Gibson v. United States

11 Cl. Ct. 6, 1986 U.S. Claims LEXIS 791
CourtUnited States Court of Claims
DecidedSeptember 26, 1986
DocketNo. 697-85C
StatusPublished
Cited by15 cases

This text of 11 Cl. Ct. 6 (Gibson v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gibson v. United States, 11 Cl. Ct. 6, 1986 U.S. Claims LEXIS 791 (cc 1986).

Opinion

MEMORANDUM OPINION

LYDON, Judge:

This case comes before the court on plaintiffs Motion for Summary Judgment and defendant's Motion to Dismiss or, in the Alternative, its Cross-motion for Summary Judgment. At issue is whether plaintiff was eligible to participate in the Department of Agriculture’s “Payment-In-Kind” (PIK) Program for 1983. The PIK program was conducted in accordance with the Agricultural Act of 1949, as amended, 7 U.S.C. § 1421 et seq. (1982) and the Commodity Credit Corporation Charter Act, as amended, 15 U.S.C. § 714 et seq. (1982) and Department of Agriculture implementing regulations 7 C.F.R. Parts 713 and 770 (1983). In substance, the PIK program provided agricultural commodities to participating farmers or producers who, in turn, agreed not to plant the same commodities on designated acreage during the crop year. In its complaint, plaintiff challenges a decision by the Department of Agriculture Stabilization and Conservation Service through its Deputy Administrator for State and County Operations (DASCO) holding that plaintiff was ineligible to participate in the PIK program for crop year 1983. Plaintiff seeks to have this court overturn DASCO's decision and find that he was eligible for PIK participation in 1983. In the alternative, plaintiff seeks a remand of this case to DASCO for a new hearing. The parties waived oral argument and submitted the matter on the original briefs submitted by the parties. For the reasons set forth below, plaintiff’s Motion for Summary Judgment and defendant’s Motion to Dismiss are denied. However, defendant’s Motion for Summary Judgment is granted.

I.

A. Background Statement

The Secretary of Agriculture is empowered to determine the amounts, terms and conditions of price support operations for farm commodities. 7 U.S.C. § 1421(b) (1982). The Secretary also is empowered to determine the extent to which such operations are carried out. Id. One method by which price support programs are carried out is through utilization of the Commodity Credit Corporation (CCC). The CCC was established by the Commodity Credit Corporation Charter Act, 62 Stat. 1070 (1948), codified as 15 U.S.C. §§ 714-714p (1982). The CCC is a wholly owned federal corporation. See 15 U.S.C. § 714e (1982). It was created, inter alia, to stabilize, support, and protect farm income and prices and to assist in the maintenance of a balanced supply of agricultural commodities. 15 U.S.C. § 714 (1982). To achieve this goal, the CCC is empowered to “[rjemove and dispose of or aid in the removal or disposition of surplus agricultural commodities.” 15 U.S.C. § 714c(d) (1982).

For the crop year 1983, a support program was implemented for feed grain, including corn. 7 C.F.R. Part 713 (1983). Corn was the commodity for which plaintiff sought PIK participation. The program featured both an “acreage reduction program”, 7 C.F.R. § 713.52 (1983), and a “land diversion program”, 7 C.F.R. § 713.-53 (1983). However, in late 1982, it was apparent that even with these programs the supply of commodities would exceed demand. 48 Fed.Reg. 1476 (1983). Therefore, it was deemed necessary to divert additional acres of crops from production. Id. To achieve this reduction in production, the Payment-In-Kind Program (PIK) was implemented in 1983 in accordance with regulations set forth in 7 C.F.R. Part 770 (1983). PIK was enacted “to adjust the [8]*8total national acreage of certain commodities to desirable goals” and to compensate farmers by means of supplying them with like commodities. 48 Fed.Reg. 1476 (1983).

Under the PIK program, a farmer1 entered into a contract with the Department of Agriculture, through the CCC, in which the farmer agreed to reduce (set-aside) the acreage he normally planted in a commodity designated in 7 C.F.R. § 770.1(b) (corn was so designated in said regulation) and devote said acreage to an approved conserving use. Thereafter, conserving acreage generally was used for a cover crop. 7 C.F.R. § 770.1(a)(1983). In exchange for devoting reduced or set-aside acreage to a conserving use, the farmer received compensation in the form of the commodity normally planted on the acreage. Id. Under the program, 10-30 percent of the farm acreage base could be devoted to the conserving use. 7 C.F.R. § 770.2(a)(2)(i)(1983). Payment to the farmer, in the form of the designated commodity, was calculated by multiplying the yield of the commodity by the acreage devoted to a conserving use which would otherwise have been planted (not including acreage eligible for cash land diversion payments), and by a designated percentage. 7 C.F.R. § 770.3(a)(l)(1983). The designated percentage for corn was 80 percent. Id. Payment generally was made within 5 months of the normal harvest date for the commodity in the area where the farm was located. 7 C.F.R. § 770.3(a)(3) (1983).

In addition to the program described above, another PIK program was implemented. Under this PIK program, 100 percent of a farm’s acreage base for a designated commodity was devoted to an approved conserving use. 7 C.F.R. § 770.-2(a)(2)(ii)(1983). A contract for this “100 percent PIK” was awarded by competitive bid. Id. The bid stated the percentage of the established yield of the designated commodity the farmer would accept as compensation. 7 C.F.R. § 770.5(b)(2)(1983). For corn, the bid could not exceed 80 percent of the established yield. Id.

In December 1972, the CCC’s administration of the Commodity Support Programs generally was delegated to the Department of Agriculture’s Administrator, Agricultural Stabilization and Conservation Service (“ASCS”). See 7 C.F.R. § 2.65(a) (1983). That delegation was in effect in 1983.

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Bluebook (online)
11 Cl. Ct. 6, 1986 U.S. Claims LEXIS 791, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gibson-v-united-states-cc-1986.