands of miles of railroad track and to thereby open land west of the Mississippi River to agricultural settlement. For related internatioal environmental problems see: International Environmental Law: Main Page |
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HISTORICAL PERSPECTIVE 3
In 1839 Congress appropriated $1,000 to the Patent Office for collecting agricultural statistics, conducting agricultural studies, and distributing seeds. The United States Department of Agriculture (USDA) was created in 1862. In 1889 the powers of the Department were enlarged and it became the eighth executive department of the federal government. The Commissioner of Agriculture became the Secretary of Agriculture and agriculture became the only industry to have a direct voice at the Cabinet level.
In the middle of the 19th century Congress took steps to encourage states to establish colleges. The Morrill Act of 1862 authorized grants of federal public lands to states to fund the establishment of "land grant" colleges. In 1890, a second Morrill Act authorized separate land grant colleges for Blacks and 17 were established. The 1862 schools, and to a lesser extent the 1890 schools, became known as agricultural colleges. The primary charge to the 1890 schools was to train teachers.
Because 19th century agriculture had no corporate giants capable of sponsoring significant plant and animal science research, support developed for government funded agricultural experiment stations. The first station opened in Connecticut in 1875 and later that year the California Agricultural Experiment Station was founded at the University of California. It was not until the Hatch Act of 1887, however, that federal grants were authorized to support research. Hatch Act funds still flow to experiment stations.
The Cooperative Extension Service, a partnership of federal, state and local governments, was authorized in 1914 in the Smith‑Lever Act. Today, extension professionals at the county level continue to provide practical education to the people in agriculture, home economics and other subjects.
In a further effort to promote agricultural settlement, Congress enacted the Reclamation Act of 1902 which authorized the great dam and canal systems that were to bring flourishing irrigated agriculture to the 17 western states. Designed to promote settlement of small farms, the Act required that a recipient of project water live on the farm, which was not to exceed 160 acres in size. The failure of the Bureau of Reclamation to enforce the acreage limit and the Congressional response 80 years later are discussed in Ch. 11 infra.
State and federal regulatory progra s designed to protect farmers from sharp practicegby buyers, warehouses, and shippers emerged in a latter part of the 19th and the early years of the 2 centuries. Illinois took the lead in the 1870s y enacting
4 GOVERNMENT & AGRICULTURE Ch. l
"Granger Laws" designed to regulate rail rates arid public commodity warehouses.
A sampling of federal laws regulating trade practices illustrates the scope of the concerns of the Congress: the first animal quarantine law in 1884; the Meat Inspection Act in 1890; the Pure Food and Drug Act and the Meat Inspection Act in 1906; the Federal Insecticide Act in 1911; the Seed Importation Law and the Plant Quarantine Act in 1912; the U.S. Warehouse Act and U.S. Grain Standards Act in 1916; the Packers and Stockyards Act in 1921; the Commodities Exchange Act in 1922: the Grain Futures Act in 1924; the Plant Patent Act and the Perishable Agricultural Commodities Act in 1930.
In these same years, other important pieces of agricultural legislation emerged from the Congress. Agricultural cooperatives were given important, but limited, exemptions from the federal antitrust laws, first in 1914 in § 6 of the Clayton Act, and then more significantly in 1922 in the Capper‑Volstead Act. The Federal Farm Loan Act of 1916 authorized establishment of the 12 Farm Credit Banks, the beginnings of the Farm Credit System. In 1923, the Agricultural Credits Act authorized the 12 Federal Intermediate Credit Banks. By 1933, the structure of the Farm Credit System was in place with specialized banks and associations designed to meet the credit needs of producers and agricultural cooperatives.
This recital of developments should not be read to suggest
that all was well for American agriculture prior to the Great Depression, soon
to arrive in the 1930s. Boom and bust cycles were well known, droughts
and insect infestations arrived and depart
However, agriculture was soon to be caught in the whirlwind of the Great Depression, the New Deal, World War II, and a complex world of economic regulation presided over by labyrinthine federal administrative agencies. And, farming was about to undergo great changes with unprecedented yields made possible by advances in plant breeding and increased reliance upon fertilizers and, eventually, pesticides. The lifestyles of farmers and ranchers would change too, as they were converted to many of the ways of their city brothers and sisters. Increases in spending for family goods and production inputs were to add complexity to the lives of agriculturalists whose cash flow was not always adequate to support such habits.
II. ECONOMIC REGULATION
A. The Depression Era
The impact of the Great Depression on federal farm policy is of monumental importance. Had it not been for the extraordinary distress experienced by agriculture during this period, the option of massive ongoing federal intervention might never have been explored. Prior to the 1930s, there had been relatively little economic regulation of agriculture. The New Deal legislative emphasis
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