Rainbow Valley Citrus Corp. v. Federal Crop Insurance Corp.

Plaintiffs, who are three citrus growers in the Rainbow Valley area of Maricopa County, Arizona, filed an action challenging a decision by the Federal Crop Insurance Corporation (FCIC) to discontinue citrus insurance in the Rainbow Valley area. The district court granted summary judgment in favor of the defendant. On appeal plaintiffs contend that in discontinuing insurance in Rainbow Valley without giving plaintiffs prior notice or an opportunity to be heard, the FCIC violated (1) the rule-making requirements of the Administrative Procedure Act ( 5 U.S.C. § 553 ), or (2) the due process clause of the Fifth Amendment. For the reasons set forth below, we affirm.

The Federal Crop Insurance Act ( 7 U.S.C. § 1501 et seq.) authorizes the FCIC to enter into contracts for crop insurance and to “limit or refuse insurance in any county or area ... on the basis of the insurance risk involved” ( 7 U.S.C. § 1508 (a)). Cancellation authority is granted to fulfill the Act’s purpose of “improving the economic stability of agriculture through a sound system of crop insurance” ( 7 U.S.C. § 1502 ). A crop insurance contract arises when the FCIC accepts an application for insurance on a…