Sugar Cane Growers Cooperative of Florida v. Veneman

United States Court of Appeals for the District of Columbia Circuit · Administrative Law

Administrative LawStandingAPA RulemakingRemand Without VacaturAPA5 U.S.C. 553procedural standinginjury in fact

Facts

USDA supported sugar through nonrecourse loans and had accumulated large sugar stores, prompting use of a payment-in-kind program under which producers would destroy crops in exchange for government sugar. After a 2000 PIK program for sugar beet farmers, USDA announced a 2001 PIK program by press release and later a Federal Register notice without using notice-and-comment procedures, even though it had earlier indicated it would not proceed without notice and comment. The 2001 program set bid procedures, payment limits, and future planting sanctions, and USDA also waived a prior restriction that had disqualified certain 2000 participants who increased acreage. Sugar cane producers sued, alleging the program injured them by depressing sugar prices and that USDA violated the APA and the Food Security Act.

Issue

Did the sugar cane producers have standing to challenge USDA's 2001 PIK program, and if so, did USDA violate the APA and the Food Security Act by implementing the program without notice-and-comment rulemaking and without making the statutory findings required by 7 U.S.C. § 1308a? If violations occurred, what remedy was appropriate?

Rule

To establish standing for deprivation of a procedural right, a plaintiff need not show that compliance with the procedure would have changed the agency's ultimate decision; the plaintiff need only show that the omitted procedure was connected to the substantive result. An agency action is a rule when it sets binding procedures, limits, and sanctions of future effect, and an outright failure to use notice-and-comment cannot be deemed harmless where there is any uncertainty about the effect of that failure. Statutory findings required by the Food Security Act must actually be made by the Secretary or a properly authorized final decisionmaker; merely referencing the requirements is insufficient.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

The Federal Farm Markets Bureau announced a one-year fruit buyout program for growers in California and Oregon. Sierra Valley Orchards, a pear processor in Sacramento, alleges the program will increase market supply and depress prices, and sues because the bureau adopted the program without notice-and-comment procedures.

To establish standing on its procedural APA claim, what must Sierra Valley Orchards show?

Explanation. A plaintiff alleging deprivation of a procedural protection such as notice and comment need not prove the agency would have reached a different substantive result. It is enough that the omitted procedure was connected to the substantive result. The majority rejected the view that a challenger must show its comments would have changed the agency’s decision.