Washington Law Review




Defendant's farm, including 550 acres devoted to production of cotton under an acreage allotment from the Department of Agriculture, was condemned by the federal government for an irrigation project. Defendant retained the right under section 1378 (a) of the Agricultural Adjustment Act to transfer its cotton quota to other property under its ownership, and did so. Trial before a jury resulted in an award to defendant based on the value of its property as a cotton farm, less the value of the section 1378 right retained. The government objected on the ground that the enhanced value to the land resulting from the cotton allotment was not compensable when the owner utilized his right to reestablish the allotment on other land. On appeal, the Ninth Circuit Court of Appeals affirmed. Held: Enhancement in land value resulting from a cotton allotment, reduced by the value of the section 1378 right retained, must be included in determining compensation for property condemned. United States v. Citrus Valley Farms, Inc., 350 F.2d 683 (9th Cir. 1965).

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