SUPREME COURT DECISION THREATENS USDA COMMODITY PROMOTION PROGRAMS
Last week’s Supreme Court decision, which found the U.S. Department of Agriculture’s Mushroom Research and Promotion Program unconstitutional, could threaten the future of other similar programs.
The court ruled in favor of United Foods Inc., a domestic mushroom grower that challenged a fee levied on its mushrooms, because the money was mostly spent on advertising that the company disagreed with. The Supreme Court upheld an earlier decision by the Court of Appeals for the Sixth Circuit that said the fee violated United Foods’ First Amendment rights.
Legal analysts believe that other USDA research and promotion programs, such as cotton, honey, potatoes, beef, watermelon and pork, could face similar scrutiny. The cotton fee imposed on importers of wearing apparel, for example, generates about $20 million a year for the Cotton Board.
The USDA said it will review the court’s decision and decide whether to change its mushroom research and promotion program or terminate it. Importers may be able to collect refunds of the illegally collected fees.